The Effect of Disaster Relief Funds Ends... Pork and Beef Prices Fall

[Asia Economy Reporter Seungjin Lee] The prices of beef and pork, which had soared due to the increase in home-cooked meals amid the COVID-19 pandemic and the impact of government disaster relief funds, are stabilizing.

According to the Korea Agro-Fisheries & Food Trade Corporation (aT) on the 13th, the consumer price of Hanwoo sirloin (Grade 1) per 100g was recorded at 9,966 KRW. As of the end of February, the price of Hanwoo sirloin (Grade 1) per 100g remained in the 9,100 KRW range, but it surpassed 9,300 KRW in March and entered the 9,900 KRW range in May, setting new record highs daily.

In June, it finally began to exceed 10,000 KRW. This is the first time since January 2011, when related statistics became available, that the price of Hanwoo sirloin Grade 1 per 100g has surpassed 10,000 KRW.

However, the price of Hanwoo sirloin (Grade 1) has been declining for seven consecutive days since last week. As all the disaster relief funds released in May were exhausted and the 'Korea Together Sale' ended last weekend, consumption has decreased, leading to a drop in prices.

Pork prices are also stabilizing. According to aT, as of this date, the consumer price of domestic refrigerated Samgyeopsal per 100g is 2,255 KRW. Like beef, prices have been falling for a week. Samgyeopsal entered the 2,300 KRW range this month, down from 2,440 KRW per 100g a month ago, and continues to decline daily.

Samgyeopsal was once called 'Gold (Geum) Samgyeopsal' due to its high price. The price of pork Samgyeopsal per 100g was in the 1,900 KRW range in June last year but rose to the 2,500 KRW range last month, increasing by nearly 30% in one year. Samgyeopsal consumption temporarily declined at the end of last year due to the impact of African Swine Fever (ASF), but prices rose sharply as consumption concentrated due to COVID-19.

According to Statistics Korea, livestock product prices rose by 10.6% due to the impact of disaster relief funds. Pork prices increased by 16.4%, and domestic beef prices rose by 10.5%.