South Korean Kimchi Crisis Caused by Impact

China’s food safety and the world must not depend entirely on the international market, should mainly rely on steady implementation of security strategies to achieve agricultural self-sufficiency in staple foods. To attach great importance to food security, improve the national agricultural strategy; to improve the agricultural infrastructure, improving agricultural production capacity; to transform government functions, improve the safety of long-term mechanism of agricultural products.

Since the beginning of this year early in October, the Korean market soaring price of the sale of cabbage, Chinese cabbage rose Meike 10,000 won the highest (about 8 U.S. dollars), is in September 3000 won 3 times, is 1,600 won last year 6 times. On the surface, leading to the Korean “kimchi crisis” is mainly due to abnormal climate. From the beginning of this year, South Korea, the weather will be very unusual, very cold spring, summer, extreme heat, cabbage harvest season comes in September, but suffered a heavy rainfall, typhoons and other extreme weather, heavy rain immediately followed by the typhoon is to exacerbate the problem , cabbage production is declining dramatically. Deeper look, Korea’s unique natural endowments and agricultural protection created a unique system of Korean agricultural tariffs on the weak. Korea is a land area 99,000 square kilometers, a population of about 50 million of a small thin small country of about 1 mu per capita arable land. Also, located in the temperate regions is not conducive to the growth of crops. Korean agriculture is insufficient capacity to implement the important reasons of agricultural protection.

Koreans have a specific preference for kimchi, dependency is high, raw materials do not cabbage and radish kimchi, daily life has been greatly affected. At the same time, deepening integration in the international market, South Korean vegetable market crisis to the international agricultural spot and futures markets, there are some opportunities for speculators to profit from access to the.

For many foreigners, the first thought is that Korean kimchi; people of Korea, kimchi is a necessity for three meals a day. South Korea consumes about 1.45 million tons of kimchi a year, of which about 45 million tonnes of factory production, and the rest are South Koreans, or create their own restaurant. Although kimchi can be easily purchased in stores, but many South Koreans still prefer their own produce at home, many families have special kimchi refrigerator.

Because cabbage prices skyrocketing, many Korean consumers began to buy an alternative radish cabbage kimchi production to boost the radish kimchi substantial growth in market demand, pushing prices higher radish. According to statistics, radish rose more than double the same period last year, recently Korean radish root sells for 4,150 won each, with the same period last year compared to 1,180 won, or over 250%. Since vegetable prices, some restaurants also increased food prices. Therefore, South Korean media said the crisis is “kimchi chaos”, Koreans will face a not suffered a “kimchi” delicious “cruel fall,” life had been affected dramatically and directly affect the South Korean people, “pickles” in traditional eating habits.

The “kimchi crisis” triggered a wave of political impact. In this crisis, South Korean President Lee Myung-bak ordered to abandon the use of the presidential palace when the high cost of making kimchi cabbage in Korea in favor of cheaper European cabbage. This caused a lot of people’s discontent and ridicule Korea, some Korean cabbage known only a little cheaper than the Chinese cabbage, suggesting that the president’s statement that he does not appreciate the pain of people do not understand the feelings of the working class. Meanwhile, although the government has taken temporary lifting of import tariffs and subsidies, but some Koreans expressed the implicit tax on the Government, response time and lack of regulatory capacity vegetable market discontent.

South Korean “kimchi crisis” in China and other neighboring countries, mainly of vegetables caused by a certain influence on the market, mainly pushed up prices of some vegetables and kimchi. Since the “kimchi crisis”, the Chinese mainland cabbage prices in some markets. As many local cabbage not yet listed, China and South Korea by order of some vegetable vendors purchase cabbage and radish, Shandong Province and Northeast increased vegetable prices in some places. In addition, increased demand for South Korean imports of agricultural products in China increased structural inflationary pressures. And, by the strong rise of Korean agricultural products, China’s domestic agricultural futures market across the board to lead the surge, October 11 pulses, oil, rubber and other varieties of corn and broad based.

However, the recent Korean cabbage prices have declined. According to reports, cabbage price inflation, the substantial increase in farmers growing winter cabbage, winter cabbage is expected in December about a large number of listing, cabbage prices will decline. Therefore, Chinese cabbage and radish domestic dealers, this might be a good opportunity to grasp, but not excessive speculation, after all, Chinese cabbage, radish and kimchi is not only the price elasticity of income of the fast moving consumer goods, speculative cycle is limited, And South Korea is the temporary abolition of high tariffs, crisis may return to the high tariffs on agricultural products.

BOLA TANGKAS