14.3 Million Tons Imported in Q1, a 43% Increase from Last Year
Livestock Farmers Increased Breeding Numbers Since Second Half of Last Year, Supply Stability Expected
[Asia Economy Reporter Eunmo Koo] Expectations for a drop in pork prices are rising as pork imports have significantly increased this year. Retailers are also boosting sales by offering discounts.
According to customs import-export statistics on the 3rd, pork imports in the first quarter of this year totaled 143,797 tons, a 43.2% increase compared to the same period last year (100,441 tons). This is also more than 12% higher than the average year (128,000 tons).
The sharp increase in pork imports this year is largely attributed to the rising domestic pork prices that have been steadily increasing since last year. According to statistics from the Livestock Products Quality Evaluation Institute, the average price per kilogram of pork as of the previous day was 6,933 won, up 28.4% from the same period last year (5,398 won). The average pork price per kilogram, which was around 3,882 won in early January last year, rose to 4,958 won by the end of last year, and continued to increase monthly this year, rising 37.4% compared to the beginning of the year through April.
Domestic pork prices continued to rise as supply decreased due to reduced imports while demand increased. Pork imports in the first half of last year sharply declined due to a reduction in European Union (EU) imports following the outbreak of African Swine Fever (ASF) in Germany in September 2020. Despite the reduced supply, demand increased due to relaxed quarantine guidelines, fueling pork price increases. Researcher Chung-Hyun Kim from the Korea Rural Economic Institute analyzed, “Samgyeopsal (pork belly) is the most consumed item in dining out,” adding, “The recent lifting of social distancing measures and increased dining out demand are among the causes of the increased pork demand.”
However, supply is stabilizing again this year with a significant increase in imports from the first quarter, and domestic pork prices are expected to gradually decline. EU imports, which were only 42,700 tons in the first quarter of last year, nearly doubled to 84,800 tons this year as imports from Spain and the Netherlands replaced those from Germany, marking a shift to an upward trend. Additionally, due to rising pork prices, livestock farms have increased the number of pigs raised since the second half of last year, and this year, 18.2 to 18.4 million pigs?2.5 to 3.7% more than the average year?are expected to be graded, indicating stable domestic supply.
The distribution industry is also responding to this trend by launching pork discount events. Emart is holding a 'Handon Day' event from the 5th to the 7th, offering a 40% discount on domestic general pork when using event cards in collaboration with the Handon Fund. Emart plans to sell 400 tons, which is 4 to 5 times the usual weekend sales volume.
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