Agriculture « North Korean Economy Watch

Archive for the ‘Agriculture’ Category

S. Korea unable to recoup 2.2 trillion won in rice loan to N. Korea: lawmaker

Sunday, August 26th, 2007

Yonhap
8/26/2007

South Korea will likely lose 2.2 trillion won (US$ 2 billion) in its food loan to North Korea, because the price was set by international market standards, an opposition lawmaker said Sunday.

Since 2002, South Korea has loaned 2.1 million tons of rice worth 2.86 trillion won to North Korea to help alleviate chronic food shortages in the impoverished communist country.

The loan was offered at international prices at the time of the shipments, although 2.1 million tons of the shipment were homegrown products, whose domestic price is four times higher than international prices, said Rep. Hong Moon-pyo of the Grand National Party.

Citing data from unification and agriculture ministries, Hong said the total monetary value of the South Korean food loaned to North Korea during the period comes to 2.86 trillion won.

North Korea is required to pay back the loan at international market prices, which currently stand at US$380 on the average, the lawmaker said.

“According to the terms of the contract, South Korea will not be able to recover about 2.2 trillion won, so the difference should be offset by taxpayers’ money,” Hong said, adding that the government should unveil the exact amount of the loan and its conditions.

Posted in Agriculture, Finance, International Aid, RoK Ministry of Unification, South Korea | Comments Closed

Chicken farmers look North for cheap labor

Saturday, August 25th, 2007

Joong Ang Daily
8/25/2007

Maniker Co., South Korea’s second-largest poultry processor, plans to build chicken farms in North Korea to take advantage of cheaper labor in the communist nation.

Maniker officials will be traveling to the North in the middle of next month to finalize details on building several farms near the border of the two countries, the company said in a statement yesterday. The project will help Maniker lower costs while giving North Korean workers opportunities for increased income and high-protein food, the statement said.

North Korea has shown “a positive reaction” to Maniker’s plan, which has been under discussion since 2002, it added.

During the visit, Maniker executives and North Korean officials will choose the location of the chicken farms between Sariwon, south of the North Korean capital of Pyongyang, and Samilpo, near Mount Geumgang on the east coast, the company said.

Maniker, which trails Halim Co. in the domestic poultry market, plans to initially sell the chickens in South Korea and may eventually sell them in North Korea as well.

The company reported a net loss of 3.4 billion won ($3.6 million) for the three months ended June 30, compared with a profit of 237 million won a year earlier.

Posted in Agriculture, Economic reform, Foreign direct investment | Comments Closed

South Korean food maker Maniker plans to open chicken farms in North Korea

Friday, August 24th, 2007

Yonhap
8/24/2007

[Excerpt]

Maniker Co., a South Korean food maker, said Friday its executives will visit North Korea next month to finalize the company’s project to set up chicken farms there.

Maniker, one of the nation’s leading chicken-processing companies, has explored ways to build chicken farms in North Korea since 2002 to take advantage of the North’s cheap labor.

During the visit in mid-September, Maniker executives and North Korean officials will choose the location of the chicken farms between Sariwon, south of the North Korean capital of Pyongyang and Samilpo near Mt. Geumgang on the east coast, the company said in a statement.

North Korea has showed “positive” response to the project, Maniker said.

If the project is successful, Maniker will be the first direct investment by a South Korean company outside an inter-Korean industrial complex in the North Korean border city of Kaesong.

“At this time, we expect the North Korean business project to produce a visible result,” said a Maniker official on condition of anonymity.

Posted in Agriculture, Economic reform, Foreign direct investment | Comments Closed

DPRK Economic Growth Estimates for 2006

Wednesday, August 22nd, 2007

Institute for Far East Studies (IFES)
NK Brief No. 07-8-22-1

The Bank of Korea released a report on August 17 that details economic estimates on a variety of sectors in North Korea. Overall, North Korea’s Gross Domestic Product (GDP) fell 1.1 percent during 2006, the first time since 1999 that the North has failed to increase its GDP. Inclement weather was one factor that played into a fall in agricultural production, and there also appears to have been little progress in the construction of public works in the country. Overall, North Korean GNI was 2.9 percent of that in the South, with per capita GNI at 1,108 USD, 6 percent of the 18,372 USD per capita GNI in South Korea.

The entire economy of the DPRK is approximately 1/35th that of the South, with the Gross National Income (GNI) a mere 1/17th the level seen in the ROK. This shows a growing divide between the two Koreas, as the comparisons in the previous year were 1/33rd and 1/16th, respectively. Due to the North Korean nuclear issues and other foreign relations problems faced during 2006, a worsening of diplomatic relations with other countries, energy shortages and other economic woes befell the North, putting the entire economy in a difficult situation.

The North showed a weakening of the agricultural and forestry industries, increasing production by a mere 2.4 percent, 2.6 percent down from 2005. Corn and other cereal production grew by 7 percent, but rice was down 6.4 percent, and bean production was down 6.6 percent from the year before, leaving overall grain output down 3.6 percent. On the other hand, shellfish and crustacean harvests grew by 1.5 percent, while timber and livestock harvests remained unchanged.

On the mining front, coal and other non-metal mined resources showed promising increases, but production of lead, zinc, and copper fell by 1.7 percent, compared to the 3.5 percent growth posted in the previous year. Despite promising increases in production of manufactured goods and growth in the chemical and heavy industries in 2005, last year North Korean production growth rates in these fields fell flat at a mere 0.4 percent, increasing production rates of fibers, clothing and shoes, but turning out less kitchenware and food-related products. Coal and fuel products looked favorable, but fabricated metals and machine parts, as well as nonferrous metal products grew at a rate of 1.1 percent, down from 5.4 percent.

Gas-fired electrical generation was up 17 percent, while hydroelectric power grew only 2.7 percent, falling from 4.4 percent in 2005. Other infrastructure projects were also on the decline, with only 49 km of road paved in 2006.

The number of foreign tourists declined, with visitors to Kumgang Mountain falling from 366,000 in 2005 to only 265,000 last year, adding to the 21.8 percent decline in the food and lodging sector, but the transportation and communication sector grew by 5.1 percent, leading to an overall gain of 1.1 percent in the service industry.

The gap in overseas trade between the two Koreas increased from 182-fold to 212-fold as North Korean foreign trade fell off 5.2 percent. Imports in the North were up 2.3%, although seafood imports were down 48.4 percent. The slack was made up by a 34.1 percent increase in the import of plastics, a 31.2 percent increase in imported chemical goods, and a 12.4 percent increase in imported machinery.

During 2006, inter-Korean exchanges grew 27.8 percent, reaching 13.5 billion USD. South Korean exports to the North grew 16 percent as Seoul increased rice and fertilizer aid, and exports to the Kaesong Industrial Complex grew. On the other hand, North-South cooperative projects grew 52.7 percent as South Korea increasingly imported North Korean zinc, sand, and other natural resources.

In order to give some perspective to the North Korean economic data, the Bank of Korea offered the following comparisons:

DPRK/ROK/Ratio
Population (thousand) 23,079/48.297/2.1
Economic Growth (2006) -1.1%/5.0%
Nominal GNI (100 million USD) 256/8,873/34.7
Per Capita GNI (USD) 1,108/18,372/16.6
Exports (100 million USD) 9.5/3,254.6/343.8
Imports (100 million USD) 20.5/3,93.8/151.0
Coal Production (10,000 tons) 2,468/280/0.11
Electrical Use (10,000 kW) 782/6,551/8.4
Electrical Production Capacity (100 mill. KW) 225/3,812/16.9
Petroleum Imports (10,000 bbl) 384/88,843/231.4
Cereal Production (10,000 tons) 448.3/530.0/1.2
Rice Production (10,000 tons) 189.4/468.0/2.5
Seafood Harvest (10,000 tons) 92.3/303.3/3.3
Iron Ore Mining (10,000 tons) 504.1/22.7/0.05
Nonferrous Metals Mining (10,000 tons) 8.6/187.7/21.8
Automobile Production (10,000) 0.44/384.0/872.8
Steel (10,000 tons) 118.1/4,843.3/41.0
Cement (10,000 tons) 615.5/4,920.9/8.0
Fertilizer (10,000 tons) 45.4/318.3/7.0
Chemical Products (10,000 tons) 2.9/145.7/50.2
Railways (km) 5,235/3,392/0.6
Roads (km) 25,544/102,061/4.0
Port Loading Capacity (10,000 tons) 3,700/69,213/18.7
Shipping Capacity (10,000 tons) 90.4/1,180.2/13.1

Posted in Agriculture, Automobiles, Bank of Korea, Communications, Copper, Dams/hydro, Energy, Forestry, GDP statistics, Institute for Far Eastern Studies, International trade, Kaesong Industrial Complex (KIC), Mining/Minerals, Mt. Kumgang Tourist Special Zone, Railways, Sea shipping, Statistics, Tourism | Comments Closed

Food Crisis Tough But Better Than Before

Tuesday, August 21st, 2007

Daily NK
Kwon Jeong Hyun
8/21/2007

Escalating Rice Costs 1,900!!

As the month of August began, North Korea saw a sudden jump in its rice costs. While 1kg of rice reached a peak of 1,960won (around US$6.03) in Shinuiju, entering the second week of August, prices seemed to have stabilized around the 1,500won marker.

Due to the damages incurred from the recent flooding in North Korea, the cost of rice was something expected. In the second week of August, the DailyNK reported on the flood situation and the consequent price fluctuations. The following report will indicate the damages from the flood and food situation as well as the course of rice costs.

We discovered from a telephone conversation with Ahn Geum Soon (pseudyonm, 37) on the 10th, a trader who sells clothes in Shinuiju, North Pyongan that the cost of rice had suddenly escalated to 1,900won per kilo dropping back to 1,500won within a 10 day period.

Ahn said, “Even people who trade secretly in private or at Jangmadang (markets) are finding it hard to obtain rice as there simply isn’t enough going around” and informed, “There are some people who are already stocking up on rice as rumors suggest that the costs will go up a little more. These people are the ones to raise the prices.”

Regarding the cause in escalating rice costs, Ahn said, “I’m not sure. According to rumors, people with money are the ones hoarding the rice, but no one is really sure of the reason.”

“Some people are going through tough times with the sudden rise in rice costs but no one is dying of starvation. People who can’t afford rice eat corn. Even if the cost of corn rises, its only 500won” said Ahn and added, “Nonetheless, there are the occasional beggars living in the country and the city who die of hunger, but this is no different to the past.”

Kim Il Yong (pseudonym, 36) who lives in Taecheon, North Pyongan informed a reporter on the 11th, “Currently, the cost of rice is about 1,500won per kilo. There was a great difference in prices within a period of 10 days.”

Kim responded, “Some say that the costs are rising as South Korea and other foreign countries are not supporting us with rice, while others say that that prices are rising as there is not enough rice going around. I’m not sure what is going on.”

He continued, “There are rumors that rice prices will reach 2,000won. Nevertheless, there won’t be any cases where people die of hunger. Like we will reach that stage when potatoes have been picked and are being sold at Jangmadang and the corn harvest has begun.”

Kim who has relatives living in the Hamheung said in response to the claim by a South Korean support organization that 300 people have died of starvation, “Hamheung is comparatively a large city. Rumors would quickly spread if people were dying of starvation. 300 people can’t be dying of starvation.” He said, “My sister in-laws younger brother went to Hamheung 3 days ago. He said he hadn’t heard of any rumors of people dying of hunger.”

Another source in North Korea said in a conversation with a reporter on the 11th, “Up to a month ago, rice cost 850won per kilo” and commented, “There are a lot of coal mines at Dukcheon. It is known as a region where you can make money. Rations are distributed by the employer to the people who work at the mines and so it’s not so hard for them.”

Then he added, “It was a little tough in June as the employers stopped distributing rations for a while.”

Posted in Agriculture, Agriculture statistics, Clothing, General markets (FMR: Farmers Market), Price liberalization | Comments Closed

Price of Rice and Inflation

Sunday, August 19th, 2007

Korea Times
Andrei Lankov
8/19/2007

Sometimes even Stalinist propaganda tells the truth. When the North Korean newspapers occasionally told grossly exaggerated horror stories about South Korean inflation, they stressed that nothing like that could possibly happen in North Korea. This was the case indeed. For nearly half a century, from the late 1950s to the late 1980s retail prices in North Korea remained essentially unchanged. One kilogram of rice cost 0.08 won in 1960. It was still the same price in 1990.

This was possible because almost nothing was actually “sold’’ in North Korea. Communist states often rationed goods distributed through retail trade, but in most cases it was only a handful of most prestigious goods that were subjected to rationing _ like, say, cars. North Korea went much further: by the early 1970s, retail trade in the North ceased to exist, being completely replaced by an elaborate public distribution system. Rations depended on a type of work performed, but also on one’s position within a complicated hierarchy of social groups, as well as one’s place of residence (inhabitants of major cities, and Pyongyang in particular, enjoyed much better rations than those in the countryside).

There were some markets, of course, barely tolerated by the government. But until the late 1980s markets were small, with their trade volume being almost negligible. It seems that most people were reasonably satisfied with what they could get from the state distribution system _ of course, it helped that they knew next to nothing about the situation in other countries, so they could not compare.

The situation began to change around 1990 when the old distribution system collapsed under the pressure of an economic crisis. From 1993-94 there were increasing problems with rations, and from around 1996 rations pretty much stopped altogether. Some food was still distributed in major urban centers, but even there the distributed amount was so meager that nobody could survive on rations alone. A large-scale famine ensued, with at least half to one million dead (the oft-cited figure of three million victims seems to be an exaggeration).

People turned to trade and handicrafts, and with this arrival of a market economy inflation became a North Korean phenomenon as well. Even in the 1980s market prices exceeded the official prices in the state shops. By the mid-1990s, the difference was much greater. In theory, rice still cost 0.08 a kilo, but by 2000 its price on the market reached 45-50 won. Official wages remained unchanged, however, so around 2001 the average salary was approximately 20 times less than the income necessary for physical survival. People had no choice but to augment their income.

The government understood that there was no way to restore the old system: a decade of economic crisis had undermined the basic machinery of distribution and obviously the system was beyond repair. Thus, in 2002 the much trumpeted “July 1 Reforms” were introduced.

It’s difficult to describe these measures as “reforms”–the government simply gave official recognition to the situation which had existed for quite a few years.

The distribution system (long defunct) was curtailed. There was a dramatic increase in the retail prices of basic goods and services _ obviously in an attempt to approximate the prices of the market. Thus, that one-kilo of rice which cost 0.08 won since July cost 44 won.

Wages increased as well. Obviously, the wage increase was not even, and some groups have gained _ or lost _ more than others. It was estimated that the average increase in wages has been approximately 2500 percent (that is, 25 times). At the same time, prices have increased 3000-4000 percent (that is, 30-40 times). This necessitated the issue of 1000 won bills _ the largest denomination in North Korean financial history since the 1959 currency reform. Later, 5000 won bills were issued as well.

But the measures had another effect. The increase in salaries meant that the market was instantly flooded with cash. Needless to say, the only outcome could be inflation. Some people speculated that this was the intention of the Pyongyang leaders who hoped to kick-start the economy in such a way. Perhaps. But I would not be surprised if in 15 or 20 years down the track we learn from interviews and talks with the planners of this reform that they did not really expect inflation. Pyongyang economic managers have not had much exposure to market theory, and are sometimes very naive in their understanding of these questions.

Indeed, by October 2002 the market price of rice had increased to 120 won per kilo. In 2003, the price doubled to 250-300 won, and now it is about 1000 won. Inflation has become a part of North Korean life.

What will happen next? Will the North Korean leaders manage to stabilize the situation, or will a new wave of economic crisis wipe out the entire North Korean system? We do not know yet. But it is clear that there is no return to old days when a kilo of rice could be had for 0.08 won _ that is, if you were lucky enough to live in an area where they distributed grain rations in rice, not in maize.

Posted in 1990s Famine, 2002 Economic reforms, Agriculture, Arduous March, Black markets, Economic reform, Fiscal & monetary policy, General markets (FMR: Farmers Market), International trade, Price liberalization, Public Distribiution System (PDS) | Comments Closed

NK Economy Shrinks 1.1% in 2006

Thursday, August 16th, 2007

Korea Times
Na Jeong-ju
8/16/2007

North Korea’s economy posted negative growth in 2006 for the first time in eight years on decreased production of agricultural and fisheries goods, the Bank of Korea (BOK) said Thursday.

In its estimate for the North’s economic growth, the central bank said the North’s real gross domestic product (GDP) shrank 1.1 percent in 2006 from a year ago, a turnaround from a 3.8 percent expansion in 2005. Until 2006, the North’s GDP had grown for seven years in a row since a 6.2 percent rise in 1999.

The GDP is the total output of goods and services produced within a country.

“Due to bad weather, North Korea’s agricultural, forestry and fisheries production fell with the construction industry remaining sluggish,” the BOK said. “North Korea seems to have suffered a blow as its international relations deteriorated due to its nuclear issues on top of a shortage of energy.”

The economic gap between the two Koreas grew larger last year.

North Korea’s nominal GDP increased 5.8 percent from a year ago to $25.6 billion last year, while South Korea’s GDP rose to $887.3 billion. South Korea’s GDP is 34.7 times larger than that of North Korea, widening from a 32.6-fold difference in 2005.

North Korea’s per-capita gross national income (GNI) came to $1,108 last year, up from $1,056 a year earlier, while South Korea’s per-capita GNI of $18,372 was 16.6 times bigger than that of the North, expanding from a 15.5 fold-difference. The North’s population reached 23.1 million, while the South’s was 48.3 million.

North Korea’s trade remained unchanged year-on-year at $3 billion last year, compared with South Korea’s $634.9 billion. The South’s trade was 212 times bigger than the North’s last year, rising from a 182-fold difference in 2005.

Pyongyang saw its exports dip 5.2 percent year-on-year to $950 million in 2006 as outbound shipments of animal products, non-metal goods and machinery decreased, while imports gained 2.3 percent to $2.1 billion.

Inter-Korean trade increased 27.8 percent from a year earlier to $1.4 billion. South Korea’s shipments to North Korea advanced 16 percent to $830.2 million, mainly on increased rice and fertilizer aid.

Inbound shipments from the North jumped 52.7 percent to $519.5 million on a hike in inter-Korean projects and mineral imports, the BOK said.

North Korea’s agricultural, forestry and fisheries industry declined 2.6 percent year-on-year last year, a turnaround from a 5 percent gain in 2005. The construction industry dipped 11.5 percent after gaining 6.1 percent the previous year.

The mining sector growth decelerated to 1.9 percent from 3.5 percent. Its manufacturing sector expansion slowed to 0.4 percent from 4.9 percent. The services industry grew 1.1 percent last year after increasing 1.3 percent in 2005, the central bank said.

North Korean economy posted 2006 downturn
Joong Ang Daily
Jung Ha-won
8/17/2007

North Korea’s economy shrank for the first time in eight years last year as agricultural production declined due to natural disasters and sluggish infrastructure development, according to estimates by South Korea’s central bank.

The Bank of Korea said yesterday that it believes North Korea’s 2006 gross domestic product declined 1.1 percent from a year earlier, the first downturn since 1999. The BOK, since 1991, has estimated the figures based on data from South Korean intelligence agencies and other research institutes. North Korea does not release economic data.

According to the estimate released yesterday, North Korea’s agriculture and marine industries last year declined 2.6 percent from 2005, when production rose by 5 percent.

“North Korea suffered from a serious flood last year, in stark contrast to 2005 when there was no major flood and farm production was good,” said a BOK official who refused to be named.

Growth in mining production, one of North Korea’s major industries, slowed to 1.9 percent from 3.5 percent in 2005. Manufacturing inched up 0.4 percent, down from 4.9 percent growth in 2005.

Construction sector production showed the biggest downturn at 11.5 percent from a year earlier, compared to 6.1 percent growth in 2005, as road and railway construction slowed, the central bank said.

Using satellite data, the bank estimated North Korea built just 49 kilometers (30.4 miles) of new roads last year, a sharp decline from 310 kilometers built in 2005.

Posted in Agriculture, Forestry, GDP statistics, International trade, Manufacturing, Mining/Minerals, Trade Statistics | Comments Closed

Flooding news

Thursday, August 16th, 2007

Youtube video of the flooding

North Korea: Deadly Rains Ruin Big Part Of Farmland
Washington Post
Burt Herman
Associated Press
Thursday, August 16, 2007; A11

North Korea on Wednesday detailed the devastation caused by some of the country’s heaviest-ever rains, saying more than one-tenth of the impoverished country’s farmland had been wiped out during peak growing season.

The North Korean government reported that hundreds of people were killed or missing in this month’s floods, with as many as 300,000 left homeless.

Footage from Associated Press Television News showed citizens working to rebuild roads, clear debris and shore up sandbags along rivers in flood-affected areas outside Pyongyang, the capital. Video images also showed a farmhouse that appeared to have been swept down a hillside by the rain.

If the government’s numbers on agricultural damage are confirmed, the destruction would be about one-quarter of that suffered in massive flooding in 1995. That disaster, coupled with outdated farming methods and the loss of the country’s Soviet Union benefactor, sparked a famine that is estimated to have killed as many as 2 million people.

The vivid portrait of damage, in reports from the North’s state-run media, appeared to be a cry for help from a desperate government that maintains strict secrecy of its internal affairs. But the North has previously exaggerated the extent of disasters to obtain aid and to cover up ineptitude in providing for its people in a centrally controlled economy.

The official Korean Central News Agency reported Wednesday that downpours along areas of the Taedong River were the “largest ever in the history” of measurements taken by the country’s weather agency.

An average of 20.6 inches of rain fell across the country from Aug. 7 through last Saturday, 2.1 inches more than downpours in August 1967, KCNA said.

The recent rains have submerged, buried or washed away more than 11 percent of rice and corn fields in the country, KCNA reported, citing Agriculture Ministry official Ri Jae Hyon. “It is hard to expect a high grain output owing to the uninterrupted rainstorms at the most important time for the growth of crops,” KCNA said.

The U.N. World Food Program estimated that the amount of damage the North Koreans reported to their fields would result in losses of about 450,000 tons of crops — adding to the 1 million ton annual shortage that the country already faces.

The amount is less than the 2 million tons that the North said was lost in the 1995 floods at the start of the famine, said Paul Risley, a spokesman for the U.N. agency. “Nonetheless, this would be an extremely serious reduction in the amount of the harvest,” he said.

The North is especially vulnerable to the annual heavy summer rains that soak the Korean Peninsula because of a vicious cycle in which people strip hillsides of natural vegetation to create more arable land to grow food, increasing flood risks.

U.S. Assistant Secretary of State Christopher R. Hill said the U.S. government was considering how it could help the North Koreans.

The disaster reports precede a planned summit this month between leaders of the two Koreas. South Korea’s government has been criticized by opponents at home and abroad for having given unconditional aid to the North during an international standoff over the communist state’s nuclear weapons program.

Aid was already expected to be a key topic at the summit. Marcus Noland, senior fellow at the Washington-based Peterson Institute for International Economics, said the latest disaster gives Seoul justification to expand assistance to its neighbor.

North Korea’s flooded ‘rice bowl’
BBC
8/16/2007

The UN World Food programme’s acting country director, Michael Dunford, has just returned from a visit to one of North Korea’s flood-affected areas, in the south of the country.

He told the BBC news website what he saw and how the floods are affecting a country already dependent on food aid.

“We went to Sogon, driving for about two hours to get there, and we saw extensive examples of flooding as we went down, with widespread inundation of arable lands which, of course, creates concerns as regards the long-term food implications.

We have been told by the government that the Kangwon province is one of the areas that is worst affected. The impression we are getting is that there is severe damage throughout the southern half of the country, across to the east.

The southern part of the country is the main food-producing area. As you go further north it is more mountainous and hence their ability to produce is limited.

The area that has been inundated is part of the ‘rice bowl’, hence this creates additional concerns as to what impact that may have.

We estimate that annually there is a food deficit of about a million tons of cereals – that’s maize and rice. So, in the past, North Korea has relied on bilateral, from China and South Korea predominantly, and also and multilateral support through the World Food Programme.

Collapsed houses

Last year, the amount of food that entered the county did not meet the food gap and hence we were concerned about the implications that was going to have for food security in the country and potentially the impact that may have on the most vulnerable.

Certainly for them to have the floods this year is only going to exacerbate the already food insecure situation in the country.

People are managing as best they can. We understand from the government that those who have lost their homes are now residing in either their place of work or some form of community shelter – either a schools or nursery, we expect.

We were dealing with local officials. They tell us that the waters have inundated houses, houses have collapsed, factories have been completely inundated and roads and bridges have been washed away. Certainly the impression we are getting is that this is very severe flooding.

We saw bridges that were knocked down, we saw roads that had been washed away. The infrastructure is typically old and anything that damages it further is going to have implications.

Wiped out

The landscape in the southern area is a combination of flatlands with quite dramatic mountains, there are fields with hills and mountains shooting up.

There are small villages and co-operative farms. These are very rudimentary houses – typically handmade.

People may have a small plot in the front of the house in which they try to grow their own vegetables – potatoes, beans, carrots, tomatoes – they are then surrounded by more extensive farmlands which have been damaged by flooding.

In one area, we were looking at what we thought was a river running through a field of maize but it was in fact the offshoot of a flooded river. Crops have just been wiped out.

We also saw a lot of areas that were completely underwater, knowing that the rice would not be able to recover.

This is the period of pollination and, hence, because the rice is underwater during this period, it won’t germinate and hence won’t produce for the harvest due in September-October.

N Korea floods devastate farmland
BBC
8/15/2007

Severe flooding in North Korea has destroyed more than one-tenth of the country’s farmland, according to the state news agency KCNA.

“As of 14 August, more than 11% of rice and maize fields were submerged, buried or washed away,” Ri Jae-Hyon, director of the Ministry of Agriculture, said.

Government officials also told aid workers in the region that 300,000 people may have been left homeless.

Aid teams visiting the area warned of a need for emergency shelter and food.

“Going forward, the crop damage is of major concern,” Michael Dunford, of the UN World Food Programme, told the BBC.

He added that he had been to see some of the damaged areas, and described the situation as “pretty grim”.

Food aid

“Areas of the capital, Pyongyang, have been inundated,” he said, “but certainly as you move out into the countryside there is widespread damage, and it is going to have a negative impact on DPRK [North Korea] most certainly.”

North Korea already suffered from severe food shortages, even before the floods.

About two million people are thought to have died from famine in the mid-1990s in North Korea, and the country remains dependent on foreign food aid.

United Nations Secretary General Ban Ki-moon has ordered a full evaluation of the needs of North Koreans and has promised assistance to the communist nation.

“I assured him that the United Nations will be prepared to render whatever possible humanitarian assistance and help to the DPRK (North Korean) government and people overcoming this difficulty,” he said after a meeting with North Korea’s UN envoy Pak Gil-yon.

The US and South Korea have both said that they would consider sending aid.

‘Huge damage’

North Korea made the rare plea for help after it announced late on Monday that storms since 7 August had led to “huge human and material damage”.

State news agency KCNA said hundreds of people were dead or missing.

Many areas were affected but worst hit were the three provinces of Kangwon, North Hwanghae and South Hamgyong, it said.

Television pictures from the capital Pyongyang showed people wading along streets through thigh-deep water after rivers burst their banks.

These floods are thought to be worse than the ones that hit last year. Hundreds of people are thought to have died in August 2006, but exact figures are not known.

Heavy rainfalls render 17,000 North Koreans homeless
Yonhap
8/15/2007

Hundreds of people were killed or missing in North Korea in heavy downpours that battered the impoverished communist country last week, a North Korean official said in a report on Wednesday.

The downpours, which flooded even the center of its capital, Pyongyang, and wide sections of the country’s western region, also left about 17,000 people homeless, said the official from Pyeongan Province in a report carried by Pyongyang Radio.

South to Help North Recover From Floods
Korea Times
Jung Sung-ki
8/14/2007

South Korea is considering sending relief supplies to help the North recover from severe flooding, the Ministry of Unification said Tuesday.

Hundreds of people are dead or missing in North Korea following week-long torrential rain that has destroyed thousands of houses, and damaged roads and railway tracks, the North’s state media reported.

“North Korea seems to be suffering a greater loss of lives and property than it did during July’s flooding last year,” Seo Sung-woo at the ministry’s intelligence analysis bureau told reporters.

“I don’t think the inter-Korean summit will be affected by the floods. However, if the rains continue, it is hard to predict,” said Seo.

In 2006, monsoons rains hit much of the impoverished state, killing hundreds of people.

Floods in July that year left over 500 people dead and nearly 300 people missing, according to the Chonson Sinbo, a Japan-based pro-North Korean newspaper.

In the following month, Seoul sent $82 million worth of aid to Pyongyang. The South provided the North with 100,000 tons of rice and cement, five tons of iron, construction equipment, 80,000 blankets and 10,000 emergency kits, according to the ministry.

The North’s official Korean Central News Agency said this year’s heavy rain destroyed at least 30,000 homes of 63,300 families, and more than 540 bridges and sections of railway.

The agency said heavy downpours had caused “huge human and material damage.” Many parts of the country received between 30 and 67 centimeters of rain from Aug. 7 to 12, it said.

Gangwon Province was hit the hardest, with more than 20,000 homes damaged or destroyed.

Pyongyang and neighboring provinces including South Hwanghae and South Pyeongan were also badly affected, according to the report.

Experts blamed decades of reckless deforestation for North Korea’s flood problems, saying the country has been stripped of tree cover that provides natural protection.

The International Federation of the Red Cross (IFRC) emergency operations staff is on a 24-hour alert to monitor flood damage in North Korea and has distributed aid kits to some 500 families, its Web site said.

“People have been evacuated and brought to safety,” it said, and county governments are “appealing to cooperative farms to donate emergency food for homeless people.”

International Red Cross goes on alert in North Korea on flood damage
Yonhap
8/13/2007

The International Federation of Red Cross (IFRC) emergency operations staff is on a 24-hour alert to monitor flood damages in North Korea and has distributed aid kits to some 500 families, its Web site said Monday.

A bulletin dated Sunday said the torrential rain that started Aug. 5 has caused serious flooding in many parts of North Korea.
“People have been evacuated and brought to safety,” the IFRC Web site said, and county governments are “appealing to cooperative farms to donate emergency food for homeless people.”

“Warnings of high tides have been issued on national television. Indeed, weather forecasts predict continued heavy rains until Aug. 17.”

The Red Cross emergency operations room is on a 24-hour alert, it said, with its staff in the field assessing damage.

In a rare admission of a crisis, North Korea’s state run news agency said Monday the downpour so far has left hundreds of people dead or missing and destroyed more than 30,000 homes for 63,300 families.

The Korean Central News Agency said hundreds of public buildings, bridges and railway sections also were destroyed.

Posted in Agriculture, International Aid, Real estate, South Korea | Comments Closed

Kim Jong Il, “Eat Fruits by Planting Fruit Trees in Every Home.”

Wednesday, August 15th, 2007

Daily NK
Han Young Jin
8/15/2007

The Kim Il Sung Socialist Youth League magazine, “Youth Vanguard” maintained, “Every household should plant at least five stumps of fruit trees, according to Kim Jong Il’s command. A beautiful landscape made up of persimmon, apple, and pear orchards and houses peace is unfolding in the fatherland.”

Youth Vanguard said on the 5th,”Every home should plant fruit trees. The great General has ordered that each farm plant over five stumps of fruit trees and he has now ordered that agricultural households start a fruit tree planting movement.”

Further, it stressed, “It is the esteemed General’s heart’s desire and the Father’s, who has sacrificed his entire life to provide a life for us citizens, noble will to help expand persimmon or pear houses in every village.”

Also, it said, “The esteemed General has offered his whole heart and energy to nourish this lofty goal into a reality,” and introduced the following anecdote.

It was a day in Juche 87 (1998), January.

The esteemed General, who has provided high-powered leadership in several areas of business through strenuous efforts while fighting the strong snowstorm in the northern region, told a person in charge of a district that he did well in ceaselessly managing the area, but a fruit-tree planting movement should take place in every household.

After saying so, he ordered the construction of 55 homes and to plant fruit trees in every home. At that moment, the worker could not stop his passions from flowing.

The 55 homes were cozy homes, which supported the teaching of the esteemed General, and were built next to a mid-size powerplant.

The homes were newly built and since this is the coldest season of winter, the home owners had not yet thought about how to decorate the surroundings.

The worker in charge had felt touched by the warm grace of the esteemed General who let us civilians to live in such nice houses and even taught us about planting fruit trees, so that we could enjoy delicious fruit and perspire under scenic fruit trees.
The esteemed General, while looking at the workers, re-emphasized that every home should plant fruit trees this spring.

The Youth Vanguard relayed, “The children who are starting new lives in order to observe the will of the Party have started a new custom of sending and receiving young fruit tree plants whenever given the chance.”

Regarding this, North Korean defector Lee Min Bok, whose background is the Academy of Science for Agriculture, said, “In 1978, an order also came down to plant five stumps of fruit trees in domestic homes.”

Lee said, “The party said to plant five stumps of fruit trees, so I planted them diligently, but after a little while, my mother had chopped down all of the trees. When the trees bear fruit, it is easy to be stolen, so my mother exhibited wisdom.” Other houses also cut them away before the trees started bearing fruit.

He reminisced, “We could not even eat corn and life was so hard, so how people could plant trees and eat fruit from them? They even told us not to plant corn, but I planted them anyway in secrecy.”

One defector said, “The North Korean authorities, under the pretext of dissolving the food shortage, created plots of grass all over the country and made us breed goats and rabbits. They also made us pursue a fish-farming business.”

He pointed out, “Who would create a pasture for raising goats in a matter of few years while he or she is in the midst of starvation? Would goats provide several days worth of food? If there is available land, our situation dictates that we plant an additional row of corn.”

Posted in Agriculture, Domestic publication | Comments Closed

N. Korea urges concerted efforts for economic reconstruction

Wednesday, August 15th, 2007

Yonhap
8/15/2007

North Korea, celebrating the 62nd anniversary of Korea’s liberation from Japan’s 1910-45 colonial rule on Wednesday, called on its people to make concerted efforts to build a strong socialist economy.

The Rodong Sinmun, the official newspaper of the North’s Workers’ Party, said in an editorial that there is no more urgent task than reconstructing the national economy and improving the people’s livelihood.

“On the economic front, the principles of socialism and utilitarianism should be thoroughly observed … All potentials and resources should be fully mobilized to boost production and construction,” said the paper.

“Food problem has to be addressed, while the light industry sector has to be revolutionized in order to mass-produce high-quality consumer products. Economic reconstruction and improvement of public livelihood are the most urgent tasks facing the nation.”

But the editorial still allotted much of its space to eulogizing the accomplishments of the North’s late founding leader Kim Il-sung and his Songun (military first) policy.

“The president’s plan for building a rich and powerful country is being carried out in all fields thanks to the Songun leadership of Kim Jong-il. The country in which the great Songun politics is being successfully applied will make ceaseless creations and leaping progresses and the president’s behest will come true in the socialist country,” said the paper, referring to the elder Kim as the president.

Posted in Agriculture, Economic reform, Songun | Comments Closed

North Korean Economy Watch