Today's Date:     Wednesday, March 7, 2012

1. BILATERAL/MULTILATERAL ISSUES

Korea-U.S. FTA to boost food product imports: KCCI poll [English, CSY]

http://www.koreaherald.com/national/Detail.jsp?newsMLId=20120305000785

Summary: Korean retailers plan to import more food products once the free trade pact with the United States goes into effect this month, a poll by a private economic organization showed Monday.  According to the Korea Chamber of Commerce and Industry survey on 250 local retailers, 29.1 percent of the respondents said they are interested in importing more processed foods, followed by 27.9 percent that wanted to bring in various fresh farm produces.

2. GRAIN & OILSEED ISSUES

Crop insurance payments soar on bad weather in 2011 [English, CSY]

http://english.yonhapnews.co.kr/business/2012/03/06/0502000000AEN20120306001900320.HTML

Summary: South Korea's crop damage insurance payments soared to surpass the 100 billion won (US$89.5 million) mark for the first time last year due to bad weather conditions, the government said Tuesday.  The Ministry for Food, Agriculture, Forestry and Fisheries said insurance payments to farmers to cover lost earnings and damages hit 132.6 billion won in the one year period, up 46.8 percent or 42.3 billion won from the year before.

3. LIVESTOCK ISSUES

Seoul bans poultry imports from Taiwan following AI outbreak [English, CSY]

http://english.yonhapnews.co.kr/business/2012/03/06/0501000000AEN20120306009600320.HTML

Summary: South Korea on Tuesday banned imports of all poultry products, including live birds, from Taiwan following the latter's announcement last week of an outbreak of a highly pathogenic strain of avian influenza (AI).  The import ban prohibits inbound shipments of any poultry products from Taiwan that have been produced since Dec. 7 as Taipei said its first confirmed case dates back to Dec. 27, according to the Ministry of Food, Agriculture, Forestry and Fisheries.

4. MARKETING ISSUES

Emart Expands Imported Seafood in Its Fishery Product Sales Partly via Direct Importing [Korean, OSY]

http://news.donga.com/Economy/Market/3/0108/20120306/44568530/1

Summary: Emart, the leading hypermarket retail chain in Korea, reported that the share of imported products in its fishery department sales has expanded significantly in recent years (15 percent in 2008 to 44 percent in 2011).  Part of the products sold by the chain was procured directly from exporting countries through Emart’s own purchasing offices overseas.  For example, Emart sourcing office in Hochimin city, Vietnam has developed a supply network of Vietnamese small octopus last year, which resulted in sales of 50 tons of the product in Emart stores.  Emart fishery buyer commented that depletion of local fishery resources will further force Emart to expand sales of imported products in the coming year.

“Drinking Cola may Cause Cancer”, American Consumer Group [Korean,OSY]

http://www.yonhapnews.co.kr/economy/2012/03/06/0318000000AKR20120306041800009.HTML

Summary: CSPI, a Washington DC based consumer NGO claimed that its lab tests found high amount of 4-MEI, a coloring agent, in both Pepsi and Coca-cola products.  The NGO argued that the additive in question is registered as cancer-causing material in the State of California, so FDA should regulate use of 4-MEI in cola products.  However, FDA said that the amount of 4-MEI in cola products is very low and does not present any health risk.  FDA added that a person should drink 1,000 cans of cola a day to intake enough amount of 4-MEI before developing any toxic result.

5. OTHER MISCELLANEOUS ISSUES

<3/4/2012>Pioneer of white broth instant noodles losing steam [English, CSY]

http://www.koreaherald.com/national/Detail.jsp?newsMLId=20120304000342

Summary: The white broth instant noodles market is taking a new turn with the hit Kkokkomyeon giving way to rival Nagasaki Jjamgppong.   Paldo Co.’s Kkokkomyeon, which uses chicken broth, started the frenzy for white broth last year in the Korean instant noodle market traditionally dominated by ramyeon with its red-hot chili favored soup. Kkkomyeon and Nagasaki Jjamppong accounted for a fifth of all ramyeon sales at one point.  The award-wining Kkokkomyeon sold more than 100 million packets in just over five months after it was released in August last year. It soon became unavailable in supermarkets, adding to its popularity.  Samyang Foods Co. launched Nagasaki Jjamppong, which uses broth from pig bones, days earlier, and Ottogi Co., Ltd. began selling similar chicken broth noodles in November, but Kkokkomyeon was unbeatable.  The tide turned recently, however, with sales of Kkokkomyeon dropping after aggressive marketing by its rivals.