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Archive for the ‘Food’ Category

DPRK expecting bumper crop this fall

Tuesday, October 7th, 2008

Institute for Far Eastern Studies (IFES)
NK Brief No. 08-10-7-1
10/17/2008

It appears that many in North Korea are expecting an exceptionally large increase in this years’ harvest. According to a report issued on September 30 by Daily NK, a South Korean organization working for North Korean human rights, rice and corn market traders and those involved in food distribution are saying that grain harvests this year are significantly larger than last year, that by the end of the harvest season in November, North Korea’s food shortage crisis will be considerably eased, and that the price of rice will stabilize as well.

A source involved in China-North Korea trade at a company in Shenyang was quoted on the 30th as saying, “[North Korean] rice traders are expecting this year’s food production to be considerably improved compared to last year,” and, “This year, with no large natural disasters, rice paddies and crop fields are doing well, and crop production will probably be much greater than last year.”

In a related matter, one North Korean insider reported, “With the [North Korean] food situation, no one is doing as well as the wholesalers,” and, “As the fall harvest season has come, traders have come by farms in each province and reported that rice and corn harvests are very good.”

The source went on to say, “This year, farming was not difficult, so as autumn passes, the market price of rice looks likely to fall. The price of corn will fall even faster, hitting the 1000 won per kilogram level by mid October.” In fact, by the end of this year’s fall harvest, the price of food is expected to return to pre-shock levels. Currently, rice is selling for 2200 won and corn for 1300 won per kilogram in North Korean markets.

The reason harvests are expected to be more abundant this year is that the North has not suffered from flooding, as it had for the past several years in a row. Therefore, the government has called on the people to take care not to let any grain go to waste as harvesting is already in full swing in Hwanghae and South Pyungan provinces.

North Korean food wholesalers have become the suppliers of rice for markets since the government ceased to ration foodstuffs. They now contract with farms, paying in advance of harvest seasons so that the farms can use the funds to purchase fuel and other supplies necessary for preparing and transporting the food.

Because these traders personally visit the farms to predict harvests and set prices, the information is considered to be relatively accurate. These traders were also the first to predict the jump in prices earlier this year, warning of shortages even before last year’s fall harvest.

Posted in Agriculture, Agriculture statistics, Food, General markets (FMR: Farmers Market), Institute for Far Eastern Studies, Price liberalization, Statistics | 1 Comment »

Elderly Women Should Stop Complaining and Start Participating

Tuesday, October 7th, 2008

Daily NK
Lee Sung Jin
10/7/2008

An inside source from North Korea reported on the 6th that the North Korean authorities have ordered that any woman under the age of 70 who is able to hear, see, and move should participate in the activities of the “Chosun (Korean) Democratic Women’s Union.”

According to the source, “The Central Committee of the Women’s Union Chairwoman Kim Soon Hee decreed that the elderly who are able to move must participate in Union activities, rather than uselessly sitting around and complaining about society.”

After the worsening food situation, the source said that the elderly often sit around and pour forth their complaints about society, saying that “We did not live like this before… If we worked, at least we received wages and provisions, but what kind of a situation is this nowadays?” and blaming the inadequate governance of officials.

Since the food crisis, there have been many instances of the elderly selling goods in alleyways or at street-stands. In particular, after the implementation of the regulation of December 2007 which prevents women less than 40 years of age doing business in the market, the elderly increasingly sell products at stands which are managed by young women from behind the scenes.

Elderly women who do business in the jangmadang (market) have been accordingly playing the role of circulators of all kinds of rumors and complaints, such as saying, “How many more years are left in our lives? At least our children must live well, but there is no sign of that and it is much worse than the Japanese colonial period; how can we not blame the world?”

The recent measure can be seen as another ploy to control the citizens by the North Korean authorities. However, involving elderly women in organizational activities to prevent the worsening of civilian sentiment has been protested against by constituents as well as the elderly.

The elderly who heard the recent news have complained, “It is difficult enough just to live until our 60s, how can they tell us to participate in the Women’s Union activities as well?”

Also, the source relayed elderly concerns over their livelihoods, “Members participate in study sessions twice a week and have to carry out tasks distributed by the Union, so they do not have time to sell in the market. In their free time during the difficult period, they have been doing business and helping their families get by. The changed regulation is a death sentence for these families.”

Currently, the total number of members in the Korean Democratic Women’s Union, which started out as the “North Chosun Democratic Women’s Union” on November 18, 1945, is around 200,000. Until now, the targeted entrants have been women over 31 and below 55 who do not belong in other organizations or working places. The main activities of the Women’s Union are studying political ideology regarding women and rolling out various projects.

Posted in Civil society, Democratic Women's Union, Food, General markets (FMR: Farmers Market) | Comments Closed

North Korea on Google Earth

Thursday, October 2nd, 2008

North Korea Uncovered: Version 12
Download it here

About this Project: This map covers North Korea’s agriculture, aviation, cultural locations, markets, manufacturing facilities, energy infrastructure, political facilities, sports venues, military establishments, religious facilities, leisure destinations, national parks, shipping, mining, and railway infrastructure. It is continually expanding and undergoing revisions. This is the 12th version.

Additions include: Tongch’ang-dong launch facility overlay (thanks to Mr. Bermudez), Yongbyon overlay with destroyed cooling tower (thanks to Jung Min Noh), “The Barn” (where the Pueblo crew were kept), Kim Chaek Taehung Fishing Enterprise, Hamhung University of education, Haeju Zoo, Pyongyang: Kim il Sung Institute of Politics, Polish Embassy, Munsu Diplomatic Store, Munsu Gas Station, Munsu Friendship Restaurant, Mongolian Embassy, Nigerian Embassy, UN World Food Program Building, CONCERN House, Czech Republic Embassy, Rungnang Cinema, Pyongyang University of Science and Technology, Pyongyang Number 3 Hospital, Electric Machines Facotry, Bonghuajinlyoso, Second National Academy of Sciences, Central Committee Building, Party Administration Building, Central Statistics Bureau, Willow Capital Food House, Thongounjong Pleasure Ground, Onpho spa, Phipa Resort Hotel, Sunoni Chemical Complex (east coast refinery), Ponghwa Chemical complex (west coast refinery), Songbon Port Revolutionary Monument, Hoeryong People’s Library, Pyongyang Monument to the anti Japanese martyrs, tideland reclamation project on Taegye Island. Additionally the electricity grid was expanded and the thermal power plants have been better organized. Additional thanks to Ryan for his pointers.

I hope this map will increase interest in North Korea. There is still plenty more to learn, and I look forward to receiving your contributions to this project.

Version 12 available: Download it here

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Venerable Pomnyun at Johns Hopkins

Tuesday, September 23rd, 2008

UPDATE:Here is V. Pomnyun’s outline: pomnyun.pdf

NKeconWatch notes:
Agriculture: April – June are the lean months. In July 2008 potatoes helped alleviate food shortage. Also aid from West. Things began to get worse in August and September.

Earlier this year, the price of rice was up to 5x higher than a year ago. In June-July it fell to 3x higher. Now it is creeping back up.

Arduous March: In the 1990s, urban residents of North Hamgyong Province was the worst affected by famine. Today, the worst affected are the farmers and rural residents of Hwangae (he did not specify north or south). Shortage as bad as 1st arduous march, but fewer consumers and markets feed cities now.

Markets: protests in Chongjin. People chanted, “Give us food or let us trade.” None of the protests are political, just expressions of frustration.

Nukes:Nuclear weapons are a domestic propaganda weapon as well. Not just a matter of foreign policy.

Original Post:
Program details here
Wednesday, September 24
2:00 – 4:00 pm
Rome Auditorium at SAIS
1619 Massachusetts Ave., NW
Washington, DC 20036
RSVP here

The Venerable Pomnyun Sunim, Chairman of Good Friends and The Peace Foundation, will discuss the current political and social climate in North Korea, including the spread of the black market economy and the increase in political control over North Korea’s elite. Joining his discussion, is Dr. Cho Seong-ryoul, Director of the New Security Studies Program at the Institute for National Security Strategy (INSS), who will offer his insights on current and future inter-Korean relations.

Posted in Agriculture, Arduous March, Food, General markets (FMR: Farmers Market), Good Friends, Uncategorized | Comments Closed

DPRK journal stresses food provision reform

Thursday, September 18th, 2008

Institute for Far Eastern Studies (IFES)
(NK Brief No. 08-9-18-1)
2008-09-18

The latest issue of the North Korean academic journal “Institute for Social Science Bulletin” (no.3, 2008) stressed that in order to resolve the North’s food shortage problems as quickly as possible, “it is necessary to take a good assessment of future food consumption [needs].”

In this issue, recently obtained in South Korea, an article reads, “the project for resolving the food issue cannot be pushed forward into the future, and while taking into consideration what steps can be taken now, the country’s food problems cannot ultimately be relieved by relying only on short-term benefits. On the contrary, [this] can adversely affect the future resolution of the food issue.”

The journal also added, “The task of restructuring food production must start with an assessment of future food consumption and start off with a view of long term interests rather than from starting from a standpoint of short-term interests in order to completely relieve food supply problems.” It stressed, “These days, resolving the country’s food supply problem is the most urgent and important task…solving food issues is an urgent problem that cannot be delayed a single moment,” but warned, “while the food issue must be solved without a day’s delay, recklessly pushing forward without scientific calculation or goals could result in insufficient and disorganized future results.”

Posted in Agriculture, Domestic publication, Food, Institute for Far Eastern Studies | Comments Closed

Chinese official confirms DPRK grain smuggling

Wednesday, September 17th, 2008

Markets work because price increases send entrepreners strong signals of relative scarcity and potential profit opporunities (unless these price increases are caused by inflation). Entrepreneurs who pick up on these signals, then, have a strong incentive to move the desired resources from where they are valued less to where they are valued more.

A Chinese official in Jilin claims entrepreneurs in his province hear these signals loud and clear—and they respond the way humans have for thousands of years–they arbitrage:

The head of the grains bureau of Jilin, the Chinese province bordering North Korea, Zhu Yehui, says a drought in North Korea is very serious, and there is a lot of corn smuggling from China into North Korea.

He says the price in North Korea is more than 10 times the domestic price in China.

I am going to go out on a limb to suggest that these Chinese smugglers (entrepreneurs) are also delivering food more cheaply (on average) than the World Food Program, and I also am willing to wager that they have better access to “sensitive areas.”

Addendum: According to Yonhap North Korea’s grain crop last year reportedly amounted to 4 million tons. The U.N. Food and Agricultural Organization told U.S.-based Radio Free Asia last month that the North will harvest a half million tons less than last year.

Read the full article here:
China reports grain smuggling business active into North Korea
Australian Broadacsting Corporation
9/17/2008

Posted in Agriculture, Agriculture statistics, Food, Price liberalization, Statistics | 1 Comment »

Pyongyang publicizes economic situation on 60th anniversary of the DPRK

Thursday, September 11th, 2008

Institute for Far Eastern Studies (IFES)
NK Brief No. 08-9-9-1
9/9/2008

In order to inform the North Korean public of the current economic situation on the 60th anniversary of the establishment of the Democratic People’s Republic of Korea (Sept. 9), state-run media outlets in the North are reporting on the construction or expansion of factories and facilities in each region of the country.

According to reports by (North) Korean Central Broadcasting, Pyongyang Broadcasting and other North Korea media outlets, three to four production facilities per month began operations through July, and seven facilities opened last month. The news is also reporting that six new facilities have been completed or have begun operations during what little time has passed this month.

It appears that North Korea is concentrating its efforts on expanding production facilities in the mining and metalwork production realm, despite facing difficulties brought on by resource and material shortages. Construction work to increase the Kumduk Mining Enterprise’s mineral conveyance system capacity in Danchon, South Hamyong Province, the heart of the iron and zinc-producing region, was completed at the end of last month, as was the first stage of construction on the refurbishment of the Danchon Mining Equipment Factory. Construction on a new production factory extracting primary elements from coal was completed this month at the Moonpyoung Refinery in Kangwon Province, where gold and other minerals are mined. Authorities are toting the new facilities as “One More Monumental Creation of the Military-First Era.”

North Korean media outlets are also reporting on economic developments affecting food supply to the North Korean population. In the town of Singye, North Hwangae Province, the Singye Sweet Potato Processing Plant, which produces noodles, sweets, and other food products from sweet potatoes, went into production at the beginning of August. It was also reported that in the middle of last month, construction was completed on a computerized meatpacking plant at the Kangseo Pork Processing Facility in Pyongnam. On the third of last month another pig farm in Kanggye, one which Kim Jong Il complemented during an on-site inspection in January, calling it “one more modern livestock facility for Jagang Province,” also began operations.

The Generator No. 1 and the pressure tube at the Wonsan Centennial Power Plant were completed in the middle of last month, and the water flow channel for Generator No. 2 at the Baekdu Mountain Military First Centennial Power Plant and the Pyongnam Military First Centennial Power Plant were completed at the beginning of this month.

In reporting the completion of power plant construction projects, the media announced that they “would be able to contribute to the improvement of the lives of the people and the normalization of factory and enterprise production.”

Posted in Electricity, Energy, Food, Light Industry, Manufacturing, Mining/Minerals | Comments Closed

DPRK markets: What’s selling and for how much?

Saturday, September 6th, 2008

According to the Daily NK:

The new issue of NK In and Out (NKeconWatch is unable to find this publication on line) includes information about North Korea’s recent jangmadang (markets) developments, stating that “memory cards for digital cameras and even USB flash drive sticks can be bought easily in the jangmadang of major cities these days.”

The journal explained that most of the memory cards are under 1GB and although there are various types of memory cards, they are sold for ten to fifty thousand North Korean Won on average (approx. 3,400 to 17,200 South Korean Won, 3 to 16 USD). Demand for memory cards has been increasing due to the popularity of digital cameras and computers.

Recently there have been individuals that operate photo businesses at photo studios or state-operated shops in the downtown areas of cities. It is known that most of these individuals use digital cameras imported from China rather than film cameras.

The journal clarified that digital pictures can also be easily printed because certain trade organizations, broadcasting companies, convenience stores, or provincial computer centers have set up technology shops providing services to print pictures or produce music CDs.

Notably, a third of middle school students in large border cities own MP3 players and two to three students per class have personal computers at home. It is presumed that many more people own MP3 players or computers in major cities such as Pyongyang.

Below is some recent price information. Click on the image below to view full size.

Posted in Agriculture, Computing/IT, Food, General markets (FMR: Farmers Market), Price liberalization, Private property | Comments Closed

UN World Food Program launches DPRK emergency relief – solicits support

Tuesday, September 2nd, 2008

The UN World Food Program has announced a new emergency relief measure in the DPRK. The WFP claims to need more than 1.5 million tons food for North Korea and $503 million to maintain adequate operations until November 2009—$60 million of it now. Below are highlights from the UNWFP and various media outlets:

According to the WFP:

The immediate negative impact on food security was confirmed by a comprehensive “Rapid Food Security Assessment” conducted jointly by WFP and the Food and Agricultural Organization (FAO) in June. More than three quarters of all households had reduced their food intake, over half were eating only two meals per day and more malnourished and ill children were being admitted to hospitals and institutions.

“All in all, operations are progressing well and we have been able to expand assistance to reach over 4 million hungry and vulnerable North Koreans.”

WFP is deploying 59 international staff members to support the new programme. More than 20 of them will be working in six newly-established field offices to monitor and track food distributions – and for the first time ever, the international staff will include Korean-speakers, in accordance with the new agreement between WFP and the DPRK government.

WFP monitors have already visited county warehouses and beneficiary institutions in 125 of the 131 targeted counties and have accounted for all WFP food assistance distributed so far.

As an aside, “two meals a day” is a scientifically meaningless measure. At the bare minimum, it would be far more helpful to detail the number of calories the mean/median North Korean consumes per day along with the total necessary calories needed to maintain health.

The Christian Science Monitor printed a few more details:

Citizens eligible for food rations have seen their allocation cut from 500 grams a day to 150 grams, Banbury reported. Few North Koreans eat meat except on major national holidays when the government distributes it, he added.

What are the roles of South Korea, USA and China in all this?

South Korea
South Korea, which provided more than half the North’s food aid last year, has suspended shipments of food and fertiliser this year in a tougher policy towards Pyongyang from new President Lee Myung-bak.(Financial Times)

On Tuesday, [South Korean] Unification Ministry spokesman Kim Ho-nyeon said Seoul is still considering the appeal and will make a decision based on its assessment of the North’s food situation while monitoring “various situations.” He did not elaborate.(AP via the Herald Tribue)

US
The US promised in May to donate 400,000 tonnes of food aid to North Korea through the WFP and a further 100,000 tonnes through private US organisations. That would nearly double the amount donated last year by China, which has in past said its relationship with Pyongyang was as close as “lips and teeth”. (Financial Times)

China
China is North Korea’s leading source of food and fuel aid. But difficulties in obtaining food export licenses from China have hampered the WFP’s efforts to procure food to be sent to North Korea as well as to Myanmar, the agency said, adding it was in talks with Chinese officials. It has asked the Chinese government to allow the agency to buy 50,000 tons of cereals and export it to their operations in either country. (AP via the Herald Tribune)

Posted in Agriculture, Food, UN World Food Program | Comments Closed

Prices, deaths rise as grain stores run low

Sunday, August 24th, 2008

Institute for Far Eastern Studies (IFES)
NK Brief No. 08-22-1
8/22/2008

As the international community’s food aid to North Korea falls short of North Korean citizens’ expectations, previously falling rice prices have begun to rise again in August, according to ‘Good Friends’, a South Korean organization working for human rights in the DPRK.

In a recent issue (no. 189) of the group’s newsletter, “North Korea Today”, it was reported that “the amount of outside food [North Korean] authorities had promised did not come in, and at the same time, the rumor that not even smuggled rice from China had been able to come in since August spread among traders, raising the price 200-300 [DPRK] Won per day” for a kilogram of rice.

Last May, the price of rice had risen to 4000 won per kilogram, but began to fall as news of food aid from the United States emerged, bottoming out at 2300-2400 won last month. It has now risen back to between 2900-3050 won.

The newsletter reports that the reason prices are climbing is that in June, North Korean authorities were spreading the word that plenty of food would be coming in from the United States and other overseas donors, but in July, when expectations were not met, concern grew that supplies would run out. This led traders to horde stocks, driving prices up.

According to a North Korean document acquired by ‘Good Friends’ titled “Statistics on 2008 Lean Season Farmer Starvation”, as many as twenty to thirty people per farm died of hunger during the spring lean season (April-June). The document listed the cause of death simply ‘death from disease’, with no reference to what particular disease had befallen the victims, but ‘Good Friends’ reports that North Korean medical officials are saying the cause of death was malnutrition.

It also reports that at the Taesungri Farm, visited on several occasions by both Kim Il Sung and Kim Jong Il, poor harvests last year meant that the government was only able to provide two months worth of rations, leading to an increase in deaths during the lean season. In July, as small amounts of the year’s first crop began to be distributed, there were no deaths, but as August rolled around, people again began to die one or two at a time.

Posted in Agriculture, Food, Good Friends, Institute for Far Eastern Studies, International Aid, Price liberalization | Comments Closed

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