Bapsang Prices Rise but Livestock Products Remain Stable... Wholesale Chicken Prices Expected to Fall

Meatbox Livestock Direct Trade Platform Q4 Outlook
Reflecting the Effect of Importing 5 Million Broiler Hatching Eggs
Stable Trends Expected for Korean Pork and Korean Beef

With rising food prices increasing the burden on both distributors and consumers, it is forecasted that prices of livestock products, including chicken, will generally stabilize downward in the fourth quarter of this year.

A citizen is examining chicken for Samgyetang at a large supermarket in Seoul. [Image source=Yonhap News]

According to the 'Livestock Market Report' from Meatbox, a direct livestock trading platform, the combined poultry index for domestic and imported chicken peaked in the high 1270s in early this month, then quickly declined, and is expected to remain below 1250 until the end of the year. The Meatbox index analyzes overall livestock transaction volumes and price fluctuations in domestic and international markets, providing comparative data on average market price trends. The index is based on a value of 1000 set on January 1, 2019, to indicate increases or decreases.

The report states that chicken prices reached their highest point last May due to supply instability caused by this year’s floods, fluctuated until September, but began to decline from mid-October, with stabilization expected next month. Meatbox cited the government’s import of approximately 5 million broiler hatching eggs in August to stabilize chicken supply as the basis for this forecast. Considering the rearing period of imported hatching eggs, these breeds are expected to enter the chicken market between October and November. Additionally, to stabilize living costs, the government extended the 0% tariff on chicken imports until the end of the year and increased the applicable quota from the initial 30,000 tons to 60,000 tons, which is also expected to help suppress chicken price increases.

Meatbox Chicken Index
[Photo by Meatbox]

A Meatbox representative stated, "For businesses engaged in the food service and livestock product sales industries, as well as consumers who consume large amounts of chicken, using purchasing channels that reflect wholesale prices will be a wise consumption method." However, the index for domestic chicken drumsticks may experience greater volatility depending on the spread of highly pathogenic avian influenza (AI) in Brazil.

The report also forecasted indices for other livestock categories such as Korean beef (Hanwoo), imported beef, domestic pork (Handon), and imported pork. Except for imported beef and pork, which are expected to be affected by reduced import volumes, wholesale prices for Hanwoo and Handon are generally expected to stabilize in the fourth quarter.

A Meatbox representative added, "We will continue to provide precise analyses of livestock market trends based on over a decade of accumulated data and engage more with information users who regularly consult the Meatbox index."