FAS/Seoul Monitoring of Media Reporting on Agricultural Issues

Today's Date:   Wednesday April 30, 2014

For Coverage:   April 21 ~ 30, 2014

1. BILATERAL/MULTILATERAL ISSUES

Korea-Colombia FTA Ratified by the National Assembly [Korea, KSY]

http://news.newsway.co.kr/view.php?tp=1&ud=2014043007260072433&md=20140430074625_AO

SUMMARY:  The Korean National Assembly agreed on Korea-Colombia Free Trade Agreement on the 29th.  This FTA is the 10th FTA for Korea, and Korea will become the first Asian country to conclude FTA with Colombia.  The major agricultural products that Korea opened are coffee and flowers.  Korea employed exceptional clauses in produce such as rice, beef, seasoning, and vegetables.

2. BIOTECHNOLOGY ISSUES

[Reporter's Opinion] Closed Information about Organic Equivalency Agreement is Regrettable [Korean, KSY]

http://www.nongmin.com/article/ar_detail.htm?ar_id=231192&subMenu=articletotal

SUMMARY:  Interests and concerns about the Organic Equivalency Agreement are rising, but information about the negotiation is not disclosed.  Therefore, people are taking wild guesses.  For example, there are some people who insist that the United States has no concrete regulations on adventitious presence of genetically modified organisms (GMO).  They claim that Organic Equivalency Agreement will allow unlimited tolerance of GMOs.  There are also concerns that the import of organic processed foods will surge once the agreement is settled.  Disclosing detailed information about the negotiation can bring confusion, but the information that can cause controversy should be opened.  The standard of GMO tolerance is already shown on the US National Organic Program (NOP) website.  Moreover, importing organic food under the current organic labeling system is more convenient than the import under equivalency agreement, making the argument that the agreement will increase import questionable.  The government's lack of communication only buttresses these guesses.  The fact that the first negotiating partner is none other than the United States and that Koreans are highly sensitive about GMOs should remind the government about the importance of communication with the citizens.  The government must always keep in mind the candlelight protest against mad cow disease that put the country into turmoil in 2008.

GMO Labeling Not Necessary with Certificate of Test Results [Korean, KSY]

http://news.khan.co.kr/kh_news/khan_art_view.html?artid=201404290802221&code=920401

SUMMARY:  The Ministry of Food and Drug Safety (MFDS) implemented a system from the 29^th that makes GMO labeling unnecessary if the test result which proves non-detection of genetically modified DNA is submitted.  The eased regulation is expected to raise controversy.  Previously, only the government certificate or the identity preservation handling certificate was accepted.  In addition, MFDS permitted tags to be attached if GMO products are put in mesh bags.  MFDS also allowed GMO labeling on each product to be omitted if it is indicated on a display case or a separate sign.  Furthermore, different terms of GMOs, such as genetically manipulated and gene recombination, will all be unified as genetically modified.

3. ECONOMIC ISSUES

Farming Household Income Records 34.52 Million Won in 2013 [Korean, KSY]

http://www.hankyung.com/news/app/newsview.php?aid=2014042491411

SUMMARY:  The average annual income of farming household recorded 34,524,000 won in 2013.  It is an 11.3% increase compared to the previous year, and the biggest leap after 1994. Non-farm business income showed the biggest increase of 15.6% to 15,705,000 won. Farm income increased 9.9% to 10,035,000 won.  Irregular income increased 8.7% to 2,940,000 won, while transfer income increased 4.1% to 5,844,000 won, and the income of livestock farm surged 45.1%.  Farm expenses rose 10.1% to 30,264,000 won.  The income of fishing households increased only 3.2% to 38,586,000 won.

4. LIVESTOCK ISSUES

[Urgent Diagnosis] What Impacts Does Price Surge in US Beef and Pork Have on Korea? [Korean, KSY]

http://www.nongmin.com/article/ar_detail.htm?ar_id=231222&subMenu=articletotal

SUMMARY:  The decline in US beef and pork production due to drought caused a price rise.  According to Korea Customs Service, the price of beef per kilogram increased 9.5% to 9,120 won compared to last month.  The price of pork per kilogram is similar to late 2013 with 3,422 won, but it is predicted to rise.  Korean livestock industry expects that this price surge will reduce meat import and stimulate consumption of domestic meat.  Actually, the amount of beef and pork import from the United States from January to March decreased 7% to 27,244 tons and 15.5% to 28,377 tons respectively, compared to the same period in 2013.  However, the distribution specialists insist that consumption of domestic meat might not increase as much as expected since there are other meat exporting countries that can substitute the United States.  In addition, the Korean government may have to employ tariff rate quota to stabilize the meat price.  The experts are concerned that the temporary rise in Korean beef and pork price will lead to an excessive increase in cow and pig population, which can result a plunge in domestic beef and pork price.

Nonghyup to Prevent FMD from Moving Southward [Korean, KSY]

http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=101&oid=001&aid=0006873376

SUMMARY:  Central Nonghyup announced on the 21st that it is trying its best to prevent foot-and-mouth disease (FMD) from moving southward.  Its goal is to vaccinate 100% livestock in the border area.  It is also running a 24-hour emergency call system and regular inspection.

Suspected AI Report from Jincheon, Chungbuk...Preventive Cull Underway [Korean, KSY]

http://www.cctoday.co.kr/news/articleView.html?idxno=831415

SUMMARY:  Another suspected avian influenza (AI) report was filed in a goose farm in Jincheon, Chungbuk on the 21st.  It is the first time AI was found in goose.  The result will be out on the 23rd, but the local government culled 415 geese as a preventive measure.

AI Spreads over North Hwanghae Province, North Korea [Korean, KSY]

http://www.yonhapnews.co.kr/bulletin/2014/04/23/0200000000AKR20140423037900014.HTML

SUMMARY:  North Korea reported to the World Organisation for Animal Health (OIE) on the 22nd that avian influenza (AI) spread over Hwangju County in North Hwanghae Province.  According to the report, 501 poultry were infected by AI (136 dead, 365 buried).  North Korea strengthened disease control and vaccinated chickens in Pyongyang and Seopo.

Preference of Pork Parts Shifts from Belly and Boston Butt to Picnic and Ham [Korean, KSY]

http://www.yonhapnews.co.kr/bulletin/2014/04/26/0200000000AKR20140426027200030.HTML

SUMMARY:  Preference of pork parts is shifting from belly and boston butt to picnic and ham.  According to E-mart, the sales of pork picnic and ham increased 62.6% and 40% respectively, while the sales of pork belly and boston butt only increased 9.9% and 8.9%.  This is because of the high price rise in pork belly and boston butt due to decrease in pork shipping.  The price actually rose from 1,200~1,500 won to 2,000 won per one hundred grams.  Another reason is the introduction of new recipes using other pork parts.  New recipes using picnic and ham for barbecue, boiling, and marinating are slowly becoming popular.  Picnic for barbecue is sold at 1,080 won per one hundred grams and ham for marinade is sold at 800 won per one hundred grams at E-mart.

AI Outbreak in Jincheon and Ulsan [Korean, KSY]

http://www.nongmin.com/article/ar_detail.htm?ar_id=231419&page=

SUMMARY:  A goose farm in Jincheon, Chungbuk and a chicken farm in Ulsan were diagnosed with highly pathogenic avian influenza (HPAI).  A total of 700 geese from Jincheon and 7,000 chickens from Ulsan were culled.  The current AI outbreak is continuing for more than 100 days.

Price of Duck Jumps 27% due to AI [Korea, KSY]

http://news.khan.co.kr/kh_news/khan_art_view.html?artid=201404300733221&code=920401

SUMMARY:  Shortage of ducks due to avian influenza (AI) is causing a sharp rise in the price.  According to Korea Duck Association, the wholesale price of duck (3kg) reached 9,500 won.  This is a 26.7% increase compared to a month ago and over 50% increase compared to a year ago.  The supply of ducks decreased dramatically due to the culling because of AI.  National Statistical Office (NSO) revealed that the number of ducks fell 39.7% to 6.57 million in January to March.  It also said that a total of 2.31 million ducks were culled until February.

5. MARKETING ISSUES

Lotte Mart Offers "Golden Crab" Imported from Florida

http://www.hankyung.com/news/app/newsview.php?aid=2014042882481

Summary: Lotte Mart announced that it would start selling American "Golden Crab" (aka butter crab) air-shipped from Miami, Florida from April 30 to May 7.  Lotte Mart stressed that the price of the Golden crab, offered at 29,900 won per head (900 gram), would be less than half of King crab.  Price of King crab in the market has more than doubled over the last couple of years as Korea's fishing quota in Russian seas has declined significantly.

6. OTHER MISCELLANEOUS ISSUES

[Focus] Legislation of 'Special Act on Imported Food Safety System' Accelerates [Korean, KSY]

http://www.nongmin.com/article/ar_detail.htm?ar_id=231200&page=

SUMMARY:  The legislation of 'Special Act on Imported Food Safety System' is accelerating as ceaselessly occurring accidents related to imported food raise concerns among Korean consumers.  The experts demand the safety system for imported foods to be reinforced from 'quarantine level (customs clearance level)' to 'pre-import level'.  It means that the food safety should be controlled before the foods are imported to Korea.  All of the 34,000 companies that export food to Korea have to preregister, and on-site audit will be reinforced.  The importers or the foreign manufacturers must register the name, location, and facilities to the Ministry of Food and Drug Safety 7 days in advance to the import declaration. Moreover, the record of the imported food can be detected for a prompt return or discard.  This law is expected to prevent any hazardous food before entering into the country. The biggest concern about the law is the trade conflict.  The exporters might consider the law to be a strengthened non-tariff barrier.  However, Myung-yeon Kim of Saenuri Party pointed out that other countries such as the United States, EU, and China implemented a similar law, and claimed that the health of the citizens cannot be compared to commerce.  Professor Byeong-ho Jung from University of Seoul said that the online registration is easy to follow, and the conflicts can be prevented by phase-in implementation and prior arrangement with the foreign governments.