Cabbage Prices Decline Starting This Month
Expected to Recover to Average Levels Next Month
Packaging Kimchi Shortage Also Expected to Ease
[Asia Economy Reporter Song Seung-yoon] The price of napa cabbage, which surged last month, is expected to decline somewhat starting this month, easing the shortage of packaged kimchi.
According to the Korea Rural Economic Institute on the 4th, the wholesale price of commercial napa cabbage per 10kg is predicted to average around 9,000 won this month. Although this is still about 1.5 times more expensive compared to the same month last year (5,821 won), it is significantly lower than the sharp increase seen last month. Last month, the wholesale price of napa cabbage per 10kg soared to the 30,000 won range, more than doubling compared to the previous year. This was due to poor weather conditions caused by heavy rain, drought, and typhoons, which led to the spread of pests and diseases and a decrease in production, as well as concentrated shipments in early September due to an early Chuseok holiday.
Once autumn napa cabbage, harvested from mid-month, is supplied in earnest, wholesale prices are expected to stabilize to average levels from next month. The cultivation area for autumn napa cabbage used for kimchi-making has also expanded compared to last year, and the crop condition is expected to be similar to average years. This year, the cultivation area for autumn napa cabbage is 13,617 hectares, a 1.3% increase compared to the average (13,444 hectares).
As the second crop of napa cabbage from the semi-cold region is shipped in earnest, the volume entering the market is increasing, causing prices to decline starting this month. Accordingly, the burden of napa cabbage prices during the kimchi-making season is expected to ease somewhat. In fact, according to the wholesale price trends from the Korea Agro-Fisheries & Food Trade Corporation, the wholesale price of napa cabbage, which surged to 36,560 won per 10kg on the 6th of last month, dropped by more than 13,000 won to 23,740 won as of the 30th of last month. The wholesale price of napa cabbage peaked in early last month and has been gradually declining since.
As a result, the shortage of packaged kimchi seen simultaneously online and offline is also expected to ease somewhat. Previously, the prices of kimchi-making vegetables such as napa cabbage, radish, onion, chili pepper, and garlic surged, causing explosive demand for packaged kimchi. Companies also raised the prices of packaged kimchi, leading to hoarding behavior among consumers. Daesang, the number one company in the packaged kimchi industry, raised the price of Jongga Kimchi by an average of 9.8% starting from the 1st of this month, and CJ CheilJedang increased the price of Bibigo Kimchi by an average of 11% from the 15th of last month.
Currently, most kimchi products that were sold out on Pulmuone’s online mall, Shop Pulmuone, are available for purchase again. On The Market, CJ CheilJedang’s official online mall, ‘Sliced Napa Cabbage Kimchi’ and ‘Yeosu Dolsan Mustard Leaf Kimchi’ remain sold out, but other kimchi products are available for purchase. Cheongjeongwon’s online mall, ‘Jeongwon eShop,’ still has many temporarily sold-out products, but sales are expected to resume starting this month.
A Daesang representative said, "Once napa cabbage supply stabilizes, we plan to normalize deliveries to clients and resume sales on Jeongwon eShop," adding, "We expect sales to resume after mid-October."
Large supermarkets are also actively seeking additional production areas to secure supply, and the supply situation is gradually improving. The three major supermarket chains do not foresee any problems with the supply of packaged kimchi and are not considering any purchase restrictions.
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