Agriculture « North Korean Economy Watch

Archive for the ‘Agriculture’ Category

Market prices stable despite lean period

Friday, May 16th, 2014

According to the Daily NK:

Rice prices in North Korea remain stable despite the arrival of the April-May “spring hardship period,” inside sources have conveyed to Daily NK.

Spring months are usually tough because food supplies run low as North Korea, with its relatively low level of external trade in foodstuffs, waits for the early domestic potato harvest at the end of June. This in turn impacts market rice prices; in May 2012, the price of a kilo of rice skyrocketed by 20% in a single month.

However, this year has been a good one. Sources convey that a kilo of rice is trading in Pyongyang, Sinuiju and Hyesan for 3700, 3850 and 3900 won respectively. This is consistent with preceding months, and below the 4000 won mark initially recorded last December.

The price of corn, often used as a cheap substitute by low-income households when rice gets expensive, is also showing a stable or downward trend. At 800-1000 won per kilo, it is 500 won less than it was in April.

Several factors are contributing to this relative stability, a Hyesan source contended. Firstly, work units on cooperative farms are bringing their stores of rice to market in bulk payment for resources for the planting season. Secondly, May has seen a small decrease in the exchange rate, and this has helped to keep the rice price down in terms of imports.

“It’s the spring planting season and work units have to purchase resources like diesel and fertilizer. People say that ‘rice is money,’ and now they’re selling rice they had stored from last year to purchasing farming products. This means there is enough rice in the markets and the price is stable,” the source said.

A Pyongyang-based source also reported stable market prices, as well as consistent state ration delivery in April.

“The authorities have been continually distributing rations and there is sufficient rice in the markets. More people are buying meat including pork because some laborers had a wage increase. The rice price could drop even further,” he assessed.

Nevertheless, experts in Seoul assert that rice prices could be negatively affected by current dry conditions in the country’s western breadbasket zones

Cho Bong Hyun of the IBK Economic Research Institute clarified to Daily NK, “The recent price stability in North Korea’s markets is because of continuous distribution since the release of military rice reserves last year. Expectations around this year’s output could also impact prices further down the line. Some will plan to store rice if they anticipate this year being a lean one, which will in turn drive up the rice price.”

Read the full story here:
Market Prices Stable Despite Lean Period
Daily NK
Lee Sang Yong
2014-05-16

Posted in 2014 Food Shortage, Agriculture, Food, Public Distribiution System (PDS) | Comments Closed

DPRK expected to produce 1.9 mln tons of rice in 2014

Tuesday, May 13th, 2014

According to Yonhap:

North Korea is expected to produce 1.9 million tons of rice in 2014, the same amount that the country is estimated to have produced last year, the U.N. food agency said on May 13.

The figure represents an increase from 2010, 2011 and 2012 when North Korea’s average rice production reached 1.7 million tons, the Food and Agriculture Organization said in a biannual global food report posted on its website.

The report said per capita rice consumption in North Korea is forecast to reach 67.8 kilograms this year, compared with 65.4 kg from a year earlier.

It also said North Korea is forecast to produce 2.3 million tons of maize this year, compared with 2.2 million tons in 2013.

Rice is a key staple food for both South and North Koreans, though North Koreans also rely on maize due to chronic food shortages.

The North has relied on international handouts since the late 1990s when it suffered a widespread famine that was estimated to have killed 2 million people.

I spent a good 15 minutes looking for the report (which was never cited by name–sloppy reporting). If the report is to be found on the UNFAO web page, they sure don’t make it easy for a curious person to find.

Read the full story here:
N. Korea expected to produce 1.9 mln tons of rice in 2014: U.N. food agency
Yonhap
2014-5-13

Posted in 2014 Food Shortage, Agriculture, Food, UN Food and Agriculture Organization | Comments Closed

DPRK – Nigeria agreement

Wednesday, May 7th, 2014

According to the Guardian (in Nigeria, not UK):

Nigeria and North Korea have embarked on a multi-focus trade strategy to further deepen the bilateral relations in the various aspects of national development of both countries .

These was contained in the joint communique issued at the end fourth session of the Nigeria -Democratic People’s of Korea (DPRK) two days meeting in Abuja on Tuesday.

The communique said that the two countries recognized the need to further deepen the bilateral relations in the various aspects of national development , especially issues of common interest , and agreed to strengthen and enhance the level of bilateral and multilateral cooperation.

Both countries recognized the relevance of industrial development in nation building and pledged to re-invigorate Economic , Trade , Investment and Industrial cooperation .

The two countries also recognized the role of agriculture and food security to national growth and agreed to expand the scope and scale of cooperation in these areas of Agriculture , Stockbreeding and Fishery sub-sectors.

According to the communiqué, both countries expressed the desire to strengthen programmes and cooperation in the field of Education , and in this context agreed to share achievements and experiences in basic and secondary , vocational and technical , as well as education , and promote cooperation in identified and prioritized fields through exchange of education officials , university professors , guest lecturers, experts and researchers.

Nigeria and DPRK recognized the need for cooperation and exchange of information using modern technology between the public sectors of both countries and promote the private sector in Nigeria , and any other identified fields of common interest.

Speaking at the closing session of the event , the Permanent Secretary , Ministry of Foreign Affairs , Martin Uhomoibhi, noted that Nigeria has been supportive of North Korea in the multilateral setting .

According to him , the relationship between the two countries date back to 38 years ago when the diplomatic relations was established on May 25, 1976.

Commending the participants he said ” let me , at this stage commend the experts and officials of both countries for the zeal , commitment and diligent they have exhibited to ensure a very fruitful and successful 4th session of our joint commission .”

Meanwhile , the two countries agreed that the 5th Session of the joint commission will hold in Pyongyang at a date to be mutually agreed through diplomatic channel.

North Korea food rations for Kim Il-sung birthday

Tuesday, May 6th, 2014

According to Yonhap:

North Korea doled out 420 grams of food to each person per day in April, the same amount as in the previous month, a news report said Tuesday.

Citing the U.N. World Food Program’s office in Pyongyang, the Washington-based Radio Free Asia (RFA) reported that last month’s daily food ration per capita was unchanged from March though the North marked the 102 birthday of Kim Il-sung, founder of the communist country and grandfather of current leader Kim Jong-un.

The founding father died in 1994, and his birthday is one of the most important holidays in North Korea.

The RFA said April’s daily food ration was much lower than the 600 grams recommended by the U.N. agency.

North Korea’s daily food ration, which amounted to 400 grams in January, has been hovering at 402 grams since then.

The Washington-based Voice of America (VOA), meanwhile, said the WFP provided 2,405 tons of food aid to the impoverished country last month.

The food assistance in April was up 50 percent from March and the largest monthly amount this year, but it was much lower than the 4,093 tons provided during the same month a year earlier, the VOA reported.

The WFP has also suspended operations of five out of its seven confectionery factories in North Korea due to a fund shortage, the VOA said.

Read the full story here:
N. Korea rations 420 grams of food to each person in April
Yonhap
2014-5-6

Posted in 2014 Food Shortage, Agriculture, Agriculture statistics, Food, Foreign aid statistics, Statistics, UN World Food Program | 1 Comment »

DPRK grain imports from China fall

Sunday, April 27th, 2014

We earlier posted an article on how DPRK-China trade has fallen in the first quarter of 2014. The DPRK has apparently imported zero oil from China in the first quarter of this year.

Grain imports from China also fell.

According to Yonhap:

North Korea’s grain imports from China decreased by more than 50 percent in the first quarter from a year earlier, data showed Sunday.

According to the Korea International Trade Association (KITA), North Korea imported 26,263 tons of grain, including 23,636 tons of flour, 1,241 tons of rice and 1,192 tons of corn, from China in the January-March period.

The North’s imports during the first three months is equivalent to 48 percent of 54,178 tons imported during the same period a year ago, the data showed. Compared with the first quarter of 2012, the country’s grain imports from China decreased about 40 percent.

In terms of value, the North’s imports of Chinese grain amounted to US$11.93 million in the first quarter, down 52 percent from $24.71 last year.

“The drop in the North’s grain imports from China in the period compared with other years seems to be due to an increase in the country’s grain production last year,” said Kwon Tae-jin, a research fellow at the government-funded Korea Rural Economic Institute (KREI). “However, the country may increase its grain imports in the future, as the amount of its grain production is not enough for its people.”

The U.N. World Food Program (WFP) estimates the North produced 5.03 million tons of polished grain between November 2013 and October 2014, up 5 percent from a year ago.

Read the full story here:
N. Korea’s grain imports from China halve in Q1
Yonhap
2014-4-27

Posted in 2014 Food Shortage, Agriculture, China, Food, International trade, Statistics, Trade Statistics | Comments Closed

Mongolia involved in Sepho Tableland project

Monday, April 7th, 2014

Pictured above: Sepho, Phyonggang, and Ichon Counties. These three counties are home to the Sepho Tableland Project.

According to KCNA:

DPRK, Mongolia Sign MOUs

Pyongyang, April 2 (KCNA) — A memorandum of understanding on setting up the DPRK-Mongolia friendship joint company between the DPRK and Mongolian governments was inked here on Wednesday.

Present at the signing ceremony from the DPRK side were Ri Ryong Nam, minister of Foreign Trade who doubles as chairman of the DPRK side to the Inter-governmental Committee for Consultation in Economy, Trade, Science and Technology between the DPRK and Mongolia, Hwang Min, vice-minister of Agriculture who is also chairman of the Livestock Management Committee in Sepho Area, and officials concerned and from the Mongolian side were Mongolian Minister of Industry and Agriculture Khaltmaa Battulga who is chairman of the Mongolian side to the Inter-governmental Committee for Consultation in Economy, Trade, Science and Technology between the DPRK and Mongolia and his party and Manibadrakh Ganbold, Mongolian ambassador to the DPRK, and his embassy officials.

A MOU was also signed between the Ministry of Foreign Trade of the DPRK and the Ministry of Labor of Mongolia.

The Sepho Tableland Project was announced on November 9, 2012 (KCNA):

DPRK Premier Stresses Importance of Building Large-scale Stockbreeding Base

Pyongyang, November 9 (KCNA) — Premier Choe Yong Rim learned about the preparations for creating vast grass field in Sepho, Phyonggang and Ichon counties of Kangwon Province and turning it into a large-scale stockbreeding base of the country.

The creation of vast grass field in the counties covering tens of thousands of hectares and the construction of combined processing base for livestock products will bring about an epochal turn in carrying out the party’s policy of improving the standard of people’s living by massively breeding grass-eating domestic animals.

Generalissimos Kim Il Sung and Kim Jong Il gave instructions to Sepho County several times on developing stockbreeding suited to climatic, natural and topographical conditions, while making continued journey of guidance for people’s happiness.

The dear respected Marshal Kim Jong Un unfolded a plan for transformation of Sepho tableland, true to the intention of the great Generalissimos and brightly indicated the orientation and ways for realizing it.

The premier first learned about the vegetable produced in part of the reclaimed Sepho tableland, looking round the field of a sideline farm of a unit of the Korean People’s Army.

Then, he acquainted himself with the area of reclaimed grass field and soil condition in Sepho County in Songsan area of the Sepho tableland.

A consultative meeting of senior officials of party, state and army was held on the spot.

The participants were briefed on a huge map showing the panoramic view of the field. The meeting discussed the goal of reclaiming grass field in Sepho, Phyonggang and Ichon areas and building stockbreeding base and the issue of providing labor, raw materials and equipment necessary for its reclamation and construction.

The meeting called on all the units to channel efforts into achieving the goal of creating grass field and reclaiming and building stockbreeding base in Sepho, Phyonggang and Ichon areas. The goal reflects the far-reaching plan and unusual wisdom of the Marshal.

Practical issues including the work for keeping the designing ahead of the project and providing raw materials and equipment under a plan were discussed and relevant organization of work was made at the meeting.

The premier, concluding the meeting, called on officials and builders to carry out the behests of Kim Il Sung and Kim Jong Il and certainly realize the noble intention of the Marshal to create the socialist fairyland in Sepho, Phyonggang and Ichon areas.

Posted in Agriculture, Mongolia | Comments Closed

Fertilizer imports up to Feb 2014

Friday, March 28th, 2014

According to Yonhap:

The North brought in 13,769 tons of Chinese fertilizer in February, a whopping 13 times more than some 1,064 tons from a year earlier, according to the data compiled by the Korean Rural Economic Institute (KREI).

In the first two months of the year, Pyongyang imported 48,882 tons of Chinese fertilizer, which is far higher than 1,066 tons from the same period a year earlier, the data showed.

“The 2013 figure is unprecedented, as the North used to buy a limited amount in the winter season. It seems to be very proactive in securing fertilizer long ahead of its usual schedule, and that indicates farm output improvement is its top priority,” said KREI researcher Kwon Tae-jin.

In his New Year’s message, the North’s young leader Kim Jong-un stressed boosting food production, saying all efforts “should go for agriculture … in order to build a strong economy and to improve the people’s livelihoods.”

Last year, Pyongyang bought a total of 207,334 tons of fertilizer from China, down by 18 percent from the previous year.

Additional Information:

1. The United Nations and South Korean government have reported that domestic gain production is up in 2013.

2. The DPRK has also increased food imports from China in 2013.

3. Food aid from UN was down in 2013.

4. Food prices fell in last year. DPRK won appreciated in last year.

5. Kim Jong-un’s speech to subworkteam leaders.

6. Previous posts on ‘foood’.

7. Scott Snyder on DPRK-China trade.

Read the full story here:
N. Korea’s fertilizer imports from China soar in Feb.
Yonhap
2014-3-28

Posted in 2013 food shortage, 2014 Food Shortage, Agriculture, Agriculture statistics, Food, Statistics, Trade Statistics | Comments Closed

Rice prices falling / won value rising

Tuesday, March 25th, 2014

The Daily NK has just updated their very valuable tables of rice prices and exchange rates. Things appear to have improved for the won and for those who have to make purchases with it.

Here is the most recent data on the Won/US$ exchange rate:

In March 2013 it took approximately W8,700 to buy one US$. Today that number has fallen to as low as W7,300. Most of the won’s gain in value has taken place in the last month. As of February 2014, the US$ was worth W8,400–meaning the Won/US$ exchange rate has fallen (the currency has appreciated) by appx 13% since then.

Since the Chinese Yuan trades in a narrow band around the US$, the data would look much the same in terms of the Chinese currency.

Of course what remains to be seen is how stable the rate will be going forward.

The Daily NK also offers time series data on the price of rice:

According to the chart above, the price of a kilo rice has fallen from approximately W6,900 in March of 2013 to W4,000 in March 2014. A fall of 42% in the last year!

Posted in 2014 Food Shortage, Agriculture, Fiscal & monetary policy, Food | 1 Comment »

DPRK factories take up sharecropping

Saturday, March 22nd, 2014

According to the Daily NK:

This spring has brought a noticeable increase in the number of North Korean factories and enterprises leasing out parcels of farmland to private individuals, it has emerged.

A source from North Pyongan Province reported the news to Daily NK on the 21st. She explained, “The trend recently has been towards factories leasing out parcels of their farmland. On average they agree to divide up production 70/30, but in cases where lessees have already shown the ability to generate good returns on their own private plots it can be as high as 50/50.”

North Korean factories and firms use land given to them by the state to grow supplementary foodstuffs for employees, such as vegetables for use in side dishes like kimchi. Large ones have dedicated units that manage their farmland full-time, while smaller ones do so on an ad hoc basis.

The lease agreements are being concluded according to not only the capacity of the farmer to generate returns, but also upon which side is to provide inputs such as vinyl coverings and fertilizer, the source went on to reveal. If the majority of the inputs are to come from the factory then the harvest is likely to be divided 70/30 in favor of the factory. If the farmer is making the majority of the investment personally, the division can be as high as 50/50.

“Obviously, anyone who has money is going to prefer a 50/50 split, and people who don’t are going to get 70/30,” the source said. “Factories generally like the 50/50 split more because it means they do not to have to concern themselves with the farming process itself.”

Lessees are in some cases able to secure access to farmland via bribery or human networking, but the source emphasized that the ability to generate a good harvest is what usually matters. “We’ve had private farm plots here for the better part of 20 years now,” she pointed out, “so we know very well who has lots of farming experience and who is hard-working.”

Sources explain that people who are officially registered as members of cooperative farms cannot farm land owned by factories in this way. In general, the ones taking out the leases are either factory workers who know how to farm effectively, or failed traders who have turned to farming other people’s private plots for them.

Importantly, the leasing of land in this way appears to have become official policy. This marks a shift in approach: although cases of similar deals between factories and private individuals started to appear at the beginning of the 2000s, these were illegal which limited their spread. Conversely, the authorities have been focusing heavily on improving the efficiency of the agricultural system for the last 2-3 years, and instances of land rental are now more widespread than ever before.

In an interview with the pro-North Korea publication Choson Sinbo last May, Kim Myong Ho, a 52-year old director in the North Korean Ministry of Light Industry, explained that the government had decided to grant factory and enterprise managers greater authority in order to improve industrial production.

Authority over land owned by individual factories and enterprises rests with factory managers, who decree what is grown, in what quantities, and by whom. Therefore, in the event that managers stipulate that their land is being leased in order to increase production, the leases are acceptable to the state.

“The state directive was that we have to improve production and the management of state firms,” the source commented. “They don’t mind whether this is done by farming the land directly or by leasing it to other people to farm.”

Read the full story here:
Farm Deals Abound as State Pushes for Production
Daily NK
2014-3-22

Posted in Agriculture, Economic reform, Labor conditions/wages, Manufacturing | Comments Closed

DPRK fertilizer imports (2013 – Jan 2014)

Tuesday, March 4th, 2014

According to Yonhap:

North Korea’s fertilizer imports from China skyrocketed in January from a year earlier, data showed Tuesday, pointing to Pyongyang’s efforts to increase agricultural output.

The North brought in 35,113 tons of Chinese fertilizer in January, a huge increase from 2 tons from a year earlier, according to the data by the Korea Rural Economic Institute (KREI).

Such an amount is unprecedented for January, as the impoverished communist country used to buy a limited amount of fertilizer in winter, according to KREI experts.

The January figure is also two times bigger than the 17,416 tons for December, according to the data.

“Different from its previous pattern of buying fertilizer in spring, North Korea seems to be taking a very proactive move to secure fertilizer a long time ahead of its usual schedule. This means that the North is putting a priority on improving its farm output,” said KREI researcher Kwon Tae-jin.

It is in line with its leader Kim Jong-un’s policy goal of boosting food production, experts said.

In his New Year’s message, the young leader said all efforts “should go for agriculture … in order to build a strong economy and to improve the people’s livelihoods.”

Last year, Pyongyang bought a total of 207,334 tons of fertilizers from China, down by 18 percent from the previous year.

“This year, the trend is expected to be reversed given the January data and the fact that China has lowered duties,” Kwon added.

Read the full story here:
N. Korea’s fertilizer imports from China soar in Jan.
Yonhap
2014-3-4

Posted in 2014 Food Shortage, Agriculture, China, Food, International trade, Statistics, Trade Statistics | Comments Closed

North Korean Economy Watch

Archive for the ‘Agriculture’ Category

Market prices stable despite lean period

DPRK expected to produce 1.9 mln tons of rice in 2014

DPRK – Nigeria agreement

North Korea food rations for Kim Il-sung birthday

DPRK grain imports from China fall

Mongolia involved in Sepho Tableland project

Fertilizer imports up to Feb 2014

Rice prices falling / won value rising

DPRK factories take up sharecropping

DPRK fertilizer imports (2013 – Jan 2014)

Pages

Archives

Categories