□ Agricultural, forestry and fisheries food exports in July reached $680 million. This was an increase of 6.8% over the same period last year ($640 million).

○ By category, fresh food exports experienced the highest increase at 11.1%. Processed food and fisheries food exports also increased 7.1% and 4.5% respectively.

* Fresh Food: (Jul. 2011) $80 million → (Jul. 2012) $90 million (increase of 11.1%) / Processed Food: $350 million → $380 million (7.1%) / Fisheries Food: $200 million → $210 million (4.5%)

○ The rate of increase in July (6.8%) slowed down significantly in comparison to the same periods in 2011 and 2010 (29.0%). However, considering that consumer confidence has weakened in the global market due to the ‘Euro-crisis’, agricultural food exports are still on an increasing trend.

* National Export Performance in July: $44.6 billion (△8.8%)

□ [Fresh Agricultural Products] Exports of bell peppers (10.9%), lilies (62.0%) and melons (36.8%) increased. However, ginseng (△22.7%) and enoki mushroom (△9.0%) exports were inactive.

○ Exports of bell peppers increased as the summer harvest began at the end of June and export volumes were thus successfully secured. Exports of Kimchi to Japan decreased slightly, however exports to the U.S. and Hong Kong increased significantly.

* Kimchi: Japan ($6.5 million, △8%), U.S. ($400,000, 266%), Hong Kong ($300,000, 97%)

○ Exports of lilies increased as export channels diversified from summer forwarding from the alpine regions of Gangwon-do, and supplies to wholesale markets in Japan and direct supply to large-scale supermarkets and the like.

○ Exports to the Greater China region increased significantly last year, but ginseng exports slowed down. Enoki mushroom performance lowered due to an expansion of domestic supply thanks to a drop in export price.

* Ginseng: China ($2.1, △40%), Hong Kong ($2.1, △52%), Taiwan ($2 million, △46%)
* Enoki Mushroom: U.S. ($400,000, 135%), China ($100,000, △58%), Hong Kong ($100,000, △60%)

□ [Processed Food] Exports of cigarettes (25.0%), beverages (60.9%), ramen (29.5%)․and Soju (51.5%) increased, while sugar (△9.2%), ‘the 3rd beer’ (△6.0%) and prepared coffees (△12.5%) decreased.

○ Exports of cigarette to the Middle East, their largest market, increased significantly from June onwards. Beverage exports to Japan, Russia and the U.S. increased remarkably in time for the peak summer season.

* Cigarettes: Middle East ($36.6 million, 57%), U.S. ($3.1 million, 44%), Russia ($2.8 million, 483%)
* Beverages: Japan ($6.4 million, 81%), U.S. ($5.2 million, 49%), Russia ($3.8 million, 38%), China ($3.2 million, 44%)

○ Exports of ramen continuously display favorable trends in the emerging markets of Russia, Hong Kong, and the Philippines due to continued interest in the Korean ‘Hallyu’ Wave. Soju consumption slowed down last year due to the impact of the Japanese earthquake. Export performance has since recovered through increased marketing and the renewal of key products from the beginning of the year.

* Increased Exports of Ramen to New Markets: Russia ($1.8 million, 111%), Philippines ($1.2 million, 166%), Hong Kong ($900,000, 283%)

○ Export performance of ‘the 3rd beer’ has been poor, as consumption of competing products like nonalcoholic beers increased in the Japanese market and product prices increased due to increased prices for imported raw materials. Exports of prepared coffees increased 3.6% cumulatively, until July. In July, exports to Russia and China decreased slightly.

* Sugar: China ($12.5 million, △10%), Hong Kong ($5.6 million, △10%), Japan ($3.4 million, 21%), Indonesia ($1.1 million, 678%)
* Prepared Coffees: Russia ($3.9 million, △2%), China ($3.7 million, △5%), India ($2.8 million, 22%)

□ [Fisheries] Exports of tuna (16.2%), laver (60.4%) and abalone (22.4%) increased. However, exports of squid (△40.9%), oyster (△49.1%) and halibut (△30.7%) decreased.

○ Influenced by an increase in the value of exports to Japan, exports of tuna increased significantly. Demand for laver by locals increased with the favorable export trends to Japan, China, and the U.S. continuing.

* Tuna Exports to Japan: $18.6 million (38%) / Export Price Increase: (Jul. 2012) $8.02/kg (62.7%↑)
* Laver: Japan ($10.5 million, 60%), U.S. ($4.4 million, 75%), China ($2.4 million, 90%), Thailand ($1.4 million, 26%)

○ The supply of domestically produced abalone in Japan has decreased continuously, and as a result, demand for Korean abalones is increasing in Japan, their key market. Exports of small mackerels for canning increased.

* Mackerel: Egypt ($1.5 million, 1,646%), Taiwan ($600,000, 14,217%), China ($500,000, △20%)

○ Exports of squid decreased due to a drop in export prices, with movement in China, their key market, to replace imported product with that which is domestically produced.

* Squid: China ($2.2 million, △70%), New Zealand ($1.9 million, △40%), U.S. ($500,000, △76%)

○ Exports of halibut to Japan increased slightly as the natural halibut season in Japan passed by.

* Halibut: Japan ($2.9 million, 8%), China ($2.5 million, △52%), U.S. ($500,000, 49%)

□ [By Country] Exports to Japan, Russia and the U.S. increased, while exports to ASEAN and greater China region countries decreased.

○ Exports to Japan of tuna ($18.6 million, 38%), laver ($10.5 million, 60%), Soju ($8.9 million, 74%), and beverages ($6.4 million, 81%) increased significantly with overall performance displaying an upward trend.

○ Exports to the U.S., of beverages ($5.2 million, 49%), laver ($4.4 million, 75%), cigarettes ($3.1 million, 44%), and ramen ($2.4 million, 65%) increased. Exports to Russia of beverages ($3.8 million, 38%) and cigarettes ($2.8 million, 483%) increased.

○ For ASEAN countries, the performance of tuna ($18.8 million, △33%), prepared coffees ($5.1 million, △30%) and cigarettes ($4.9 million, △52.1%), all large-scale items, has been poor. By country, exports to Thailand ($21.3 million, △45.2%) and Malaysia ($5.4 million, △19.6%) decreased significantly.

* Thailand: Tuna ($14.9 million, △44.2%), Malaysia: Prepared Coffees: ($400,000, △37.4%)

○ The export performance of sugar to China ($12.5 million, △10.4) and Hong Kong ($5.6 million, △10.1) and the export performance of ginseng to Taiwan ($2 million, △45.9) have been poor. As a result, exports to the Greater China region have decreased overall.

□ The trend of agricultural food exports of late shows that large-scale items, such as cigarettes and tuna, are leading the overall export increase trend and exports to the Greater China region including Hong Kong, and Taiwan, is slow.

○ In response to this, the Ministry for Food, Agriculture, Forestry and Fisheries plans to organize export supporting events centered on the Greater China market, by inviting promotional officers from large-scale distributors and overseas buyers.

*Government press release (August 29)