Required Report - public distribution

**Date:** 4/29/2005

**GAIN Report Number:** KS5021

KS5021

**Korea, Republic of**

**Citrus**

**Semi Annual**

**2005**

**Approved by:**

![](media/image1.wmf)Larry M. Senger

U.S. Embassy

**Prepared by:**

Stan Phillips // Seung Ah Chung

**Report Highlights:**

Income from citrus production in Korea is expected to set a record in My
2004/05 with gross receipts in excess of \$600 million. Effective
campaigns to reduce overproduction and improve quality of fruit entering
marketing channels are cited as the driving factors behind the improved
profitability. Korean demand for U.S. oranges reportedly outpaced supply
after Korean authorities lifted a temporary import suspension resulting
from detections of a plant pest in several shipments of U.S. oranges.
Limited quantities of Spanish oranges entered Korea for the first time
in 2005 under a pre-clearance program.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Semi-Annual Report

Seoul \[KS1\]

\[KS\]

Table of Contents

[Citrus Situation 3](#citrus-situation)

[Local Citrus Situation 3](#local-citrus-situation)

[Imports 4](#imports)

[Exports 5](#exports)

[Competitors 5](#competitors)

[Phytosanitary Issues 5](#phytosanitary-issues)

[FOJC Market Situation 6](#fojc-market-situation)

[PS&D 7](#psd-1)

[PS&D for Tangerines 7](#psd-for-tangerines)

[PS&D for Oranges 8](#psd-for-oranges)

[PS&D for FOJC 9](#psd-for-fojc)

[Production 10](#production)

[Korea: Citrus Production Situation 1/
10](#korea-citrus-production-situation-1)

[Korea: Citrus Utilization 10](#korea-citrus-utilization)

[Korea: Purchasing Price of Processing Tangerine Oranges
11](#korea-purchasing-price-of-processing-tangerine-oranges)

[Korea: Citrus Production as Ratio to Total Fruit Production
12](#korea-citrus-production-as-ratio-to-total-fruit-production)

[Korea: Total Fruits and Citrus Per Capita Consumption
12](#korea-total-fruits-and-citrus-per-capita-consumption)

[Tariff 13](#tariff)

[Korea: Import Quota and Tariff for Fresh Orange
13](#korea-import-quota-and-tariff-for-fresh-orange)

[Korea: Import Quota and Tariff for Other Citrus
13](#korea-import-quota-and-tariff-for-other-citrus)

[Korea: Monthly Orange Imports 13](#korea-monthly-orange-imports)

[Trade Matrix 14](#trade-matrix)

[Import Matrix for Oranges 14](#import-matrix-for-oranges)

[Import Matrix for Lemon 15](#import-matrix-for-lemon)

[Import Matrix for Grapefruit 16](#import-matrix-for-grapefruit)

[Export Matrix for Korean Tangerines
17](#export-matrix-for-korean-tangerines)

[Import Matrix for FOJC 18](#import-matrix-for-fojc)

[Export Matrix for FOJC 19](#export-matrix-for-fojc)

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

[Korea: Monthly Average Wholesale Auction Prices for Tangerines
21](#korea-monthly-average-wholesale-auction-prices-for-tangerines)

[Korea: Wholesale Prices for Domestic & Imported Oranges
26](#korea-wholesale-prices-for-domestic-imported-oranges)

[Korea: Average Auction Prices for Imported Lemon
27](#korea-average-auction-prices-for-imported-lemon)

[Korea: Average Auction Prices for Imported Grapefruit
28](#korea-average-auction-prices-for-imported-grapefruit)

# Citrus Situation

## Local Citrus Situation

The 2004/05 citrus crop, including late varieties and greenhouse
production, is estimated at 593,000 metric tons (MT), a 4 percent
decrease from the previous season. The decline is largely in response to
successful efforts to reduce citrus production area from 24,560 hectares
(HA) to 22,048 HA. The 2004/05 year is expected to be the record
high-income year for Jeju citrus farmers since citrus has been produced
in Jeju with gross income anticipated to exceed 600 billion won
(approximately 600 million dollars). The record income level reflects
strong prices resulting from reduced production, sweeter fruit owing to
the favorable weather condition, and expansion of the citrus marketing
order nationwide. Efforts made by the Jeju government and producer
groups to enhance the quality of citrus by preventing low quality fruit
from being released into the market are cited as the driving factor
behind the record income level.

In 2005, citrus production is projected to decrease slightly from the
previous season. Cold weather during the winter and spring resulted in
delayed flowering, which will in turn lead to smaller fruit.
Expectations that the summer will be hotter than usual could signal that
fruit from the 2005 harvest will have higher than average sugar content.
Forecasts for sweet fruit and reduced production are raising the
expectations of Jeju farmers for a third consecutive year of
profitability. Continued efforts to reduce citrus production area and
thin the trees in the remaining area appear to have resulted in control
of the over-production which reduced profitability in past years. The
Jeju government considers efforts to stabilize production completed and
will embark on a project to further improve the production of high
quality fruit in 2005. Efforts will focus on quality improvement and
marketing innovation. For this, the Jeju government initiated several
new projects including 1) extensive tree thinning on 4,000 HA, 2)
expansion of production of late-variety citrus and replacement of old
trees with new varieties, 3) replacement of small packing houses with
automated large-scale packing houses, 4) support for citrus exports and
North Korea aid. Jeju plans to reduce the number of packing houses from
734 in 2004 to 45 large-scale facilities by 2010 for effective quality
control of fruit being released into the commercial market.

MY 2004/05 was the second year for the marketing order program during
which it expanded nationwide. The marketing order in 2004 has
effectively prohibited low quality fruit from entering commercial
markets, which in turn shored up market prices. As of March 16, 2005,
450 violations of the marketing order rules were detected, a 25 percent
decrease from last year. Fines or warnings were levied depending on the
nature of the violations. The Jeju government is not sure whether the
marketing order program will continue in 2005/06 or not since it can
only be activated when total citrus production exceeds 580,000 MT. The
Jeju government expects that lower production in MY 2005/06 will result
in suspension of marketing order activities. After June or July when a
more accurate production forecast is available, Jeju will determine
whether they will submit a request for the marketing order to the
Ministry of Agriculture & Forestry (MAF). Then, MAF will make the final
decision on the marketing order.

Although the marketing order may become inactive in 2005/06, Jeju will
continue to have the check-off program. The program size will be the
same as in previous years, generating two billion won (approximately two
million dollars) with half of the funds from the central government and
half from farmers. Farmer funds will be collected through a check-off
fee of 0.5 percent assessed on all fruit sold through auctions. The
funds will be used to support public relations, advertising, and fruit
sorting programs. Jeju attempted to mandate the check-off program in
2004 to avoid the "free rider" problem but was not successful.

Jeju producer groups are focusing on producing branded, premium citrus
which returns three to four times higher margins than regular citrus to
farmers. Although production of such premium citrus is less than five
percent of total citrus, the positive consumer response and profits
indicate the product is competing successfully with other fruits and
imported oranges. Producer group leaders continue to emphasize and
educate citrus farmers that quality is the most important factor in the
market and to encourage them to produce quality fruit for higher
margins.

In 2005, greenhouse Unshu orange production area is expected to decrease
to 410 HA, from 430 HA in 2004. Reduced greenhouse production reflects
high operating costs for controlling the temperature in the houses and a
trend toward shifting greenhouse production shift to other crops for
more profit. The trend is expected to continue in coming years. Total
greenhouse production in 2005 is estimated at 24,200 MT; a seven percent
decline from the previous year.

## Imports

Imports of oranges from Tulare and Fresno counties in California resumed
in mid-December, 2004. As of April 26, calendar year (CY) 2005 fresh
orange imports reached 83,746 MT with all imports originating from the
United States and Spain. Thus far in 2005, orange imports are down 36
percent compared to the same period last year. Despite favorable market
conditions including strengthening of the Korean won against the U.S.
dollar and growing demand, continued findings of Septoria citri in U.S.
oranges caused Korean importers to exercise caution in expanding
imports. Spanish oranges first entered Korea in February, 2005. However,
the mandatory preclearance program for Spanish oranges limited the
amounts available for import. Accordingly, the market share of Spanish
oranges remains relatively small. Korean quarantine authorities traveled
to Spain to pre-clear 1,750 MT of which 1,184 MT have entered Korea as
of April 26. In addition to the limited availability of pre-cleared
Spanish oranges, the prices and quality reportedly did not meet market
expectations in Korea. It is expected that U.S. oranges will continue to
dominate the Korean market.

Despite media reporting on the findings of Septoria citri in U.S.
shipments, Korean consumers recognize it is a plant disease and has no
bearing on human health. Accordingly, Korean consumers have not changed
consumption patterns of U.S. oranges. Importers report that they are
having difficulty satisfying market demand for U.S. oranges due to low
availability of quality fruit from California as a result of the heavy
rainfall that California received during the production season.

In 2005/06, orange imports from the United States may recover to levels
prior to the temporary import suspension imposed on counties of Tulare
and Fresno if California successfully controls the presence of Septoria
citri in shipments to Korea. However, there has been growing criticism
from Jeju citrus producers of the Korean government's decision to resume
imports from Tulare and Fresno counties. Jeju authorities recently
requested that MAF reinstate the suspension of orange imports from the
United States.

In-quota and out-of-quota tariffs for fresh oranges were equalized at 50
percent in 2004. The 50 percent tariff will continue to be imposed on
fresh orange imports until the Doha Development Agenda discussion
concludes. In 2005, quota quantities and in-quota tariff rates for other
citrus remain at the 2004 levels of 2,097 MT and 50 percent,
respectively. The out-of-quota tariff on other citrus is 144 percent in
2005.

## Exports

In MY 2004/05, Jeju's citrus exports reached 5,800 MT. Strong domestic
demand and higher margins in local markets caused exports to fall short
of the initial export goal of 12,000 MT. Greenhouse citrus exports in CY
2004 amounted to only 50 MT.

In MY 2005/06, Jeju authorities set an export goal of 1,000 MT of Unshu
oranges. Most Unshu orange exports are destined for Canada, Russia, and
South East Asian countries. The Jeju government believes that Jeju needs
to develop export markets as a long-term strategy. However, strong local
market prices and lack of an effective export system hamper export
prospects. In 2005/06, the Jeju government plans to spend 600 million
won (approximately 600,000 dollars) to improve the efficacy of the Jeju
export system and support marketing and promotion in foreign countries.

Exports of Jeju citrus to the United States are prohibited due to the
presence of citrus canker in Jeju groves.

## Competitors

In CY 2004, no orange imports were recorded from countries other than
the United States and Spain as of April 26. Spain entered the Korean
orange market in February 2005 but imports totaled less than 2,000 MT
this season. In CY 2004, orange imports from countries other than the
United States accounted for four percent of the market (mostly from
South Africa). Imports from Australia and New Zealand were minimal.
Distributors and retailers of product from other countries, including
Spain, struggle to overcome the strong recognition and demand in the
Korean market for U.S. oranges. In CY 2005, imports from other producers
are expected to threaten the market share of U.S. oranges unless the
Septoria citri situation gets worse. (See "Import")

Phytosanitary related discussions between Korea and countries such as
Argentina, Egypt and others are still pending to establish protocols for
citrus imports. However, it is not expected that those phytosanitary
discussions will be completed in the near future.

## Phytosanitary Issues

In December, 2005, the National Plant Quarantine Service (NPQS) lifted a
temporary suspension of orange exports from the California counties of
Tulare and Fresno imposed on April 27, 2004, due to detections of
Septoria citri in shipments from those counties. NPQS allowed imports of
oranges from those two counties under new phytosanitary requirements
with phytosanitary certificates issued on December 16, 2005 or after.
(See "Import")

NPQS applies a 100 percent fumigation policy for imported California
oranges due to red scale.

APHIS and NPQS have been continuously engaged in discussions to address
problems associated with findings of citrus canker in December 2002 and
the ensuing impact on Korea's export program.

# FOJC Market Situation

In 2005, the overall domestic juice market is projected to increase
slightly relative to 2004 based on expectations of an economic recovery.
Health conscious Korean consumers' demand for orange juice (OJ) made
from Jeju Unshu oranges (mandarin juice) and for the premium "not from
concentrate" (NFC) product by keeps increasing while demand for diluted
OJ with low fruit juice content is shrinking. Although the market share
of NFC product remains relatively small, the NFC market continues to
increase and is expected to expand by 10 percent in 2005 compared. Aside
from NFC and Jeju mandarin juice, additional demand is emerging for
drinks that are nutrient enriched, such as vitamin C drinks, and green
tea drinks. Building on the success of Jeju mandarin juice, in 2005 Jeju
producers introduced a "non-chemical" Jeju mandarin juice made of fresh
mandarins and not from concentrate. Although the volume is not
significant at the moment, Jeju plans to increase production of the
"non-chemical" juice in conjunction with its intention to expand
environmentally friendly agriculture.

In 2005, domestic processors are projecting that demand for OJ will
increase slightly in line with optimistic expectations for the Korean
economic situation in 2005.

In MY 2004/05, 100,517 MT of citrus were processed for mandarin juice.
47,357 MT of citrus were processed at two plants operated by the Jeju
Province Development Corporation while the remainder was processed at
plants operated by private companies. The Jeju provincial government
initially planned to divert 120,000 MT of citrus for processing.
However, due to low availability of fruit for juice, the total amount of
fruit processed for juice has been much lower than capacity and market
demand. As a result, the Jeju Province Development Corporation and
private companies were unable to supply the quantities of mandarin juice
contracted for export to Japan.

In MY 2005/06, less citrus could potentially be processed based upon
forecasts that total citrus production will be lower than 2004/05. Owing
to strong market prices of citrus, farmers may not want to sell citrus
at lower prices for processing, which means that total juice production
may not meet the strong demand for mandarin juice.

In MY 2004/05, Brazilian FOJC still dominates the Korean juice market
with a 75 percent market share. Brazil share of the market increase one
percent from the previous year based on strong price competitiveness
against U.S. origin OJ.

Korea's OJ exports are not significant. In MY 2004/05, however, OJ
exports are expected to increase due to exports to Japan. It is expected
that Korean OJ exports will increase if demand in Asian markets,
including Japan and China, continues to grow.

# PS&D {#psd-1}

## PS&D for Tangerines

![](media/image2.wmf)

## PS&D for Oranges

![](media/image3.wmf)

## PS&D for FOJC

![](media/image4.wmf)

# Production

## Korea: Citrus Production Situation 1/

  ---------- ------------ --------------- --------------- -----------------
  Year       Area (HA)    Production (MT) Farm Household  Gross Income
                                                          (Mil.won)

  1996       25,802       480,000         36,055          607,900

  1997       25,781       693,200         36,050          400,862

  1998       25,860       543,980         36,212          515,800

  1999       25,823       638,740         36,073          325,709

  2000       25,796       563,341         36,590          370,811

  2001       25,408       646,023         36,580          361,667

  2002       25,207       788,679         35,078          316,494

  2003       24,560       631,929         33,957          459,700

  2004 2/    22,048       593,000         31,233          613,800

  2005 2/    22,000       590,000         31,233          N/A
  ---------- ------------ --------------- --------------- -----------------

1/ Calendar year basis including greenhouse

2/ Preliminary

Source: Jeju Provincial Government & Korea Rural Economic Institute

## Korea: Citrus Utilization 

(Unit: MT)

  ---------- -------------- -------------- --------------- ---------------
  Year       Total          Fresh          Processing      Other 1/

  1998       543,980        512,586        5,012           26,382

  1999       638,740        567,041        33,142          38,557 2/

  2000       563,430        502,838        26,526          33,124

  2001       646,023        527,326        47,445          71,252 3/

  2002       788,679        531,081        112,359         145,239 4/

  2003       645,587        477,523        120,333         47,731 6/

  2004 5/    593,000        431,000        100,517         61,483 6/
  ---------- -------------- -------------- --------------- ---------------

1/ Other - composed of self consumption, loss and discarded citrus

2/ Other - including purchase by Jeju Provincial Government

3/ Other - including purchase by Central Government for Aid to North
Korea

4/ Other - including 1/, 2/, 3/, exports, and military consumption

5/ Preliminary

6/ Other -- including exports, military consumption, and North Korea Aid

Source: Jeju Provincial Government

**Korea: Citrus Greenhouse Production Situation**

  --------- ----------- ------------ ------------- ----------- -----------
  Year      Area (HA)   Production   Gross Income  Household   Price
                        (MT)         (Mil. Won)                (Won/Kg)

  1997      554.2       27,461       85,077        1,762       3,098

  1998      554         26,812       61,900        1,763       2,309

  1999      545         28,129       64,700        1,646       2,300

  2000      567         27,655       68,200        1,777       2,466

  2001      512         27,158       69,300        1,546       2,550

  2002      516         27,046       64,639        1,573       2,390

  2003      462         26,620       73,600        1,422       2,767

  2004      430         25,900       68,600        1,323       2,648

  2005 1/   410         24,200       N/A           1,323       N/A
  --------- ----------- ------------ ------------- ----------- -----------

1/ Preliminary

Source: Jeju Provincial Government

## Korea: Purchasing Price of Processing Tangerine Oranges

(Korean Won/kg)

  ---------------------------------- ------------------------------------
  Year                               Price

  1995                               220

  1996                               220

  1997                               100

  1998                               100

  1999                               220

  2000                               100

  2001 1/                            220

  2002 2/                            100

  2003                               100

  2004                               100
  ---------------------------------- ------------------------------------

1/ 100 Korean Won for compensation for discarding fruit at farms and for
purchase for processing

180 Korean Won for government purchase for North Korea Aid and
processing

2/ 100 Korean Won for purchase for processing

200 Korean Won for government purchase of 97,000 MT to remove fruit from
fresh market

Source: Jeju Citrus Grower's Cooperative

## Korea: Citrus Production as Ratio to Total Fruit Production

(Unit: 1,000 MT, Ratio: Percent)

  ------------- ------------------- ------------------- -------------------
  Year          Total Fruits        Citrus              Ratio

  1990          1,765               493                 30.4

  1995          2,150               615                 28.6

  1996          2,003               480                 24.0

  1997          2,330               693                 29.7

  1998          2,022               544                 26.9

  1999          2,229               639                 28.0

  2000          2,249               564                 23.0

  2001          2,284               646                 28.0

  2002          2,418               789                 32.0

  2003          2,275               632                 27.0

  2004          2,411               584                 24.0
  ------------- ------------------- ------------------- -------------------

Source: National Agricultural Quality Service

## Korea: Total Fruits and Citrus Per Capita Consumption

  --------------- ------------------ ------------------ ------------------
  Year            Total Fruits       Total Citrus 1/    Local Citrus Only

  1999            55.7 Kg            13.8 Kg            13.3 Kg

  2000            58.4 Kg            14.0 Kg            11.9 Kg

  2001            59.2 Kg            15.5 Kg            13.5 Kg

  2002            58.8 Kg            15.5 Kg            13.3 Kg

  2003            55.8 Kg            16.0 Kg            13.0 Kg

  2004            N/A                16.5 Kg            N/A
  --------------- ------------------ ------------------ ------------------

1/ Including imported oranges

Source: Ministry of Agriculture & Forestry & Korea Rural Economic
Institute

# Tariff

On July 1, 1997, Korea liberalized the fresh orange market. Since then,
Korea has applied tariffs for in-quota and out-of quota imported oranges
and other citrus in Korea's Uruguay Round Country Schedule. In 2004,
tariffs for in-quota and out-of quota for fresh oranges have become
equal at 50 percent. Tariffs below will continue to be imposed on fresh
orange and other citrus imports until the Doha Development Agenda
discussion concludes.

## Korea: Import Quota and Tariff for Fresh Orange

(Unit: MT, %)

  -------------- --------------- -------------------- --------------------
  Year           Quota           In-quota Tariff      Out-quota Tariff

  2004           57,020          50                   50
  -------------- --------------- -------------------- --------------------

## Korea: Import Quota and Tariff for Other Citrus

(Unit: MT, %)

  -------------- --------------- -------------------- --------------------
  Year           Quota           In-quota Tariff      Out-quota Tariff

  2004           2,097           50                   144
  -------------- --------------- -------------------- --------------------

1/ HS 0805.20.1000, HS 0805.20.9000, HS 0805.90.0000

# Korea: Monthly Orange Imports

(Unit: MT)

  ------ ------- ------- ------- ------- ------- ------ ------ ------ ------ ------ ------ -------
  Year   Jan     Feb     Mar     Apr 1/  May     Jun    Jul    Aug    Sep    Oct    Nov    Dec

  '05    7277    15050   34432   26987                                                     

  '04    14077   24752   49159   43148   14479   1147   575    1466   1652   2339   1384   3266

  '03    13231   16006   36442   34161   20644   7371   3710   3208   2238   2621   802    4481

  '02    4673    8469    27190   24865   17323   5643   2586   1996   2111   1066   865    4866

  '01    5140    11895   17378   32655   14450   2671   1474   1087   1510   1685   588    446

  '00    2389    13041   14524   23407   20861   5230   6846   2284   2297   3167   1351   3742

  '99    792     633     2076    2943    7269    3261   94     337    1044   426    115    11863
  ------ ------- ------- ------- ------- ------- ------ ------ ------ ------ ------ ------ -------

1/ As of April 26, 2005

Source: Korea Customs Service and National Plant Quarantine Service

# Trade Matrix

## Import Matrix for Oranges

+---------------+------------+------------+------------+------------+
| Import Trade  |            |            |            |            |
| Matrix        |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Country:    |            |            |            |            |
| Korea**       |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Commodity:  |            |            |            |            |
| Orange (HS    |            |            |            |            |
| 0805.10)      |            |            |            |            |
| Unit: MT &    |            |            |            |            |
| U\$1,000**    |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Imports     | **MY       |            | **MY       |            |
| for**         | 2003/04**  |            | 2004/05**  |            |
|               |            |            |            |            |
|               | **(Oct.    |            | **(Oct. 04 |            |
|               | 03 - Sep.  |            | -- Feb.    |            |
|               | 04)**      |            | 05)**      |            |
+---------------+------------+------------+------------+------------+
| **Country**   | **Vol**    | **Val**    | **Vol**    | **Val**    |
+---------------+------------+------------+------------+------------+
| **U.S.**      | 150,818    | 133,221    | 25,343     | 24,301     |
+---------------+------------+------------+------------+------------+
| **Others**    |            |            |            |            |
+---------------+------------+------------+------------+------------+
| South Africa  | 4,087      | 3,398      | 3,485      | 2,975      |
+---------------+------------+------------+------------+------------+
| New Zealand   | 21         | 28         | 75         | 97         |
+---------------+------------+------------+------------+------------+
| Australia     | 370        | 325        | 415        | 391        |
+---------------+------------+------------+------------+------------+
| PRC           | 30         | 28         | 30         | 28         |
+---------------+------------+------------+------------+------------+
| Chile         | 33         | 33         | 0          | 0          |
+---------------+------------+------------+------------+------------+
|               |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Total for   | 4,541      | 3,812      | 3,975      | 3,463      |
| Others**      |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Grand       | 155,359    | 137,033    | 29,318     | 27,764     |
| Total**       |            |            |            |            |
+---------------+------------+------------+------------+------------+

Source: Korea Customs Service

## Import Matrix for Lemon

+---------------+------------+------------+------------+------------+
| Import Trade  |            |            |            |            |
| Matrix        |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Country:    |            |            |            |            |
| Korea**       |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Commodity:  |            |            |            |            |
| Lemon         |            |            |            |            |
| (0805.50.10)  |            |            |            |            |
| Unit: MT &    |            |            |            |            |
| U\$1,000**    |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Imports     | **MY       |            | **MY       |            |
| for**         | 2003/04**  |            | 2004/05**  |            |
|               |            |            |            |            |
|               | **(Oct.    |            | **(Oct. 04 |            |
|               | 03 - Sep.  |            | -- Feb.    |            |
|               | 04)**      |            | 05)**      |            |
+---------------+------------+------------+------------+------------+
| **Country**   | **Vol**    | **Val**    | **Vol**    | **Val**    |
+---------------+------------+------------+------------+------------+
| **U.S.**      | 3,686      | 4,093      | 1,607      | 1,967      |
+---------------+------------+------------+------------+------------+
| **Others**    |            |            |            |            |
+---------------+------------+------------+------------+------------+
| New Zealand   | 61         | 76         | 0          | 0          |
+---------------+------------+------------+------------+------------+
| Australia     | 0          | 1          | 0          | 0          |
+---------------+------------+------------+------------+------------+
|               |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Total for   | 61         | 77         | 0          | 0          |
| Others**      |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Grand       | 3,747      | 3,503      | 1,607      | 1,967      |
| Total**       |            |            |            |            |
+---------------+------------+------------+------------+------------+

Source: Korea Customs Service

## Import Matrix for Grapefruit

+---------------+------------+------------+------------+------------+
| Import Trade  |            |            |            |            |
| Matrix        |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Country:    |            |            |            |            |
| Korea**       |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Commodity:  |            |            |            |            |
| Grapefruit    |            |            |            |            |
| (0805.40)     |            |            |            |            |
| Unit: MT &    |            |            |            |            |
| U\$1,000**    |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Imports     | **MY       |            | **MY       |            |
| for**         | 2003/04**  |            | 2004/05**  |            |
|               |            |            |            |            |
|               | **(Oct.    |            | **(Oct. 04 |            |
|               | 03 - Sep.  |            | -- Feb.    |            |
|               | 04)**      |            | 05)**      |            |
+---------------+------------+------------+------------+------------+
| **Country**   | **Vol**    | **Val**    | **Vol**    | **Val**    |
+---------------+------------+------------+------------+------------+
| **U.S.**      | 2,127      | 2,018      | 464        | 686        |
+---------------+------------+------------+------------+------------+
| **Others**    |            |            |            |            |
+---------------+------------+------------+------------+------------+
|               |            |            |            |            |
+---------------+------------+------------+------------+------------+
|               |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Total for   | 0          | 0          | 0          | 0          |
| Others**      |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Grand       | 2,013      | 1,871      | 2,008      | 1,922      |
| Total**       |            |            |            |            |
+---------------+------------+------------+------------+------------+

Source: Korea Customs Service

## Export Matrix for Korean Tangerines

+---------------+------------+------------+------------+------------+
| Export Trade  |            |            |            |            |
| Matrix        |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Country:    |            |            |            |            |
| Korea**       |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Commodity:  |            |            |            |            |
| Tangerine (HS |            |            |            |            |
| 0805          |            |            |            |            |
| .20.10/20/90) |            |            |            |            |
| Unit: MT &    |            |            |            |            |
| U\$1,000**    |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Exports     | **MY       |            | **MY       |            |
| for**         | 2003/04**  |            | 2004/05**  |            |
|               |            |            |            |            |
|               | **(Oct.    |            | **(Oct. 04 |            |
|               | 03 - Sep.  |            | -- Feb.    |            |
|               | 04)**      |            | 05)**      |            |
+---------------+------------+------------+------------+------------+
| **Country**   | **Vol**    | **Val**    | **Vol**    | **Val**    |
+---------------+------------+------------+------------+------------+
| **U.S.**      | 10         | 9          | 10         | 8          |
+---------------+------------+------------+------------+------------+
| **Others**    |            |            |            |            |
+---------------+------------+------------+------------+------------+
| Russia        | 1,925      | 691        | 199        | 119        |
+---------------+------------+------------+------------+------------+
| Canada        | 5,089      | 2,911      | 4,245      | 4,072      |
+---------------+------------+------------+------------+------------+
| Japan         | 213        | 413        | 369        | 736        |
+---------------+------------+------------+------------+------------+
| Hong Kong     | 19         | 28         | 30         | 46         |
+---------------+------------+------------+------------+------------+
| Guam          | 132        | 348        | 68         | 124        |
+---------------+------------+------------+------------+------------+
| Indonesia     | 107        | 54         | 226        | 130        |
+---------------+------------+------------+------------+------------+
| Malaysia      | 0          | 0          | 147        | 136        |
+---------------+------------+------------+------------+------------+
| PRC           | 516        | 105        | 4          | 8          |
+---------------+------------+------------+------------+------------+
| Taiwan        | 8          | 7          | 9          | 10         |
+---------------+------------+------------+------------+------------+
| Singapore     | 0          | 0          | 111        | 113        |
+---------------+------------+------------+------------+------------+
| Others        | 4          | 16         | 20         | 33         |
+---------------+------------+------------+------------+------------+
|               |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Total for   | 8,013      | 4,573      | 5,428      | 5,527      |
| Others**      |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Grand       | 8,023      | 4,582      | 5,438      | 5,535      |
| Total**       |            |            |            |            |
+---------------+------------+------------+------------+------------+

Source: Korea Customs Service

## Import Matrix for FOJC

+---------------+------------+------------+------------+------------+
| Import Trade  |            |            |            |            |
| Matrix        |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Country:    |            |            |            |            |
| Korea**       |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Commodity:  |            |            |            |            |
| FOJC          |            |            |            |            |
| (2            |            |            |            |            |
| 009.11/12/19) |            |            |            |            |
| Unit: MT &    |            |            |            |            |
| U\$1,000**    |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Imports     | **MY       |            | **MY       |            |
| for**         | 2003/04**  |            | 2004/05**  |            |
|               |            |            |            |            |
|               | **(Oct.    |            | **(Oct. 04 |            |
|               | 03 - Sep.  |            | -- Feb.    |            |
|               | 04)**      |            | 05)**      |            |
+---------------+------------+------------+------------+------------+
| **Country**   | **Vol**    | **Val**    | **Vol**    | **Val**    |
+---------------+------------+------------+------------+------------+
| **U.S.**      | 9,361      | 12,759     | 3,238      | 3,712      |
+---------------+------------+------------+------------+------------+
| **Others**    |            |            |            |            |
+---------------+------------+------------+------------+------------+
| Brazil        | 28,676     | 35,083     | 10,097     | 10,245     |
+---------------+------------+------------+------------+------------+
| Australia     | 272        | 342        | 129        | 196        |
+---------------+------------+------------+------------+------------+
| Israel        | 71         | 97         | 15         | 19         |
+---------------+------------+------------+------------+------------+
| Hong Kong     | 36         | 77         | 0          | 0          |
+---------------+------------+------------+------------+------------+
| Swiss         | 6          | 90         | 1          | 23         |
+---------------+------------+------------+------------+------------+
| Belgium       | 37         | 51         | 0          | 0          |
+---------------+------------+------------+------------+------------+
| Netherlands   | 20         | 29         | 3          | 5          |
+---------------+------------+------------+------------+------------+
| Canada        | 28         | 52         | 13         | 26         |
+---------------+------------+------------+------------+------------+
| Germany       | 7          | 37         | 0          | 0          |
+---------------+------------+------------+------------+------------+
| Italy         | 3          | 21         | 0          | 0          |
+---------------+------------+------------+------------+------------+
| Other         | 3          | 10         | 8          | 10         |
+---------------+------------+------------+------------+------------+
|               |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Total for   | 29,159     | 35,889     | 10,266     | 10,524     |
| Others**      |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Grand       | 38,520     | 48,648     | 13,504     | 14,236     |
| Total**       |            |            |            |            |
+---------------+------------+------------+------------+------------+

Source: Korea Customs Service

## Export Matrix for FOJC

+--------------------+-----------+-----------+-----------+-----------+
| Export Trade       |           |           |           |           |
| Matrix             |           |           |           |           |
+--------------------+-----------+-----------+-----------+-----------+
| **Country: Korea** |           |           |           |           |
+--------------------+-----------+-----------+-----------+-----------+
| **Commodity: FOJC  |           |           |           |           |
| (2009.11/12/19)    |           |           |           |           |
| Unit: MT &         |           |           |           |           |
| U\$1,000**         |           |           |           |           |
+--------------------+-----------+-----------+-----------+-----------+
| **Exports for**    | **MY      |           | **MY      |           |
|                    | 2003/04** |           | 2004/05** |           |
|                    |           |           |           |           |
|                    | **(Oct.   |           | **(Oct.   |           |
|                    | 03 - Sep. |           | 04 --     |           |
|                    | 04)**     |           | Feb.      |           |
|                    |           |           | 05)**     |           |
+--------------------+-----------+-----------+-----------+-----------+
| **Country**        | **Vol**   | **Val**   | **Vol**   | **Val**   |
+--------------------+-----------+-----------+-----------+-----------+
| **U.S.**           | 14        | 23        | 5         | 4         |
+--------------------+-----------+-----------+-----------+-----------+
| **Others**         |           |           |           |           |
+--------------------+-----------+-----------+-----------+-----------+
| Spain              | 0         | 0         | 0         | 0         |
+--------------------+-----------+-----------+-----------+-----------+
| Netherlands        | 7         | 3         | 0         | 0         |
+--------------------+-----------+-----------+-----------+-----------+
| Japan              | 0         | 0         | 88        | 160       |
+--------------------+-----------+-----------+-----------+-----------+
| Indonesia          | 3         | 8         | 0         | 0         |
+--------------------+-----------+-----------+-----------+-----------+
| PRC                | 91        | 97        | 15        | 15        |
+--------------------+-----------+-----------+-----------+-----------+
| Panama             | 2         | 4         | 2         | 4         |
+--------------------+-----------+-----------+-----------+-----------+
| Guam               | 2         | 2         | 0         | 0         |
+--------------------+-----------+-----------+-----------+-----------+
| Mongolia           | 25        | 13        | 0         | 0         |
+--------------------+-----------+-----------+-----------+-----------+
| Other              | 1         | 3         | \*        | 3         |
+--------------------+-----------+-----------+-----------+-----------+
|                    |           |           |           |           |
+--------------------+-----------+-----------+-----------+-----------+
| **Total for        | 131       | 130       | 105       | 182       |
| Others**           |           |           |           |           |
+--------------------+-----------+-----------+-----------+-----------+
| **Grand Total**    | 145       | 153       | 110       | 186       |
+--------------------+-----------+-----------+-----------+-----------+

Source: Korea Customs Service

# Korea: Monthly Average Foreign Exchange Rate

(Unit: Korean Won/1U\$)

  ---------------- ------------------ ------------------ ------------------
  Month            2003               2004               2005

  January          1179.46            1184.64            1038.32

  February         1191.27            1166.96            1022.69

  March            1233.68            1166.33            1007.28

  April            1231.51            1150.81            998.0 1/

  May              1200.14            1177.01            

  June             1194.07            1158.54            

  July             1181.55            1158.12            

  August           1178.32            1158.96            

  September        1166.03            1147.80            

  October          1166.04            1143.52            

  November         1185.21            1090.10            

  December         1192.85            1051.44            
  ---------------- ------------------ ------------------ ------------------

1/ April 26 spot rate

Source: Korea Industrial Bank

**Price Table**

## Korea: Monthly Average Wholesale Auction Prices for Tangerines

(Unit: Korean Won per Kilogram)

  ------------ --------------- --------------- --------------- ---------------
  **Month**    **High                          **Medium        
               Quality**                       Quality**       

               **2004**        **2005**        **2004**        **2005**

  Jan.         986             1,781           725             1,404

  Feb.         1,338           2,057           975             1,613

  Mar.         1,647           2,739           1,331           1,994

  Apr.         1,433           3,700 1/        1,261           3,400 1/

  May -                                                        
  September:                                                   
  N/A                                                          

  Oct.         1,352           \-              1,211           \-

  Nov.         895             \-              722             \-

  Dec.         1,032           \-              841             \-
  ------------ --------------- --------------- --------------- ---------------

Note: Price on a 15-Kilogram box basis except for price on a 10-Kilogram
box in March & April 2005

1/ April 25 spot price

Source: Garak Wholesale Market

**Korea: Average Auction Prices for Greenhouse Tangerine**

(Unit: Korean Won per Kilogram)

  ----------- --------------- --------------- --------------- ---------------
  **Month**   **High                          **Medium        
              Quality**                       Quality**       

              **2004**        **2005**        **2004**        **2005**

  Feb.        2,480           \-              1,900           \-

  Mar.        3,185           3,732           2,474           2,960

  Apr.        3,765           4,100 1/        2,742           3,400 1/

  May         5,512                           4,192           

  Jun.        5,181                           4,212           

  Jul.        4,841                           3,830           

  Aug.        4,453                           3,308           

  Sep.        4,375                           3,817           

  Oct.        3,415                           2,373           

  Nov.        2,189                           1,378           
  ----------- --------------- --------------- --------------- ---------------

Note: Price on a 5-kilogram box basis

1/ April 25 spot price

Source: Garak Wholesale Market

**Korea: Average Retail Prices for Tangerine, Nationwide**

(Unit: Korean Won per 10 Fruits, Approximately 100 gram per fruit)

+------------+-----------+-----------+-----------+-------------------+
| **Year**   | **2003**  | **2004**  | **2005**  | **% Changes to    |
|            |           |           |           | the previous      |
| **Month**  |           |           |           | year**            |
+------------+-----------+-----------+-----------+-------------------+
| Jan        | 1,549     | 1,897     | 2,333     | +22               |
+------------+-----------+-----------+-----------+-------------------+
| Feb        | 1,312     | 2,050     | 2,874     | +40               |
+------------+-----------+-----------+-----------+-------------------+
| Mar        | 1,281     | 2,426     | 3,579     | +47               |
+------------+-----------+-----------+-----------+-------------------+
| Apr        | 1,320     | 3,210     | 5,099     | +58               |
+------------+-----------+-----------+-----------+-------------------+
| May        | \-        | 2,766     | \-        | \-                |
+------------+-----------+-----------+-----------+-------------------+
| June -     |           |           |           |                   |
| September: |           |           |           |                   |
| N/A        |           |           |           |                   |
+------------+-----------+-----------+-----------+-------------------+
| Oct        | 3,860     | 2,896     | \-        | -24               |
+------------+-----------+-----------+-----------+-------------------+
| Nov        | 2,491     | 2,231     | \-        | -10               |
+------------+-----------+-----------+-----------+-------------------+
| Dec        | 2,085     | 1,851     | \-        | -11               |
+------------+-----------+-----------+-----------+-------------------+

Prices for high quality

Source: Agricultural & Fishery Marketing Corporation

**Korea: Average Retail Prices for Imported Oranges, Nationwide**

(Unit: Korean Won per 10 Fruits)

+------------+-----------+-----------+-----------+-------------------+
| **Year**   | **2003**  | **2004**  | **2004**  | **% Changes to    |
|            |           |           |           | the previous      |
| **Month**  |           |           |           | year**            |
+------------+-----------+-----------+-----------+-------------------+
| Jan        | 7,122     | 6,900     | 7,429     | +7                |
+------------+-----------+-----------+-----------+-------------------+
| Feb        | 6,329     | 6,646     | 7,432     | +11               |
+------------+-----------+-----------+-----------+-------------------+
| Mar        | 6,699     | 6,982     | 7,919     | +13               |
+------------+-----------+-----------+-----------+-------------------+
| Apr        | 7,228     | 6,725     | 8,499     | +26               |
+------------+-----------+-----------+-----------+-------------------+
| May        | 7,437     | 6,595     | \-        | -11               |
+------------+-----------+-----------+-----------+-------------------+
| Jun        | 6,676     | 6,534     | \-        | -2                |
+------------+-----------+-----------+-----------+-------------------+
| Jul        | 5,861     | 6,989     | \-        | +19               |
+------------+-----------+-----------+-----------+-------------------+
| Aug        | 6,120     | 7,744     | \-        | +26               |
+------------+-----------+-----------+-----------+-------------------+
| Sep        | 6,331     | 8,025     | \-        | +26               |
+------------+-----------+-----------+-----------+-------------------+
| Oct        | 6,806     | 8,018     | \-        | +17               |
+------------+-----------+-----------+-----------+-------------------+
| Nov        | 7,350     | 7,611     | \-        | +3                |
+------------+-----------+-----------+-----------+-------------------+
| Dec        | 7,317     | 7,453     | \-        | +1                |
+------------+-----------+-----------+-----------+-------------------+

Prices for high quality

Source: Agricultural & Fishery Marketing Corporation

**Korea: Average Auction Prices for Imported Valencia**

(Unit: Korean Won per Kilogram)

  ----------- --------------- --------------- --------------- ---------------
  **Month**   **High                          **Medium        
              Quality**                       Quality**       

              **2003**        **2004**        **2003**        **2004**

  April       \-              \-              \-              \-

  May         1616            \-              1,472           \-

  Jun.        1,616           1,785           1,452           1,533

  Jul.        1,658           2,288           1,512           1,839

  Aug.        1,890           2,829           1,722           2,515

  Sep.        1,967           2,512           1,722           2,153

  Oct.        2,005           2,222           1,825           1,825

  Nov.        1,944           1,927           \-              1,487

  Dec.        1,597           1,990           \-              871
  ----------- --------------- --------------- --------------- ---------------

Source: Garak Wholesale Market

## Korea: Wholesale Prices for Domestic & Imported Oranges

(Unit: Korean Won per Kilogram)

  ----------- -------------- -------------- -------------- --------------
  **Month**   **Imported                    **Korean       
              Navel**                       Orange 1/**    

              High           Medium         High           Medium

  Jan. 04     1,940          1,833          8,203          6,087

  Feb. 04     1,789          1,678          7,118          5,274

  Mar. 04     2,046          1,944          7,290          5,469

  Apr. 04     1,714          1,515          7,083          5,115

  May 04      1,333          979            6,795          4,929

  Jun. 04     1,256          788            5,699          3,810

  Jul. 04     1,250          583            6,167          \-

  Sep. 04     1,706          1,250          \-             \-

  Oct. 04     2,107          1,885          \-             \-

  Nov. 04     1,927          1,487          \-             \-

  Dec. 04     2,335          2,064          7,226          5,512

  Jan. 05     1,966          1,827          6,853          5,120

  Feb. 05     2,036          1,839          6,437          4,770

  Mar. 05     2,047          1,604          5,673          4,358

  Apr. 05 2/  2,417          2,028          5,000          4,333
  ----------- -------------- -------------- -------------- --------------

1/ Hallabong variety

2/ April 25 spot price

Source: Garak Wholesale Market

## Korea: Average Auction Prices for Imported Lemon

(Unit: Korean Won per 18 Kilograms Box)

  ----------- --------------- --------------- --------------- ---------------
  **Month**   **High                          **Medium        
              Quality**                       Quality**       

              **2004**        **2005**        **2004**        **2004**

  Jan.        37,500          42,600          30,000          32,841

  Feb.        37,500          40,524          30,000          \-

  Mar.        37,500          30,963          30,000          \-

  Apr.        40,577          43,500 1/       33,077          \-

  May         42,500          \-              35,000          \-

  Jun.        49,519          \-              39,327          \-

  Jul.        63,981          \-              52,574          \-

  Aug.        54,808          \-              39,077          \-

  Sep.        51,250          \-              34,792          \-

  Oct.        52,500          \-              41,923          \-

  Nov.        55,577          \-              45,096          \-

  Dec.        49,722          \-              42,222          \-
  ----------- --------------- --------------- --------------- ---------------

1/ April 25 spot price

Source: Garak Wholesale Market

## Korea: Average Auction Prices for Imported Grapefruit

(Unit: Korean Won per 18 Kilograms Box)

  ------------- ------------------- ------------------- -------------------
  **Month**     **High Quality**                        

                **2003**            **2004**            **2005**

  Jan.          24,000              22,196              49,220

  Feb.          25,318              23,792              44,381

  Mar.          28,615              27,000              40,352

  Apr.          37,827              27,000              39,000 1/

  May           43,500              33,577              \-

  Jun.          35,460              36,000              \-

  Jul.          28,704              33,926              \-

  Aug.          35,000              31,654              \-

  Sep.          35,000              30,000              \-

  Oct.          35,000              31,423              \-

  Nov.          \-                  33,192              \-

  Dec.          30,346              44,778              \-
  ------------- ------------------- ------------------- -------------------

1/ April 25 spot price

Source: Garak Wholesale Market