Required Report - public distribution

**Date:** 11/1/2005

**GAIN Report Number:** KS5061

KS5061

**Korea, Republic of**

**Citrus**

**Annual**

**2005**

**Approved by:**

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

U.S. Embassy

**Prepared by:**

Seung Ah Chung

**Report Highlights:**

At 520,000 tons, MY 2005/06 Unshu orange production is expected to
remain near last year\'s level. Producers and Jeju provincial officials
are pressing the central government to reinstate the nationwide
marketing order for Unshu oranges that was activated for the first time
in MY 2004/05. Producers anticipate a repeat of the record returns they
received in MY 2004/05 if the marketing order is reinstated. Although
South African oranges entered Korea for the first time in MY 2004/05,
they are not expected to detract from the United States\' dominant
market share in MY 2005/06. U.S. oranges will continue to be exported to
Korea under a protocol that was modified in September 2005.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

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 6](#phytosanitary-issues)

[FOJC Market Situation 7](#fojc-market-situation)

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

[PS&D for Tangerines 8](#psd-for-tangerines)

[PS&D for Oranges 9](#psd-for-oranges)

[PS&D for FOJC 10](#psd-for-fojc)

[Production 11](#production)

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

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

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

[Tariff 14](#tariff)

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

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

[Korea: Monthly Orange Imports 14](#korea-monthly-orange-imports)

[Trade Matrix 15](#trade-matrix)

[Import Matrix for Oranges 15](#import-matrix-for-oranges)

[Import Matrix for Lemon 16](#import-matrix-for-lemon)

[Import Matrix for Grapefruit 17](#import-matrix-for-grapefruit)

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

[Import Matrix for FOJC 19](#import-matrix-for-fojc)

[Export Matrix for FOJC 20](#export-matrix-for-fojc)

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

[Price Table 22](#price-table)

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

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

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

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

# Citrus Situation

## Local Citrus Situation

Estimates of local authorities for the MY 2005/06 Unshu orange crop
range from within 20,000 metric tons[^1] (MT) of 520,000 MT. Due to low
rainfall, less sunshine, and cold weather during spring, fruit from the
2005 crop is expected to be less sweet and larger in size compared to
the previous season. The Jeju government and producer groups are
implementing measures to encourage farmers to market only quality fruit.
Forecasts for reduced production are raising expectations that MY
2005/06 will be the third consecutive year of profitability. Market
prices of early varieties marketed in late-October sold at prices
similar to (or slightly higher) than last year's early season prices.

Income generated from citrus production reached a record level in MY
2004/05 on the island of Jeju, the center of Korean citrus production.
Gross income from citrus production exceeded 610 billion won
(approximately 610 million dollars). The record income level was driven
by strong prices. Prices were up as a result of reduced production,
sweeter fruits, and expansion of the citrus marketing order nationwide.
Last year's marketing order for citrus was the first ever mandatory
nationwide marketing order program in Korea. Farmers, packing house
operators and government officials cite the marketing order as the key
reason low quality fruit was prevented from being released into the
market. The absence of low quality fruit mixed in with good quality
fruit resulted in higher prices and, in turn, record income levels.

The Jeju provincial government plans to build large-scale packing houses
with central government funds provided to help farmers adjust to
additional compensation resulting from free trade agreements. Presently,
there are 734 small-scale packing houses on the island of Jeju with
daily capacity less than 900 MT of citrus. Under the plan, the small
packing houses will be replaced by automated large-scale packing houses
in nine areas of Jeju. Consolidation at the packing house level is
expected to further refine capability to provide uniform, quality fruit.
Construction will be initiated in early 2006 with completion of the
first large scale packing house expected in the second half of 2006.

Recognizing the effectiveness of the marketing order in improving prices
for the 2004 crop, the Jeju government and nearly 90 percent producers
have expressed interest in continuing the marketing order in MY 2005/06.
In September 2005, the Jeju government submitted a request to reinstate
the marketing order to the Ministry of Agriculture & Forestry (MAF). In
accordance with the Agriculture Stabilization Act, marketing orders can
be in place when there is "considerable instability in supply and
demand." Initial observations from MAF officials indicated that they did
not view the current situation as warranting claims of considerable
instability in supply and demand. Therefore, MAF's initial reaction to
the citrus marketing order request was not favorable. In response to
strong interest from Jeju, MAF reportedly suggested a few modifications
to the request and asked the Fair Trade Commission (FTC) for input. FTC
is currently reviewing the request. MAF will make the final decision
after FTC provides its views on the request.

If the request to reinstate the marketing order is rejected the Jeju
provincial government's backup position would be to control the release
of low quality fruits in to the Jeju local market. Provincial control
would be considerably less effective than the nationwide control that
could be granted by MAF. Therefore, Jeju representatives have been
lobbying the central government to reinstate the marketing order program
as a means of returning profits to producers. The decision on whether
the marketing order will be activated for the third consecutive year[^2]
is expected to be released as early as November.

Regardless of the outcome for the marketing order, Jeju will continue to
operate a check-off program for citrus. 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.
Two-thirds of the total fund (1.3 billion won) will be used for domestic
promotional activities to promote consumption including public
relations, advertising, citrus festivals, etc. One-half billion won will
be used for extension activities including a farmer's education program.
Export promotion will be funded with .14 billion won.

Jeju producer group leaders' efforts to convince citrus farmers that
quality is the key factor required to command higher prices will be
continued. Farmers are increasingly receptive to this point of view
thanks to market returns for branded and premium citrus that are three
to four times higher than conventional marketing. Although production of
premium citrus accounts for less than five percent of total citrus at
the moment, citrus industry officials expect that produces will shift
toward production of more premium quality fruits to withstand
competition from other domestic fruit and imported oranges.

In 2006, greenhouse Unshu orange production area is expected to decrease
by eight percent to 377 hectares (HA), from 409 HA in 2005. High
operating costs due to increased energy prices have discouraged farmers
from continuing greenhouse production. Instead, farmers are shifting to
production of late varieties that do not require heating. The market
response to such late varieties has been favorable and this trend is
expected to continue in coming years. Total greenhouse production in
2006 is estimated at 22,264 MT; an eight percent decline from the
previous year.

## Imports

From January through September 2005, fresh orange imports totaled
119,639 MT, 18 percent down from the same period last year. Nearly all,
(115,390 MT) fresh orange imports originated from the United States.
Unusually high precipitation and ensuing problems with fruit quality
caused a temporary disruption in the market offsetting the positive
influence of relatively favorable foreign exchange rates.

Traders noted a downturn in market prices when many traders tried to
supply the late season (May) market which had high prices during the
previous year. Other concerns included the perceived low availability of
fruits during the peak season between February and April and
phytosanitary issues including Septoria citri and fumigation. Traders
suggest that a consistent and controlled supply of oranges during the
season would assist U.S. oranges in remaining on the top position in the
Korean market. Nevertheless, it appears that the large number of
prospective importers eager to enter the business may be the underlying
reason that supply of imported oranges exceeded demand at some points
during the year.

In 2005, Spanish oranges entered Korea for the first time. However, the
mandatory preclearance program and cold treatment requirements for
Spanish oranges inhibited interest in Spanish oranges among importers.
Prices and quality did not meet market expectations. Accordingly,
Spanish oranges do not appear to represent a viable alternative to U.S.
oranges for importers at this time.

It is expected that U.S. oranges will continue to dominate the Korean
market in MY 2005/06. Traders expect that the optimal level of orange
imports for the Korean market would be between 120,000 MT and 130,000
MT. If total imports exceed this level, traders suggest that prices
could falter.

The 50 percent in-quota and out-of-quota tariffs for fresh oranges,
equalized in 2004 will continue to be imposed on fresh orange imports
until the Doha Development Agenda discussion concludes.

## Exports

In CY 2005, Jeju's citrus exports reached 5,591 MT from January through
August. Strong domestic demand and higher margins in local markets
discouraged exports. As a result, exports did not reach the initial
export target of 12,000 MT for MY 2004/05. Greenhouse citrus exports in
CY 2005 amounted to about 150 MT.

Jeju authorities set an export goal of 6,000 MT of Unshu oranges for MY
2005/06. Most Unshu orange exports are destined for Canada, Japan, and
South East Asian countries. The first shipment destined for Canada,
Jeju's top export market, is expected in November. The Jeju government
believes that Jeju needs to develop export markets as a long-term
strategy and aims to expand exports to Russia and South East Asian
countries. However, farmers' high expectations for strong local market
prices following the MY 2004/05 season will make it difficult for the
Export Council of the Jeju Agricultural Cooperative to secure enough
oranges to have a viable export program. In MY 2005/06, 140 million
Korean won (approximately 140,000 U.S. dollars) from the check off fund
will be used to improve the citrus export system and develop export
packaging materials. In addition to the check off fund, the Jeju
government plans to spend 600 million won (approximately 600,000
dollars) to set up a stable export supply system and support marketing
and promotion in foreign countries.

Exports of Jeju citrus to the United States have been prohibited since
2002 due to the presence of citrus canker in Jeju groves.

## Competitors

During the January-September period in 2005, 96 percent of orange
imports originated from the United States. Despite the fact that
California oranges suffered from high precipitation and Spanish oranges
appeared on the Korean market for the first time in February 2005, U.S.
oranges continued to dominate the Korean orange market. In CY 2005,
orange imports from countries other than the United States accounted for
four percent of the market, the same level as in the previous year.
Imports were mostly from South Africa. The volume imported from
Australia and New Zealand was minimal. Imports of Spanish oranges
totaled less than 2,000 MT as of September 2005. Traders complained that
the cold treatment required for Spanish oranges rendered fruits less
tasty and damaged the appearance of fruits.

In CY 2006, U.S. oranges are expected to continue to dominate the Korean
market thanks to strong recognition and consumer acceptance.

In October 2005, Korea released draft pest risk assessments (PRA) for
South African lemons and Chilean oranges for public comment. The comment
period ends November 2, 2005. Following the comment, plant quarantine
officials will review the comments and draft a phytosanitary protocol.
The protocol will eventually be issued for public comment.

Phytosanitary related discussions between Korea and countries such as
Argentina, Egypt and others have not made much progress. Consequently,
no protocols have been established with such countries for citrus
imports. Discussions regarding protocols for these countries are not
expected to be completed in the near future.

## Phytosanitary Issues

In response to the detection of Mediterranean fruit fly in San
Bernardino and Santa Clara County, California, the National Plant
Quarantine Service (NPQS) imposed an import ban on citrus including
oranges from quarantine areas designated by the Animal & Plant Health
Inspection Service (APHIS) effective October 8 and October 27
respectively.

NPQS and APHIS had bilateral phytosanitary consultations in late
September 2005 and reached agreement on modifications to the "California
Orange Protocol for Export to Korea." The modifications were instituted
to addressing concerns related to detections of Septoria citri in orange
shipments. Modifications to the Protocol will be finalized and will
become effective soon.

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 2006, the overall domestic juice market and demand for orange juice
(OJ) are projected to increase slightly compared with previous years
based on expectations of economic recovery. OJ made from Jeju Unshu
oranges (mandarin juice) is becoming popular among consumers who are
willing to pay a premium for the sweet, locally made juice. "Not from
concentrate" (NFC) product is also expected to continue increasing
thanks to its quality image. The market share of NFC product, however,
remains relatively small at present. In 2005, a local juice manufacturer
introduced a NFC Jeju mandarin juice and received a positive market
response.

In MY 2005/06, the Jeju citrus industry plans to purchase 97,100 MT of
citrus for processing. Two large citrus processing plants on the island
of Jeju are expected to process 52,000 MT of citrus. Smaller, private
juice processors will account for the remaining 45,000 MT. Expectations
of high margins for citrus from the fresh market and prospects for
relatively low production indicate processors may face difficulty in
securing sufficient amounts of citrus to meet the market demand for Jeju
mandarin juice.

In MY 2004/05, 100,517 MT of citrus were processed for mandarin juice
despite the initial projection of 120,000 MT. The shortfall was due to
low availability of fruits for juice as prices of citrus for fresh
consumption were quite attractive. Jeju exported over 400 MT of Jeju
mandarin juice concentrate in 2005.

In MY 2005/06, the Jeju Provincial Development Corporation sets an
export goal of Jeju mandarin juice concentrate to Japan at between 500
and 1,000 MT.

In MY 2005/06, Brazilian FOJC will dominate the Korean juice market with
roughly 75 percent market share. Brazilian FOJC enjoys strong price
competitiveness which has been a key factor in maintaining is market
share in previous years.

Korea's OJ exports are not significant. However, there was a large
increase in Jeju mandarin concentrate exports to Japan. In MY 2005/06,
OJ exports are expected to increase again due to exports to Japan. It is
also expected that Korean OJ exports will increase if demand in South
East Asian markets and Russia grows.

# 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       645,587         33,957          459,700

  2004       22,107       595,591         31,233          610,400

  2005 2/    22,048       582,200         33,191          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 5/

  2004       595,591        415,338        100,517         79,736 5/
  ---------- -------------- -------------- --------------- ---------------

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/ Other -- including exports, military consumption, North Korea Aid,
and consumption within Jeju Island

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         25,903       68,640        1,323       2,648

  2005 1/   409         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

  1996                               220

  1997                               100

  1998                               100

  1999                               220

  2000                               100

  2001 1/                            220

  2002 2/                            100

  2003                               100

  2004                               100

  2005                               100
  ---------------------------------- ------------------------------------

1/ 100 Korean Won for compensation for discarding fruits 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 fruits
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            58.8 Kg            15.2 Kg            12.0 Kg
  --------------- ------------------ ------------------ ------------------

1/ Including imported oranges

Source: Ministry of Agriculture & Forestry

# 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. The same tariffs set for 2004 will continue to be
applied until any new tariff agreement is made at Doha Development
Agenda.

## Korea: Import Quota and Tariff for Fresh Orange

(Unit: MT, %)

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

  2004           57,020          50                   50

  2005           N/A             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

  2005           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     May     Jun    Jul    Aug    Sep    Oct    Nov    Dec

  '05    7277    15050   34432   31727   21189   1671   1301   1971   1670                 

  '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
  ------ ------- ------- ------- ------- ------- ------ ------ ------ ------ ------ ------ -------

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.  |            | -- Aug.    |            |
|               | 04)**      |            | 05)**      |            |
+---------------+------------+------------+------------+------------+
| **Country**   | **Vol**    | **Val**    | **Vol**    | **Val**    |
+---------------+------------+------------+------------+------------+
| **U.S.**      | 150,818    | 133,221    | 114,988    | 112,831    |
+---------------+------------+------------+------------+------------+
| **Others**    |            |            |            |            |
+---------------+------------+------------+------------+------------+
| South Africa  | 4,087      | 3,398      | 4,231      | 3,646      |
+---------------+------------+------------+------------+------------+
| New Zealand   | 21         | 28         | 75         | 97         |
+---------------+------------+------------+------------+------------+
| Australia     | 370        | 325        | 798        | 798        |
+---------------+------------+------------+------------+------------+
| Spain         | 0          | 0          | 1,535      | 785        |
+---------------+------------+------------+------------+------------+
| PRC           | 30         | 28         | 137        | 132        |
+---------------+------------+------------+------------+------------+
| Chile         | 33         | 33         | 17         | 16         |
+---------------+------------+------------+------------+------------+
|               |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Total for   | 4,541      | 3,812      | 6,793      | 5,474      |
| Others**      |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Grand       | 155,359    | 137,033    | 121,781    | 118,305    |
| 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.  |            | -- Aug.    |            |
|               | 04)**      |            | 05)**      |            |
+---------------+------------+------------+------------+------------+
| **Country**   | **Vol**    | **Val**    | **Vol**    | **Val**    |
+---------------+------------+------------+------------+------------+
| **U.S.**      | 3,686      | 4,093      | 3,611      | 4,349      |
+---------------+------------+------------+------------+------------+
| **Others**    |            |            |            |            |
+---------------+------------+------------+------------+------------+
| New Zealand   | 61         | 76         | 0          | 0          |
+---------------+------------+------------+------------+------------+
| Australia     | 0          | 1          | 0          | 0          |
+---------------+------------+------------+------------+------------+
| Chile         | 0          | 0          | 353        | 418        |
+---------------+------------+------------+------------+------------+
|               |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Total for   | 61         | 77         | 353        | 418        |
| Others**      |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Grand       | 3,747      | 3,503      | 3,964      | 4,767      |
| 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.  |            | -- Aug.    |            |
|               | 04)**      |            | 05)**      |            |
+---------------+------------+------------+------------+------------+
| **Country**   | **Vol**    | **Val**    | **Vol**    | **Val**    |
+---------------+------------+------------+------------+------------+
| **U.S.**      | 2,127      | 2,018      | 1,459      | 2,105      |
+---------------+------------+------------+------------+------------+
| **Others**    |            |            |            |            |
+---------------+------------+------------+------------+------------+
|               |            |            |            |            |
+---------------+------------+------------+------------+------------+
|               |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Total for   | 0          | 0          | 0          | 0          |
| Others**      |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Grand       | 2,013      | 1,871      | 1,459      | 2,105      |
| 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.  |            | -- Aug.    |            |
|               | 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        | 503        | 1,174      |
+---------------+------------+------------+------------+------------+
| Hong Kong     | 19         | 28         | 31         | 50         |
+---------------+------------+------------+------------+------------+
| Guam          | 132        | 348        | 84         | 193        |
+---------------+------------+------------+------------+------------+
| Indonesia     | 107        | 54         | 227        | 134        |
+---------------+------------+------------+------------+------------+
| Malaysia      | 0          | 0          | 147        | 136        |
+---------------+------------+------------+------------+------------+
| PRC           | 516        | 105        | 4          | 8          |
+---------------+------------+------------+------------+------------+
| Taiwan        | 8          | 7          | 9          | 10         |
+---------------+------------+------------+------------+------------+
| Singapore     | 0          | 0          | 111        | 113        |
+---------------+------------+------------+------------+------------+
| Others        | 4          | 16         | 21         | 38         |
+---------------+------------+------------+------------+------------+
|               |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Total for   | 8,013      | 4,573      | 5,581      | 6,047      |
| Others**      |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Grand       | 8,023      | 4,582      | 5,591      | 6,055      |
| 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.  |            | -- Aug.    |            |
|               | 04)**      |            | 05)**      |            |
+---------------+------------+------------+------------+------------+
| **Country**   | **Vol**    | **Val**    | **Vol**    | **Val**    |
+---------------+------------+------------+------------+------------+
| **U.S.**      | 9,361      | 12,759     | 8,041      | 9,772      |
+---------------+------------+------------+------------+------------+
| **Others**    |            |            |            |            |
+---------------+------------+------------+------------+------------+
| Brazil        | 28,676     | 35,083     | 26,343     | 26,995     |
+---------------+------------+------------+------------+------------+
| Australia     | 272        | 342        | 269        | 344        |
+---------------+------------+------------+------------+------------+
| Israel        | 71         | 97         | 43         | 58         |
+---------------+------------+------------+------------+------------+
| Hong Kong     | 36         | 77         | 0          | 0          |
+---------------+------------+------------+------------+------------+
| Swiss         | 6          | 90         | 5          | 71         |
+---------------+------------+------------+------------+------------+
| Belgium       | 37         | 51         | 0          | 0          |
+---------------+------------+------------+------------+------------+
| Netherlands   | 20         | 29         | 197        | 241        |
+---------------+------------+------------+------------+------------+
| Canada        | 28         | 52         | 13         | 26         |
+---------------+------------+------------+------------+------------+
| Germany       | 7          | 37         | 14         | 73         |
+---------------+------------+------------+------------+------------+
| Italy         | 3          | 21         | 1          | 4          |
+---------------+------------+------------+------------+------------+
| Taiwan        | 0          | 0          | 25         | 29         |
+---------------+------------+------------+------------+------------+
| Other         | 3          | 10         | 1          | 2          |
+---------------+------------+------------+------------+------------+
|               |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Total for   | 29,159     | 35,889     | 26,911     | 27,843     |
| Others**      |            |            |            |            |
+---------------+------------+------------+------------+------------+
| **Grand       | 38,520     | 48,648     | 34,952     | 37,615     |
| 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)**     |           | Aug.      |           |
|                    |           |           | 05)**     |           |
+--------------------+-----------+-----------+-----------+-----------+
| **Country**        | **Vol**   | **Val**   | **Vol**   | **Val**   |
+--------------------+-----------+-----------+-----------+-----------+
| **U.S.**           | 14        | 23        | 11        | 9         |
+--------------------+-----------+-----------+-----------+-----------+
| **Others**         |           |           |           |           |
+--------------------+-----------+-----------+-----------+-----------+
| Netherlands        | 7         | 3         | 0         | 0         |
+--------------------+-----------+-----------+-----------+-----------+
| Japan              | 0         | 0         | 423       | 885       |
+--------------------+-----------+-----------+-----------+-----------+
| Indonesia          | 3         | 8         | 0         | 0         |
+--------------------+-----------+-----------+-----------+-----------+
| PRC                | 91        | 97        | 19        | 23        |
+--------------------+-----------+-----------+-----------+-----------+
| Mongolia           | 25        | 13        | 0         | 0         |
+--------------------+-----------+-----------+-----------+-----------+
| Other              | 3         | 5         | 6         | 11        |
+--------------------+-----------+-----------+-----------+-----------+
|                    |           |           |           |           |
+--------------------+-----------+-----------+-----------+-----------+
| **Total for        | 131       | 130       | 448       | 919       |
| Others**           |           |           |           |           |
+--------------------+-----------+-----------+-----------+-----------+
| **Grand Total**    | 145       | 153       | 459       | 928       |
+--------------------+-----------+-----------+-----------+-----------+

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            1011.00

  May              1200.14            1177.01            1002.13

  June             1194.07            1158.54            1010.68

  July             1181.55            1158.12            1036.79

  August           1178.32            1158.96            1020.96

  September        1166.03            1147.80            1029.23

  October          1166.04            1143.52            1042.00 1/

  November         1185.21            1090.10            \-

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

1/ October 11 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           3,364           1,261           2,669

  May -                                                        
  September:                                                   
  N/A                                                          

  Oct.         1,352           1,550 1/        1,211           1,150 1/

  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, and October 2005

1/ October 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           4,069           2,742           3,388

  May         5,512           5,477           4,192           4,550

  Jun.        5,181           5,467           4,212           4,783

  Jul.        4,841           4,786           3,830           3,823

  Aug.        4,453           4,326           3,308           3,374

  Sep.        4,375           4,250           3,817           3,075

  Oct.        3,415           4,300 1/        2,373           2,600 1/

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

Note: Price on a 5-kilogram box basis

1/ October 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     | 5,097     | +58               |
+------------+-----------+-----------+-----------+-------------------+
| May        | \-        | 2,766     | 5,728     | +107              |
+------------+-----------+-----------+-----------+-------------------+
| Jun        | \-        | \-        | 6,731     | \-                |
+------------+-----------+-----------+-----------+-------------------+
| Jul        | \-        | \-        | 6,202     | \-                |
+------------+-----------+-----------+-----------+-------------------+
| Aug        | \-        | \-        | 5,932     | \-                |
+------------+-----------+-----------+-----------+-------------------+
| Sep        | \-        | \-        | 5,841     | \-                |
+------------+-----------+-----------+-----------+-------------------+
| Oct        | 3,860     | 2,896     | 5,624 1/  | +94               |
+------------+-----------+-----------+-----------+-------------------+
| Nov        | 2,491     | 2,231     | \-        | -10               |
+------------+-----------+-----------+-----------+-------------------+
| Dec        | 2,085     | 1,851     | \-        | -11               |
+------------+-----------+-----------+-----------+-------------------+

Prices for high quality

1/ October 11 spot price

Source: Agricultural & Fishery Marketing Corporation

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

(Unit: Korean Won per 10 Fruits)

+------------+-----------+-----------+-----------+-------------------+
| **Year**   | **2003**  | **2004**  | **2005**  | **% 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     | 8,545     | +27               |
+------------+-----------+-----------+-----------+-------------------+
| May        | 7,437     | 6,595     | 8,690     | +31               |
+------------+-----------+-----------+-----------+-------------------+
| Jun        | 6,676     | 6,534     | 7,159     | +9                |
+------------+-----------+-----------+-----------+-------------------+
| Jul        | 5,861     | 6,989     | 7,020     | \-                |
+------------+-----------+-----------+-----------+-------------------+
| Aug        | 6,120     | 7,744     | 7,310     | -5                |
+------------+-----------+-----------+-----------+-------------------+
| Sep        | 6,331     | 8,025     | 7,637     | -4                |
+------------+-----------+-----------+-----------+-------------------+
| Oct        | 6,806     | 8,018     | 7,358 1/  | -8                |
+------------+-----------+-----------+-----------+-------------------+
| Nov        | 7,350     | 7,611     | \-        | +3                |
+------------+-----------+-----------+-----------+-------------------+
| Dec        | 7,317     | 7,453     | \-        | +1                |
+------------+-----------+-----------+-----------+-------------------+

Prices for high quality

1/ October 11 spot price

Source: Agricultural & Fishery Marketing Corporation

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

(Unit: Korean Won per Kilogram)

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

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

  April       \-              \-              \-              \-

  May         \-              \-              \-              \-

  Jun.        1,785           1,222           1,533           889

  Jul.        2,288           1,682           1,839           1,209

  Aug.        2,829           1,676           2,515           1,205

  Sep.        2,512           1,556           2,153           1,250

  Oct.        2,222           1,944 1/        1,825           1,417 1/

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

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

1/ October 25 spot price

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     2,310          1,885          5,558          4,321

  May 05      2,038          1,552          5,936          4,692

  Jun. 05     1,680          1,058          8,060          6,549

  Jul. 05     1,724          1,056          \-             \-

  Aug. 05     1,832          1,128          \-             \-

  Sep. 05     1,572          1,250          \-             \-

  Oct. 05 2/  2,139          1,583          \-             \-
  ----------- -------------- -------------- -------------- --------------

1/ Hallabong variety

2/ October 25 spot price

Source: Garak Wholesale Market

## Korea: Average Auction Prices for Imported Lemon

(Unit: Korean Won per 18 Kilograms Box)

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

                     **2004**                   **2005**

  Jan.               37,500                     42,600

  Feb.               37,500                     40,524

  Mar.               37,500                     30,963

  Apr.               40,577                     37,192

  May                42,500                     40,192

  Jun.               49,519                     41,577

  Jul.               63,981                     42,885

  Aug.               54,808                     39,963

  Sep.               51,250                     42,188

  Oct.               52,500                     38,000 1/

  Nov.               55,577                     \-

  Dec.               49,722                     \-
  ------------------ -------------------------- --------------------------

1/ October 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              39,462

  May           43,500              33,577              41,192

  Jun.          35,460              36,000              40,731

  Jul.          28,704              33,926              40,962

  Aug.          35,000              31,654              38,389

  Sep.          35,000              30,000              44,000

  Oct.          35,000              31,423              75,000

  Nov.          \-                  33,192              \-

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

1/ October 25 spot price

Source: Garak Wholesale Market

[^1]: Greenhouse production and late varieties are excluded from these
    estimates.

[^2]: ^2^ In MY 203/04, the marketing order was activated on a
    provincial basis for Jeju. In MY 2004/05, the marketing order was
    activated for the first time on a nationwide basis.