Rising Feed Prices Following Ingredient Costs
Feed Industry Implements Multiple Increases Since Early Year
Price Hikes Due to Feed Grains and More
Concerns Over Increasing Pet Abandonment
[Asia Economy Reporter Song Seung-yoon] Kim Min-hee (31, pseudonym), who lives in Nowon-gu, Seoul, was recently shocked when she stopped by a pet supplies store to buy dog food. The price had increased by 10,000 won compared to a few months ago when she last purchased it. Kim said, "I never thought even pet food would become more expensive," adding, "Life has become tough enough as it is, and now raising pets has become difficult too."
As high inflation continues, prices of agricultural and livestock products as well as processed foods are rising across the board, and even pet food prices are going up. This is due to significant increases in the prices of vegetables, grains, fish, and meat used in pet food, compounded by logistics difficulties caused by the prolonged COVID-19 pandemic and the Ukraine war. This phenomenon has even led to the creation of a new term, 'petflation' (pet + inflation).
According to the online price comparison site Danawa on the 30th, Royal Canin's Mini Indoor Adult dog food 8.7kg was traded at a minimum of around 61,000 won until May, but the current lowest online price is about 71,000 won, rising more than 10,000 won in four months. Natural Core's organic dog food Eco2 Duck Small Particle 10kg also increased from about 53,400 won to 64,500 won, more than 10,000 won higher. Daehan Feed's Dogline Ajipia 20kg rose from around 32,000 won to about 36,900 won during the same period. Due to this situation, some consumers have started stockpiling certain popular pet food products since early this year.
Previously, the pet food industry experienced a domino effect of price hikes. Royal Canin, the top-selling pet food brand in Korea, raised prices of some dog and cat food products by an average of about 10% earlier this month. Harim Pet Food also increased prices of its 'Bapiboyak' line by a minimum of 8.4% up to 18%. Cargill Agri Purina raised prices of its pet food brands 'Health Report,' 'BeneTive,' and 'Bistro' this year as well.
In fact, prices of grains used for pet food continue to rise. According to the Rural Economy Institute's 'International Grain Report' for September, the grain import unit price index rose from 143.6 in Q1 this year to 158.8 in Q2, an increase of 15.2, and further surged to 186.7 in Q3, up by 27.9. Although it is expected to drop to around 163 in Q4 due to Ukraine resuming grain exports, it remains higher than in Q1 this year and last year. The grain import unit price index for pet food was 99.8 in Q1 last year.
Some express concerns that this rising pet food price trend may lead to an increase in pet abandonment cases. Such situations are already occurring abroad.
According to foreign media including the New York Post (NYP), the number of people giving up pet ownership at the New York City Animal Care Centers increased by about 25% in the first half of this year compared to last year. Additionally, cases of people surrendering pets to shelters have significantly increased across the United States. This is due to rising housing costs forcing people to move to places where they cannot keep pets or making it difficult to afford pet expenses.
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