Required Report - public distribution

**Date:** 8/31/2006

**GAIN Report Number:** KS6093

KS6093

**Korea, Republic of**

**Poultry and Products**

**Annual**

**2006**

**Approved by:**

![](media/image1.wmf)Susan Phillips

U.S. Embassy

**Prepared by:**

Chris Frederick / Seung Ah Chung

**Report Highlights:**

In 2007, local broiler production is expected to increase slightly
compared to 2006 due to increase broiler chicken production and a sharp
increase of imports of grand parental stocks. Competition from Brazil
will be a major obstacle for U.S. chicken in maintaining leadership in
the Korean chicken import market as Brazilian chicken receives a
positive response from traders. The suspension of import inspection of
U.S. poultry meat was lifted on August 29, 2006. To date, all U.S. live
poultry and poultry meat products (both chilled and frozen) are allowed
for importation.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Seoul \[KS1\]

\[KS\]

Table of Contents

[**SITUATION AND OUTLOOK 3**](#situation-and-outlook)

[Local Situation 3](#local-situation)

[Exports 4](#exports)

[Imports & Competitors 4](#imports-competitors)

[Distribution 6](#distribution)

[Sanitary and Phytosanitary Issues
6](#sanitary-and-phytosanitary-issues)

[PS&D FOR BROILERS 8](#psd-for-broilers)

[PRODUCTION AND CONSUMPTION TABLES
9](#production-and-consumption-tables)

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

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

[Korea: Production Costs of Broilers 1/
10](#korea-production-costs-of-broilers-1)

[Korea: Production Cost of Broilers
10](#korea-production-cost-of-broilers)

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

[PRICE TABLES 12](#price-tables)

[Korea: Year Average Broiler Prices
12](#korea-year-average-broiler-prices)

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

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

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

[Korea: Monthly Average Foreign Exchange Rate
15](#korea-monthly-average-foreign-exchange-rate)

[TRADE MATRIX 16](#trade-matrix)

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

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

# SITUATION AND OUTLOOK

## Local Situation

In 2007, broiler production is expected to increase slightly compared to
2006 due to increased broiler chick production and a sharp increase of
imports of grand parental stocks. An increase in broiler chick
production resulted from strong farm gate prices in 2005 and that has
continued in 2006. Consequently, there is concern about the excessive
local production of broilers and the potential drop in farm gate prices
in 2007.

Brazilian chicken imports, particularly de-boned chicken leg meat, are
receiving favorable market response. Although the prices are higher than
U.S. chicken legs, Brazilian chicken is quickly displacing frozen
chicken imports from Thailand and China, and has become the main U.S.
competitor in the Korean market.

On June 6, 2006, the Ministry of Agriculture & Forestry (MAF) announced
a proposed revision to the Presidential Decree and the Ministerial
Ordinance to the Livestock Products Processing Treatment Act to ensure
"Farm to Table" safety of livestock products. The proposals include 1)
extension of HACCP to animal production plants (currently HACCP is
mandatory for slaughter plants and voluntary for processing plants,
livestock packing facilities, storages, and sellers), 2) mandatory
requirements for poultry meat sold in the market to be packaged
(slaughtering plants, meat packers, seller, and importers will be
subject to this requirement) 3) an introduction of risk assessments for
livestock products. Mandatory packaging requirements for poultry
products will be enforced first for slaughtering plants whose daily
capacity is over 80,000 birds starting January 1, 2007 and full
enforcement will start from January 1, 2008.

MAF introduced a voluntary HACCP Certification program to animal feed
plants beginning January 1, 2005. This is to ensure sanitary conditions
and the safety of livestock products by eliminating any potential hazard
from entering into animal feed. MAF wants feed that is free from 11
types of heavy metals and fungus, 27 kinds of agricultural chemicals,
and 25 kinds of antibiotics that it regulates. MAF aims to expand HACCP
certification to 50 plants by the end of 2006.

Local broiler associations plan to introduce a check off program but
little progress is evident because of disagreements among interested
groups. Along with progress of on-going Korea-US Free Trade Agreement
negotiations and potential concerns with highly pathogenic avian
influenza (HPAI), there is strong need for a check off program if the
broiler industry is to achieve long term and stable development.

The Korean government and local poultry associations have continued with
consumer education and extensive promotional efforts to reduce
consumers' concerns about the safety of chicken meat due to the HPAI
outbreaks.

[Use of Antibiotics, Growth Hormones, Feed Additives, Etc.]{.underline}

Korea allows the use of veterinary drugs such as antibiotics and feed
additives. Beginning May 1, 2005, however, the Ministry of Agriculture &
Forestry (MAF) enforced a new requirement that reduced the number of
feed additives permitted for use in mixed animal feed from 53 to 25 in
order to improve the safety of livestock products. Veterinary drugs that
are banned for use in Korea should not be detected in any meat products,
including imported meat. Criteria and permitted levels of harmful
substances in animal feed are established by MAF. Details can be found
on MAF's website at [www.maf.go.kr](http://www.maf.go.kr/).

The Korea Food & Drug Administration (KFDA) establishes maximum residue
levels (MRLs) of antibiotics and pesticides in poultry products. Details
can be found on KFDA's website at
[www.kfda.go.kr](http://www.kfda.go.kr/).

## Exports

In 2007 exports will increase slightly. Currently, Korean chicken
exports have increased although the total export volume is not
significant (around 736 MT in 2004, 2,478 MT in 2005 and 1,413 MT
through June 2006). Exports between January and June 2006 showed 37
percent increase compared to the same period of the previous year.
Continued efforts to promote exports of whole chicken ginseng soup
called "Samgyetang" in Japan and other Asian markets including Hong Kong
and Taiwan contributed to Korea's expansion of chicken exports.
Marketing efforts led by the Korean Poultry Industry Association will
continue to expand Korean export markets in Asia taking advantage of
HPAI concerns that have blocked exports from China and Thailand. In
addition to Asian exports, Korea has been working together with the U.S.
government to allow for exports of chicken ginseng soup to the United
States.

## Imports & Competitors

Because of the likelihood of over production of domestic chicken meat
coupled with the resumption of U.S. beef imports to Korea, imports of
chicken meat in 2007 are forecast only to increase slightly compared to
the level in 2006, to 70 thousand metric tons. Competition from Brazil
will be a major obstacle for U.S. chicken in maintaining leadership in
the Korean chicken import market.

Imports of Brazilian chicken have been well received by traders.
According to traders, Brazilian chicken parts, mainly bone-less chicken
leg meat and wings meet their expectations for quality, specifications,
size, packaging, etc. Therefore, Brazilian imports are quickly replacing
market share once held by Thailand, which was the top supplier of
well-trimmed bone-less chicken leg parts before the HPAI outbreaks in
2003. In May 2006, Korea approved three more Brazilian poultry plants
for export to Korea. Currently, seven plants are eligible to export
poultry products to Korea. According to industry sources, Brazil is
interested in obtaining approval of additional poultry plants for Korean
exports. As more Brazilian poultry plants are approved for export, the
United States will face severe competition in exporting chicken products
to Korea. Traders believe the future of Brazilian chicken products are
quite promising as they satisfy Korean demand although U.S. chicken
produces are more price competitive than Brazilian products. Unless
prices offered by the United States are significantly lower than those
offered by Brazil, traders would remain interested in Brazilian products
that do not require additional labor in order to meet the market demand.
Exports from Brazil are expected to increase in 2007.

Since the outbreak o f HPAI in China, exports of Chinese fresh, chilled,
frozen chicken products have been banned. However, China can export
heat-treated well-trimmed boneless chicken meat, which is used for
skewed chicken dishes. This well trimmed chicken meat is competing with
U.S. chicken legs as meeting Korean demand.

Imports from the United States in 2007, mainly frozen bone-in leg
products, are expected to remain at the previous year level or slightly
decrease as a result of imports of quality chicken products from Brazil
and China. However, the United States is expected to remain a leading
supplier of bone-in leg products with its price competitiveness.

Imports from Denmark, which was the second largest exporter in 2005,
have been banned since May 2006 due to the outbreak of HPAI. However,
Denmark is likely to apply for approval of resumption of chicken imports
to Korea as soon as they are recognized as a HPAI free country. Denmark
was a major supplier of leg and wing parts to Korean chicken
restaurants.

**Price comparisons per parts per countries are as follows:**

Price Comparison (Unit: Korean Won per Kilogram) 5/

+-------------+-------------+-------------+-------------+-------------+
| Cuts        | Domestic    | Imports 2/  |             |             |
|             |             |             |             |             |
|             | 1/          |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
|             |             | U.S. 3/     | Brazil 4/   | Denmark 3/  |
+-------------+-------------+-------------+-------------+-------------+
| Leg         | 4,386       | 894         | 1,720       | 1,273       |
+-------------+-------------+-------------+-------------+-------------+
| Wing        | 5,150       | 1,919       | 1,929       | 1,729       |
+-------------+-------------+-------------+-------------+-------------+
| Breast      | 4,951       | 1,634       | 1,833       | \-          |
+-------------+-------------+-------------+-------------+-------------+

1/ Chilled products, average retail price between July 1 - 31, 2006

2/ Average CIF prices between Jan. through June 2006

3/ Frozen bone-in products (Mostly)

4/ Frozen Trimmed bone-less products (Mostly)

5/ Exchange rate (1\$=950 Korean won)

Source: Korea Chicken Council & Korea Customs Service

**Countries that are currently allowed to export to Korea are as
follows:**

  ----------------------------------- -----------------------------------
  **Approved Suppliers**              **Items**

  United Kingdom, Australia, New      Poultry birds, hatching eggs, day
  Zealand, Taiwan, Germany, Japan,    old chicks
  Canada, and United States           

  United Kingdom, Taiwan, Australia,  Fresh, chilled, or frozen poultry
  Brazil, Japan, Canada, and United   meat
  States                              

  United Kingdom, Taiwan, Australia,  Heat-treated poultry meat
  Brazil, Japan, United States,       
  Thailand, China, and Canada         
  ----------------------------------- -----------------------------------

**2006 Chicken Imports Data per Parts on Quarantine Inspection Basis**

(Unit: MT)

+--------+------------+---------+-----------+----------+-------------+
| Parts  |            | **Co    | **Jan. -- | **Jul.   | **Jan -     |
|        |            | untry** | Jun.**    | 1 - 20** | Jul. 20**   |
+--------+------------+---------+-----------+----------+-------------+
| C      | No         |         |           |          |             |
| hilled | imports.   |         |           |          |             |
+--------+------------+---------+-----------+----------+-------------+
| Frozen | Breast     | *       | **23.9**  | **0**    | **23.9**    |
|        |            | *U.S.** |           |          |             |
+--------+------------+---------+-----------+----------+-------------+
|        |            | Brazil  | 488       | 51       | 539         |
+--------+------------+---------+-----------+----------+-------------+
|        |            | Au      | 0.3       | 0        | 0.3         |
|        |            | stralia |           |          |             |
+--------+------------+---------+-----------+----------+-------------+
|        | Wings      | *       | **551**   | **93**   | **644**     |
|        |            | *U.S.** |           |          |             |
+--------+------------+---------+-----------+----------+-------------+
|        |            | Denmark | 1,749     | 48       | 1,797       |
+--------+------------+---------+-----------+----------+-------------+
|        |            | Brazil  | 1,743     | 435      | 2,178       |
+--------+------------+---------+-----------+----------+-------------+
|        | Legs       | U.S.    | *         | *        | **25,812**  |
|        |            |         | *24,130** | *1,682** |             |
+--------+------------+---------+-----------+----------+-------------+
|        |            | Denmark | 164       | 0        | 164         |
+--------+------------+---------+-----------+----------+-------------+
|        |            | Brazil  | 2,256     | 267      | 2,523       |
+--------+------------+---------+-----------+----------+-------------+
|        | Whole      | *       | **140**   | **67**   | **207**     |
|        |            | *U.S.** |           |          |             |
+--------+------------+---------+-----------+----------+-------------+
|        |            |         |           |          |             |
+--------+------------+---------+-----------+----------+-------------+
| **T    |            | *       | *         |          |             |
| otal** |            | *U.S.** | *26,687** |          |             |
|        |            |         |           |          |             |
| **(Jan |            |         |           |          |             |
| --     |            |         |           |          |             |
| Jul.   |            |         |           |          |             |
| 20,    |            |         |           |          |             |
| 2      |            |         |           |          |             |
| 006)** |            |         |           |          |             |
+--------+------------+---------+-----------+----------+-------------+
|        |            | Denmark | 1,961     |          |             |
+--------+------------+---------+-----------+----------+-------------+
|        |            | Brazil  | 5,240     |          |             |
+--------+------------+---------+-----------+----------+-------------+
|        |            | Au      | 0.3       |          |             |
|        |            | stralia |           |          |             |
+--------+------------+---------+-----------+----------+-------------+
|        |            | **      | **3       |          |             |
|        |            | Total** | 3,888.3** |          |             |
+--------+------------+---------+-----------+----------+-------------+

Source: National Veterinary Research & Quarantine Service

## Distribution

Almost all imported chicken meat is frozen meat (predominantly leg,
wing, and de-boned leg parts). Korea consumes imported chicken cuts
mainly in the food service sector (e.g. seasoned chicken dishes, chicken
nuggets, seasoned wings, patties, etc.) and in the processed food sector
producing further processed products for retail distribution. Local
chicken is usually marketed as chilled whole birds and cuts for the food
service sectors (e.g. fried chicken) and to retail markets for home use.
Chicken meat derived from layers is mostly used as raw ingredients in
further processed products such as sausages, hams, etc. According to the
local poultry association, 20 million layers are used for further
processed products annually. The domestic chicken industry also uses
imported chicken cuts for further processed products taking advantage of
the lower prices for imported product and constant supply compared to
domestic cuts.

A recent survey released by the Ministry of Agriculture & Forestry shows
that 37 percent of chicken is supplied to consumers through restaurants.
30.5 percent of chicken is supplied through mass catering institutes,
20.5 percent through butcher shops, and 11.7 percent are through large
scale supermarkets.

## Sanitary and Phytosanitary Issues

On August 15, 2006, Korea suspended import inspection of U.S. live
poultry birds, pet birds, day old chicks, poultry hatching eggs, edible
eggs, and poultry meat products (except for heat treated products) due
to an outbreak of Avian Influenza (AI) in mute swan in the State of
Michigan. After confirming the case is low pathogenic AI, Korea lifted
the suspension of import inspection on August 29, 2006. To date, all
U.S. live poultry and poultry meat products (both chilled and frozen)
are allowed for importation.

###### Export Health Certification

All U.S. origin poultry products are required to be accompanied by an
export health certificate issued by the Food Safety Inspection Service
(FSIS) of the U.S. Department of Agriculture. For Korean exports, FSIS
Form 9060-5 and 9305-2A shall be completed and submitted to the Korean
authority for quarantine inspection. Details about the FSIS Export
Health Certificate Form, etc. can be found on the USDA website at
[http://www.fsis.usda.gov/Regulations\_&\_Policies/Republic_of_Korea_Requirements/index.asp](../%20http://www.fsis.usda.gov/Regulations_&_Policies/Republic_of_Korea_Requirements/index.asp).
This website also provides guidance on other requirements for poultry
product shipments destined to Korea and current information on which
U.S. poultry products are eligible for export to Korea.

For U.S. live poultry, U.S. origin health certificates issued by the
Animal Plant Health Inspection Service (APHIS) of the U.S. Department of
Agriculture are required accompanied. For details, please contact
Veterinary Service (VS) officers at APHIS regional offices stationed in
each state.

###### Exotic Newcastle Disease

Currently, there is no import restriction imposed on U.S. poultry and
poultry products due to Exotic Newcastle Disease outbreaks.

*[Useful websites for Korean statistical information]{.underline}:*

For animal statistics, [www.maf.go.kr]{.underline}

For price information, [www.nacf.co.kr]{.underline}

For production forecast, [www.krei.or.kr]{.underline}

For production cost, [www.naqs.go.kr](http://www.naqs.go.kr/)

For broiler market situation,
[www.chicken.or.kr](http://www.chicken.or.kr/)

# PS&D FOR BROILERS

![](media/image2.wmf)

# 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
  ------------------------- ------------- --------------------------------

1/ June Inventories

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

## 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                |
+---------------+-------------+-----------------+---------------------+

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

## Korea: Production Costs of Broilers 1/

(Korean Won per Kilogram in Live Weight)

  ----------------- ----------------- ------------------ ----------------
  Year              Operating Cost    Production Cost    Farm Price

  1980              741               829                834

  1985              831               907                961

  1990              850               968                1,018

  1995              919               1,046              1,242

  2000              890               959                1,187

  2001              988               1,052              1,397

  2002              951               1,010              1,155

  2003              943               1,003              938

  2004              1,026             1,085              1,415

  2005              953               1,008              1,440
  ----------------- ----------------- ------------------ ----------------

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

## Korea: Production Cost of Broilers

(Korean Won per Kilogram in Live Weight)

  -------------- -------------- -------------- -------------- --------------
  Item           CY 2004                       CY 2005        

                 Average Cost   Component      Average Cost   Component
                                Ratio                         Ratio

  Feed           568            52             521            52

  Chicks         296            27             279            28

  Family Labor   49             5              47             5

  Vet & Medicine 32             3              27             2

  Water, Power,  35             3              40             3
  etc.                                                        

  Other          107            10             97             10

  Total          1,087          100            1,011          100

  By Product     2              \-             3              \-

  Cost Total     1,085          \-             1,008          \-
  -------------- -------------- -------------- -------------- --------------

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         31.9        6.6         17.8        7.5         12.1

  2006 1/      33.2        7.4         17.5        8.3         10.7
  ------------ ----------- ----------- ----------- ----------- -----------

1 / Preliminary forecast by the Korea Rural Economic Institute

Source: Ministry of Agriculture & Forestry

# PRICE TABLES

## Korea: Year Average Broiler Prices

(Korean Won/Kg, boneless basis)

  ------------- ----------- ----------- ----------- ----------- -----------
  Year          2002        2003        2004        2005        2006 1/

  Farm Price    1,155       938         1,415       1,440       1,266

  Wholesale     2,149       1,850       2,475       2,469       2,267
  Price                                                         

  Consumer      2,705       2,490       3,094       3,765       3,628
  Price                                                         
  ------------- ----------- ----------- ----------- ----------- -----------

1/ Average price, January through July 2006

Source: National Agricultural Cooperative Federation

## Korea: Farm Price for Chicken Meat

+-------------+-------------+-------------+--------------+------------+
| Commodity   | Chicken     |             |              |            |
|             | Meat, Farm  |             |              |            |
|             | Price       |             |              |            |
|             |             |             |              |            |
|             | Unit:       |             |              |            |
|             | Korean Won  |             |              |            |
|             | per         |             |              |            |
|             | Kilogram    |             |              |            |
+-------------+-------------+-------------+--------------+------------+
| Year        | 2004        | 2005        | 2006         | \% Change  |
|             |             |             |              | comparing  |
|             |             |             |              | to         |
|             |             |             |              | previous   |
|             |             |             |              | year       |
+-------------+-------------+-------------+--------------+------------+
| Month       |             |             |              |            |
+-------------+-------------+-------------+--------------+------------+
| Jan.        | 659         | 1,572       | 1,340        | -14        |
+-------------+-------------+-------------+--------------+------------+
| Feb.        | 1,029       | 1,816       | 1,301        | -28        |
+-------------+-------------+-------------+--------------+------------+
| Mar.        | 1,704       | 1,883       | 1,580        | -16        |
+-------------+-------------+-------------+--------------+------------+
| Apr.        | 1,608       | 1,901       | 1,204        | -36        |
+-------------+-------------+-------------+--------------+------------+
| May         | 1,432       | 1,855       | 945          | -49        |
+-------------+-------------+-------------+--------------+------------+
| Jun.        | 1,286       | 1,517       | 1,151        | -24        |
+-------------+-------------+-------------+--------------+------------+
| Jul.        | 1,548       | 1,611       | 1,339        | -16        |
+-------------+-------------+-------------+--------------+------------+
| Aug.        | 1,825       | 1,308       | 1,428 1/     | 9          |
+-------------+-------------+-------------+--------------+------------+
| Sep.        | 1,350       | 857         |              | -36        |
+-------------+-------------+-------------+--------------+------------+
| Oct.        | 1,520       | 914         |              | -39        |
+-------------+-------------+-------------+--------------+------------+
| Nov.        | 1,557       | 801         |              | -48        |
+-------------+-------------+-------------+--------------+------------+
| Dec.        | 1,318       | 1,337       |              | 1          |
+-------------+-------------+-------------+--------------+------------+

1 / August 1, 2006 Spot Price

Source: National Agricultural Cooperative Federation

## Korea: Wholesale Price for Chicken Meat

+-------------+-------------+-------------+--------------+------------+
| Commodity   | Chicken     |             |              |            |
|             | Meat,       |             |              |            |
|             | Wholesale   |             |              |            |
|             | Price       |             |              |            |
|             |             |             |              |            |
|             | Unit:       |             |              |            |
|             | Korean Won  |             |              |            |
|             | per         |             |              |            |
|             | Kilogram    |             |              |            |
+-------------+-------------+-------------+--------------+------------+
| Year        | 2004        | 2005        | 2006         | \% Change  |
|             |             |             |              | comparing  |
|             |             |             |              | to         |
|             |             |             |              | previous   |
|             |             |             |              | year       |
+-------------+-------------+-------------+--------------+------------+
| Month       |             |             |              |            |
+-------------+-------------+-------------+--------------+------------+
| Jan.        | 1,444       | 2,679       | 2,382        | -11        |
+-------------+-------------+-------------+--------------+------------+
| Feb.        | 1,965       | 2,940       | 2,318        | -21        |
+-------------+-------------+-------------+--------------+------------+
| Mar.        | 2,939       | 3,081       | 2,697        | -10        |
+-------------+-------------+-------------+--------------+------------+
| Apr.        | 2,822       | 3,097       | 2,180        | -29        |
+-------------+-------------+-------------+--------------+------------+
| May         | 2,531       | 2,994       | 1,822        | -39        |
+-------------+-------------+-------------+--------------+------------+
| Jun.        | 2,330       | 2,545       | 2,091        | -17        |
+-------------+-------------+-------------+--------------+------------+
| Jul.        | 2,646       | 2,707       | 2,378        | -12        |
+-------------+-------------+-------------+--------------+------------+
| Aug.        | 2,996       | 2,296       | 2,436 1/     | 6          |
+-------------+-------------+-------------+--------------+------------+
| Sep.        | 2,398       | 1,668       |              | -30        |
+-------------+-------------+-------------+--------------+------------+
| Oct.        | 2,608       | 1,787       |              | -31        |
+-------------+-------------+-------------+--------------+------------+
| Nov.        | 2,641       | 1,582       |              | -40        |
+-------------+-------------+-------------+--------------+------------+
| Dec.        | 2,322       | 2,362       |              | 1          |
+-------------+-------------+-------------+--------------+------------+

1/ August 1, 2006 Spot Price

Source: National Agricultural Cooperative Federation

## Korea: Consumer Price for Chicken Meat

+-------------+-------------+-------------+--------------+------------+
| Commodity   | Chicken     |             |              |            |
|             | Meat,       |             |              |            |
|             | Consumer    |             |              |            |
|             | Price       |             |              |            |
|             |             |             |              |            |
|             | Unit:       |             |              |            |
|             | Korean Won  |             |              |            |
|             | per         |             |              |            |
|             | Kilogram    |             |              |            |
+-------------+-------------+-------------+--------------+------------+
| Year        | 2004        | 2005        | 2006         | \% Change  |
|             |             |             |              | comparing  |
|             |             |             |              | to         |
|             |             |             |              | previous   |
|             |             |             |              | year       |
+-------------+-------------+-------------+--------------+------------+
| Month       |             |             |              |            |
+-------------+-------------+-------------+--------------+------------+
| Jan.        | 2,120       | 3,661       | 3,604        | -1         |
+-------------+-------------+-------------+--------------+------------+
| Feb.        | 2,263       | 3,902       | 3,406        | -12        |
+-------------+-------------+-------------+--------------+------------+
| Mar.        | 3,321       | 3,823       | 3,669        | -4         |
+-------------+-------------+-------------+--------------+------------+
| Apr.        | 3,147       | 3,872       | 3,432        | -11        |
+-------------+-------------+-------------+--------------+------------+
| May         | 3,222       | 4,034       | 3,532        | -12        |
+-------------+-------------+-------------+--------------+------------+
| Jun.        | 3,025       | 3,933       | 3,756        | -4         |
+-------------+-------------+-------------+--------------+------------+
| Jul.        | 3,366       | 4,073       | 3,996        | -1         |
+-------------+-------------+-------------+--------------+------------+
| Aug.        | 3,804       | 4,018       | 4,296 1/     | 6          |
+-------------+-------------+-------------+--------------+------------+
| Sep.        | 3,172       | 3,652       |              | 15         |
+-------------+-------------+-------------+--------------+------------+
| Oct.        | 3,291       | 3,447       |              | 4          |
+-------------+-------------+-------------+--------------+------------+
| Nov.        | 3,300       | 3,297       |              | \-         |
+-------------+-------------+-------------+--------------+------------+
| Dec.        | 3,082       | 3,506       |              | 13         |
+-------------+-------------+-------------+--------------+------------+

1/ August 1, 2006 Spot Price

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

# Korea: Monthly Average Foreign Exchange Rate

(Unit: Korean Won / 1U\$)

  ----------------- ----------------- ----------------- ------------------
  Month             2004              2005              2006

  Jan.              1184.64           1038.32           987.07

  Feb.              1166.96           1022.69           970.18

  Mar.              1166.33           1007.28           975.09

  Apr.              1150.81           1011.00           954.44

  May               1177.01           1002.13           941.40

  Jun.              1158.54           1010.68           955.16

  Jul.              1158.12           1036.79           950.15

  Aug.              1158.96           1020.96           957.90 1/

  Sep.              1147.80           1029.23           

  Oct.              1143.52           1045.89           

  Nov.              1090.10           1041.51           

  Dec.              1051.44           1024.42           
  ----------------- ----------------- ----------------- ------------------

1/ August 2, 2006 Spot Rate

Source: Industrial Bank of Korea

# 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.   
                 2004**            2005**             2005**                 2006**        

  Country        Vol      Val      Vol      Val       Vol           Val      Vol           Val

  **U.S.**       3,998    3,871    20,652   30,600    1,018         1,626    23,119        22,368

  **Others**                                                                               

  Thailand       8,534    15,827   4,870    12,600    2,893         7,175    1,286         3,831

  P.R.C.         779      1,502    7,164    18,547    2,554         5,787    5,394         15,262

  Canada         0        0        23       22        0             0        47            27

  Denmark        15,274   29,178   20,346   41,239    16,083        32,562   3,584         5,794

  France         2,750    4,185    1,845    3,037     1,653         2,720    256           390

  U.K.           376      561      2,282    4,161     2,101         3,652    0             0

  Germany        67       126      131      288       131           288      0             0

  Japan          66       199      3        25        3             23       0             0

  Brazil         0        0        1,140    2,430     0             0        4,486         8,589

  Australia      0        0        48       86        0             0        0             0

                                                                                           

  Other          4        5        0        0         0             2        1             11

                                                                                           

                                                                                           

  **Total for    27,850   51,593   37,852   82,435    25,418        52,309   15,054        33,904
  Others**                                                                                 

  **Grand        31,848   55,464   58,504   113,035   26,436        53,935   38,173        56,272
  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.   
                 2004**            2005**            2005**                2006**        

  Country        Vol      Val      Vol      Val      Vol           Val     Vol           Val

  **U.S.**       0        0        0        0        1             4       0             0

  **Others**                                                                             

  Hong Kong      200      341      1,248    1,441    601           685     770           868

  Japan          410      1,650    998      3,656    276           1,300   462           1,666

  P.R.C.         0        0        76       182      75            177     1             2

  Taiwan         38       160      78       316      25            105     87            353

  Thailand       36       116      27       70       18            49      0             0

  Vietnam        0        0        24       21       24            21      0             0

  Iraq           0        0        9        54       0             0       0             0

  Turkey         0        0        10       55       0             0       45            263

  Australia      3        12       0        0        0             0       44            7

  Russia         45       36       0        0        0             0       0             0

                                                                                         

  Other          4        18       8        37       4             20      4             20

                                                                                         

                                                                                         

  **Total for    736      2,333    2,478    5,832    1,023         2,357   1,413         3,179
  Others**                                                                               

  **Grand        736      2,333    2,478    5,832    1,024         2,361   1,413         3,179
  Total**                                                                                
  -------------- -------- -------- -------- -------- ------------- ------- ------------- -------

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

Source: Korea Customs Service