Ministry of Agriculture, Food and Rural Affairs to Inject Additional 150 Billion KRW for Stabilizing Agricultural and Livestock Product Prices... Expanding Support for Delivery Prices and Discounts

Post-Briefing of the People's Livelihood Economic Inspection Meeting
Price Trends and Response Directions for Agricultural and Livestock Products

The government has decided to expand the emergency price stabilization fund of 150 billion KRW until price stability is achieved to stabilize the prices of agricultural and livestock products.

The Ministry of Agriculture, Food and Rural Affairs announced this on the 18th during a post-briefing following the Livelihood Economy Inspection Meeting held at the Nonghyup Distribution Human Resources Development Institute in Seocho-gu, Seoul, presided over by President Yoon Seok-yeol.

According to the Ministry, consumer prices in February have generally shown strength due to a decrease in fruit supply after the Lunar New Year and reduced vegetable production caused by weather conditions. A ministry official explained, "The production decrease due to weather is a global phenomenon. In Korea, apple and pear production dropped by about 30% last year due to cold damage and anthracnose," adding, "Also, in February this year, sunlight hours decreased by 40% in major production areas, causing poor growth of greenhouse vegetables."

As a result of government measures such as support for delivery prices and expanded discounts, the retail price of apples (10 pieces) was 27,424 KRW as of the 15th, turning to a downward trend since mid-March but still remaining high compared to the previous year.

The Ministry expects the strong prices of apples and pears to continue until the new fruit harvest begins. However, prices of fruits and vegetables such as strawberries and tomatoes are expected to gradually stabilize with improving weather conditions.

The Ministry of Agriculture, Food and Rural Affairs plans to expand the execution of the emergency price stabilization fund (150 billion KRW) announced on the 15th until price stability is achieved, while thoroughly managing mid- to long-term production and distribution. Specifically, the number of items supported for delivery price assistance (75.5 billion KRW) will increase from 13 to 21, and the support price will be increased up to twice the current amount. Discount support (45 billion KRW) will raise the discount rate from 20% to 30%. Additionally, 10 billion KRW will be invested for the Korea Agro-Fisheries & Food Trade Corporation (aT) to directly import five types of fruit and supply them at up to a 10% discount. A budget of 19.5 billion KRW will be allocated for discounts on livestock products such as Korean beef, pork, eggs, and chicken, including expanded discount rates and reduced delivery prices.

Additional measures will also be implemented. If prices remain unstable after April, the application period for delivery prices will be extended, additional items with price increase concerns will be added, and support prices will be expanded. Discount support will also be extended to online malls with additional participating companies and traditional markets. Meanwhile, aT will expand direct import volumes mainly for bananas and oranges to supply intensively in March and April, and efforts will be made to expand the items and volumes subject to tariff quotas.

A ministry official stated, "The government is making every effort to stabilize agricultural production in response to climate change, especially to stabilize fruit production this year, by forming a growth management consultative body with the Rural Development Administration, local governments, and producer organizations," adding, "We plan to announce a mid- to long-term 'Fruit Industry Competitiveness Enhancement Plan' in early April, which includes fostering new apple production areas, establishing specialized next-generation orchards that are high-quality and high-yield resistant to heat and pests, early expansion of disaster prevention facilities, and stabilizing greenhouse horticulture production through the spread of smart farms."