Archive for the ‘2014 Food Shortage’ Category

UNFAO on DPRK food supply outlook

Thursday, February 5th, 2015

On February 3, 2015, the UNFAO recently published the DPRK “Outlook for Food Supply and Demand 2014/15“.

Here are the highlights:

1. After increasing markedly for three consecutive years, food production remained stagnant in 2014 with the aggregate output put at 5.94 million tonnes (including cereals, soybeans and potatoes in cereal equivalent). This figure comprises the official estimate of the 2014 main harvest and forecast for the 2015 early crops from cooperative farms, as well as FAO projections of production from sloping land and household gardens.

2. Paddy production dropped by about 10 percent due to reduced irrigation water availability, following low precipitation in the winter and dry spells during the 2014 main season. However, this decline was compensated by a significant increase in maize output, as a result of mass mobilization of people to water maize plants.

3. Production of the 2014/15 early season potatoes and minor wheat and barley crops, to be harvested from next June, is forecast to fall considerably.

4. The total utilization needs for the 2014/15 marketing year (November/October) are set by FAO at 5.49 million tonnes of cereal equivalent and the cereal import requirement is estimated at 407 000 tonnes. The Government is expected to import 300 000 tonnes of cereals, leaving an uncovered deficit of 107 000 tonnes for the current marketing year. This gap is larger than in 2013/14 partly as a result of revised post-harvest losses.

5. With a stagnant harvest in 2014, the food security situation in 2014/15 is likely to remain similar to that of the previous marketing year, with most households estimated to have borderline and poor food consumption rates.

The report listed these statistics that I thought were worth highlighting:

The marginal increase (0.3  percent) in the 2014/15 food production follows three consecutive years of strong growth at 4.4 percent in 2011/12, 8.7 percent in 2012/13 and 3.5 percent in 2013/14. However, at the forecast level, production remains above the past five-years average.

Andrei Lankov takes an optimistic view of this report in his article for Radio Free Asia and in the Carnegie Moscow Center. He credits implementation of the 6.28 Measures.

Marcus Noland commented on technical aspects of the report (such as the fact that the assessment was made without direct access to the country).

Scott Snyder commented on some of the political economy around the reports findings in Forbes. He asks why the UNFAO was not allowed into the DPRK, and notes that Russia has become the DPRK’s largest food donor.

The Daily NK has also noted the stability of food prices in late 2014 and early 2015.

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The third anniversary of Kim Jong Il’s death: Urging economic prosperity through economic development

Wednesday, December 31st, 2014

Institute for Far Eastern Studies (IFES)

This year marked the end of a three-year mourning period for Kim Jong Il’s death. To solidify Kim Jong Un’s rule, North Korea is urging for economic advancement and emphasizing economic prosperity and people’s happiness.

The Rodong Sinmun, the mouthpiece of the Workers’ Party of Korea (WPK), increased its economy related news content from December 17. The entire December 22nd edition featured news on economic development: the front page headline read, “Let Us Seize All the Battle Goals of This Year”; news highlighted the achievements of the country’s cement factories, thermal power plants, insulation factories, cooperative farms, mines, and other front-line industries. In addition, pages two and four introduced economic development plans about fisheries and medical supplies. It also featured news touting rural villages’ ability to resolve vegetable shortages by growing vegetables rather than lawn in yards and by planting persimmon trees in villages.

The December 20th edition featured news of Kim Jong Un’s field guidance to Kim Jong Suk Pyongyang Textile Factory — his first since the end of the three-year mourning period for his father. The factory is named after Kim Jong Un’s grandmother and is one of the DPRK’s major textile factories. Kim stressed the problem with production of school uniforms and said, “The Party will fully take charge of the issue of school uniforms, shoes, school supplies, and school bags.”

Prime Minister Pak Pong Ju’s visit to the Orangchon Power Station No. 2 in North Hamgyong Province was also reported. This power station is significant in terms legacy. It began with Kim Il Sung’s order to resolve the power shortage problem in the North Hamgyong region. Power Station No. 1 was completed in 2007 during Kim Jong Il’s era. Power Station No. 2 was completed during Kim Jong Un’s regime.

The reason for the increased emphasis on economic issues is likely the desire to earn public support and improve public sentiment toward Kim Jong Un for resolving the country’s economic problems.

Meanwhile, the Voice of Russia reported that DPRK’s grain production increased this year against the previous year, recording 5.71 million tons. The Russian news agency ITAR-TASS also reported this news, quoting a DPRK official from the Ministry of Procurement and Food Administration: “Despite the drought that we had this year, grain yield increased by 50,000 tons from last year at 5.71 million tons.”

This is the first official report released by DPRK authorities on yearly crop yield. It suggests that North Korea’s good harvest of last year continued with a good harvest this year.

Success in the agricultural sector is likely to lessen the burden of chronic food shortage, and Kim Jong Un’s various agricultural reforms are expected to gather momentum including “Punjo” farming management system, which involves the handing out of small plots of land, or “pojon,” to small sub-groups or sub-workteams, usually comprising a family unit.

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DPRK responds to drought: 2014

Saturday, December 20th, 2014

UPDATE 5 (2015-7-10): According to IFES:

Despite Drought Last Year, Food Production Increased Due to Field Responsibility System

North Korea experienced its biggest drought in 100 years last year. However, North Korea claims that this did not affect its food production. North Korean authorities are claiming the main factor behind the increased food production is the will of farmers to produce more after the expansion of the “field management system,” or pojon tamdangje.

In an interview with the weekly newspaper, Tongil Sinbo, Chi Myong Su, director of the Agricultural Research Institute of the Academy of Agricultural Sciences of the DPRK commented, “the effectiveness of field management system (pojon) from cooperative farm production unit system (bunjo) is noticeable and succeeded in increasing grain production despite the adverse weather conditions.”

The field management system under the bunjo management system or the subworkteam management system divides the work unit consisting of 10-25 people into smaller units of 3-5 people, responsible for farming a smaller unit of a field. This is a measure to increase the “responsibility and ownership of farmers.”

From the July 1st Economic Management Improvement Measures enforced in 2002, the autonomy of cooperative farms and enterprises expanded. The “field management system” was piloted from early 2004 in Suan, North Hwanghae Province and Hoeryong, North Hamgyong Province, but was suspended soon afterward. However, this system is reported to have been implemented widely after the first National Conference of Subworkteam Leaders in the Agricultural Sector was held in Pyongyang in February 2014.

Economic principles behind the field responsibility system are stated as, “under the sub-work team structure, a smaller subworkteam consisting of 2 to 3 families or 3 to 4 people depending on the scale and means of production, is responsible for a specific field or plot (pojon) from planting to harvest stage to inspire farmers with enthusiasm for production by distributing the shares of production in accordance with the output of production planning.”

The newspaper added, “Despite the adverse weather conditions last year, the high grain yield was possible due to implementation of scientific farming methods and field management system to increase enthusiasm of farmers,” and “based on this experience, many cooperative farms across the country will expand subworkteam management system to field management system.”

Director Chi stated, “Since the field management system was implemented, farmers’ labor capacity increased to 95 percent. The planting time for corn and rice that took 20 to 30 days in the past is shortened to 10 to 15 days. In the autumn season, grain threshing that took 50 days is now only taking 10 days. This is changing the farming landscape.”

In addition, the distribution shares for farmers increased as well as the state’s procurement last year. This is attributed to “socialist distribution principles that distributed grains produced to farmers in-kind based on their efforts after excluding a specified amount of grain procured by the state.”

He added, “There are quite a number of farming households that received several decades worth of distribution after a year of farming. There is an increasing number of families with growing patriotism to increase the amount of grain procurement to the state.”

UPDATE 4 (2015-2-6): Media sources report that North Korea experienced a surprisingly good harvest in 2014.

According to the Voice of America:

The GS&J Institute released a report based on statistics from the U.N.’s World Food Programme and Food and Agriculture Organization. Dr. Gwon Tae-jin, who spearheaded the research, wrote that the North harvested 4.98 million tons of crops in 2014.

The FAO recently announced that the North harvested about 5.94 million tons of raw crops last year. The figure from the GS&J Institute is based on how much would be left after processing the raw crops for consumption.

Gwon explained that while the figure is lower than the previous estimate because of the drought in spring, the autumn harvest made up for the lackluster yield earlier in the year.

The report indicated North Korea’s crop harvest plunged from 4.05 million tons in 1995 to 2.57 million tons in 2001. However, the food security situation has improved since 2004, staying around 4 million tons in most years.

In 2011, the figure rose to 4.22 million tons, and when Kim Jong Un became the country’s leader in 2012, it rose to 4.45 million tons. The next year, it was 4.84 million tons.

Gwon said Pyongyang’s efforts to draw manpower to farming and prioritize the distribution of fertilizer and other materials for agriculture is the main reason behind the hike in crop harvest. He added that the new policy of letting farmers freely use a certain percentage of the harvest had also helped the productivity.

In a telephone interview with VOA, Gwon said, “North Korea, which overcame difficulty with international aid in the early 2000s, is now in the process of overcoming another difficulty through its own efforts, rather than aid.”

Despite the slight improvement, however, the North Korean government is not able to meet the minimum needed for food security.

In 2007, when the crop yield was low, Pyongyang was able to feed its people through imports and international aid. From 2008 on, the country has experienced food shortages because of a decline in international aid.

The latest report forecast crop distribution in the North to be lacking by some 80,000 tons, when totaling its crop harvest, imports and international aid.

I have not been able to locate the original UN or GS&J reports (VOA-you should site your statistics, or even better, link to them).

The increase in agricultural production occurred at the same time as a nation-wide drought. Could this be the effectiveness of the 6.28 Measures?

Read the full story here:
Report: N. Korea’s 2014 Harvest Best Since Mid-’90s
Voice of America
2015-2-6

UPDATE 3 (2014-12-20): According to the Pyongyang Times:

Nation set to secure enough water for farming

A long spell of severe drought that hit the country this year lowered the water level of reservoirs and reduced water sources for farming.

As part of the ongoing nationwide drive to meet the challenge and secure enough water for farming next year, cooperative farms in North Phyongan and South Hwanghae provinces are stepping up the repair and construction of reservoirs and waterways and their extension.

North Phyongan Province is focusing on the construction of reservoirs together with the reconstruction of Paengma-Cholsan and Amnokgang waterways.

Builders engaged in the reconstruction of Paengma-Cholsan and other waterways already rebuilt the waterway section in charge and are now laying stones over the surface of the banks.

The province is now carrying on the plans to build the reservoir at the Osong Cooperative Farm in Jongju till April and Hwangpho reservoir in Kwaksan County till June next year.

At the same time, it pushes ahead with the repair of 202 dams, about 600 pools, over 1 000 wells, some 90 tube wells and underground reservoirs to collect as much water as possible for the next year’s farming.

North Hwanghae Province is concentrating on the building of pumping stations to do safe farming by pumping up water from the Taedong River together with that of reservoirs.

After setting an ambitious goal to repair dozens of reservoirs, build dozens of more reservoirs, build and extend hundreds of kilometres of more waterways and construct more wells, tube wells and pumping stations on two stages till March next year, it is pushing forward with them in a planned manner.

Builders of Wangdang Reservoir No. 2 in Singye County are building earth dams successfully.

Songnim City is undertaking a project to draw water from the Taedong River into Inpho, Chongun and other ris. Notable achievements have been made in the building of foundations and waterways in a few days since it began.

The construction of pumping stations and waterways is under way in Hwangju County to draw water from the Taedong River into hundreds of hectares of paddy and dry fields of the Sunchon Cooperative Farm which was severely hit by drought this year and in Sariwon to use water of the Jaeryong River on the Migok Cooperative Farm.

UPDATE 2 (2014-11-7): According to the Daily NK:

Market rice prices have been dropping dramatically in recent days, the Daily NK has learned. Given reports of an unfavorable harvest due an absence of fertilizer and drought conditions early in the season, the news has come as a surprise to many residents. In turn, this has led to customary bouts of speculation and rumor.

“The price of rice has plunged to 4,500 KPW [0.54 USD] per kg in the markets,” a source in Pyongyang told the Daily NK on Thursday. “The harvest is underway and freshly harvested rice is pushing down prices.”

“This year, not only collective farms but also individuals planted a lot of rice,” he elaborated. “It seems like the rice from these private plots is now in the marketplace.”

As of mid-October, a kilo of rice was fetching 6,800 KPW [0.82 USD] in public markets, according to research conducted by the Daily NK in locations across North Korea. Later in the month it fell to 5,000 KPW [0.60 USD], and has now reached the 4,500 KPW [0.54 USD] mark.

“Rice is going for roughly 4,800 KPW [1.80 USD], and the price here continues to fall,” a source based in the isolated border city of Hyesan said. “People have been saying the harvest this year has not been that good, but there’s definitely a lot of rice in the markets now.”

The going rate for corn has also fallen in Hyesan, the source explained, dipping to 1,700 KPW [0.20 USD] in early September. The price of corn usually tracks that of rice.

Meanwhile, in Pyongyang residents eager to determine the cause of the sudden drop have been speculating “that rice from Russia has been brought in,” the source revealed. There have even been hard numbers floated in reference to the rumor. To wit, “The state requested 5,000 tons because of the bad harvest.”

The source in Hyesan explained that, as usual, “grain units” have been officially dispatched to oversee the distribution of the harvested rice, but that bribes are sufficient to keep them from regulating rice sold in markets.

The term “grain unit” refers to 20-30 members of the Worker and Peasant Red Guards, one of North Korea’s large reserve military forces consisting of men between the ages of 17 and 60 and some unmarried women, who set up checkpoints along main transportation routes in order to govern the movement of rice and corn harvested on collective farms and individual farm plots. However, this type of monitoring has long been an ineffective formality due to the prevalence of corruption.

Despite the brief spike surmised to stem from these factors, the fall in rice prices is not expected to last long. “There may be a lot of rice in the markets, but the harvest was bad so the supply will gradually decrease,” the source predicted. “Unless the state actively engages with the issue, prices will gradually climb back up to last month’s level.”

There is also the likelihood that vendors with rice in stock may decide not to bring out their supplies if the price stays low, hoping to stick it out and reap higher profits later. According to the source, “If this were to continue, the prices would continue to climb, potentially making things difficult for residents.”

Rice prices in the North tend to be affected by fluctuations in exchange rates, but more recently they have moved seemingly without regard for currency prices. Currently in Yangkang Province, 1 RMB [0.16 USD] trades for 1,350 KPW, a 50 KPW increase from September, yet the price of rice has actually fallen.

Read teh full story here:
Surprise Rice Price Fall on Harvest News
Daily NK
Lee Sang Yong
2014-11-7

UPDATE 1 (2014-10-12):  According to Yonhap:

North Korea’s rice production this year is expected to be about the same as last year, a U.N. report said Sunday, reinforcing forecasts that grain production will not fall despite a severe drought in the country.

Rice production this year is estimated at 1.9 million tons, the same level as last year, while maize and pork production are expected to increase slightly to 2.3 million and 114,000 tons, respectively, according to the October edition of Food Outlook, a biannual publication of the U.N. Food and Agriculture Organization (FAO).

In May, the FAO estimated the same production levels for North Korea, with the exception of pork, which was forecast at 113,000 tons.

With this year’s rice production, each North Korean is expected to eat 67.8 kilograms of rice between this fall and next summer, according to the report.

North Korea has long been a recipient of international food aid due to shortages caused by droughts, flooding and poor economic management.

However, the FAO representative in North Korea recently said in an interview that the country is projected to produce 6 million tons of grain this year and attain self-sufficiency in food within three to four years.

You can download the UNFAO report here (PDF).

Read the full story here:
N. Korea’s rice production to remain at same level as last year: U.N. report
Yonhap
2014-10-12

ORIGINAL POST (2014-7-25): According to the Daily NK:

Market rice prices in North Korea held steady throughout the “farming hardship period” in April and May; however, prices have recently started to rise. In towns near the border, including those in the provinces of Yangkang and North Hamkyung, rice has reached 6,000 KPW per kilo, inside sources report.

“From the end of last week, the cost of rice began to rise, reaching 6,000 KPW,” a source in North Hamkyung Province reported to Daily NK on the 25th. “All five of the markets in Hyesan, including Yunbong, Masan and Hyesan, have seen the same sudden leap.”

“People are used to small fluctuations in rice prices, but they don’t often see a quick 1,000 KPW increase,” she went on.

A source in Yangkang Province confirmed the increase. “Just a few days ago, rice was 5,000 KPW, so imagine my surprise when I went to buy it yesterday,” she said. “It seems that even the sellers don’t know why it happened.”

“They don’t need to be sure why prices have risen; simply, if one raises the price of her rice, the rest will follow suit,” she added.

The source went on to say that she examined conditions across the city on Daily NK’s behalf, checking markets in areas that could have been in a different condition. “Because miners are receiving their rations, I thought maybe prices around mines would be stabler,” she reported, “but in Masan, one of those areas, it was also 6,000 KPW.”

Last month, rice cost 4,300 KPW in Pyongyang, 4,500 KPW in Sinuiji and 5,050 KPW in Hyesan. Moreover, prices actually went down last week, to 4,250 KPW, 4,380 KPW and 4,800 KPW respectively. But now they have increased by 1,000 KPW within a week.

Daily NK sources speculate that the reason for the sharp increase is due to reduced distribution of rice and below-average yield of early new potatoes. Of course, April and May are called the “farming hardship period” for a reason; in other words, supply-side limitations could simply be filtering down to the retail market.

According to the source, local people are concerned that prices could rise to 7,000 KPW, the high point reached during the mourning period for Kim Jong Il at the start of 2012. However, others are less worried, saying, “Since fall is right in front of us, prices won’t rise any more.”

Although rice prices usually vary in accordance with fluctuations in currency exchange rates, recent ups and downs have not followed this pattern. Despite the fact that the North Korean Won is currently 30 KPW stronger per Chinese Yuan higher than it was last month, rice prices have sharply increased.

“In fifteen days, people will harvest barley and have corn that was planted earlier. So rice prices won’t go up any more,” the source in Yangkang Province said. However, the source in North Hamkyung Province voiced the concern that “flooding from the monsoon may influence yields of barley, corn and other grains.”

Analyzing the situation, Kwon Tae Jin of GS&J Institute said, “Rice is never abundant in Hyesan; it must have been affected by drought in eastern parts of China. Travel restrictions put in place to prevent the spread of diseases may have contributed to the increase as well.”

“Once the corn is harvested in August, prices will stabilize for a while. But a poor yield overall could cause them to start rising later,” he predicted.

Read the full story here:
Markets See Quick Spike in Rice Prices
Daily NK
Kang Mi Jin
2014-7-25

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Sharp increase in grain imports from China in second half of 2014

Thursday, October 16th, 2014

Institute for Far Eastern Studies (IFES)

It appears that North Korea has drastically increased Chinese grain imports in the months of July and August compared to the first half of 2014. Up until June, North Korea had imported a total of 58,387 tons of grain from China at nearly 10,000 tons per month. However, in July and August, North Korea imported 19,559 tons and 25,217 tons of grain, respectively. August showed the largest amount of grains imported per month so far this year, and the combined figures of July and August are equal to an astonishing 77 percent of the total amount of grains imported in the first six months of 2014.

The large increase in grain imports beginning in July is interpreted as an early move by North Korea to secure grain supplies for the winter after a double-crop harvest in June which failed to reach expected quantities, and a lackluster fall harvest compared to the previous year.

The grains North Korea has imported so far this year consist of flour (46.6 percent), rice (42.3 percent), and corn (8.9 percent), with flour and rice being the main imports. Compared to 2013, corn imports are down, but have been replaced by an increase in rice imports. Despite the sharp increase in grain imports during recent months, it appears that the overall food situation in North Korea has actually improved. North Korea imported a total of 103,163 tons of grain from January to August of 2014, a mere 59 percent of the 174,020 tons of grain imported during the same time period last year.

Chemical fertilizer imported from China up until August of this year has also decreased by an estimated 37 percent compared to the previous year, from 183,639 tons to 115,337 tons. This decrease in imported fertilizer is thought to be due to improvements made in fertilization equipment, leading to an overall higher rate of operation. It appears that the total amount of fertilizer used by North Korea this year should not differ greatly from the amount used last year, and fertilizer shortage is not expected to cause a major decrease in grain production.

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Hillside farming

Wednesday, October 1st, 2014

The US State Department’s Humanitarian Information Unit put out the following map of hillside farming in the DPRK.

US-DOS-HIU-DPRK-Food-shortage-2014-9-24

Click image for larger (PDF) version.

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North Korea’s donor fatigue

Thursday, September 25th, 2014

The Wall Street Journal reports on the difficulties the UN World Food Program faces trying to find supporters for its operations in North Korea:

The United Nations aid program for malnourished North Koreans may close after raising only a fraction of the money it needs to operate in the country, a senior U.N. official said in a call for donations.

“We may need to scale down or think about closing altogether,” Dierk Stegen, the Pyongyang-based North Korea head for the U.N. World Food Program, said in an interview.

The agency, which has operated in North Korea since 1995, could shut early next year if there is no indication it will be able to raise needed funds by the end of October, he said. One complication is that North Korea’s humanitarian crisis has been overshadowed by the conflict in Syria and Ebola outbreak, he said.

While North Korea is getting better at feeding its people, hundreds of thousands of young infants and their mothers remain chronically malnourished, he said.

Contributions from private organizations and the South Korean government in recent weeks have helped, but the program is far from its goal of $50 million, already a significant reduction from the original target of $200 million it set last year.

The North Korea food-assistance program has drawn flak from critics who say the regime takes advantage of the agency’s largess, devoting its resources to developing its nuclear weapons program and constructing amusement parks while its people suffer. Critics also say the agency can’t be sure its assistance is reaching the intended recipients.

Nicholas Eberstadt, a political economist at the American Enterprise Institute in Washington who has studied North Korea’s food situation, said that the WFP’s work in the country was “a disappointment—perhaps a terrible disappointment,” arguing that the agency has put up little resistance even as Pyongyang restricts oversight from foreign aid groups.

“Outside humanitarian assistance will not work in North Korea unless it is ‘intrusive’—and the WFP has no stomach for such work,” Mr. Eberstadt said.

Mr. Stegen acknowledged past shortcomings in its ability to monitor the distribution of its aid, but blamed a lack of funding and cited recent improvements in its access inside the country. He said that the WFP can now get permission within 24 hours to visit any school or household that is receiving its aid. In the past, two weeks’ notice was required.

Mr. Stegen said that criticism of a government’s priorities isn’t unique to North Korea, and urged donors to prioritize vulnerable infants over politics.

“Intervention and assistance on a humanitarian basis should be separated from political things,” he said.

Earlier this month, South Korea’s government approved $7 million in new funding to the WFP, its first such contribution since 2007. While South Korea’s conservative government has talked tough on North Korea, it has also pursued a policy of “humanity” toward the North, particularly infants and young mothers.

The U.S., by far the largest donor to the WFP’s North Korea work, hasn’t contributed since 2009, when Pyongyang tightened its rules on monitoring food aid by restricting the number of Korean-speaking monitors allowed into the country, according to a U.S. Congressional Research Service report published in April.

The WFP’s fundraising efforts have also been hampered by rising awareness of North Korea’s human-rights violations. Earlier this year, a special U.N. commission published a landmark 400-page report which said the regime selectively starves its population based on factors like political loyalty, and recommended the U.N. Security Council refer Kim Jong Un and other senior officials to the International Criminal Court.

Ahead of the U.N. General Assembly, U.S. Secretary of State John Kerry on Wednesday called North Korea’s system of prison camps “unfathomable” and a sign of what he described as “barbarity, inhumanity—I think you can call it evil.”

Mr. Stegen said North Korea had markedly improved its capacity to produce food for its people since a devastating famine in the 1990s. He said that fewer people in the country remain hungry today, even as the population has increased.

But he cautioned that the country’s agricultural efforts have focused too much on producing rice and other grains, at the expense of protein. That has led to malnourishment of infants and children under the age of four, he said, putting them in danger of stunting, even as Kim Jong Un has made a public show of encouraging fisheries as a potential source of protein.

“For many of the children of North Korea, it’s already too late,” said John Aylieff, the WFP’s deputy regional director for Asia. “They’ve been dealt a life sentence of impaired mental functioning and impaired physical development.”

A drought earlier this year has also meant a throttling back of government rations to ordinary citizens, which fell to about 250 grams a day, Mr. Aylieff said. That is less than half the targeted rations, and the lowest in several years.

As a result, the aid agency is expecting a surge in acute malnutrition this year. “We hope potential donors will see the humanitarian imperative,” Mr. Aylieff said.

Marcus Noland, an economist and North Korea expert at the Peterson Institute for International Economics in Washington, said that given the WFP’s funding problems, its ability to monitor its work would be limited.

“Trying to maintain an underfunded program in that environment is practically inviting an aid diversion scandal,” he said. But the WFP’s absence from North Korea would also likely exacerbate any food crisis.

“The advantage of having the WFP in-country in even a limited capacity is that they are pre-positioned to monitor conditions and respond if there is an emergency,” Mr. Noland said.

Read the full story here:
U.N. North Korea Food Program in Danger
Wall Street Journal
Jonathan Cheng
2014-9-25

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DPRK rice imports from China increase

Monday, August 25th, 2014

According to Yonhap:

North Korea bought US$7.02 million worth of rice from the neighboring country last month, up 115 percent from $3.27 million a year earlier, according to Chinese trade data from the Seoul-based Korea International Trade Association.

The amount also represents an on-month increase of 53 percent from $4.57 million.

The sudden increase in imports comes amid reports that the price of rice has risen sharply in the North.

According to the South Korean online newspaper DailyNK on Aug. 12, rice cost 5,800 won per kilogram in Pyongyang, up 1,550 won from the middle of July.

Read the full story here:
N. Korea’s imports of Chinese rice more than double
Yonhap
2014-8-25

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ROK aid to the DPRK in 2014

Monday, August 11th, 2014

According to Yonhap:

South Korea said Monday it will provide North Korea with US$13.3 million in humanitarian aid, in another show of its resolve to separate inter-Korean military tensions from efforts to help the needy in the North.

The South has decided to offer $7 million worth of nutritional assistance to mother and child health services in the communist nation via the World Food Program (WFP), according to the unification ministry.

Seoul will also deliver $6.3 million to the World Health Organization (WHO) for its projects to ship essential medicine to the North, improve clinics and train related manpower there, it added.

“The government plans to tap the Inter-Korean Cooperation Fund for the aid,” ministry spokesman Kim Eui-do told reporters.

It is the first time that South Korea has offered assistance to North Korea through the WFP since 2007, he said. Last year, the South used $6 million to support the WHO’s project in North Korea.

Seoul’s new aid program is apparently to follow up on President Park’s ambitious “Dresden Declaration” in March.

Read the full story here:
S. Korea to offer US$13 mln in aid to N. Korea
Yonhap
2014-8-11

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DPRK -china trade dips slightly in H1 2014

Monday, August 4th, 2014

According to the Institute for Far Eastern Studies (IFES):

Grain Imports Decrease, Rare-Earth Mineral Exports Increase in the First Half of 2014

It has been reported that Chinese grain imports in North Korea have fallen drastically in the first half of 2014. According to the Korean Foreign Trade Association (KFTA), Chinese exports of grain to North Korea totaled 58,387 tons in the first half of 2014, totaling a mere 47 percent of the grain exported in the first half of the previous year (124,228 tons).

China’s most heavily exported grain product to North Korea is flour, which made up 68.8 percent (40,142 tons) of all total grain exports for the first half of 2014. China also exported 13,831 tons of rice and 3,420 tons of corn to North Korea. Corn exports did not even reach twenty percent of the amount exported at the same time last year (17,655 tons).

It is postulated that China’s sharp decrease in grain exports to North Korea is due to the souring relations between the two nations in 2014. Another theory is that the decrease in exports could be due to North Korea’s recent increase in agricultural productivity over previous years.

In the first half of 2014 China exported 109,531 tons of fertilizer to North Korea, 21.3 percent less than the amount exported during the same timeframe last year (139,161 tons). In the first three months of 2014, North Korea aggressively imported Chinese fertilizer at a rate of twenty thousand tons over its monthly average. However, this decreased markedly in the months of April, May and June.

Meanwhile, North Korea has been exporting large quantities of rare-earth resources (which are used in manufacturing high-tech products) to China over the last few months. Reportedly, in May of 2014, North Korea exported 550,000 dollars’ worth of rare-earth ore to China. This figure more than doubled the following month, reaching 1.33 million USD in June.

This comes as a bit of a surprise, as North Korean rare-earth resource exports to China had come to a standstill after the first round of exports (totaling 24.7 thousand USD) in January 2013. Suddenly, after fifteen months, North Korea has exported 1.88 million USD worth of rare-earth ore (approx. 1.93 billion KRW, 62.66 thousand kilograms) over the last two months.

Since 2011, North Korea has in fact been exporting rare-earth carbonate mixtures to China; however total exports of these products have only reached 170 thousand USD over the last three and a half years.

North Korea has been placing attention on these underground rare-earth resources, of which the nation reportedly has ample quantities of in various deposits around the country. Recently, much effort has been put into surveying for deposits of these so-called “vitamins of the 21st century’s high-tech industry.” In 2013 a company for the development of rare-earth materials in North Pyongan Province was established with the cooperation of the international private equity firm “SRE Minerals.”

In July 2011, the Choson Sinbo, a news affiliate of the General Association of Korean Residents in Japan, reported in an interview with top executives from the National Resources Development Council that rare-earth resource deposits in North Korea total approximately 20 million tons. The drastic increase seen in rare-earth resource exports can be attributed to North Korea’s attempt to diversify its resource exports. In other words, the DPRK is investing in rare-earth material exports in order to reduce its dependency on other leading mineral exports such as anthracite, iron ore, and lead.

Exports of anthracite to China decreased by 23 percent in the first half of 2014 (compared to last year), totaling approximately 571 million USD. Iron ore exports, North Korea’s second leading resource export, reached approximately 121 million USD in the same time period – a drop of 5 percent when compared to the same time period last year.

According to the Korea Herald (Yonhap):

North Korea’s trade with its economic lifeline China fell 2.1 percent on year to US$2.89 billion in the first six months of this year, data compiled by South Korea’s government trade agency showed Monday, in another sign that strained political ties between the two nations have affected their economic relations.

During the six-month period, North Korea’s exports to China declined 3.9 percent to $1.31 billion and imports slipped 0.6 percent to $1.58 billion, according to the data provided by the Beijing unit of South’s Korea Trade and Investment Promotion Agency (KOTRA).

There were no shipments of crude oil from China to North Korea from January to June, the data showed.

“Despite the six-month absence of oil shipments, the scale of North Korea’s decline in imports is minimal,” the source said on condition of anonymity.

Meanwhile, North Korea’s exports of rare earth to China jumped 153.7 percent on year during the January-June period, the data showed, without providing the value of the exports.

Read the full story here:
N. Korea’s trade with China falls 2.1 pct in H1
Korea Herald (Yonhap)
2014-08-04

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Food imports from China fall in 2014

Wednesday, July 30th, 2014

According to Yonhap:

North Korea’s grain imports from China tumbled more than 50 percent on-year in the first half of this year, data showed Wednesday, amid speculation that relations between the communist allies are not like before.

North Korea imported 58,387 tons of cereal crops from China in the January-June period, down 53 percent from 124,228 tons recorded a year earlier, according to the data by the Korea International Trade Association (KITA).

By type, flour topped the list with 40,142 tons, or 68.8 percent, followed by rice and corn with 13,831 tons and 3,420 tons, respectively, added the Seoul-based agency.

Analysts say the remarkable decrease may be attributable to reportedly strained ties between the two sides in recent months.

“Of late, North Korea has appeared to move to reduce its economic dependence on China and diversify its foreign economic partners,” said Lim Eul-chul, professor at the Institute for Far Eastern Studies at Kyungnam University.

Kwon Tae-jin, researcher at private think tank GS&J, said it might have been more affected by Pyongyang’s increased crop yield.

“North Korea’s stockpile of crops seems to have grown due to a good harvest last year.

Meanwhile, China’s fertilizer exports to North Korea also plunged 21.3 percent to 109,531 tons during the January-June period this year from a year earlier, said KITA.

Read the full story here:
N. Korea’s grain imports from China halve in H1
Yonhap
2014-7-30

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An affiliate of 38 North