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April 21, 2014

2014.06.03

FAS/Seoul Monitoring of Media Reporting on Agricultural Issues

Today's Date:   Monday April 21, 2014

For Coverage:   April 10 ~ 21, 2014

 

 

1. BILATERAL/MULTILATERAL ISSUES

 

Rejection of Philippines' Waiver Negotiation and Its Implications to Korea [Korean, KSY]

http://www.nongmin.com/article/ar_detail.htm?ar_id=230831&subMenu=articletotal

SUMMARY:  The Philippines has requested for a waiver on rice tariffication six times since March 2012 based on Marrakesh Agreement Establishing the World Trade Organization, and the request was rejected each time by WTO.  The minimal market access (MMA) increased during the five year period.  In addition, nine nations that participated in the negotiation demanded lowered tariff on beef and weakened SPS.  The fact that WTO Council for Trade in Goods is in charge of the issue means that the negotiation is not only limited to the field of agriculture.  The Korean government insists that the case of Philippines shows that it is hard to suspend rice tariffication.  It argues that increased MMA and eased quarantine will damage Korea.  On the other hand, Korean Peasants League commented that ¡®rejection¡¯ means that the discussion must be continued, not a failure of negotiation.  It added that the government should not make an idiotic mistake of absolutizing Philippines' case and abandoning its right to negotiate (to maintain the status quo).

 

2. BIOTECHNOLOGY ISSUES

 

[Editorial] Peril of Korea-US Organic Equivalency Agreement [Korean, KSY]

http://www.vop.co.kr/A00000745308.html

SUMMARY:  The negotiation on Organic Equivalency Agreement between Korea and the United States began in April.  The US organic processed foods will enter without going through domestic certification process when the negotiation is settled.  It seems that the United States is pressuring Korea to export their organic processed foods as a prerequisite for Trans-Pacific Partnership.  There is a fair chance that the United States will have their way.  US agriculture is highly dependent on Monsanto GMOs, and even the government cannot control how the GMOs are distributed.  This is why the United States allows 5% tolerance detection of GMO.  Nevertheless, the United States is forcing Korea to rectify its organic certification, claiming that it is a trade barrier.  The United States is violating Korea's food sovereignty.  If the organic equivalency agreement is settled this way, Korean agriculture will be encroached and contaminated by the US organic processed foods that contain GMO.  The negotiation should be ceased, and the Korean government should maintain the zero tolerance non-detection of GMO.

 

Emergency Debate on Korea-US Organic Equivalency Agreement [Korean, KSY]

http://www.gukjenews.com/news/articleView.html?idxno=89736

SUMMARY:  Chun-jin Kim, the assemblyman of New Politics Alliance for Democracy, held an emergency debate on Korea-United States Organic Equivalency Agreement.  The debate evaluated the core issues of the agreement, such as zero tolerance of GMO and approval of food additives, and sought to prepare comprehensive measures.  Ju-i Yoon, president of Korea Farmers and Fishermen Newspaper, lead the discussion and Ju-pil Yang from the Ministry of Agriculture, Food, and Rural Affairs presented the progress and scheme of the agreement.  The other participants included Jong-seo Park (Organic Farmers Association), Sang-hee Park (Korean Advanced Farmers Federation), Myung-ho Kim (Korea Food Research Institution), Eun-young Lee (Consumers Korea), and Kyung-woo Lee (Korea Organic Food Association).  Chun-jin Kim said that he will try his best to reflect profit of farmers and consumers and secure safe food as public interest in organic processed food.

 

Breakdown in KOREA-US Organic Equivalency Agreement Negotiation [Korean, KSY]

http://www.newsis.com/ar_detail/view.html?ar_id=NISX20140410_0012847982&cID=10417&pID=10400

SUMMARY:  The first negotiation on Organic Equivalency Agreement broke down. The Ministry of Agriculture, Food, and Rural Affairs (MAFRA) announced that Korea and the United States agreed that organic certification is an adequate system for sustainable agriculture environment, but had different opinions on some regulations.  This means that they admitted the agreement is virtually impossible.  It is unknown whether the two countries can reach agreement in the next meeting planned in May.

 

3. GRAIN & OILSEED ISSUES

 

[Opening of Rice Market Has Come] What are the Aftermaths? [Korean, KSY]

http://www.newspim.com/view.jsp?newsId=20140418000366

SUMMARY:  The amount of rice imports after tariffication can be affected by tariff, preference of consumers, currency rate, and international price.  The Korean government estimates that no more than the current amount of minimal market access will be imported because of the potentially high tariff.  On the other hand, the farmer groups insist that the situation can change in the near future due to FTA or TPP.

The amount of rice imported through minimal market approach is 408,700 tons.  It is 10% of domestic rice production.  Most of them are used in processed foods, and only 120,000 tons are used for meals.  Korea Agro-Fisheries & Food Trade Corporation (aT) sells imported rice to 323 companies through public auction.  According to aT, the price of Chinese rice per 20kg is 25,000 won, the US rice is 32,000 won, and Korean rice is 43,000 won.  The imported rice with 5% tariff has a competitive price, but a tariff over 200% will prevent more imports.  However, variables exist.  If DDA(Doha Development Agenda) is settled and conditions of 'developed country' are applied to Korea, the tariff should be lowered to one third to two thirds.  FTA and TPP can also affect the high tariff.  The mixture of domestic and foreign rice disguising as Korean rice is also a problem.  The Korean government says that it will decide rice tariffication by June and come up with measures to support domestic rice farmers.  Some people insist that the government is delaying the announcement after the general election not to irritate farmers.

 

Korean Government to Go Through Agreement Procedure by the National Assembly [Korean, KSY]

http://www.yonhapnews.co.kr/bulletin/2014/04/15/0200000000AKR20140415155500030.HTML

SUMMARY:  Korean government decided to report the schedule of rice tariff concessions to the National Assembly and go through agreement procedure before submitting it to the WTO.   Once the schedule of concession is submitted, the rice market should be opened as soon as the exceptional period expires, regardless the ratification by National Assembly.  This makes the ratification virtually meaningless.  It is why Korean government decided to report the schedule of rice tariff concession to the National Assembly before submitting.  Since there is no regulation on agreement procedure, this process is about gaining consent from the assembly, not getting an approval.

 

"Rice Market Opening is Inevitable"...Government to 'Take the Bull by the Horns' after Local Election in June [Korean, KSY]

http://www.hankyung.com/news/app/newsview.php?aid=2014041084731

SUMMARY:  Korean government decided that it will conclude the rice tariffication issue after the local election in June.  Opening the rice market is a politically sensitive issue, but the opinion that any hesitation will cause harm to the rice farmers considering the time and benefit is becoming widely accepted.  The government also has to prepare the free trade agreement negotiation with China which will become full-scale later this year.  The problem is the National Assembly.  Most of the lawmakers concur that rice tariffication is mandatory.  However, the lawmakers who have rural areas in their constituency and the opposition from the farmers are variables.  A government official said that considerable debates will arise over the issue, but that is just a pain that it should go through anyway.

 

4. LIVESTOCK ISSUES

 

Chicken Farm in Icheon Diagnosed with AI [Korean, KSY]

http://www.yonhapnews.co.kr/bulletin/2014/04/20/0200000000AKR20140420056800061.HTML?from=search

SUMMARY:  Avian influenza (AI) was diagnosed once again in a chicken farm in Icheon on April 20th.  Among 10 chickens dead, 4 showed AI positive.  A total of 95,000 chickens in the farm are subjected to a preventive cull.  During the current AI outbreak, 1.32 million poultry have been culled in the Gyeonggi region.

 

AI Standstill Orders to Be Lifted in Chungbuk on the 24th [Korean, KSY]

http://www.newsis.com/ar_detail/view.html?ar_id=NISX20140417_0012862258&cID=10806&pID=10800

SUMMARY:  Chungbuk local government will completely lift the avian influenza (AI) standstill orders by the 24th.  Twelve locations in the region were subjected to standstill orders since the first outbreak on January 27th.  Since there has been no further outbreak of AI after March 20th in Jeungpyeong, the government is preparing for removal of orders.

 

Rise in Egg Price, No Increased Demands during the Easter Season [Korean, KSY]

http://www.yonhapnews.co.kr/bulletin/2014/04/16/0200000000AKR20140416221000030.HTML

SUMMARY:  The demand for eggs is not increasing although the Easter Season is just around the corner.  The rise in egg price seems to be the reason.  The supply of egg decreased due to heat wave last summer and avian influenza this year, and at the same time, demand increased as a substitute for fishery products after Fukushima nuclear disaster.  The average price of 10 eggs during a week before Easter recorded 2,020 won, which is a 40% increase compared to the previous year.

 

Worst AI Crisis Ever¡¦Extermination Expected in May [Korean, KSY]

http://news.chosun.com/site/data/html_dir/2014/04/15/2014041500191.html

SUMMARY:  The Ministry of Agriculture, Food, and Rural Affairs (MAFRA) announced that the ongoing avian influenza (AI) crisis is expected to be eradicated in late May.  Korea can regain the AI free title when the preventive cull is completed within April and there is no additional suspected report for 40 days after the culling.  The recent AI outbreak, which was the 5th outbreak in Korea, left the most damage with a total of 12.36 million poultry culled.  It was also the most widely spread AI with the virus detected in 70 cities and counties.  MAFRA assumes that the AI virus was transmitted through migratory birds from China.  The H5N8 virus, the main culprit of the current AI, was first found in Zhejiang, China.

 

Korean Livestock Groups to Demand Complete Ban of Imported Beef in Military [Korean, KSY]

http://www.nongmin.com/article/ar_detail.htm?ar_id=230858&subMenu=articletotal

SUMMARY:  Korean livestock groups are demanding a complete ban of imported beef in the military food.  The Ministry of Defense has a policy of providing 13 grams of meat from Hanwoo, 9 grams from beef cattle, and 9 grams from imported beef per day for each soldier.  However, the imported beef has been substituted by domestic beef since 2012 due to a fall in price of domestic beef.  The livestock groups insist that although only the domestic beef is provided in the military currently, the existence of policy which allows imported beef means that it can be used again anytime.  They are requesting for a policy that completely prohibits the usage of imported beef.

 

Duck Inventory Decreases Due to AI [Korean, KSY]

http://www.yonhapnews.co.kr/bulletin/2014/04/11/0200000000AKR20140411078000002.HTML

SUMMARY:  According to National Statistical Office (NSO), the number of ducks in the first quarter of 2014 declined 39.7% to 6.58 million compared to the previous quarter due to avian influenza. The number of layer chickens decreased 0.4% to 64.57 million, while the number of broiler chickens increased 1.8% to 77.88 million.  The number of Hanwoo and beef cattle decreased 3.7% to 2.81 million and the number of pigs decreased 2.2% to 9.70 million.

 

Poultry Consumption Recovering from AI [Korean, KSY]

http://www.ytn.co.kr/_ln/0102_201404140002551210

SUMMARY:  The consumption of chicken and duck is recovering from the avian influenza (AI) crisis.  According to E-mart, the chicken sales which dropped 63% after the AI outbreak rose 0.8% in early April, compared to 2013.

 

5. MARKETING ISSUES

 

Lotte Mart Launches Premium PB Brand, "Prime L Gold" [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2014041352511

Summary: Lotte Mart, a leading hypermarket retail chain in Korea announced on April 14 that its first premium private label product brand (PB), "Prime L Gold" will appear in the store on April 17.  The first "Prime L Gold" products to appear in the show include a top grade milk with limited daily production and a premium bread made from locally grown ingredients.  Price of the products under "Prime L Gold" brand will be similar or even higher than national brand products.  Lotte Mart added that more products will be introduced under the brand in the coming months.

 

6. NORTH KOREA ISSUES

 

North Korea Reports AI Outbreak to OIE [Korean, KSY]

http://www.ytn.co.kr/_ln/0101_201404170835357764

SUMMARY: North Korea reported avian influenza outbreak to World Organization for Animal Health (OIE) on April 16th.  The report said that there were two outbreaks on March 21st and 27th in chicken farms located in Pyongyang, causing death of 46,217 chickens.

 

South Korean Livestock Farmers Avoid Vaccination Even Though FMD Proliferates in North Korea [Korean, KSY]

http://www.nongmin.com/article/ar_detail.htm?ar_id=230954&page=undefined

SUMMARY:  South Korean farmers avoid vaccination of their livestock even though foot-and-mouth disease (FMD) is proliferating in North Korea.  There was a pig FMD outbreak in January and cow FMD outbreak on March 14th in North Korean side of Cheolwon, Gangwon Province.  However, South Korean farmers are not taking any measures to prevent it.  The vaccine supply rate recorded only 69.8%.  The ratio of antibody formation recorded 92.1% for cows and 43.9% for hogs in February 2014.  The Ministry of Agriculture, Food, and Rural Affairs is reviewing to give penalty to the farms without vaccination.  The local governments and Nonghyup are planning the disease control activities to prevent transmission of FMD.

 

AI Diagnosed in North Korea [Korean, KSY]

http://www.yonhapnews.co.kr/bulletin/2014/04/09/0200000000AKR20140409129200014.HTML

SUMMARY:  The Chosun Central News Agency, a North Korean News Agency reported on April 9th that H5N1 type avian influenza broke out in a chicken farm in Pyongyang.  It added that thousands of chickens were culled, but the virus is being transmitted to other farms.

 

7. OTHER MISCELLANEOUS ISSUES

 

Investigation on Origin of Food Materials Depend Solely on Survey [Korean, KSY]

http://www.nongmin.com/article/ar_detail.htm?ar_id=231109&page=undefined

SUMMARY:  A research done by the Ministry of Agriculture, Food, and Rural Affairs (MAFRA) showed that 29.7% of produce used in food companies was Korean.  It is a 38.2% drop from 67.9% in 2011.  The high percentage in 2011 and the 40% decrease both seem unconvincing.  The confusing result derives from the change of the research method.  In 2011, the materials were labeled Korean if they had been processed in Korea, and the percentage was calculated according to values.  This year, the imported materials are labeled imported even though it had been processed in Korea. Also, the calculation was based on quantity.  There are still loopholes in the research, since it depends solely on surveys.  There is a possibility of false response from the companies.  The experts insist that 29.7% is only a maximum value, and can be lower in reality.  To achieve MAFRA's 10-10 project (using 10% more Korean produce within 10 years) more accurately, the verification of country of origin should be more detailed.

 

Regulation on Pesticide Residue on Agricultural Imports to Be Strengthened [Korean, KSY]

http://www.nongmin.com/article/ar_detail.htm?ar_id=230830&page=undefined

SUMMARY:  The Ministry of Food and Drug Safety (MFDS) announced on April 9th that the regulations regarding pesticide residues on imported agricultural products will be strengthened.  Tolerance limit for pesticide residues on agricultural import with high dependency rate, such as banana, mango, pineapple, and coffee beans, will be raised.  Cadmium level for fruits and fishery products will be created.  The new regulation will be implemented 6 months later, after gathering domestic and international (WTO) opinions and screening.

 

The information in this report was compiled by the Agricultural Trade Office (ATO) at the U.S. Embassy in Seoul, South Korea. The press summaries contained herein do NOT reflect USDA, the U.S. Embassy, or other U.S. government agency official policy or view point. U.S. food exporters can learn more about market opportunities in South Korea by reviewing ATO Seoul¡¯s Exporter Guide and other reports available at www.fas.usda.gov by clicking on ¡°attaché reports

 

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Agricultural Trade Office, U.S. Embassy - Seoul
Tel: 82-2-6951-6848 Fax: 82-2-720-7921
Email: atoseoul@state.gov