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Recent DPRK agricultural statistics

Wednesday, October 2nd, 2013

According to Yonhap, the DPRK’s food imports increased over the summer:

North Korea’s crop imports from China rose 16.5 percent in August from the previous month, data showed Tuesday, indicating stability in food supply for people in the impoverished nation.

According to the data compiled by Kwon Tae-jin, a researcher at the Korea Rural Economic Institute, North Korea imported 26,804 tons of grains such as flour, rice, corn and bean in August from its neighboring country, compared with 22,988 tons a month earlier.

The North spent a total of US$15.4 million to buy the crops that month, the largest monthly spending for the year, the data showed.

August also marked the seventh consecutive month that the North’s crop imports topped 20,000 tons.

“Since February, the North has imported more than 20,000 tons of crops per month from its strongest ally,” Kwon said.

“Factoring in the forecast of good harvests for the autumn thanks to good weather conditions, the North is expected to enjoy a relatively stable supply of crops at least for the rest of the year,” he added.

Meanwhile, North Korea’s fertilizer imports from China totaled 183,639 tons in the January-August period, down 27.1 percent from the same period a year earlier, according to the data.

North Korea’s domestic food production is also apparently higher. According to Yonhap:

North Korea’s grain harvest is expected to grow about 8 percent this year from 2012 thanks to relatively favorable weather conditions, a source with the knowledge of food situation in the communist nation said Wednesday.

The North is estimated to produce as much as 5.3 million tons of grains this year, a 7.7 percent increase from 4.92 million tons last year, the source said on the condition of anonymity.

This year’s estimated grain harvest roughly meets with the North’s annual demand of 5.4 million tons. The annual demand was calculated by South Korea’s state-run Korea Rural Economic Institute.

“Grain harvest in North Korea this year is much better than last year because there were no big natural disasters, except for heavy rains in July this year,” the source said.

Despite the positive assessments of the DPRK’s food supply, the UN warns more food assistance is needed. According to Yonhap:

North Korea remains one of the 34 countries in the world that require external assistance to properly feed their people, a media report said Friday.

The Voice of America said the October issue of Crop Prospects and Food Situation by the Food and Agriculture Organization (FAO) estimated that there will be some 2.8 million “vulnerable” people in the communist country needing assistance until this year’s fall harvest.

The Washington-based media outlet said that judging by official estimates tallied by the United Nations organization, Pyongyang’s spring cereal harvest for 2013, mainly winter, wheat and barley, fell shy of the initial forecast, and that this is the main reason for the current shortage.

The country had reported improved harvests in the fall of 2012.

The U.N. agency also said people in the country are experiencing “widespread lack of access” to food caused in part by past floods.

The latest findings added that overall conditions in the North have not changed vis-a-vis July when the last food situation report was released.

At the time, the North was the only country in East Asia to be placed on the list requiring external aid. Others on the list of the 34 countries were in Africa and Central Asia.

The FAO, meanwhile, estimated that the North has been able to secure 328,000 tons of various grain from November of 2012 to early last month. This is equal to 65 percent of the 507,000 tons of grain Pyongyang needs to properly feed its population.

Read the full stories here:
N. Korea’s crop imports from China up 16 pct in Aug.
Yonhap
2013-10-1

N. Korea’s grain harvest seen improving: source
Yonhap
2013-10-2

N. Korea needs external aid to feed its people: report
Yonhap
2013-10-4

Posted in 2013 food shortage, Agriculture, Agriculture statistics, Food, Foreign aid statistics, International trade, Statistics | Comments Closed

UN WFP and FAO Report food shortages

Sunday, August 18th, 2013

According to Yonahp (via Global Post):

Eight out of 10 North Korean people are suffering from food shortages this year, with nearly 20 percent of children younger than five severely malnourished, a report by the U.N. food body has said.

According to the quarterly report the World Food Program (WFP) published on its assistance project for the communist country, 81 percent out of 115 households there were found to be in the category of “poor food consumption” or fall in the category between having adequate and poor food consumption in the second quarter of this year.

Of the surveyed, 76 percent coped with the crisis either by relying on support from others or eating cheaper food. Some 14 percent reduced their portions with 3 percent skipping meals, the report showed.

Thanks to Pyongyang’s increased food rations and the international organization’s aid, things have improved from a year earlier when 87 percent of the people surveyed suffered from shortages, according to the report.

The WFP’s earlier report showed that the North Korean government is providing more food rations to its people in 2013 than the previous year despite a drop in overseas aid. In the communist country, 66 percent of the total population, or about 16 million people, receive state food rations.

The agency, however, said the situation “remains fragile,” with the frequency of protein consumption “very low and unlikely meeting requirements.”

The WFP also said its visit to 120 pediatric hospitals found that 17 percent of the children under the age of five admitted to suffering from acute malnutrition.

Of the children admitted to hospitals, some 88 percent suffered from diarrhea, followed by 82 percent showing symptoms of respiratory infections and 49 percent indigestion, the report showed.

The WFP said it reached 1.46 million beneficiaries each month during the second quarter of the year, distributing a total of 10,489 metric tons of food. It also conducted 764 rounds of field visits to ensure its assistance arrived and was utilized properly.

According to Yonhap (via Global Post):

North Korea’s food procurement effort has been inadequate to cover the expected shortfall for this year, a media report based on data provided by an international agriculture agency said Friday.

The quarterly report by the Food and Agriculture Organization of the United Nations showed Pyongyang has been able to secure 290,600 tons of various grains from abroad from November 2012 through June of this year, the Voice of America (VOA) said.

The Washington-based media outlet said the total is equal to just 57 percent of the 507,000 tons the North needs to secure by October to prevent a food shortage for its people.

The latest findings come a day after the World Food Program (WFP) claimed eight out of 10 North Koreans are suffering from food shortages this year, with nearly 20 percent of children younger than five severely malnourished.

The percentage of people suffering food shortages, however, fell from 87 percent tallied the year before, the WFP said.

Despite the risk of shortage, the North has been able to increase its daily food rations for its people in the first seven months of this year to 397 grams per person, up 14 grams from the year before.

North Korea watchers also said that with Pyongyang placing emphasis on strengthening its agricultural sector, there have been some improvements in food conditions in the country compared to the past.

As per usual, the articles provided neither the titles of the reports nor links. Many UN reports on the DPRK can be found on my DPRK Economic Statistics Page.

The UN is appealing for funding for its DPRK relief programs. According to Yonhap:

The United Nations on Thursday appealed for US$98 million from the international community to help North Koreans in need, saying its humanitarian projects there are drastically underfunded.

Of the overall funding requirement of $150 million for 2013, $98 million is still urgently needed for food and agricultural support, health and nutrition, water and sanitation, according to the global body.

“While the overall humanitarian situation has improved slightly over the last 12 months, the structural causes of people’s vulnerability persist,” U.N. Resident Coordinator Ghulam Isaczai said in an emailed statement. “External assistance continues to play a vital role in safeguarding the lives of millions whose food security, nutritional status and essential health needs would otherwise be seriously compromised.”

Around 16 million people of the 24 million population are chronically short on food, his office said.

For cereal alone, the cereal for the 2012-13 marketing year is estimated at 507,000 metric tons, with serious gaps remaining between recommended and actual nutrient intake, widely due also to a lack of dietary diversity, it said.

“Without sustained humanitarian support, the gains made the past 10 years in improving food security and the overall health and nutrition of the most vulnerable — children, pregnant and nursing mothers, and the elderly — could be quickly reversed,” said Isaczai.

He urged U.N. member states to draw a line between political and humanitarian issues, as efforts to denuclearize North Korea have been stalled for years.

“We hope that donors will respond quickly and generously to allow U.N. agencies to address the humanitarian situation,” he said. “Separating humanitarian needs from political issues is a prerequisite for a sustainable improvement in the condition of people.”

Read the full stories here:
80 pct of N. Koreans suffer food shortages: WFP
Yonahp (via Global Post)
2013-8-8

N. Korea food procurement effort inadequate to cover shortfalls: report
Yonhap (via Global Post)
2013-8-9

Posted in 2013 food shortage, Food, UN, UN Food and Agriculture Organization, UN World Food Program | Comments Closed

“Hoeryong Food Street” reopens

Friday, August 16th, 2013

Pictured Above: The Hoeryong Food Avenue (Google Earth)

According to Radio Free Asia:

A shuttered special food court established by former North Korean leader Kim Jong Il as a showcase for “high quality dishes at reasonable prices” has reopened and is being allowed to operate independent of the government in a rare move seen by some as reflecting economic reforms.

The center in Hoeryong city in North Hamgyong province bordering China was closed several months after its opening in November 2010 because the management faced financial problems as it could not meet production costs based on food sold to the public at prices dictated by the authorities, sources said.

North Hamgyong authorities recently allowed the Hoeryong Special Food Court to reopen and operate on an “autonomous” basis under new economic management methods introduced last year by Kim Jong Il’s son, Kim Jong Un, who took over after his father’s death in December 2011, the sources told RFA’s Korean Service.

“In order to meet the demands of the New Economic Management System, [the ruling] Workers Party provincial offices allowed the restaurant owners at Hoeryong Special Food Court to operate on an autonomous management basis,” one source in North Hamgyeong province said.

But some observers said the authorities had no choice but to allow the food center to set prices on its own to keep the operations alive, adding that any reform excuse was just an eyewash.

North Korea raced to build the food court after Kim Jong Il proposed it during a visit to his mother’s home town in 2009. He directed government funding of U.S. $800,000 for the project, which was completed in November 2010.

When he inspected the food court a month later, he ordered that it serve people with “high quality dishes at reasonable prices,” asking it to follow in the footsteps of another food outlet, Okryu Restaurant, in Pyongyang.

Operating cost

The source in North Hamgyong province said that the Hoeryong Special Food Court tried to adjust its prices to keep in tandem with those of Okryu Restaurant but could not cope with operating costs.

“During the initial months of operations, the North Korean authorities [subsidized prices] but soon after, the restaurants lost support from the government, thus it went out of business,” another source in the province said.

Even though the authorities did not provide support, they continued to regulate the food prices to make them 75 percent cheaper than those of regular restaurants,” the source said. “Therefore, the owners were suffering from financial difficulties.”

Some sources complain that under the new management of the Hoeryong Special Food Court, food prices have shot up rapidly. In addition, food that is not on the menu is served.

For instance, a seafood specialty restaurant serves steak while a steak house offers noodles, one source complained.

“Before at Hoeryong restaurant, cold noodles were 1,000 North Korean won (about 17 cents), and one bottle of Korean distilled spirits was 800 won (about 10 cents), but after the owners got authority to manage independently, the price of cold noodles went up to 4,000 won (about 68 cents) and one bottle of Korean distilled spirits up to 2,000 won (about 34 cents).

Read the full story here:
Special North Korean Food Court Allowed to Operate Independently
Radio Free Asia
Sung Hui Moon
2013-8-16

Posted in Economic reform, Food, Restaurants | Comments Closed

DPRK – China trade falls in Q2 2013

Monday, August 12th, 2013

According to Yonhap:

North Korea’s trade with China fell 6 percent on-year in the first six months of this year, apparently hit by Beijing’s tougher stance against Pyongyang’s nuclear program, a senior Seoul diplomat said Monday.

The North’s trade with China stood at US$2.95 billion in the January-June period, compared with $3.14 billion a year earlier, said the diplomat at the South Korean Embassy in Beijing.

Exports to China rose 6 percent to $1.36 billion, while imports declined 14 percent to $1.59 billion, the diplomat said on the condition of anonymity, citing official data.

“The drop in overall North Korea-China trade in the first six months of this year appears to be affected by tighter inspections by Chinese customs authorities,” the diplomat said.

North Korea’s imports of Chinese crude oil slipped 15 percent from a year ago to 250,000 tons during the six-month period, according to the data.

In particular, the North’s imports of food from China plunged 65 percent to 120,000 tons for the January-June period, the data showed.

Coal shipments from North Korea to China rose 18 percent to 8.33 million tons for the six-month period, despite falling coal prices, according to the data. Coal accounted for 54.8 percent of the North’s total exports to China during the period.

“With the Chinese economy expected to slow down in the second half of this year, China’s demand for North Korean coal is likely to decline,” the diplomat said.

China has become increasingly frustrated with North Korea, particularly after the North’s third nuclear test in February. Beijing voted in favor of sanctions by the U.N. Security Council to punish Pyongyang for conducting the nuclear test.

In May, the Bank of China closed accounts with North Korea’s Foreign Trade Bank, which was accused by the U.S. of helping finance the North’s nuclear weapons program.

Read the full story here:
N. Korea’s trade with China drops 6 pct in H1: diplomat
Yonahp
2013-8-12

Posted in China, Energy, Food, International trade, Oil, Statistics, Trade Statistics | Comments Closed

PDS distribution up in 2013

Wednesday, August 7th, 2013

According to the Daily NK:

The volume of food distributed under the North Korean Public Distribution System in the first half of 2013 increased when compared to 2012, Radio Free Asia (RFA) reported on the 6th.

According to North Korean submissions to the UN World Food Programme (WFP), the North Korean authorities provided 400g/day between January to May and 390g/day in June and July, a monthly average of 397g/day. This is a 14g increase on last year’s average of 383g/day.

According to the statistics, 66% of the total population of North Korea, around 16 million people, received state distribution of basic foodstuffs. Last year, 400g/day was achieved in April, the 100th anniversary of Kim Il Sung’s birth, but not in any other month.

Conversely, WFP reported that international food aid volumes to North Korea decreased in the first half of 2013. WFP began a new food aid operation for the country last month, but has since failed to reach half of its target support volume.

Last month, WFP supplied approximately 2900t of food to around 940,000 people, including more than 40,000 flood victims. This compares with 3400 tons of food to more than 1,310,000 people in the previous month.

Daily NK has reported on public food distribution on a number of occasions in 2013, noting in particular that the North Korean authorities distributed some stocks of rice ordinarily intended for wartime distribution.

Yonhap also covered the story.

Read the full article here:
PDS Distribution Volumes Rise in 2013
Daily NK
Jin Dong Hyuk
2013-8-7

Posted in 2013 food shortage, Food, Public Distribiution System (PDS) | 1 Comment »

DPRK imports of Chinese grain in 2013

Monday, July 29th, 2013

UPDATE 1 (2013-7-29): DPRK imports of Chinese grain drop 8.4% in the first half of 2013. According to Yonhap:

North Korea’s imports of Chinese grain fell 8.4 percent on-year in the first half of 2013 mainly due to a better harvest last fall, a report said Monday.

The report by the Korea Rural Economic Institute (KREI) showed Pyongyang’s imports of flour, rice, corn and other grain products reaching 124,228 tons in the January-June period, compared with 135,648 tons a year earlier.

The state-run institute said that while the country imported more than 20,000 tons of grain on average from February onward, last year’s better harvest and overall improvements in food supply conditions led to the first-half decline.

“Overall, import numbers indicate supply and demand of grain is very stable in North Korea,” said Kwon Tae-jin, a research fellow at KREI who compiled the report.

He said besides grain, the communist country imported 139,161 tons of chemical fertilizers from China in the first half, a drop of 35 percent from 213,871 tons purchased in the same six-month period last year.

ORIGINAL POST (2013-7-29): DPRK imports of Chinese grain fall 14.2% in 2013. According to Yonhap (via Global Post):

Imports of Chinese grain by North Korea fell 14.2 percent on-year in the first five months of 2013 mainly due to a better harvest last fall, a report said Wednesday.

The findings by the Korea Rural Economic Institute (KREI) showed Pyongyang’s imports of flour, rice, corn and other grain products reaching 101,170 tons in the January-May period, down from 117,922 tons the year before.

The institute said numbers fell sharply in May when total grain imports stood at just 21,142 tons, which represents an 18 percent drop from the previous year and an 18.2 percent decrease from April. The communist country brought in 25,850 tons of grain from its neighbor in the preceding month and 25,788 tons in May of 2012.

Kwon Tae-jin, a research fellow at KREI who compiled the report, said the sizable drop in imports was probably caused by better grain output last year, which made it unnecessary for the country to buy the commodity from China.

“It can be a sign that things have improved,” he said. The researcher also speculated that the harvest of such produce as barley, wheat and potatoes, which grow in spring, may have been better than in the past.

The experts, who checked raw data provided by the Korea International Trade Association, said the North imported 42.7 percent more chemical fertilizers in the January-May period of this year vis-a-vis the same time period in 2012.

The country brought in 129,967 tons of fertilizer from China, compared to 91,096 tons the year before. Such an increase may exert a positive effect on farm output.

Kwon said that the spike in fertilizers is a sure sign that the North is giving top priority to pushing up agricultural output.

Related to the latest data, a government source hinted that North Korea’s emphasis on agriculture may be aimed at trying to strengthen the leadership of its new leader Kim Jong-un, who took power after the sudden death of his father Kim Jong-il in late 2011.

“Unlike other economic sectors that require time, agriculture is something that can generate results in a short period of time and have immediate impact on everyday lives,” the official who declined to be identified said.

Read the full story here:
N. Korea’s imports of Chinese grain fall 14.2 pct in 2013
Yonhap (via Global Post)
2013-7-3

Posted in 2013 food shortage, Agriculture statistics, China, Food, International trade, Statistics, Trade Statistics | Comments Closed

UN offers DPRK flood relief

Thursday, July 18th, 2013

According to Yonhap:

The United Nations has decided to provide North Korea with US$6 million in emergency aid by the end of this year, a report said Thursday, in a bid to relieve fund shortages at U.N. agencies operating in the isolated country.

The U.N. Office for the Coordination of Humanitarian Affairs (OCHA) told the Washington-based Voice of America that U.N. bodies operating in the North will receive this aid through a pool of reserve funding known as the Central Emergency Response Fund (CERF).

The CERF was established in 2006 to provide quick assistance to countries in severe humanitarian crises. Funded by donations from governments, the private sector, foundations and individuals, it already allocated $7 million to North Korea this January in an attempt to boost humanitarian efforts in neglected countries.

Under the new plan, the six U.N. agencies operating in North Korea will negotiate with the resident coordinator of the U.N. Development Programme in Pyongyang to come up with a detailed list of expenditures, the report said.

The announcement comes after five out of the 14 food processing factories in the impoverished country were reportedly shut down in June due to grain shortages, hurting ongoing efforts to nourish people in the communist country.

As of May, OCHA said it had received just over 17 percent of the $147 million needed to operate U.N. agencies in the North this year. In 2012, it allocated a total of $12.92 million from its CERF funding to North Korea.

Read the full story here:
U.N. to send US$6 mln in emergency aid to N. Korea
Yonhap
2013-7-18

Posted in 2013 food shortage, Food, International Aid, UN | Comments Closed

North Korea attempting to revive the food ration system

Thursday, July 11th, 2013

Institute for Far Eastern Studies (IFES)
2013-7-11

North Korea is attempting to restart its halted food distribution system. In March, military food provisions were released to the public and food distribution is reported to have resumed on a biweekly basis. The provision of food rations for more than three consecutive months is a rare occurrence.

A North Korean defector organization in South Korea, NK Intellectuals Solidarity, released the following information in their information briefing session: “From June 1, it was confirmed that residents in border cities and towns received food distribution every 15 days, about 470 grams per person a day.”

The foods distributed were mainly from Warehouse No. 2, stockpiled as military food provisions. It is unclear how long the food distribution will last but North Korea appears to be straining itself to revive the food distribution system in order to resolve the food shortage problem.

According to Radio Free Asia, the North Korean government has begun to reissue food stamps, with residents in North Hamgyong Province having confirmed recently the receipt of such stamps.

North Korean economic policy has focused mainly on the agricultural sector and food supply. There appears to be gradual improvement. The price of 1 kg of rice in January was about 6,600 KPW in Pyongyang and by June it dropped to 5,000 KPW. The price of rice is reported to have dropped in other cities such as Sinuiju and Haesan by as much as 1,000 KPW.

However, a South Korean official commented that the food distribution is not equal nationwide, as some regions are left without food rations. He added, “Unless North Korea is able to secure sufficient supply of food, it will be difficult to revive the food distribution system of the past.”

Meanwhile, some have testified that North Korea is leasing farm lands to urban workers in cooperative farms as a means to resolve the food crisis.

Citing an unnamed source in North Korea, NK Intellectuals Solidarity stated that “state-owned collective farm lands are being leased to city workers,” explaining this as a measure to overcome the current food situation as work in factories in the cities also has declined.

NK Intellectuals Solidarity explained that farm lands are being leased on an annual basis and workers in various state factories and enterprises are receiving about 250 pyong (826.4 square meters) of land per employee.

Employees must allocate a portion of their harvest to the state (100g of corn and 50g of beans per pyong (3.3 square meters) and the total yield of harvest will be counted as the total production output of the farm. The expectation is that this method of leasing land of cooperative farms will resolve the food shortages in the cities and improve the food supply of the entire nation.

Posted in Food, Public Distribiution System (PDS) | Comments Closed

Kim Jong-un’s activities for the first half of 2013

Friday, July 5th, 2013

Institute for Far Eastern Studies (IFES)
2013-7-5

Compared to last year, the activities of Kim Jong Un for the first half of 2013 revealed that he took part in more public activities with working groups rather than senior officials.

According to the ROK Ministry of Unification (MOU), Kim Jong Un has made 95 public appearances, which is an increase of 117 percent compared to the previous year of 81 public activities.

In particular, Kim took part in military related activities the most (29 times) as the U.S. and South Korea held joint military exercises (Key Resolve and Foal Eagle) in the earlier part of this year. His other public activities were economic related (28 times), social and cultural (18 times), political (14 times), and attendance at various performances (8 times).

However, starting from April 1, Chairman Kim’s military-related activities from first quarter to second quarter decreased from 50 to 15 percent while his economy-related activities increased from 10 to 50 percent.

Furthermore, economy-related activities this year entailed visitations to production units in machinery factories, cooperative farms, and business enterprises and complexes. The previous year saw mainly entertainment-related activities.

Compared to his father Kim Jong Il, on his onsite inspections Kim Jong Un was accompanied by an entourage consisting of proportionally more working-level officials rather than senior officials. While his first year inspections were accompanied by senior officials, the group accompanying Kim Jong Un are younger and experienced officials in the field. In particular, Choe Hwi, first vice department director of the Korean Workers’ Party Central Committee, is seen with Kim Jong Un the most. Choe Hwi is a graduate of Kim Il Sung University and served as secretary of the Youth League and senior deputy director of the Korean Workers’ Party politburo.

Meanwhile, South Korea’s Unification Ministry estimated the amount of rice reserve in North Korea remains the same as last year, although there is regional variation. Grain imports are at 75 percent against the previous year, and the food ration and situation range widely by region. The market price for 1 kg of rice is 5,000 KPW, which is valued at approximately 1.667 USD, or about 600 g per one USD or 8,000 KRW.

In addition, the MOU assesses that North Korea is making changes in its economic management under the name of “Our Method of Economic Management,” with relatively heavy focus on agriculture, light, and distribution industries. The North Korean leadership seems to recognize the importance of production output in the economic sector. However, it will be impossible to observe immediate results without improvements in raw materials, power, machines, and equipment.

On the other hand, the MOU analyzes that the North Korean leadership is placing more attention on the agricultural sector and improving production and supply of fertilizer since it shows an immediately visible result in the agricultural sector, especially to the North Korean residents. In this regard, the military is also increasingly emphasizing “self-reliance” and the need for “solving food issues on its own.”

Posted in Agriculture, Food, Kim Jong Un, RoK Ministry of Unification | Comments Closed

DPRK food prices dropping

Tuesday, July 2nd, 2013

According to the Daily NK:

Food prices in North Korean markets have declined to their lowest point since the year began, with rice now holding steady at around 5,000won/kg in Pyongyang and 5,400won in the border city of Hyesan. The low prices appear to be a response to seasonal factors plus the ongoing distribution of a portion of wartime rice stocks.

The North Korean authorities opened wartime rice stores in March, seemingly in response to public anger at mass mobilization for military exercises that characterized the time. Distribution of food has been maintained on some level since then.

“They have been giving fifteen days of distribution to workers since March, based on the number of members in a family,” a source from Hyesan confirmed to Daily NK on the 2nd. “Most of it has been corn and the quality of the rice is poor, but they gave five and ten days of food through mid-June so life has been easier.” Ten days of food equals 4.5kg of grain for a factory worker, and 2kg for dependent family members.

A Pyongyang source confirmed the situation in the North Korean capital, saying, “We received distribution from the authorities in the middle of last month; it was mostly made up of new potatoes. Since then there has been a lot of grain on the market so the price of rice has fallen, and it has been in the low 5000s ever since.”

According to inside sources, the price of rice was in the 5,600-7,000won range from January to May, then entered the 5,500-6,300won range during May and into early June, before declining further in recent days.

Market prices fall naturally when market demand for grain declines following state distribution. Additional factors also compound the phenomenon: notably, Party cadres and other affluent groups tend to put their distributed rice directly into the market, since they don’t wish to consume the low-quality product, while the distribution of new potatoes to farmers simultaneously reduces rural demand for grain.

Also, according to the Hyesan source, “Poor people are less concerned with being unable to eat now and more worried about the future, so they sell their rice to gather money, too. Since cadres don’t normally eat their distributed rice either, when there is distribution it can seem as if everyone is trying to sell all their rice in the market at the same time.”

However, “The amounts being distributed are slowly decreasing, suggesting that their capacity to deliver distribution may have a limit,” the source warned. “The authorities say that distribution will continue, but people are not ready to believe that.”

Read the full story here:
Mix of Factors Brings Rice Price Down
Daily NK
Lee Sang Yong
2013-7-2

Posted in 2013 food shortage, Agriculture, Food | Comments Closed

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