Bovine disease hurts Seoul feed industry<\/p>\n
SINGAPORE (Dow Jones): The outbreak of foot-and-mouth disease
\nin South Korea last month is set to scupper any chances of growth
\nin the country's animal feed industry this year, analysts and
\ntrade officials told Dow Jones Newswires.<\/p>\n
They said the impact appears to have negated the positive
\neffects of South Korea's economic recovery this year.<\/p>\n
South Korea's recovery from the effects of the Asian economic
\ncrisis, which struck in 1997, was expected to lift feed
\nproduction and imports of corn and soybeans this year on the back
\nof a rise in meat consumption and increased crushing activity,
\nthey said.<\/p>\n
South Korea is the world's second largest corn importer, after
\nJapan, and the fourth largest U.S. market for agricultural
\nproducts. It is also Asia's third largest importer of soybeans.<\/p>\n
Although still confined to the cattle industry, the disease
\noutbreak is also expected to hit the country's swine population,
\nthereby reducing compound feed production and feed ingredient
\nimports, they said.<\/p>\n
The foot-and-mouth disease is an extremely contagious disease
\nthat affects cloven-hoofed animals. It was first suspected among
\nthe cattle in Paju, near Seoul, around March 20.<\/p>\n
South Korea's pork industry has been hard hit largely because
\nof a ban on its pork and beef from Japan, its largest pork export
\nmarket.<\/p>\n
South Korea's "pig population will be down by 10 percent,"
\nsaid Jung Young-chul, director of the Jung P & C (Pork Producer
\nand Consumer) Institute in Seoul.<\/p>\n
As of April 16, the disease has been confirmed to have hit the
\ncattle in fifteen farms. Since then, there have been no reports
\nof new outbreaks.<\/p>\n
South Korea's corn needs are 99 percent met by imports as it
\nonly produces around 82,000 metric tons of corn yearly.<\/p>\n
The U.S. Department of Agriculture had projected South Korea's
\ncorn imports in the year to Sept. 30, 2000, at 9 million metric
\ntons, up from 7.52 million tons a year earlier.<\/p>\n
It projected South Korea's soybean imports in the year to Oct.
\n31, 2000, at 1.5 million tons, up from 1.45 million tons in 1998-
\n99 and 1.34 million tons in 1997-98.<\/p>\n
The foot-and-mouth disease will have an immediate impact on
\nSouth Korea's compound feed output, which is now expected to be
\nflat to lower this year, instead of riding 3 percent-10 percent
\nhigher on the economy's growth, said analysts and industry
\nofficials.<\/p>\n
Compound feeds are made up of a variety of products, such as
\ncorn, feedwheat, oilseed meal, barley and rice bran, according to
\nthe specific needs of the livestock farmer.<\/p>\n
A purchasing department source at a large South Korean trading
\ncompany said: "The (foot-and-mouth disease) isn't so serious. The
\nmaximum fall in compound feed production this year (will be) 10
\npercent."<\/p>\n
A bigger decline is ruled out, thanks to the existence of a
\npork import market in South Korea, he said, adding that imports
\nhave stopped and the pork meant for export will now be used for
\ndomestic consumption.<\/p>\n
Jung of the Jung P&C Institute said compound feed production
\nis likely to slide by 5 percent-10 percent but cautioned that the
\nfoot-and-mouth disease situation remains unstable and that
\n"there's a high possibility that swine can be infected."<\/p>\n
Sunchul Choi, agricultural specialist at the U.S. agricultural
\nattache in Seoul said South Korea's compound feed output this
\nU.S. October-September marketing year is likely to be flat
\ncompared with a year ago at 14.56 million tons. It had been
\nexpected to rise 15 million tons.<\/p>\n
"Until the end of this (U.S. marketing) year, there won't be
\nmuch change in swine numbers and the import of feedgrains," he
\nsaid. "But in the next marketing year, (swine numbers and
\nfeedgrains imports) will be heavily reduced."<\/p>\n
Pig farmers currently are trying to reduce their herds and
\nSouth Korea's usually stable compound feed prices are likely to
\nslide in a few months' time because swine prices have dropped
\nabout 20 percent to 140,000 won (US$126) a head since the
\noutbreak of the animal disease, said Choi.<\/p>\n
Compound feed prices, which haven't changed since the outbreak
\nof the animal disease, were quoted at 379 won a kilogram for pigs
\nof 5-10 kilograms, as of December.<\/p>",
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