Required Report - Public distribution

**Date:** 10/2/2007

**GAIN Report Number:** KS7064

KS7064

**Korea, Republic of**

**Poultry and Products**

**Annual**

**2007**

**Approved by:**

![](media/image1.wmf)Lloyd S. Harbert

U.S. Embassy

**Prepared by:**

Michael Francom/Sun Young Choi

**Report Highlights:**

Due to the continued oversupply of domestic broiler meat the import
forecast for 2007 and 2008 has been reduced to 61,000 MT, down 15
percent from earlier estimates. The reduction in imports has hit U.S.
suppliers the hardest. In fact, given the current market conditions and
the strong competition from Brazil, imports of U.S. poultry meat for
2008 are forecast at 18,000 MT, down more than 50 percent from 2006.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Seoul \[KS1\]

\[KS\]

Table of Contents

[Production 3](#production)

[Exports 3](#exports)

[Imports 3](#imports)

[Consumption 5](#consumption)

[Sanitary Issues 6](#sanitary-issues)

[TBT Issues 7](#tbt-issues)

[Useful Websites 7](#useful-websites)

[PS&D 8](#psd-1)

[Production And Consumption Tables 9](#__RefHeading___Toc179102541)

[Korea: Broiler Inventories 1/ 9](#korea-broiler-inventories-1)

[Korea: Broiler Productivity 9](#korea-broiler-productivity)

[Korea: Broiler Production Costs 10](#korea-broiler-production-costs)

[Korea: Per Capita Consumption of Livestock Products
10](#korea-per-capita-consumption-of-livestock-products)

[Price Tables 11](#price-tables)

[Korea: Yearly Average Broiler Prices
11](#korea-yearly-average-broiler-prices)

[Korea: Farm Price for Chicken Meat
11](#korea-farm-price-for-chicken-meat)

[Korea: Wholesale Price for Chicken Meat
12](#korea-wholesale-price-for-chicken-meat)

[Korea: Consumer Price for Chicken Meat
12](#korea-consumer-price-for-chicken-meat)

[Trade Matrix 13](#trade-matrix)

[Korea: Import Matrix for Chicken Meat 1/
13](#korea-import-matrix-for-chicken-meat-1)

[Korea: Export Matrix for Chicken Meat 1/
14](#korea-export-matrix-for-chicken-meat-1)

Data included in this report is not official USDA data. Official USDA
data is available at <http://www.fas.usda.gov/psdonlineonline>.

## 

# Production

Production statistics submitted for 2005 and 2006 in last year's annual
report had inadvertently included imports. The necessary corrections
have been made in this report.

Production continues at a record level for a third straight year,
resulting in an oversupply of domestic broiler meat. Production was
largely unaffected due to several isolated incidents of highly
pathogenic avian influenza (HPAI) earlier in the year. The oversupply of
broiler meat is attributed to strong farm gate prices during 2004 and
2005. During those two-years, the farm gate price averaged 1,400 won per
kilogram (\~\$1.40), up by more than 50 percent from 2003. Farm gate
prices have subsequently fallen in response to the oversupply.

Production for 2008 is expected to decrease slightly as the Korean
poultry industry begins to adjust to current supply situation and high
international feed grain prices. In fact, broiler slaughter for 2008 is
forecast at 634 million head, down 13 million from the previous year.
Production during this same period is likewise expected to decrease by
10,000 MT.

# Exports

Korean broiler meat exports range between 1,000 to 3,000 metric tons
over the last decade. About 80 percent of total exports are frozen
wings, and the remainder is heat-treated processed products such as the
traditional chicken soup dish known as "Samgyetang."

Korea reported several cases of highly pathogenic in late 2006 and early
2007. The country subsequently declared itself to the World Health
Organization (OIE) as HPAI-free in June 2007. The notice to the OIE is
available at: [http://www.oie.int/South Korea HPAI
Notice](http://www.oie.int/wahid-prod/reports/en_fup_0000005596_20070618_180351.pdf)

In response to these findings, Japan and several other markets suspended
shipments of non-heat treated poultry products. Nevertheless, exports
were largely unaffected since exports to Vietnam grew more than enough
to offset the gap that had resulted from being shut-out of the Japanese
market for about 6-months. In fact, exports for 2007 are on track to
reach a record of 5,000 MT.

Exports for 2008 are expected to remain unchanged at 5,000 MT as demand
is expected to remain strong in Asian markets. Exports could climb
slightly higher after Korea becomes eligible to export Samgyetang and
other heat-treated processed poultry products to the United States.
According to domestic industry sources, the U.S. market could be twice
as large as the Japanese market, with exports reaching upwards of 1,200
MT.

# Imports 

About 80 percent of total imports are frozen broiler legs and wings,
while the remainder is heat-treated meat. The United States and Brazil
are the two primary suppliers of broiler cuts, while China is the
largest supplier of heat-treated meat.

The 2007 import estimate has been lowered to 61,000 MT, in part due to
the ongoing oversupply of domestically produced broiler meat and high
U.S. broiler meat prices, which are nearly 6 percent higher than last
year. These current market conditions have contributed to a 50 percent
drop in imports of U.S. broiler meat during the first half of the 2007.
The import forecast for U.S. broiler meat has been reduced accordingly,
down to 20,000 MT.

Although broiler production is expected dip slightly next year, the
oversupply is expected to continue. Additionally, imports of U.S. beef
are forecast to increase next year, which will keep broiler meat
consumption from growing. Given these anticipated market conditions,

2008 imports of broiler meat are forecast to remain unchanged from the
previous year at 61,000 MT. Meanwhile, imports of U.S. broiler meat for
2008 are forecast slightly lower at 18,000 MT.

Imports of U.S. broiler meat will continue to face stiff competition
from Brazilian products, especially de-boned leg meat. However, the
United States will maintain its price competitive edge in the bone-in
chicken thigh and drumstick market.

Brazilian product has made sizeable advances since entering the market
in early 2005 and now has a 35 percent market share. This rapid growth
is largely attributed to the domestic industry's preference for
Brazilian de-boned leg meat, which requires less processing than bone-in
leg meat from the United States. Brazilian product also has a very
strong reputation for its quality, attractive packaging and packaging
size.

In addition to its strong market reputation, the approval of additional
establishments will also contribute to increased imports of Brazilian
broiler meat in 2008. There are currently eight Brazilian establishments
that are approved to export to Korea, with two more awaiting approval
before the end of 2007.

The bulk of imported heat-treated meat is from China, with only a small
fraction originating from Thailand. Imports of heat-treated well-trimmed
boneless meat from China are used in traditional skewered meat dishes.
Consumption of this particular dish is expected to remain strong in the
coming year. Accordingly, imports of heat-treated meat from China are
expected to increase slightly in 2008.

  ------------- -------------- -------------- -------------- --------------
  **Poultry                                                  
  Price                                                      
  Comparisons                                                
  by Country**                                               
  (Korean Won                                                
  per Kilogram)                                              
  1/                                                         

  Cuts          Domestic 2/    Imports 3/                    

                               U.S.           Brazil 4/      Denmark

  Leg           4,168          902            1,618          \-

  Wing          4,876          1,758          2,240          1,973

  Breast        4,696          4,335          2,020          \-
  ------------- -------------- -------------- -------------- --------------

Source: Korea Chicken Council & Korea Customs Service

1/ Exchange rate (1\$=934 Korean won)

2/ Average retail price for chilled products, July 2007

3/ Average CIF prices Jan-Jun 2007

4/ Mainly frozen trimmed bone-less products

+-----------------------------------+-----------------------------------+
| **Countries Approved to Export    |                                   |
| Poultry & Poultry Products to     |                                   |
| Korea**                           |                                   |
|                                   |                                   |
| #                                 |                                   |
+-----------------------------------+-----------------------------------+
| **Countries**                     | **Products**                      |
+-----------------------------------+-----------------------------------+
| United Kingdom, Australia, New    | Poultry birds, hatching eggs, day |
| Zealand, Taiwan, Denmark, France, | old chicks                        |
| Japan, Canada, and United States  |                                   |
+-----------------------------------+-----------------------------------+
| United Kingdom, France, Chile,    | Fresh, chilled, or frozen poultry |
| Denmark, Taiwan, Australia,       | meat                              |
| Brazil, Japan, Canada, and United |                                   |
| States                            |                                   |
+-----------------------------------+-----------------------------------+
| United Kingdom, France, Chile,    | Heat-treated poultry meat         |
| Denmark, Taiwan, Australia,       |                                   |
| Brazil, Japan, United States,     |                                   |
| Thailand, China, and Canada       |                                   |
+-----------------------------------+-----------------------------------+

**2007 Chicken Imports Based on Quarantine Inspection Basis**

(Unit: MT)

+--------+------------+---------+-----------+----------+-------------+
| Parts  |            | **Co    | **Jan.    | **Jul. 1 | **Jan --    |
|        |            | untry** | --Jun.**  | -20**    | Jul 20**    |
+--------+------------+---------+-----------+----------+-------------+
| C      | No         |         |           |          |             |
| hilled | imports.   |         |           |          |             |
+--------+------------+---------+-----------+----------+-------------+
| Frozen | Breast     | *       | **0**     | **0**    | **0**       |
|        |            | *U.S.** |           |          |             |
+--------+------------+---------+-----------+----------+-------------+
|        |            | Brazil  | 170.77    | 0        | 170.77      |
+--------+------------+---------+-----------+----------+-------------+
|        |            | Au      | 0         | 0        | 0           |
|        |            | stralia |           |          |             |
+--------+------------+---------+-----------+----------+-------------+
|        | Wings      | *       | *         | **0**    | **146.24**  |
|        |            | *U.S.** | *146.24** |          |             |
+--------+------------+---------+-----------+----------+-------------+
|        |            | Denmark | 933.72    | 0        | 933.72      |
+--------+------------+---------+-----------+----------+-------------+
|        |            | Brazil  | 3,403.57  | 68.90    | 3,472.47    |
+--------+------------+---------+-----------+----------+-------------+
|        | Legs       | *       | **7       | **       | *           |
|        |            | *U.S.** | ,090.94** | 508.49** | *7,599.42** |
+--------+------------+---------+-----------+----------+-------------+
|        |            | Denmark | 0         | 20.50    | 20.50       |
+--------+------------+---------+-----------+----------+-------------+
|        |            | Brazil  | 6,308.94  | 164.07   | 6473        |
+--------+------------+---------+-----------+----------+-------------+
|        | Whole      | *       | **13.76** | **0**    | **13.76**   |
|        |            | *U.S.** |           |          |             |
+--------+------------+---------+-----------+----------+-------------+
|        |            | Brazil  | 24.01     | 0        | 24.01       |
+--------+------------+---------+-----------+----------+-------------+
|        |            |         |           |          |             |
+--------+------------+---------+-----------+----------+-------------+
| **T    |            | *       | **7       |          |             |
| otal** |            | *U.S.** | ,759.42** |          |             |
|        |            |         |           |          |             |
| **(Jan |            |         |           |          |             |
| --     |            |         |           |          |             |
| Jul.   |            |         |           |          |             |
| 20,    |            |         |           |          |             |
| 2      |            |         |           |          |             |
| 007)** |            |         |           |          |             |
+--------+------------+---------+-----------+----------+-------------+
|        |            | Denmark | 954.22    |          |             |
+--------+------------+---------+-----------+----------+-------------+
|        |            | Brazil  | 10,140.25 |          |             |
+--------+------------+---------+-----------+----------+-------------+
|        |            | Au      | 0         |          |             |
|        |            | stralia |           |          |             |
+--------+------------+---------+-----------+----------+-------------+
|        |            | **      | **18      |          |             |
|        |            | Total** | ,853.89** |          |             |
+--------+------------+---------+-----------+----------+-------------+

Source: National Veterinary Research & Quarantine Service

# Consumption

Imported chicken cuts are primarily used in the food and processed
service sector in the manufacturing of seasoned chicken dishes, chicken
nuggets, seasoned wings, patties, etc. In contrast, local chicken is
primarily sold as chilled whole birds with a smaller amount as cuts to
both the food service sector and retail markets.

According to industry sources, whole chicken consumption has decreased
in recent years from 90 percent to 75 percent of consumption. Of total
chicken sales in Korea, fresh chicken meat accounts for 70 percent of
sales, while processed and frozen meat products account for 20 and 10
percent, respectively.

Meat derived from domestic spent hens is mostly used as raw ingredients
in further processed products such as sausages and hams. The Korean
poultry association estimates that 20 million spent hens are used
annually in the production of processed products. This figure is
included in the PSD statistics.

Consumption of locally produced broiler meat and poultry products was
not shaken by several domestic HPAI earlier this year largely since the
government and poultry producer groups had conducted educational
campaigns regarding the safety of properly cooked poultry products.

Total domestic consumption is expected to remain relatively unchanged
from the previous year at 557,000 MT in part due to the expected
increase of imports of U.S. beef. Similarly, per capita broiler meat
consumption is expected to stay around 8 kg in 2008. However, over the
long term, the domestic poultry industry expects that the consumption of
poultry meat will continue to increase as has been the case in the
United States and Japan, while red meat consumption has declined.

# Sanitary Issues

In June, after conducting a thorough stamping out policy after several
isolated detections of HPAI in late 2006 and early 2007 MAF declared
itself free of HPAI. The notice to the OIE is available at the following
link:
[http://www.oie.int/wahid-prod/reports/](http://www.oie.int/wahid-prod/reports/en_fup_0000005596_20070618_180351.pdf)

In July, 2007, MAF notified the World Trade Organization (WTO) that it
would no longer suspend imports of poultry and poultry products due to
findings of HPAI in wild birds. This action is consistent with OIE
recommendations.

Korea's maximum residue levels maximum residue limits (MRL) for
veterinary drugs and pesticides in poultry meat and other livestock
products are established by the Korean Food & Drug Administration
(KFDA). Detections of unapproved compounds or findings above the
specified MRL will result in rejection of the entire cargo. A listing of
the current MRLs can be found at the following links:

[http://www.kfda.go.kr/MRLs for Pesticides in
Foods](http://www.kfda.go.kr/admin_content/kfda/libs/download.php?av_id=kfda_food&f_month=200702&savename=005001000_50_20070227_1.pdf&filename=MRLS for Pesticides in Foods.pdf)

[http://www.kfda.go.kr/MRLs for Veterinary
Drugs](http://www.kfda.go.kr/admin_content/kfda/libs/download.php?av_id=kfda_food&f_month=200503&savename=0050020009식품별 동물용의약품 잔류허용기준.pdf&filename=9식품별 동물용의약품 잔류허용기준.pdf)

On April 1, 2008, the Ministry of Agriculture & Forestry (MAF) will
reduce the number of permitted feed additives from 25 to 18 in order to
decrease the overuse of antibiotics in livestock compound feed. This new
regulation only applies to the use of these veterinary drugs in domestic
and imported compound feed. This change is part of a larger government
plan to reduce overall levels of antibiotic residues in meat and
poultry.

[]{.mark}

+-----------------------+-----------------+---------------------------+
| **Veterinary**        |                 |                           |
| **Drug** **Usage in   |                 |                           |
| Compound Animal       |                 |                           |
| Feed**                |                 |                           |
+-----------------------+-----------------+---------------------------+
| **Drugs Currently     |                 | **Drugs Discontinued      |
| Approved**            |                 | April 1, 2008**           |
+-----------------------+-----------------+---------------------------+
| 1.  Chlortetracycline | 14. Penicillin  | 1.  Chlortetracycline     |
|                       |                 |                           |
| 2.  Oxytetracycline   | 15. Bambermycin | 2.  Oxytetracycline       |
|                       |                 |                           |
| 3.  Bacitracin Zn     | 16. Tiamulin    | 3.  Colistin Sulfate      |
|                       |                 |                           |
| 4.  Bacitracin        | 17. Narasin     | 4.  Neomycin Sulfate      |
|     methylene         |                 |                           |
|     disalicylate      | 18. Maduramycin | 5.  Penicillin            |
|                       |     ammonium    |                           |
| 5.  Enramycin         |                 | 6.  Lincomycin HC1        |
|                       | 19. Apramycin   |                           |
| 6.  Tylosin           |                 | 7.  Bacitracin methylene  |
|                       | 20. Avilamycin  |     disalicylate          |
| 7.  Colistin sulfate  |                 |                           |
|                       | 2               |                           |
| 8.  Neomycin sulfate  | 1. Semduramycin |                           |
|                       |                 |                           |
| 9.  Salinomycin       | 22. Clopidol    |                           |
|                       |                 |                           |
| 10. Monensin sodium   | 23              |                           |
|                       | . Sulfathiazole |                           |
| 11. Virginiamycin     |                 |                           |
|                       | 2               |                           |
| 12. Lincomycin Hcl    | 4. Fenbendazole |                           |
|                       |                 |                           |
| 13. Lasalocid sodium  | 25. Diclazuril  |                           |
+-----------------------+-----------------+---------------------------+

Ministry of Agriculture and Forestry (MAF)

Korea's certification requirements for imports of U.S. poultry meat and
other meat products are available at the following website, maintained
by USDA's Food Safety Inspection Service (FSIS):
<http://www.fsis.usda.gov/Regulations_&_Policies/Republic_of_Korea_Requirements/index.asp>

Korea's certification requirements for imports of day-old chicks and
hatching eggs from the United States are available at the following
website, maintained by USDA's Animal Plant Health Inspection Service
(APHIS): <http://www.aphis.usda.gov/NCIE/iregs/animals/ks.html>

# TBT Issues

About 60 percent of poultry meat remains unpackaged after it leaves the
slaughter plant. In an effort to enhance product safety, MAF has started
a mandatory packaging requirement for poultry products sold at retail
outlets. Beginning January 1, 2007, poultry slaughter establishments
with a daily capacity of more than 80,000 birds were required to package
all products that would be sold at the retail level. On January 1, 2009
this requirement will be expanded to include all establishments as well
as imports. This requirement is not expected to disrupt trade since
imported poultry meat from the United States is mainly used in the
manufacturing of processed poultry meat products.

# 

# Useful Websites 

Livestock statistics: [www.maf.go.kr](http://www.maf.go.kr/)

Price information: [www.nacf.co.kr](http://www.nacf.co.kr/)

Production forecasts: [www.krei.or.kr](http://www.krei.or.kr/)

Production costs: [www.naqs.go.kr](http://www.naqs.go.kr/)

Broiler market situation: [www.chicken.or.kr](http://www.chicken.or.kr/)

# PS&D  {#psd-1}

![](media/image2.wmf)

Not Official USDA Data

[]{#__RefHeading___Toc179102541 .anchor}**Production And Consumption
Tables**

## Korea: Broiler Inventories 1/ 

(Unit: 1,000 birds)

  ------------------------- ------------- --------------------------------
  Year                      Farms         Birds

  1990                      3,589         26,719

  1995                      3,601         43,412

  2000                      2,859         59,910

  2001                      3,016         66,742

  2002                      3,126         72,193

  2003                      2,226         66,756

  2004                      2,237         68,526

  2005                      2,678         88,137

  2006                      2,016         84,279

  2007                      2,028         87,359
  ------------------------- ------------- --------------------------------

Source: National Agriculture Quality Service, Ministry of Agriculture &
Forestry

1/ June Inventories

## Korea: Broiler Productivity 

+---------------+-------------+-----------------+---------------------+
| Year          | Daily Gain  | Feeding Days    | Average Weight      |
|               |             |                 |                     |
|               | (Gram)      | (Days)          | (Kilogram)          |
+---------------+-------------+-----------------+---------------------+
| 1985          | 33.3        | 55.5            | N/A                 |
+---------------+-------------+-----------------+---------------------+
| 1990          | 38.0        | 48.2            | N/A                 |
+---------------+-------------+-----------------+---------------------+
| 1995          | 38.4        | 44.3            | N/A                 |
+---------------+-------------+-----------------+---------------------+
| 2000          | 39.4        | 38.8            | 1.53                |
+---------------+-------------+-----------------+---------------------+
| 2001          | 40.5        | 36.8            | 1.49                |
+---------------+-------------+-----------------+---------------------+
| 2002          | 39.4        | 38.8            | 1.55                |
+---------------+-------------+-----------------+---------------------+
| 2003          | 38.30       | 36.97           | 1.40                |
+---------------+-------------+-----------------+---------------------+
| 2004          | 36.23       | 37.99           | 1.34                |
+---------------+-------------+-----------------+---------------------+
| 2005          | 37.64       | 36.73           | 1.38                |
+---------------+-------------+-----------------+---------------------+
| 2006          | 38.82       | 36.28           | 1.38                |
+---------------+-------------+-----------------+---------------------+

Source: National Agriculture Quality Service, Ministry of Agriculture &
Forestry

## Korea: Broiler Production Costs

(Korean Won per Kilogram in Live Weight)

  -------------- -------------- -------------- -------------- --------------
  Item           CY 2005                       CY 2006        

                 Average Cost   Component      Average Cost   Component
                                Ratio (%)                     Ratio (%)

  Feed           521            52             506            50

  Chicks         279            28             288            29

  Family Labor   47             5              40             4

  Vet & Medicine 27             2              31             3

  Water, Power,  40             3              46             5
  etc.                                                        

  Other          97             10             92             9

  Total          1,011          100            1,003          100

  By Product     3              \-             2              \-

  Cost Total     1,008          \-             1,001          \-
  -------------- -------------- -------------- -------------- --------------

Source: National Agriculture Quality Service, Ministry of Agriculture &
Forestry

## 

## Korea: Per Capita Consumption of Livestock Products

(Unit: Kilogram, boneless basis)

  ------------ ----------- ----------- ----------- ----------- -----------
  Year         Total Meat  Beef        Pork        Chicken     Egg

  1995         27.5        6.7         14.8        6.0         10.1

  1997         29.3        7.9         15.3        6.1         10.4

  1999         30.5        8.4         16.1        6.0         9.9

  2000         31.9        8.5         16.5        6.9         10.3

  2001         32.2        8.1         16.8        7.3         11.1

  2002         33.5        8.5         17.0        8.0         11.3

  2003         33.4        8.1         17.4        7.9         10.5

  2004         31.3        6.8         17.9        6.6         10.6

  2005         32.1        6.7         17.8        7.6         12.1

  2006         33.1        6.8         18.3        8.0         11

  2007 1/      34.6        7.9         18.4        8.3         11.1
  ------------ ----------- ----------- ----------- ----------- -----------

Source: Ministry of Agriculture & Forestry

1 / Preliminary forecast by the Korea Rural Economic Institute

# Price Tables

## Korea: Yearly Average Broiler Prices

(Korean Won/Kg, boneless basis)

  ------------- ----------- ----------- ----------- ----------- -----------
  Year          2003        2004        2005        2006        2007 1/

  Farm Price    938         1,415       1,440       1,195       1,063

  Wholesale     1,850       2,475       2,469       2,162       1,946
  Price                                                         

  Consumer      2,490       3,094       3,765       3,691       3,737
  Price                                                         
  ------------- ----------- ----------- ----------- ----------- -----------

Source: National Agricultural Cooperative Federation

1/ Average price, January through July 2007

## Korea: Farm Price for Chicken Meat

+-------------+-------------+-------------+--------------+------------+
| Commodity   | Chicken     |             |              |            |
|             | Meat, Farm  |             |              |            |
|             | Price       |             |              |            |
|             |             |             |              |            |
|             | Unit:       |             |              |            |
|             | Korean Won  |             |              |            |
|             | per         |             |              |            |
|             | Kilogram    |             |              |            |
+-------------+-------------+-------------+--------------+------------+
| Year        | 2005        | 2006        | 2007         | \% Change  |
|             |             |             |              | comparing  |
|             |             |             |              | to         |
|             |             |             |              | previous   |
|             |             |             |              | year       |
+-------------+-------------+-------------+--------------+------------+
| Month       |             |             |              |            |
+-------------+-------------+-------------+--------------+------------+
| Jan.        | 1,572       | 1,340       | 1,132        | -16        |
+-------------+-------------+-------------+--------------+------------+
| Feb.        | 1,816       | 1,301       | 1,072        | -18        |
+-------------+-------------+-------------+--------------+------------+
| Mar.        | 1,883       | 1,580       | 1,097        | -31        |
+-------------+-------------+-------------+--------------+------------+
| Apr.        | 1,901       | 1,204       | 961          | -20        |
+-------------+-------------+-------------+--------------+------------+
| May         | 1,855       | 945         | 1,025        | 8          |
+-------------+-------------+-------------+--------------+------------+
| Jun.        | 1,517       | 1,151       | 989          | -14        |
+-------------+-------------+-------------+--------------+------------+
| Jul.        | 1,611       | 1,339       | 1,165        | -13        |
+-------------+-------------+-------------+--------------+------------+
| Aug.        | 1,308       | 1,478       |              | 13         |
+-------------+-------------+-------------+--------------+------------+
| Sep.        | 857         | 1,084       |              | 26         |
+-------------+-------------+-------------+--------------+------------+
| Oct.        | 914         | 994         |              | 9          |
+-------------+-------------+-------------+--------------+------------+
| Nov.        | 801         | 1,120       |              | 40         |
+-------------+-------------+-------------+--------------+------------+
| Dec.        | 1,337       | 769         |              | -42        |
+-------------+-------------+-------------+--------------+------------+

Source: National Agricultural Cooperative Federation

1 / August 1, 2006 Spot Price

## Korea: Wholesale Price for Chicken Meat

  -------------- -------------- -------------- --------------- -------------
  Commodity      Chicken Meat,                                 
                 Wholesale                                     
                 Price Unit:                                   
                 Korean Won per                                
                 Kilogram                                      

  Year           2005           2006           2007            \% Change
                                                               comparing to
                                                               previous year

  Month                                                        

  Jan.           2,679          2,382          1,973           -17

  Feb.           2,940          2,318          1,919           -17

  Mar.           3,081          2,697          2,017           -25

  Apr.           3,097          2,180          1,809           -17

  May            2,994          1,822          1,904           5

  Jun.           2,545          2,091          1,869           -11

  Jul.           2,707          2,378          2,128           -11

  Aug.           2,296          2,513                          9

  Sep.           1,668          2,018                          21

  Oct.           1,787          1,916                          7

  Nov.           1,582          2,023                          28

  Dec.           2,362          1,520                          -36
  -------------- -------------- -------------- --------------- -------------

Source: National Agricultural Cooperative Federation

1/ August 1, 2006 Spot Price

## 

## Korea: Consumer Price for Chicken Meat

  -------------- -------------- -------------- --------------- -------------
  Commodity      Chicken Meat,                                 
                 Consumer Price                                
                 Unit: Korean                                  
                 Won per                                       
                 Kilogram                                      

  Year           2005           2006           2007            \% Change
                                                               comparing to
                                                               previous year

  Month                                                        

  Jan.           3,661          3,604          3,750           4

  Feb.           3,902          3,406          3,893           14

  Mar.           3,823          3,669          3,815           4

  Apr.           3,872          3,432          3,825           11

  May            4,034          3,532          3,691           5

  Jun.           3,933          3,756          3,514           -6

  Jul.           4,073          3,996          3,670           -8

  Aug.           4,018          4,061                          1

  Sep.           3,652          3,919                          7

  Oct.           3,447          3,638                          6

  Nov.           3,297          3,599                          9

  Dec.           3,506          3,627                          3
  -------------- -------------- -------------- --------------- -------------

Source: National Agricultural Cooperative Federation and Agricultural &
Fishery Marketing Corporation

1/ August 1, 2006 Spot Price

# Trade Matrix

## Korea: Import Matrix for Chicken Meat 1/

  -------------- -------- --------- -------- --------- ------------- -------- ------------- --------
  Import Trade                                                                              
  Matrix                                                                                    

  Country: Korea                                                                            

  **Commodity:                                                                              
  Chicken Meat**                                                                            
  Unit: MT &                                                                                
  U\$1,000, RTC                                                                             
  Basis                                                                                     

  Imports for    **CY               **CY               **Jan.-Jun.            **Jan.-Jun.   
                 2005**             2006**             2006**                 2007**        

  Country        Vol      Val       Vol      Val       Vol           Val      Vol           Val

  **U.S.**       20,652   30,600    40,482   37,328    23,119        22,368   10,866        11,118

  **Others**                                                                                

  Thailand       4,870    12,600    3,266    9,775     1,286         3,831    1,696         5,154

  P.R.C.         7,164    18,547    11,484   33,112    5,394         15,262   6,489         18,968

  Canada         23       22        118      99        47            27       0             0

  Denmark        20,346   41,239    4,088    6,459     3,584         5,794    651           1,353

  France         1,845    3,037     256      390       256           390      0             0

  U.K.           2,282    4,161     0        0         0             0        0             0

  Germany        131      288       24       39        0             0        0             0

  Japan          3        25        0        0         0             0        1             7

  Brazil         1,140    2,430     15,847   31,071    4,486         8,589    10,876        20,576

  Australia      48       86        2        15        0             0        23            15

                                                                                            

  Other          0        0         10       18        1             11       0             0

                                                                                            

                                                                                            

  **Total for    37,852   82,435    35,095   80,978    15,054        33,904   19,736        46,073
  Others**                                                                                  

  **Grand        58,504   113,035   75,577   118,306   38,173        56,272   30,602        57,191
  Total**                                                                                   
  -------------- -------- --------- -------- --------- ------------- -------- ------------- --------

1/ HS 0207.1X.XXXX plus HS 1602.32.XXXX

Source: Korea Customs Service

## Korea: Export Matrix for Chicken Meat 1/

  -------------- -------- -------- -------- -------- ------------- ------- ------------- -------
  Export Trade                                                                           
  Matrix                                                                                 

  Country: Korea                                                                         

  **Commodity:                                                                           
  Chicken Meat**                                                                         
  Unit: MT &                                                                             
  U\$1,000, RTC                                                                          
  Basis                                                                                  

  Imports for    **CY              **CY              **Jan.-Jun.           **Jan.-Jun.   
                 2005**            2006**            2006**                2007**        

  Country        Vol      Val      Vol      Val      Vol           Val     Vol           Val

  **U.S.**       0        0        15       3        0             0       0             0

  **Others**                                                                             

  Hong Kong      1,248    1,441    1,444    1,690    770           868     65            111

  Japan          998      3,656    957      3,337    462           1,666   270           1,122

  P.R.C.         76       182      1        3        1             2       77            19

  Taiwan         78       316      278      1,120    87            353     117           472

  Thailand       27       70       20       8        0             0       0             0

  Vietnam        24       21       21       23       0             0       2,140         2,035

  Iraq           9        54       0        0        0             0       30            199

  Turkey         10       55       58       341      45            263     0             0

  Australia      0        0        47       18       44            7       0             0

  Russia         0        0        0        0        0             0       0             0

                                                                                         

  Other          8        37       13       51       4             20      7             34

                                                                                         

                                                                                         

  **Total for    2,478    5,832    2,839    6,591    1,413         3,179   2,706         3,992
  Others**                                                                               

  **Grand        2,478    5,832    2,854    6,594    1,413         3,179   2,706         3,992
  Total**                                                                                
  -------------- -------- -------- -------- -------- ------------- ------- ------------- -------

1/ HS 0207.1X.XXXX plus HS 1602.32.XXXX

Source: Korea Customs Service

#