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Archive for the ‘Food’ Category

Grain imports from China fall in January

Monday, March 4th, 2013

According to Yonhap:

North Korea’s grain and fertilizer imports from China nosedived in January, Seoul’s Korea Rural Economic Institute said Sunday, citing data from the Korea International Trade Association.

North Korea imported 2,174 tons of grain and 2 tons of fertilizer from China in the first month of this year, the institute said. By product, flour imports totaled 1,172 tons and corn imports reached 540 tons.

The volume of imported grain marked a mere 9.2 percent of the North’s imports of Chinese grain in the previous month, while the corresponding figure for fertilizer amounted to 20 percent, the institute said.

Compared with the same month of last year, the figures reached 25.9 percent and 0.03 percent, respectively.

“The steep decline in the North’s grain imports from China is very unusual, even considering the past trend of grain imports decreasing every January,” said Kwon Tae-jin, a researcher at the institute.

Read the full story here:
N. Korea’s grain imports from China plunge in Jan.
Yonhap
2013-3-3

Posted in Agriculture statistics, China, Food, Foreign aid statistics, International trade, Trade Statistics | Comments Closed

North Korean products in department stores on the rise

Friday, February 22nd, 2013

Institute for Far Eastern Studies (IFES)
2013-2-22

The number of North Korean made products is increasingly on the rise at North Korean department stores. Reportedly, 70 percent of the merchandise on the shelves in North Korea’s largest department store, Pyongyang Department Store No. 1, is North Korean made.

Japan-based pro-North Korean newspaper Choson Sinbo reported on February 13 that the bestselling item is apple juice made from the Taedong River Combined Fruit Farm, sold from the kiosk located on the first floor of Pyongyang Department Store No. 1. Sonhung Food Factory products, especially bread and confectionaries, are also said to be very popular.

The newspaper commented that the regularly held product exhibition shows at the department store have created competitive environment for local factories and companies and contributed to the production of high-quality products. They also emphasized that exhibition of products began on account of recommendations of the former North Korean leader, Kim Jong Il.

It further added, “The product exhibition invites participation from light industry factories and enterprises and its affiliated units from central and regional areas as well as department stores in Pyongyang and general stores that sell industrial products.” It commended the expos to be well received by the local people for filling the shelves with local products.

The first exhibition began in December 2010, and the second and third exhibitions were held in July 2011 and January 2012, respectively. Selling of Taedong River Combined Fruit Farm products began from the third exhibition.

In an interview with Choson Sinbo, Kim Miyoung, commerce director of Pyongyang Department Store No. 1, said the following: “Employees of the department stores and our patrons never imagined a day like this would come where our department store shelves are filled with North Korea made products, especially when we were going through the difficult economic times.”

The news also reported the opening of North Korea’s first 24-hour pharmacy. Pyongsu Pharmaceutical, a joint venture company between North Korea and Switzerland, has claimed to have opened North Korea’s first 24-hour pharmacy, called Taedongmun Pharmacy, in Pyongyang last August. Pyongsu pharmaceutical joint venture company was established from September 2004 between InterPacific Group of Switzerland and Pyongyang Pharmaceutical Factory under the Ministry of Health of the DPRK. They both produce and sell pharmaceutical products in Pyongyang. Its homepage introduces nine operating pharmacies in Pyongyang. (See Pyongsu’s website for details: www.pyongsu.com.)

The first pharmacy by Pyongsu was built near the Pyongyang’s Arch of Triumph in 2006 and expanded the number of pharmacy to nine, including the Taedongmun Pharmacy. In addition, Kangan Pharmacy was highlighted in its website, boasting that all the pharmacists working at this pharmacy are graduates of Kim Il Sung University. It also boasts that it is the first pharmacy to have been equipped with blood testing equipment.

Posted in Disease prevention, Food, Health care, Pharmaceuticals, PyongSu Pharma | Comments Closed

High rice prices and foreign exchange rates continue in North Korea

Thursday, February 7th, 2013

Institute for Far Eastern studies (IFES)
2012-2-7

A year has passed since Kim Jong Un took power, yet that has not prevented instability to continue in the price of rice and foreign exchange rates in North Korea, having doubled in some cases compared to last year.

According to “North Korean Market Trends,” published by the online newspaper Daily NK, the price of rice per kg from January 2 to 9, 2013 in Pyongyang, Sinuiju, and Haesan was 6,700 KPW, 7,000 KPW, and 6,600 KPW, respectively. This was a rise of 300 KPW, 200 KPW, and 100 KPW in just two weeks.

During the same period, the foreign exchange rates in Pyongyang, Sinuiju, and Haesan also escalated to 9,100 KPW, 8,950KPW, and 8,750 KPW, a rise of 1,300 KPW, 950KPW, and 300 KPW, respectively.

This is the highest recorded price for rice and exchange rates. Last year from January 15 to 21, the price of rice in Pyongyang was 3,200 KPW and the exchange rate was 4,400 KPW. Compared to current prices, the price has more than doubled.

Prices began to escalate drastically from April 2012. Recorded highs were recorded from September 24 to 27 (at 6,800 KPW). Since then they have continued to remain high.

The Daily NK interpreted the increase in rice prices and exchange rates to be consequential of the political events that resulted in a decrease in food transactions and North Korean residents’ preference for US dollars.

Instability in rice prices and exchange rates are expected to continue as the international community adopted a new resolution to impose sanctions against North Korea in response to North Korea’s “long-range rocket launch” (December 2012) and recent announcement that it is preparing to conduct another nuclear test.

*(NKeconWatch) Another cause of the price increases is inflationary public finance in the DPRK.

Posted in Fiscal & monetary policy, Food | Comments Closed

Food prices continue to climb

Thursday, January 31st, 2013

According to Yonhap:

The Daily NK, a Web site run by opponents of the North Korean government which provides detailed coverage of the communist nation, claimed the price of rice, a key staple, has risen steadily over the last year.

It added that despite efforts to control prices, a kilogram of rice purchased in Pyongyang and Sinuiju from Jan. 2 through Jan. 9, rose by 300 won and 200 won, respectively, compared to just two weeks prior.

A kilogram of rice in Pyongyang cost 6,700 (North Korean) won, while in Sinuiju, just across the Amnok river from the Chinese city of Dandong, it reached 7,000 won.

The media outlet, which claims it uses a secret network of sources in the communist country, said the latest price of rice represents a more than two-fold increase from the year before, right after Kim took control of the country. In the first month of last year, a kilogram sack of rise cost 3,200 won in Pyongyang.

The North Korean leader took power following the sudden death of his father Kim Jong-il on Dec. 17, 2011.

On changes in foreign exchange rates, Daily NK said a U.S. dollar was worth around 9,100 North Korean won this month, which is a depreciation of more than 100 percent from an year earlier. In January 2011, a one dollar bill was worth just 4,400 won.

Read the full article here:
N. Korea’s rice prices, foreign exchange rates remain unstable: report
Yonhap
2012-1-31

Posted in Fiscal & monetary policy, Food | Comments Closed

DPRK imports of grain / food from China drop

Tuesday, January 22nd, 2013

According to Yonhap:

North Korea imported significantly less grain and fertilizers from China last year, mainly due to improvements in overall food conditions in the country, local sources said Tuesday.

Kwon Tae-jin, a research fellow at the Seoul-based Korea Rural Community Corp., said data compiled from January through November showed North Korea’s grain imports from its neighboring country reaching 257,931 tons.

This represents a 26.8 percent decrease from 352,282 tons tallied for the same 11 month period in 2011.

“There was a noticeable drop in various grain imports last year,” the researcher said, adding that imports of corn and rice fell 19.2 percent and 16.7 percent vis-a-vis the year before, with wheat and bean purchases declining 56.2 percent and 7.4 percent, respectively.

The latest data also showed Pyongyang importing 252,780 tons of chemical fertilizers from China up till November, down 28.8 percent from 355,023 tons reported from the year before.

Experts in the South said the decrease reflected improvements in overall food supply in the communist country brought on by the new leadership paying more attention to the economy.

Read the full story here:
N. Korea’s grain, fertilizer imports from China fall sharply
Yonhap
2013-1-22

Posted in 2012 food shortage, Agriculture statistics, Food, International trade, Statistics, Trade Statistics | 2 Comments »

Won continues to fall in value

Tuesday, January 1st, 2013

According to the Daily NK:

A source from Pyongyang told Daily NK about the current situation on the 4th, explaining, “The price of rice is 6,700 won now, 300 won more than it was two weeks ago. The markets weren’t able to operate properly while the people were being made to attend events for the mourning [of Kim Jong-il’s death], and that lasted until the 18th. But even now there are people who are still hoarding food, so the situation is not getting any better.”

According to the source, there was word that rice would arrive in bulk from China after the Kim Jong Il mourning period, but supplies to markets barely changed despite evidence that some rice did arrive. Not only that, “Even though prices went on rising, the upper (the authorities) still tried to control areas of market operation during the mourning period, so there were traders selling rice secretly, and some alley traders (those operating beyond the market walls) asking for more than 8,000 won a kilo.”

“Municipal Party cadres kept telling us to try and wait because the Marshal (Kim Jong Eun) had issued an order to ‘ensure rice for the people,’” she mused. “But nobody believes that kind of talk anymore. Rice will be in short supply during January, and this is likely to go on into February given study sessions for the New Year’s Address and then preparation for Kim Jong Il’s birthday.”

“The U.S. Dollar exchange rate here is out of control, and has reached 9,100 won per dollar. Speculation has it that they will try yet again to control exchange rates this month, and this is making the exchange rate problem even worse,” she concluded. “In just Pyongyang’s markets, about 50% of the money in circulation is U.S. Dollars, 25% is Yuan and 25% is from here. I guess people want to have foreign currency more and more because they cannot foresee what will happen next.”

“People from this city can easily distinguish a real dollar from a counterfeit one, and people soon learn about traders who dare to deal in fakes,” she added.

Read the full story here:
Markets Mired in Mournful Turmoil
Daily NK
Lee Sang Yong
2012-1-4

Posted in 2012 food shortage, Fiscal & monetary policy, Food | Comments Closed

Prices and exchange rates soaring in North Korea

Thursday, December 27th, 2012

Institute for Far Eastern Studies (IFES)
2012-12-27

The price of rice in North Korea along with the exchange rate declined slightly in October 2012 but began to rise sharply this month, near the one-year anniversary of Kim Jong Il’s death on December 17.

According to “North Korean Market Trends,” published by the online newspaper Daily NK, the price of rice on December 10 in Pyongyang, Sinuiju, and Hyesan, were reported to be 6,400 KPW, 6,800 KPW, and 6,500 KPW, respectively. This is a 300-700 KPW/kg increase from the previous month.

Even the exchange rate against the US dollar increased dramatically in these three cities: 7,800 KPW in Pyongyang, 8,000 KPW in Sinuiju, and 8,450 KPW in Hyesan. This was a jump of 1,500 KPW, 1,300 KPW, and 2,000 KPW in the respective cities against last month.

This is the highest recorded exchange rate, beating the September rate of 6,370 KPW in Pyongyang.

The Daily NK quoted an unnamed North Korean source, explaining the reason for such jump in prices and exchange rate is due to blockage of trade with China during the mourning period for Kim Jong Il and merchants began to withhold rice and dollars from the market.

The North Korean authorities announced to its people on December 5 that the mourning period for Kim Jong Il would run from December 7 to 18, and that manufactured goods from China would not be permitted to enter the country. Immediately following this decision, the exchange rate and prices began to skyrocket. Residents’ complaints escalated, forcing North Korean authorities to re-open the border to allow goods from China to enter the country again.

The North Korean source explained the unannounced decision to halt trade with China angered the North Korean residents as most goods in the market are from China and it resulted in soaring prices and withholding of US dollars as people’s sense of insecurity began to rise.

Some believe the ban on Chinese imports was reversed quickly as negative sentiments among the North Korean people began to escalate. North Korean authorities established market control policy during the mourning period to maintain order but this ended shortly for the fear of adverse effects from the new policy.

Posted in 2012 food shortage, Fiscal & monetary policy, Food | Comments Closed

Fishing casualties in 2011

Tuesday, December 18th, 2012

Pictured Above: The Orang Odaejin Fisheries Office

According to the Daily NK:

Daily NK has learned that approximately 30 North Korean squid fishing vessels from ports in the provinces of North and South Hamkyung have been lost at sea this year alone, causing more than 120 casualties.

A source from North Hamkyung Province revealed the news to Daily NK on the 18th, explaining that the information came from the ‘2012 Missing Vessels Report,’ a booklet of statistical data compiled by the regional coast guard.

According to the source, the report noted, “Among all the vessels that have engaged in squid fishing this year, more than 30 smaller vessels have been lost, and 122 crew members have been killed or reported missing.”

It is mandatory for fishing vessels to register a crew list before leaving port each day for security reasons. Those vessels that leave port but do not return are classified as lost.

The sea near the Hamkyung port of Odaejin in Eorang County has traditionally been the most popular on the North Korean East Sea coast for squid fishing. However, Jang Keum Chun, who previously operated a shipping company in the Liaoning Province city of Dalian, has had a number of boats in the area since 2007.

This is because Jang is the son of Jang Wool Hwa, who sided with Kim Il Sung during the fight for liberation from Japanese rule. As such, he is said to have received direct permission from Kim Jong Il to begin fishing in the area.

The local fishermen who had been fishing for squid in the region for generations have been progressively forced further and further out by this (plus declining squid stocks throughout the East Sea region), which has put many in grave danger.

The source said, “North Korean fishing vessels only have about 6 to 8Hp, so are easily swayed by strong winds and waves.” When vessels run into trouble, there is little hope of rescue due to inadequate communications equipment and rescue vessels.

North Korea has reportedly been suffering 100 or more casualties in fishing accidents in the region for a number of years.

Read the full story here:
122 Casualties in Race for Squid
Daily NK
Choi Song Min
2012-12-18

Posted in Agriculture, Food, Sea shipping | Comments Closed

Global Resource Services

Saturday, December 15th, 2012

The Atlantic has an article on Global Resource Services, a religious US-based NGO which has been running programs in the DPRK for years. The full article is well worth reading.

According to the GRS web page, these are the project in which they are involved:

1. “HaePo Ri Soy Farm“. I suspect that this is located in Haepho-ri (해포리)in Singye County. According to the web page:

About 500 hectares of land originally used to grow corn, has now been dedicated to growing soybeans. Initially, GRS helped by supplying soy seed and equipment to process the soybeans. The soybean products are an excellent source of protein for the local diet. Growing soybeans also helps replenish the soil after growing corn for many years. The soybean oil is used for cooking oil, and the soymilk is used in the local school lunch program.

…

The newest installation at the HaePo Ri Soy Farm is a soybean oil factory. The soybean oil is used for cooking oil, which is very important in preparing meals with locally grown corn and other grains. Soybean meal is also a byproduct of the factory that is also high in protein, and can be used in the local diet and to supplement animal feed. Approximately 30 tons of soybean oil are produced each year.

…
GRS and local farm managers at HaePo Ri have a long range plan for community development. Economic development, water resource development, medical health programs, and educational programs are being planned and implemented.

2. “Jangpoong Goat Dairy Farm”. I suspect that this is the “Jangphung (장풍읍) Goat Farm”.

According to the web page:

GRS began working with the DPRK Ministry of Agriculture and officials from the Jangpoong Goat Dairy Farm in 2002. The engineers and workers at the Jangpoong Farm constructed a building, and GRS began installing dairy processing equipment in June 2003. Dairy processing began in October 2003. Since that time, GRS staff and partners have made several visits to the farm with ongoing support. A delegation of DPRK agricultural experts visited Langston University in 2004 for discussions and training in goat care, nutrition, cheese making, and artificial insemination. GRS began a several year program in 2004 to improve the goat breed at the farm through artificial insemination. A pelletizing machine was installed at the farm in 2007 to pelletize locally grown goat feed for winter storage. Currently the farm has over 3000 goats and regularly processes cheese, yogurt, and butter. Winter production is often continued using powdered milk.

3. Global Health Program and exchanges.

Posted in 2012 DPRK engagement, Food, International Aid, USA | Comments Closed

Inflation in the DPRK

Friday, December 7th, 2012

Using the data published by the Daily NK, Dr. Hanke has constructed this graph of food prices in the DPRK:

According to Dr. Hanke:

“From what little data are available, it would appear that, in the span of six months, the price of rice has increased by nearly 130%. This is par for the course in North Korea, where the price of rice has increased by roughly 28,500% over the last three years.”

Here is the source.

Here is a previous post on Dr. Hanke’s DPRK inflation research.

Posted in 2012 food shortage, Fiscal & monetary policy, Food | Comments Closed