Falling Apple and Pear Prices... Is It the Effect of Government Measures to Stabilize Fruit Prices? [Chosun Price Records]

⑩ Apple and Pear Retail Prices Recover to Average Levels
Wholesale Prices Still More Than Twice the Average
"Price Stability Expected Once New Fruit Is Shipped"

As the government rolls out measures to stabilize grocery prices, retail prices of fruits such as apples and pears are falling to levels similar to the average year. However, since wholesale prices of fruits remain about twice as high as usual, the current decline in retail prices may only be a temporary phenomenon.

According to the Agricultural Products Distribution Information (KAMIS) from the Korea Agro-Fisheries & Food Trade Corporation (aT) on the 24th, the retail price of 10 apples (Fuji, premium grade) dropped from a peak of 30,105 won on the 13th to 27,424 won on the 15th, 24,148 won on the 18th, and 23,776 won on the 20th. This is close to the average price (23,207 won), indicating that the previously soaring apple prices are stabilizing.

Prices of other fruits are also approaching average levels. The retail price of 10 pears (Shingo, premium grade) fell from 45,381 won on the 15th to 41,551 won on the 18th, a drop of about 4,000 won in three days, and further decreased to 35,941 won on the 21st, which is lower than the average price (37,147 won). The retail price of strawberries (100g, premium grade) also declined from 1,388 won on the 15th to 1,329 won on the 18th. The average price of strawberries is 1,096 won. The retail price of tomatoes per 1kg (premium grade) dropped from 8,641 won on the 15th to 7,742 won on the 18th and 7,653 won on the 20th. The average price of tomatoes is 5,846 won.

President Yoon Suk-yeol is inspecting fruit prices while checking discounted apples supported by the Ministry of Agriculture, Food and Rural Affairs at the Nonghyup Hanaro Mart Yangjae branch fruit store in Seocho-gu, Seoul on the 18th. Photo by the Presidential Office, Yonhap News Agency

Earlier, the government announced the March 18 measures to stabilize prices, taking extraordinary steps such as injecting a large budget to control agricultural product prices. President Yoon Suk-yeol stated, "We will fully implement delivery price and discount support without limiting the period, items, or scale until agricultural product prices stabilize at average levels."

The Ministry of Agriculture, Food and Rural Affairs is rapidly deploying 150 billion won in emergency price stabilization funds. Support for agricultural product delivery prices has expanded from 13 items to 21 since the 18th, with support rates increased up to twice per item. If prices remain unstable after April, the delivery price support will be extended.

To diversify demand, imported fruits are also being supplied intensively. The government has increased the number of tariff-reduced items and expanded quantities without limits to boost imported fruit supply. From the 21st, the government is supplying 1,140 tons of bananas and 622 tons of oranges, directly imported, at prices 20% lower. Additionally, zero-pay agricultural and livestock product discount vouchers usable in traditional markets will be issued up to 60 billion won (18 billion won from the national budget) by the end of next month.

The distribution industry is also aligning with government measures. Coupang is holding a "Season Fruit Chance" event, offering discounts on seven types of fruits including tomatoes, apples, and strawberries through Rocket Fresh. E-Mart, in cooperation with the Ministry of Agriculture, Food and Rural Affairs, has sold apples and pears at discounted prices through "Agricultural Product Discount Coupons." With retailer discounts combined with government support of up to 30%, it is expected to more effectively ease consumers' burdens.

However, the wholesale prices, which are the prices at which middlemen sell to retailers and consumers, remain higher than average, leaving room for retail prices to rise again at any time. The wholesale price of 10kg of apples (Fuji, premium grade) was 92,640 won as of the 20th, more than twice the average price (40,786 won). On the same day, the price of 15kg of pears was 104,400 won, about twice the average price (51,279 won). Similar situations apply to strawberries, tomatoes, and other fruits.

Since the fundamental cause of agricultural product price increases lies in supply issues, efforts to stabilize prices cannot be relaxed until the new fruit harvest season in July and August. Song Mi-ryeong, Minister of Agriculture, Food and Rural Affairs, mentioned at a press briefing on the 7th, "Strong prices for apples and pears are inevitable until the new fruit harvest."