1. GRAIN & OILSEED ISSUES

Good Weather Conditions May Depress Rice Prices [English, CSY]

http://www.koreaittimes.com/story/32712/good-weather-conditions-may-depress-rice-prices

Full text: The rice price is forecast to fall as rice production for this harvest season is expected to be higher than last year.  October 24, according to the Agricultural Outlook Center at the Korea Rural Economic Institute (KREI) on, this year's rice output is estimated at 4.24 million tons, up 5.8 percent from the previous season.  From these amounts, 3.87 million tons will be out for sales in the market while 8.7 percent (370,000 tons) of it will be purchased under a government rice price stabilization program.

The total rice cultivation area for the year was 8,330 square kilometers, down 1.9 percent from 2012. But the expected per-1,000-square-meter output is 510 kilograms, up 37 kg from last year. The Korea Statistical Office said the higher yield was largely due to good weather conditions during the grain-ripening time.  The current price for rice delivered to processing centers has been on a downward trend. As for the rice produced last year, the average September price for an 80-kg burlap was 175,827 won, down 1,076 won (-0.61%) from the previous month.  As of October 15, the 80-kg-pack price of newly harvested rice was 172,000 won, down 6,360 won from ten days ago, although this was about 2.4 percent higher than that from a year ago.

Rice Subsidy Scandal on a Fierce Debate [Korean, LSH]

http://joongang.joins.com/article/aid/2013/10/30/12588683.html?cloc=olink|article|default

Summary: Dong Pil Lee, Minister of Agriculture, Food and Rural Affairs announced that increasing the rice target price will be inevitably suspended. He said that even the price suggested by the government (174,083won per 80kg) is already above the production cost which makes additional rise an explicit deviation from original intention. However, the producers and farmers were strongly opposed to the announcement by saying that the desirable price is 230,000 won (KRW). Public discussions on the conflicting opinions became fierce and aggressive as audiences intensely protested.

Soybean Farmhouses Complains about Current Regulation on Soybean Purchase [Korean, LSH]

http://www.hankyung.com/news/app/newsview.php?aid=2013102936041

Summary: Ever since the government regulated the domestic soybeans to be only sold to small Tofu businesses rather than major companies, the soybean farmhouses suffered from decreased sales income and oversupply. The Association of Soybean Producers insisted that the major companies should also be allowed to make tofu with domestic soybeans.  The head of association said that the amount of soybean purchased by small businesses decrease by 30 percent and some companies still has remaining stocks. In order to sustain and support soybean farmhouses’ income, the regulation on major companies should be suspended. 

2. MARKETING ISSUES

Starbucks Korea Considers Opening Smaller Outlets … Not Much Room Left in the Market for Large-scale Outlets [Korean, OSY]

http://news.donga.com/3/all/20131029/58553117/1

Summary: Starbucks Korea is reportedly considering opening smaller-scale outlets.  According to Starbucks Korea, the new outlets could even be a small kiosk type outlets of 3 to 6 sq. meter space that only offer take-outs.  Starbucks Korea’s all 575 outlets in Korea are large-scale outlets that have minimum 10 tables.  But according to the industry analysts, Starbucks would not be able to open up additional large-scale outlets easily as the café market in Korea is showing a sign of getting saturated.

“Rice Subsidy Cannot Be Increased”, Minister of the Ministry of Agriculture, Forestry, Livestock and Food [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2013102936361

Summary: On October 29, Dongpil Lee, Minister of the Korea Ministry of Agriculture, Forestry, Livestock and Food said in a National Audit meeting with congressmen that the Korean government is against the idea of increasing the amount of subsidy offered to rice farmers.  Mr. Lee explained that the current subsidy, 174,083 won per 80 kg bag, is already higher than the production cost so no further increase is needed at the moment.  Congressmen have been requesting further increase of the subsidy amount.