FAS/Seoul Monitoring of Media Reporting on Agricultural Issues

Today's Date:   Friday, July 31, 2015

For Coverage:  July 01 ~ 31, 2015

1. FOOD SAFETY ISSUES

Quarantine requirements for grapes exports to Australia relaxed [Korean, CSY2]
http://www.yonhapnews.co.kr/bulletin/2015/07/13/0200000000AKR20150713054800030.HTML?input=1195m
Summary: The Animal and Plant Quarantine Inspection Agency (QIA) announced on July 13^th that the quarantine requirements for domestic grapes that are exported to Australia have been relaxed.  The mandatory on-site inspection in Korea by Australian inspectors, when domestic grapes are exported to Australia, has been changed to optional, and not mandatory.  In the future, Korean quarantine officers can allow grape farmhouses to export domestic grapes to Australia without the on-site inspection by Australian officers.  QIA explained that exports last year were only 25 tons since the on-site quarantine was a mandatory requirement.  The agency anticipated that grape exports are expected to increase as export requirements to Australia have been relaxed.

2. ECONOMIC ISSUES

Import prices of agricultural, livestock and fishery products in June increased [Korean, CSY2]
http://www.yonhapnews.co.kr/bulletin/2015/07/22/0200000000AKR20150722049200002.HTML?input=1195m
Summary: The Korea Customs Service (KCS) announced on July 22^nd that the import price index for agriculture, livestock and fisheries  in June marked 112.2, an increase by 4.4 percent compared to the same period last year.  The import price index for agricultural products was 107.3, up by 3.2 percent, the index for livestock products reached 143.0, up by 6.4 percent, and the index for fisheries products was 95.3, a drop by 0.9 percent from last year.  The import price index, which shows how import prices develop, is calculated by taking January, 2010 as a base year. 

3. LIVESTOCK ISSUES

Imported beef consumption increased [Korean, CSY2]
http://www.ytn.co.kr/_ln/0102_201507200001260540
Summary: According to E-Mart, imported beef has accounted for 60 percent of total beef sales this month due to the rising price of Hanwoo, prime Korean beef.  Data from the Korea Institute for Animal Products Quality Evaluation (KAPE) indicated that the wholesale price of the top grade Hanwoo beef has gone up by 9.2 percent over the previous month level.  The Korea Rural Economic Institute expected that Hanwoo beef prices will increase further up to Chusuk holidays, as the number of breeding cattle continue to decline.

Korea bans poultry imports from the United Kingdom [Korean, CSY2]
http://news.kbs.co.kr/news/view.do?ncd=3113434&ref=A
Summary: The Ministry of Agriculture, Food and Rural Affairs (MAFRA) announced that imports of all British poultry and poultry product are banned as Highly Pathogenic Avian Influenza (HPAI) had occurred in Britain.  The import banned items include live fowl and poultry meat, such as chickens and ducks, except heat treated products.

<6/26/2015> S. Korea to resume Dutch poultry imports next month [English, CSY]

http://english.yonhapnews.co.kr/search1/2603000000.html?cid=AEN20150626002500320

Full text: South Korea will lift its six-month ban on imports of poultry from the Netherlands as no additional outbreaks of avian influenza (AI) have occurred there since the measure was imposed late last year, the agriculture ministry said Friday.   The imports are set to resume next month, as soon as it has been agreed that there are no contradicting opinions from related agencies or specialists that say otherwise, according to the Ministry of Agriculture, Food and Rural Affairs.

Seoul had discontinued imports of poultry as well as avian pets, such as chickens, ducks and parrots, following an AI outbreak in Europe last year. In 2014, South Korea imported 143 tons of chicken meat from the Netherlands, according to the Ministry of Food and Drug Safety. Duck products were not imported.  The Netherlands is South Korea's fifth-largest supplier of the meat after the United States, Brazil, Denmark and Hungary.  Earlier this year, the agriculture ministry also lifted poultry import bans on Australia and Britain.

4. MARKETING ISSUES

"MERS is Over", Korean Gov't Declares that the Country is Now Free of the Disease [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2015072887281

Summary: Korean prime minister declared on July 27 that the outbreak of Middle East Respiratory Syndrome (MERS) disease in Korea had practically come to an end.  There has been no report of new patients since July 8.  All the people who were under self-detention status for suspicious symptoms have returned to normal life.  During the last 69 days under the outbreak, a total of 186 Koreans were infected by the virus and 36 of them died.  The outbreak brought a serious dip in the local economy as people reduced activities outside the home and foreign visitors to Korea plunged.  In June, the number of Chinese visitors to Korea reduced 41 percent.  Department store sales declined 10.7 percent and hypermarket store sales declined 9.7 percent.

Shinsegae In-store Promotion Features the Oldest Craft Beer in the U.S., Anchor Brewing Company, San Francisco [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2015072615581#AA.10296518.1

Competition Heats Up in "Low Alcohol Whiskey Market" ... Perno Ricard Korea Launches 'ECLAT' that Contains 31% Alcohol [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2015072213831

Summary: Leading whiskey companies in Korea are escalating the competition in the "low alcohol whiskey market".  The market was created back in 2009 when Sooseok Liquor launched 'Golden Blue', a Scotch whiskey based distilled spirits that contained 36.5 percent alcohol (Scotch whiskey should be 40 percent alcohol or higher by definition).  Over the years, other liquor companies joined the market with new product launchings as the segment attracted a significant number of female and other consumer groups who were concerned about high alcohol content in regular whiskey.  Perno Ricard Korea joined the market by launching 'ECLAT' on July 22.  'ECLAT' contains 31 percent alcohol and is registered as 'other types of distilled spirits' as it also contains added flavor ingredients.

The Number of Beef Cattle Farms in Korea Has Declined Sharply Over the Last Ten Years [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2015071326221

Summary: The number of beef cattle farms in Korea totaled 129,000 in 2014, down 64 percent from 2005.  The decline was mainly due to closing of small scale, family operated cattle farms.  The number of beef cattle farms that has 20 or less cattle totaled 70,000 in 2014, which was less than half of the number in 2010 (134,000).  Another key reason is continued aging of the cattle farm industry.  Over 44 percent of the cattle farmers in Korea are currently over 65 years old.  Korea Agricultural Cooperative Federation has forecast that if the industry is not replenished by young farmers, the number of cattle farms in Korea will further decline down to 65,000 by 2024.

Growth of Korean Consumers' Direct Purchase from Foreign On-line Shops Declines Sharply in the First Half due to Rise of Dollar Exchange Rate [Korean, OSY]

http://www.edaily.co.kr/news/NewsRead.edy?SCD=JA11&newsid=02040166609434192&DCD=A00101&OutLnkChk=Y

Summary: According to the Korea Customs Office, the amount of purchases that Korean consumers made from foreign on-line stores in the first half 2015 amounted to $770 million, up 7 percent from the same period the previous year.  The 7 percent growth was much smaller than the average growth rate marked during 2010-2014, 54 percent.  The main cause of the reduced growth was stronger value of U.S. dollar.  The value of U.S. dollar rose 10 percent during the first half 2015.

Restaurant Sales Recover to 80% of Pre-MERS Sales Level [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2015070929851

Summary: Korea Restaurant Industry Association reported on July 9 that its industry survey indicated that the sales of restaurants had recovered to 80 percent of pre-MERS sales level at the end of the fourth week of June.  Since the outbreak of the MERS (Middle East Respiratory Syndrome) in Korea in the first week of June, sales of local restaurants declined quickly down to 41 percent level of regular sales within a week.  The weekly survey of the association has monitored changes in the sales.  The most recent survey in the fourth week of June showed that the restaurant sales was continuously recovering.  Restaurants answered in the survey that it would take another 3.7 months for them to fully recover back to the normal sales level.

Shinsegae Opens Another Premium Grocery Supermarket [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2015070891671

Summary: Shinsegae, the leading retail company in Korea, announced that its third SSG Food Market store opened on July 8 in Seoul.  SSG Food Market is a premium grocery store chain under the company that offers a wide selection (over 15,000 SKU) of premium food and agricultural products such as organic, natural, and locally grown.  According to Shinsegae, the sales of its existing SSG Food Market stores have shown double digit growth this year despite sluggish local economy because increased number of consumers demand premium quality products.

Increase of "Single-sumer" (Single Member Households) Boosts Sales of Convenience Stores [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2015070576391

Summary: Cash register sales of convenience store industry in Korea has seen 20 percent growth in the first half this year.  According to the industry, the growth is mainly fueled by the increase of people who lives alone (single member households, aka "single-sumers").  The industry sales totaled 12.7 trillion won in 2014, up 8.6 percent from 2013.  Marketers agree that continued expansion of single-sumers will bring many changes to the Korean retail market in the coming years, including growth of prepared/ready to cook meals.  

Ex-Farm Raw Milk Price Remains Unchanged for Two Years in a Row ... Retail Price of Dairy Products Likely to Stabilize [Korean, OSY]

http://news.donga.com/3/all/20150702/72231469/1

Summary: Korea Ministry of Agriculture announced on July 1 that its dairy sector committee came to a decision not to change the ex-farm raw milk price for the coming cycle year (August 1, 2015 through July 31, 2016).  The price for the current cycle year is 940 won per liter.  As a result, retail price of processed dairy products which directly follows the ex-farm raw milk price is likely to remain stabilized in the coming year.  The ex-farm raw milk price, which is decided by a committee of representatives from stake holders including farms, processors, academy and government annually, is calculated based on fluctuation of milk production cost and consumer price.  Despite some factors for price increase, reduced consumer demand and over supply of raw milk situation in the market have reportedly pressured the committee to come to the decision not to raise the ex-farm price.

5. NORTH KOREA ISSUES

North Korea’s per capita GNI marked 1.39 million won, one twenty-first of South Korea [Korean, CSY2]
http://www.hankyung.com/news/app/newsview.php?aid=2015071778591
Summary: According to the data released by the Bank of Korea last week, North Korea’s gross domestic product (GDP) grew 1 percent in 2014, followed by 1.1 percent in 2013 and 1.3 percent in 2012.  North Korea’s gross national income (GNI) reached 34.2 trillion won last year, which is one forty-fourth of South Korea’s GNI of 1,497 trillion won.  NK’s per capita GNI also marked 1.39 million won, one twenty-first of South Korea’s per capita GNI for the same period.  Major economic indicators show that the economic gap between South and North Korea is widening.

North Korea hit hard by drought [English, CSY]

http://www.koreatimes.co.kr/www/news/nation/2015/07/116_182149.html

Summary: North Korea has been hit hard by the worst drought in a century, causing damage to the farm production in the impoverished country, according to a media report Friday.  Water-borne disease is also spreading across the country, the report said.  "North Korean rice paddies have been hit by a long-lasting drought and it's affecting agricultural production," United Nations Office for the Coordination of Humanitarian Affairs (UNOCHA) was quoted as saying by Radio Free Asia (RFA).

6. OTHER MISCELLANEOUS ISSUES

CJ has started to export low-calorie sweetener to the United States [Korean, CSY2]
http://www.hankyung.com/news/app/newsview.php?aid=2015071461941
Summary: CJ Cheil Jedang has started exporting Allulose, low-caloric sweetener, to the global markets, especially to the United States.  Allulose is sweet substances existing in raisin, fig and wheat, showing the taste of 70% of sugar content.  It is regarded as the ‘next generation sweetener’ due to having just 5 percent of refined sugar calories.  CJ has developed enzyme based technology since 2007, producing Allulose on a large scale.  CJ explained that the first amount of its export was half a million dollars, and it drew a lot of attention from the U.S. despite being nine times of fructose price.  “We will market a liquid form of Allulose this year,” an official said, and introduce a powdered product next year.”  CJ aims to make 700 billion Korean won (620 million dollars) from Allulose sales by 2020.

Four foods supposed to be good for stamina [Korean, CSY2]
http://www.ajunews.com/view/20150706175703344
Summary: Snow crab, pork, skate and tomato, which are foods good for stamina, have been attracting Koreans’ attention since they were introduced by a television program last year.  Snow crab contains proteins, amino acids and minerals.  Pork produces a hormone that enables people to fall in love.  Substances in skate repair body tissues and control their destruction, and tomato is called the source of stamina, according to a Korean medical book.

Chinese-style hot noodle has the highest sodium level [Korean, CSY2]
http://www.ekn.kr/news/article.html?no=144789
Summary: According to the Ministry of Food and Drug Safety, Chinese-style hot noodles with vegetables and seafood, Jjamppong, had the highest sodium content per serving and boiled pork slices had the most calories among 315 foods Koreans enjoy when eating out.  Jjamppong had 4,000 milligrams of sodium per serving, double the WHO’s recommendation of 2,000 milligrams a day, boiled pork slices took the first with 1,206 kilocalories, according to the ministry’s food nutritional content sourcebook.  A 2013 report showed Koreans took in 4,027 milligrams of sodium a day on average.  “Food with soup generally has a high sodium content, so people are advised to eat the solid ingredients of soup rather than the liquid,” a ministry official said.

S. Korea’s food, agrofisheries exports dip 0.6 percent in H1 [English, CSY]

http://www.koreaobserver.com/s-koreas-food-agrofisheries-exports-dip-0-6-pct-in-h1-38725/

The country’s exports of food and agrofisheries products dipped 0.6 percent from a year earlier in the first half of 2015 due to a drop in shipments to Japan, Hong Kong and the Association of Southeast Asian Nations (ASEAN) countries, the government said Wednesday.  In the January-June period, the country’s exports of edible goods stood at just under US$3.01 billion vis-a-vis more than $3.02 billion shipped out the year before, the Ministry of Agriculture, Food and Rural Affairs said.

It said the dip can be attributed to overall sluggishness in global trade and unfavorable exchange that made locally produced goods more expensive in some ASEAN countries.  Exports to China and the United States expanded 11.5 percent and 4.6 percent, respectively, while figures for the European Union surged 18.9 percent. On the other hand, outbound shipments to key markets such as Japan and Hong Kong were down 9.6 percent and 7.7 percent, respectively, with ASEAN exports backtracking 7.2 percent.

Korea's ginseng exports to increase [English, CSY]

https://www.koreatimes.co.kr/www/news/biz/2015/07/123_182370.html

Summary: It will likely become easier for Korea to export ginseng and processed food items containing it as the root has been classified as a food product, not a medicine, according to the Ministry of Agriculture, Food and Rural Affairs, Tuesday. The Korean government has been trying to have ginseng categorized as a food, not a pharmaceutical drug, adding that CODEX's latest decision will likely boost the nation's outbound shipments of ginseng to Japan, China and other countries.

Ginseng and its processed goods have been subject to more stringent customs inspections when brought into foreign countries because it was regarded as a medicine, not food. Higher import tariff rates were also applied to ginseng products, compared to those of other agricultural products, making it less attractive to consumers abroad.

Fruit imports up 8 percent through May: data [English, CSY]

http://english.yonhapnews.co.kr/business/2015/07/01/0501000000AEN20150701005200320.html

Full text: Foreign fruit imports rose 7.9 percent in the first five months of this year, fueled by steady demand for smoothies, fruit-based drinks and ice flakes, data showed Wednesday.  According to the data by the Korea Customs Service (KCS), imports of mangoes, bananas, grapefruits, cherries, pineapples and grapes reached US$438 million in the January-May period, up from $406 million tallied for the year before.  Among others, imports of cherries surged 75.3 percent on-year to $57 million. The numbers for grapefruits and mangoes increased 26.6 percent and 25.6 percent, respectively, with grapes moving up 5.4 percent, they showed.  But imports of bananas dipped 3.8 percent over the cited period, with domestic demand for pineapples falling 13.8 percent.  Imports of the six key fruits jumped 23.3 percent on-year to $778 million in 2014.