April Agricultural and Livestock Prices Down 1.8%... "Stability Expected to Continue This Month"

Impact of Vegetable Price Decline Due to Increased Production
"Price Stabilization Through Release of Reserves, Livestock Stocking, and Tariff Quotas"

Due to the price decline of vegetables and other items, the consumer price index for agricultural and livestock products fell by 1.8% in April compared to the previous month.

According to the Ministry of Agriculture, Food and Rural Affairs and Statistics Korea on the 2nd, the consumer price index for agricultural and livestock products last month rose by 0.2% compared to the same month last year but decreased by 1.8% from the previous month. The Ministry of Agriculture, Food and Rural Affairs expects that supply conditions will continue to improve after May, maintaining stability and reducing the burden of grocery prices on consumers.

In the case of agricultural products, the prices of vegetables, which had been strong due to winter cold waves and lack of sunlight, have generally declined, showing a downward stabilization trend. It is expected that stability will continue due to rising temperatures and the full-scale shipment of spring produce. Livestock products are expected to show price stability centered on Korean beef and eggs. Pork prices are on the rise due to seasonal demand increases but remain lower than last year, while chicken prices are high due to supply shortages; however, supply is expected to increase from the end of May with the recovery of layer productivity, leading to price stabilization.

Napa cabbage prices remain low due to increased winter napa cabbage production (12.8% and 4.4% higher than the previous and average years, respectively). The cultivation area for spring napa cabbage, shipped in May and June, has also increased (0.3% and 13.7% higher than the previous and average years, respectively), suggesting continued supply-demand stability, although quality deterioration of stored cabbage and adverse weather remain variables. The Ministry plans to release 8,200 tons of stockpiled cabbage if supply-demand instability occurs in May and to additionally stockpile 8,000 tons of spring napa cabbage in June to prepare for summer.

Radish prices are high due to a 22% decrease in winter radish production compared to last year caused by cold wave damage. The government is focusing on releasing 5,800 tons of stockpiled radish into wholesale markets and directly supplying some stockpiled radish to Nonghyup Hanaro Mart to reduce consumer prices. To ease raw material supply burdens for processing companies producing pickled radish and ssammu (wrapped radish), a tariff quota (tariff rate from 30% to 0%) will be applied to all imported radishes from May 1 to the end of June.

Onions are seeing a price decline as early onions are being shipped in earnest. The government plans to alleviate consumer burdens by supporting wholesale price supply costs at large supermarkets until early May when wholesale prices are reflected in retail prices and to directly supply imported onions to large consumers such as food material companies through the Korea Agro-Fisheries & Food Trade Corporation (aT).

Potato wholesale prices fell by 16.1% compared to the previous week after the full-scale harvest of spring potatoes in facilities began in mid-April. Consumer prices are also expected to decline with some delay. From mid-May, open-field spring potatoes, which account for about 67% of total potato production, will be shipped, further stabilizing prices. Until the shipment of open-field spring potatoes, the government will supply 1,200 tons of stockpiled potatoes to wholesale markets and plans to implement purchase stockpiling of 6,500 tons of open-field spring potatoes, operate a vegetable price stabilization system for highland potatoes (8,420 tons), and apply tariff quotas for 12,810 tons of potatoes for confectionery processing.

For facility vegetables, prices rose due to reduced shipments caused by adverse weather from mid-April. The government will continue monitoring crop conditions and shipment trends through regional agricultural cooperatives and plans to conduct preemptive inspections with local governments, the Rural Development Administration, and agricultural cooperatives until June to prevent damage from summer heavy rain and strong winds.

Beef wholesale prices are falling due to increased supply, and the downward trend in consumer prices continues. The supply of Korean beef in April increased by 2.7% compared to 2022, while wholesale prices (castrated cattle) fell by 16.2%, and consumer prices (grade 1 sirloin) dropped by 16.9%. The government expects the price weakness to continue and plans to maintain measures to stabilize Korean beef supply and demand.

The number of pigs slaughtered from January to April is projected to increase by 0.3% year-on-year to 6.32 million heads. As of late April, wholesale prices are stable at about 10% lower than the previous year. Domestic pork belly and other consumer prices have also remained lower than last year since the Lunar New Year.

Due to decreased chick supply and other factors, chicken wholesale prices in April were 14.8% higher than the previous year, at 4,079 KRW per kilogram. From the end of May, chick supply is expected to gradually increase as layer productivity recovers with rising temperatures. On April 27, the government held the 1st Chicken Supply and Demand Adjustment Council, urging chicken contract companies to expand chick stocking for samgye (three-yellow chicken) and extend the use period of layers for broilers to increase supply. The government plans to continue supporting funds needed for additional stocking and flexibly adjust supply volumes through tariff quota management.

Daily egg production is 8.7% higher than average. In mid-April, the farm gate price for 30 special eggs was 4,623 KRW, and the consumer price was 6,521 KRW, down 8.3% and 2.3%, respectively, compared to the previous year. The government continues to implement measures such as financial support for restocking farms culled due to AI outbreaks last winter and tariff quota operations to strengthen the domestic supply base.

To alleviate consumer price burdens, the government selects high-priced items weekly and supports a 20% discount per person up to 10,000 KRW (30% at traditional markets). From the 4th to the 10th, onions are the discount item, available at various distribution channels including large and small supermarkets, regional agricultural cooperatives (Hanaro Mart), local agricultural product direct stores (local food), traditional markets, and online malls.

Kim Jeong-hee, Director of the Food Policy Bureau at the Ministry of Agriculture, Food and Rural Affairs, said, "Some items such as onions, radishes, and potatoes face supply instability factors like reduced storage and adverse weather. We will continuously monitor supply-demand situations by item and do our best to stabilize agricultural and livestock product prices by expanding supply through releasing stockpiles, increasing livestock stocking, and applying tariff quotas when supply instability occurs."