Archive for the ‘Food’ Category

Food prices continue to increase

Sunday, January 10th, 2010

According to an AFP report that cites Good Friends:

Good Friends, citing its own contacts in the reclusive North, said prices for rice and corn doubled last week at markets in the capital Pyongyang and in the eastern port city of Chongjin.

Rice prices ranged from 120-150 won per kilogramme (2.2 pounds) in Pyongyang and 110 to 140 won in Chongjin last week — up from 40 to 50 won reported on December 30, the group said.

Corn also traded higher at 70-75 won last week — up from 20-25 won on December 30 in the areas, it added. Seoul’s unification ministry, handling cross-border issues, could not confirm the data.

The official exchange rate is 135 won to the dollar but the black market rate is between 2,000 and 3,000 won.

The report came as the World Food Programme struggles to raise relief funds for the food shortage-hit North.

Major donors — including South Korea and the United States — refuse to help in protest at its second nuclear test in May last year.

Statistics available at the WFP website display it raised 89.8 million dollars as of late last month, around only 18 percent of its target of 492 million dollars in relief funds for the communist North.

Read the full article here:
Food prices soaring in N. Korea: group
AFP
1/10/10

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DPRK claims food output at 5 million tons

Sunday, December 27th, 2009

According to the Choson Ilbo:

North Korea in late October informed the UN its food output this year was 5.01 million tons, it emerged on Tuesday. The yield included 2.34 million tons of rice, 1.7 million tons of corn, 560,000 tons of potatoes, 240,000 tons of wheat and barley and 150,000 tons of beans.

The figure represents an increase of 330,000 tons over the 4.68 million tons the North claimed last year. The original estimate was about 4 million tons.

North Korea’s rice harvest increased this year thanks to little harm from floods and droughts, according to North Korea sources. Corn output was poor due to cold-weather damage in the border region with China and Kangwon Province. “Kim Jong-il appears to have carried out the shock currency reform out of confidence that the food situation next year won’t be worse than expected,” speculated a source.

If it is not in urgent need of food aid, the North can afford to be tougher in its dealings with the South and the U.S. for the time being. But there is a chance that the North exaggerated the food output in a bid to demonstrate the success of a “150-day struggle” and a “100-day struggle” where people were swept off urban streets and forced into labor on the collective farms.

With 5.01 million tons of staples, the North would face little problem in feeding its population of 24 million for a year. Its late leader Kim Il-sung once said, “Daily food consumption is about 10,000 tons. If we had 5 million tons of grains a year, we would be able not only to dole out food rations but feed the people with sugar and candy.”

But the food shortage in the North arises not only from a chronic quantitative shortfall but also from uneven distribution and supply. The authorities place priority in food supply on the party and the military. The burgeoning merchant class can also manage. But the old, the weak and the urban poor, estimated at 10 to 20 percent of the population, are marginalized. “Organizations aiding North Korea also need to improve monitoring of distribution,” said a South Korean government official.

Meanwhile, the UN Food and Agriculture Organization said the grain output North Korea informed it of in mid-November was 3.53 million tons. A source said this was because potatoes and beans, which are included in ordinary grain yield estimates, were omitted. “The aim may be to get the maximum possible food aid from the international community,” the source speculated.

Previous posts citing DPRK agriculture statistics can be found here.

Previous posts about the DPRK’s agriculture policies and outcomes can be found here.

Previous posts about the DPRK’s food situation can be found here.

Read the full article here:
N.Korea’s Claims Food Output of 5 Million Tons
Choson Ilbo
12/23/2009

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Official Government-set Prices Are Publicly Announced in the Markets

Thursday, December 17th, 2009

Good Friends (h/t Northeast Asia Matters)
North Korea Today No.316 Hot Topics December 2009

North Korean authorities publicly announced the official national prices in the markets. Contents of announcement are as follow: 22 to 23 won per Kg for rice, 8 won for corn, 12 won for crushed maize, 10 won for corn noodle, 22 won for flour, 9 to 13 won for tofu soy, 50 won for soy oil, 12 won for red bean, 10 Won for string bean, 21 to 22 won for potato starch, 15 to 18 won for millet, 45 won for pork, 50 won for chicken, 40 won for dog meat, 45 won for rabbit meat, 30 to 50 won for whiting fish, 35 to 45 won for sea bass (a set of 2), 50 to 100 won for clams, 60 to 100 won for Atka mackerel, 3 won for an egg, 30 to 40 won for dried pepper, 40 won for powdered-sugar (sugar), 3 won for a cake of tofu, 30 to 40 won for a fresh octopus, 3 won for cabbage, 5 won for radish, 35 to 45 won for a package of food seasoning, 300 to 550 won for a ready-made men’s suit, 350 to 500 won for a ready-made women’s dress, 200 to 300 won for men’s underwear, 250 to 350 won for women’s underwear, 35 won for a pair of men’s jogging shoes, 30 won for a pair of women’s shoes, 200 to 300 won for a pair of men’s shoes, 250 to 400 won for a pair of women’s shoes, 10 50 15 won for market fee, 0.5 won for bicycle storage at market.

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North Korea announces new official prices: rice now 23 won per kilogram

Wednesday, December 16th, 2009

Institute for Far Eastern Studies (IFES)
NK Brief No.09-12-16-1
12/16/2009

In accordance with the recent currency reform in North Korea, new state-controlled prices were officially announced on December 9. South Korean NGO ‘Good Friends’ announced on December 13th that rice is now selling for 23 won per Kg, corn at 8 won per Kg, flour at 22 won per Kg, pork at 45 won per Kg and ‘matnaegi’, a common flavor-enhancing food additive, is selling for 45 won per bag. Other prices were also listed per kilogram, including crushed maize at 12 won, corn noodles for 10 won, soybeans from 9-13 won, soybean oil for 50 won, radishes at 5 won, artificial meat for 15 won, and cowpeas for 10 won.

On December 4, the Choson Sinbo, a newspaper printed by the pro-North Korean General Association of Korean Residents in Japan (Jochongryeon), reported that North Korean authorities were planning to lower prices to the same level as was seen when the July 1, 2002 Economic Management Reform Measure was enacted.

At the end of November, prior to the currency reform, rice was selling for 1,850 won in Hamheung, 2,000 won in Cheongjin, and 1,700 won in Pyongyang and Sariwon.

In the markets of these four major cities, corn averaged 737.5 won/Kg, flour was sold for 1,687 won/Kg, and pork was 5,450 won/Kg. Pork is the only item now being sold more cheaply, while the price of all other goods went up with the currency reform.

A source inside North Korea has reported that most market traders are not following government pricing guidelines, however, and that the majority of goods are being sold at even higher prices than Pyongyang has set. In the market in Cheongjin, North Hamgyeong Province, rice was being sold for 50 won/Kg, and corn went for 18 won/Kg, more than double government prices. These high prices appear to reflect supply shortages and hoarding.

After the currency reform was announced, North Korean miners received raises, from a basic monthly wage of 6,000 won to the equivalent of 8,000 (pre-reform) won. Miners in North Hamgyeong Province can now put enough food on the table without needing second jobs. On December 4, the Choson Sinbo also reported that the government has guaranteed that living expenses distributed by factories will be distributed in the new currency.

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Samtaesong fast food restaurant in Pyongyang

Tuesday, December 1st, 2009

UPDATE 6 (October 15, 2010): The restaurant has opened a second branch in the Kaeson Youth Park.  This Voice of America article reports on the restaurant’s popularity and offers a bunch of other information that I do not necessarily see at accurate.

UPDATE 5 (November 29):  The origins of the project were featured in a recent article in the Straits Times:

It began two years ago when Mr Quek, managing director of the Aetna Group, which deals in metal and minerals, was approached by his North Korean business partners to invest in the country.

His company has been trading with the North Koreans in steel and minerals for more than 25 years.

Mr Quek then roped in his business friend Mr Tan, whom he had met eight years ago in Shanghai.

Together, they set up Sinpyong International to invest in North Korea.

Asked if he was worried about investing in North Korea, Mr Tan admitted that he prepared himself mentally for red tape.

Initially, the two men mulled over business ideas such as opening a supermarket. But after market research, they were drawn to the idea of a fast-food restaurant.

‘There was nothing like that there at that time. It was probably the only country in the world that doesn’t have fast food,’ said Mr Tan.

Despite neither of them having any experience in the fast-food business, the pair quickly got down to work.

They roped in a third person, Mr Patrick Soh – who holds the franchise in several Asian countries for Waffletown USA – to help them set up the operation and train the local staff in Pyongyang.

Waffletown USA is not a big regional player and it currently has only two franchise outlets in Singapore, in Balmoral Plaza and in Ngee Ann Polytechnic.

Samtaesong, however, is not a Waffletown franchise, Mr Quek stressed. ‘We borrowed the concept and menu, and tapped Mr Soh’s expertise, but it’s not a Waffletown franchise,’ he said.

Early this year, a four-man team from North Korea discreetly came to Singapore to sample the fare at the Balmoral Plaza outlet in Bukit Timah.

‘They tried the food and especially liked the waffle, burgers and fried chicken,’ said Mr Soh, 56, beaming.

Mr Quek said the restaurant’s site was picked by his North Korean business partners. Located in the heart of Pyongyang, it is next to a subway station and within walking distance of various universities and foreign embassies.

In November last year, the Singaporean partners began making trips to North Korea to set up the 246 sq m restaurant. It occupies one floor in a twostorey building and can seat about 80 people.

Furniture, styled after fast-food joints in Singapore, was shipped in from China.

Kitchen equipment and ingredients, such as the seasoning for the fried chicken and the waffle mix, were flown in from Singapore.

The beef and the chicken are sourced in North Korea, while a local factory supplies the burger buns and patties according to Mr Soh’s recipe.

In all, Mr Quek and Mr Tan spent about US$200,000 (S$276,500) to set up the shop.

Mr Soh let on that the menu was modified to appeal to North Korean tastebuds. For instance, the side dish coleslaw was substituted with kimchi, the

spicy pickled cabbage popular among Koreans. The burgers also come with more vegetables.

‘They don’t like the idea of junk food, so we made the menu more healthy,’ Mr Soh said.

Local draught beer is also served along with soft drinks like Coke.

The restaurant has 14 staff members, mostly young women, who don colourful aprons while flipping burgers and cooking french fries.will promote tourism in northeast Asia.

Download a PDF of the Straits Times article here.

Read previous posts about this restaurant below:

(more…)

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North Korean food shortage to grow, crimes of necessity on the rise

Tuesday, November 3rd, 2009

Institute for Far Eastern Studies (IFES)
NK Brief No. 09-11-02-1
11/2/2009

The North Korean agricultural ministry has announced that the countries food shortages are expected to be even greater next year. Edition 302 of the newsletter “North Korea Today,” distributed by the group Good Friends, reports that the Ministry of Agriculture announced harvest predictions for farms in North and South Hwanghae and Pyongan provinces, North Korea’s ‘ricebowl region’. It stated that if the country was to avoid a food crisis next year, everyone would need to strictly manage this year’s crops. It was also reported that the central party authorities in North Korea, after receiving the report, called for the opening of all customs houses in the border region and for trading companies to seek new avenues for trade. An order was passed down to “relentlessly trade with the outside in order to bring in much food.”

With food shortages this year and last, and now news that there will be food problems next year as well, it is rumored that there is a growing number of angry people in the normally mild-mannered Hwanghae Province. In addition, this is driving a growing number of people to turn to crime in order to put food on the table. On October 26, Free North Korea Radio quoted a source as stating, “As rumors spread across North Korea that large-scale famine, the likes of which were seen in the mid-1990s, will again sweep through country next year, anxiety is shooting up among the people and crimes of necessity are on the rise.”

According to the source, “Crimes of necessity, like pillaging granaries on farms, are spreading like never before as people act quickly to ensure food supplies,” and, “Fighting has grown fierce between people trying to maintain their standard of living.” Furthermore, “The number of people in the Dancheon region of South Hamgyeong Province just ‘sitting down and starving to death’ is exploding,” and, “Not long ago, there was even one incident of and armed soldier guarding a threshing floor of one farm being attacked by a gang of thieves.”

The source explained, “People are well aware that this year yielded poor harvests, but that they cannot rely on aid from the international community because of the Kim Jong Il regime’s indiscriminant pursuit of nuclear development.” The source also added, “These days, people are rationalizing illegal activities in the belief that ‘you can rely on no one but yourself.’”

It was also reported that in Hyesan, Hyeryeong, Onseong and Musan, most food prices are at higher levels than what are usually seen in the spring, despite the fact that it is now fall harvest season. According to Free North Korea Radio, October 23rd prices of rice, flour and corn in Hyesan, Hyeryeong, Onseong, and Musan were as follows: Hyesan, rice = 2,550-2,750 won/1 kg, flour = 2,400-2,600 won/1 kg, corn = 850-900 won/1 kg; Hyeryeong, rice = 2,500-2,800 won/ 1 kg, flour = 2,400-2,700 won/ 1 kg, corn = 800-1,000 won/1 kg; Onseong, rice = 2,450-2,600 won/ 1 kg, flour = 2,500-2,700 won/1 kg, corn = 700-900 won/1 kg; Musan, rice = 2,500-2,700 won/1 kg, flour = 2,400-2,600 won/1 kg, corn = 850-1,000 won/1 kg

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North Korea expecting smaller grain harvest due to increasing temperatures

Tuesday, October 27th, 2009

Institute for Far Eastern Studies (IFES)
NK Brief No. 09-10-19-2
10/19/2009

As concerns over lean harvests and food shortages grow, North Koreans are growing more worried as rumors over worsening conditions next year make their way through North Korean communities. Temperatures in North Korea dropped sharply in July, leading to freezing that impacted the agricultural sector. From September 8-12, the temperature dropped so drastically that areas of North Korea frosted over. Mid-September temperatures then suddenly rose to levels well above average, leading fruits and vegetables to sprout new flowers.

Especially in the northern areas of the country, the strange weather patterns have led to widespread rumors of food shortages by the end of the year and beyond. While the North recorded average harvests this year, avoiding mass famine, the recently ended ‘150-day Battle’, market restrictions, and other controls have led to rampant concerns of starvation, flood, and other threats.

North Korean Central Broadcasting reported on September 25 that Russia had provided rice aid, and again on September 28 that Vietnam had sent food aid. It appears that the food crisis has reached such proportions that the government is no longer attempting to cover it up. With the majority of people believing that they will face widespread food shortages this year, many rumors are circulating that the North Korean authorities have decided to accept food aid from abroad. As fall has already arrived, there is talk of a ‘second arduous march’ having begun, and there are reports of rice traders travelling around the country and buying up all the supplies.

On October 11, prices in the Yanggang Province city of Hyesan were continuing to rise, despite it being autumn. Chinese rice was being sold for 2,500 won per kilogram, and North Korean rice was going for 2,700 won. After the first ‘arduous march’ (mid to late 1990s), North Korean authorities supplied some limited rations after the fall harvest in order to ease food shortages. However, this year, not even these rations are available, and authorities are calling on people to provide for themselves.

This year’s rice and corn harvests were smaller than previous years, and last month, the UN FAO predicted that the North would need 1.7-1.8 million tons of food aid from abroad. Kim Soon-kwon, director and founder of the International Corn Foundation, reported after a recent visit to North Korea that the country’s food supplies would fall one million tons short this year. The South Korean Ministry of Unification predicted earlier in the year that without outside aid, North Korea would be 1.17 million tons short of food. North Korean citizens need 5.48 million tons of food, and as previous harvests have been around 4.31 tons, the shortage is obvious.

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Int’l Press Gets Glimpse of N.Korea’s Daily Grind

Monday, October 12th, 2009

The Choson Ilbo recently posted an article which contained several interesting facts.  Quoting from the article:

A W35 million price tag for the Internet connection to transmit a five-minute piece of footage is only one of the endless list of inconveniences that make up daily life in North Korea (US$1=W1,163). Kristine Kwok, a reporter for Hong Kong’s South China Morning Post who accompanied Chinese Premier Wen Jiabao on his visit to North Korea on Oct. 4 to 6, recounts them in a story titled “Life in the Hermit Kingdom.”

“Accessing the Internet is a distant dream for North Korean citizens and an expensive luxury for visiting foreigners,” Kwok wrote. “Filing a news report of Wen shaking hands with North Korean leader Kim Jong-il would cost a TV station the equivalent of HK$233,472. The North Korean Foreign Ministry eventually decided to pay all the Internet fees for the reporters –much to their relief.”

The report said North Korea’s 24 million people are barred from the Internet, with connections available only in some hotels, where sending a picture costs around W68,000 and a single email W3,400. North Korea has set up road blocks along the information super highway and is committing “robbery,” Kwok added.

The last time I visited the DPRK, I recall that emails and phone calls from the Yangakdo Hotel are exorbitant–also, there are no phone books available and switch board operators (yes, they still have them) are of no help. If you don’t know the number you need to call you have to get creative.  But, with prices like that you would think the DPRK would like more journalists to visit!

Also mentioned in the article is Pyongyang’s new fast-food Samtaesong Restaurant, which I blogged about here when it opened.  According to the article “Samtaesong” translates to “three big stars”.  I am going to go out on a limb and guess that those three stars are the “Three Stars of Paektu: Kim il Sung, Kim Jong Suk, and Kim Jong il.”  now you can show your loyalty to the three stars while eating a burger, which is much more pleasant than standing silently in line formation under the hot sun for hours on end while political leaders you have never met read long speeches to you.

Also, “The most expensive item on the menu is ‘crispy chicken,’ which costs 3 euros, while a hamburger costs between 1.2 to 1.7 euros. That is high given the fact that North Korea’s per-capita GDP was US$1,000 last year, but AFP said Samtaeseong sells 300 burgers each day.”

Read the full article here:
Int’l Press Gets Glimpse of N.Korea’s Daily Grind
Choson Ilbo
10/13/2009

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Officials ‘Crave Coffee’

Friday, October 9th, 2009

Radio Free Asia
Jeong Young
10/9/2009

As millions go short of food in the last bastion of Stalinism, the privileged political elite of North Korea are drinking heavily: not wine, brandy, or even rice liquor, but instant coffee from rival South Korea.

Coffee first arrived on the Korean peninsula in 1895 as a gift from a Russian diplomatic envoy to the court of Emperor Gojong. It was furthered popularized in the South by U.S. troops during the 1950-53 Korean War.

Now high-ranking North Korean officials and their families are tipping back the beverage in a form that might surprise aficionados in more privileged economies: three-in-one instant coffee sachets.

These are so highly prized that they’re smuggled across the border from China, disguised as passenger luggage to evade Chinese customs controls.

China imposes restrictions on the amount of coffee that can be imported from South Korea, and that is why coffee is loaded on passenger ships at the South Korean port of Incheon and sent to the northeastern Chinese city of Dandong, to bypass the Chinese quota system.

“The coffee we send to Dandong sells for KRW 1,200 to 1,500 (U.S. $1.00-1.50),” a South Korean coffee trader said.

Smuggled in

“This coffee is sent across the China-Korea Friendship Bridge connecting Dandong in China and Shinuiju in North Korea, and subsequently smuggled into North Korea,” he said.

Another trader, Kim Tae-Sung of the Youngshin Trading Co., said even large containers are sent to China packed with instant coffee via this route.

“Small shipping companies can load and ship containers of all sizes on passenger ships,” Kim said. “One kilogram of coffee costs KRW 1,800 (U.S. $1.50).”

According to traders, since the South Korean coffee has to get through North Korean customs, they remove the original outside wrapper and put the sachets into a different jar.

They then bribe North Korean customs officials to turn a blind eye to their illicit cargo.

The sachets, often the South Korean Maxim brand, are then quietly sold at markets in the larger cities.

Glamorous and costly

A North Korean trader who recently arrived in China said that a growing number of household commodities are now available at unofficial markets in the North, but that most are well beyond the reach of ordinary North Koreans, who still struggle to find basic foodstuffs for their families.

“A lot of commodities are sold at markets, including coffee and milk,” he said. “There are big packs of coffee. There’s coffee imported from China or from Japan.”

“Generally, it’s the upper class people who drink it … How could the ordinary people afford to buy coffee?”

While the elite sips the sweet brew produced by a combination of coffee powder, creamer, and sugar, ordinary people are still unsure exactly what coffee is, according to North Koreans now living in Seoul.

Do Myung Hak, a North Korean defector who arrived in South Korea two years ago, said ordinary North Koreans had mostly come across coffee in a popular war movie, “Unsung Heroes,” in which characters ask, “Would you care for a cup of coffee?” giving it a glamorous image.

“But most people have never had a chance to taste coffee. They have no idea what it is or what it tastes like,” Do said.

“Some even believe that it’s an alcoholic drink that can make you drunk, while some believe that it’s so bitter and so dark that it can turn one’s entrails dark,” he said.

“Most North Koreans haven’t tasted coffee, so they’re simply clueless about it.”

North Korea’s elite first acquired the taste for the three-in-one brew after visiting tourists left surplus sachets behind them.

Later, in the jointly run Kaesong Industrial Zone, South Koreans continued to share the beverage with their co-workers from the North.

And a popular political joke says that customs officials drink coffee to stave off the hunger pangs that are a common experience for many ordinary people in North Korea.

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DPRK harvest to decline

Tuesday, September 22nd, 2009

According to Yonhap:

The North’s corn crop for this year is estimated to be less than 1.5 million tons, considerably down from the 2.5 million to 3 million tons it usually garners, said Kim Soon-kwon, a leading corn biologist and head of the International Corn Foundation. The forecast yield portends a severe food shortage in the country where corn is believed to make up 40 percent of the total food supply.

“Of all the corn harvests I’ve seen while visiting North Korea over the past 12 years, this year’s crop was the worst,” Kim said over the telephone from China where he was staying after last week’s trip to the North.

During the Sept. 12-16 trip, he surveyed corn farms on the outskirts of Pyongyang and around Mount Myohyang and found a widespread shortage of fertilizer had slowed corn growth. Also, a drought in July — a critical period for the crop — followed by heavy downpours further damaged corn fields, he said.

“Corn needs fertilizer more than any other grain,” Kim explained. “The fact that the fertilizer had not been provided appropriately because of the limbo in inter-Korean relations is a major factor in the bad crop.” said Kim, who spent 17 years in Africa helping develop higher-yield corn seeds and spreading farming technologies.

Since 1999, the South Korean government has provided an average 300,000 tons of fertilizer worth 96 billion won (US$77 million) to the North every year to help ease the country’s chronic food shortages. But the aid was suspended after conservative President Lee Myung-bak took office last year, linking inter-Korean aid to progress in North Korea’s denuclearization.

North Korea’s own fertilizer output is estimated at less than 500,000 tons a year, about a third of the 1.5 million tons the country needs for its grain farming, according to Seoul’s Unification Ministry.

Aid activists from World Vision, who visited North Korea last month, said rice paddies were more yellow than green this year due to a fertilizer shortage, which will equate to low yields in the harvest season.

Seoul expects the North will fall more than one million tons short of the 5.48 million tons of food needed to feed its population of 24 million this year.

Read the full story here:
N. Korean corn crop to fall by 40 percent: agronomist
Yonhap
9/22/2009

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