To stabilize rice prices, the government has decided to purchase an additional 50,000 tons of privately held 2023 rice stocks. Additionally, this year’s Chuseok Hanwoo gift sets will be sold at a discount of over 30%, and a mid- to long-term development plan for the Hanwoo industry will be announced next month.
On the 25th, the government, the Presidential Office, and the People Power Party held a high-level meeting at the Prime Minister’s official residence in Samcheong-dong, Jongno-gu, Seoul, to discuss measures to stabilize rice prices and Hanwoo supply, the Ministry of Agriculture, Food and Rural Affairs (MAFRA) reported.
The ruling party and government decided to purchase an additional 50,000 tons of privately held 2023 rice stocks to stabilize rice prices for the 2023 crop and proactively prepare for this year’s harvest season. Previously, MAFRA purchased a total of 150,000 tons of rice in three rounds from last year through June this year to mitigate the decline in rice prices caused by reduced rice consumption. Including this additional purchase, the total amount purchased will reach 200,000 tons. When combined with the 100,000-ton private stock reduction plan announced by Nonghyup on the 13th, it is expected to result in a total inventory reduction effect of 300,000 tons.
A MAFRA official stated, “Although the decline in farm-gate rice prices has slowed since August due to government and Nonghyup measures, the ruling party and government decided to purchase an additional 50,000 tons to accelerate market stabilization and firmly support rice prices during the 2024 harvest season. This volume is planned to be used for food aid, which will expand to 150,000 tons next year.”
Starting from this year’s harvest season, MAFRA plans to announce the harvest season supply stabilization measures earlier in September, when rice is still growing, instead of the usual mid-October announcement, to preemptively curb anxiety caused by expected oversupply. Depending on crop conditions, conversion to feed use before harvest will also be promoted if necessary.
A mid- to long-term development plan for the Hanwoo industry has also been prepared. To stabilize Hanwoo prices this year, MAFRA will cooperate with Nonghyup, the Hanwoo Association, and the Hanwoo Fund to sell Chuseok peak-season Hanwoo gift sets at discounts of over 30%, and significantly expand the quantity of practical gift sets priced under 100,000 won by 16% compared to last year. Major discount events of up to 50% will continue at stores nationwide until the end of the year, and support will be provided for Hanwoo raw meat supply to school meal and processing companies.
To help reduce production costs for Hanwoo farmers, continuous efforts will be made in consultation with Nonghyup to lower feed prices. The repayment period for feed purchase loans due next year will be extended by one year, and low-interest management stabilization funds such as agricultural management recovery funds (1%, up to 2 billion won) and livestock management funds (2.5%, up to 10 million won) will continue to be provided.
A MAFRA official said, “Regarding proactive supply stabilization measures considering Hanwoo growth characteristics and restructuring of the production system, additional discussions with producer organizations and experts will be held, and measures will be announced in September.”
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