Wholesale Prices of Hanwoo Fell in the First Half of This Year, with Reduced Breeding
Rising Feed Costs Also Increase Farmers' Burden
About two weeks before the Chuseok holiday, major nationwide supermarkets, Nonghyup Hanaro Mart, and key online malls are launching a "up to half-price sale" on Korean beef (Hanwoo). This event aims to support livestock farmers who have recently been experiencing oversupply.
On the 1st, the Ministry of Agriculture, Food and Rural Affairs announced that, in cooperation with Nonghyup Economic Holdings, the National Hanwoo Association, and the Hanwoo Fund, it will hold the "So(牛)prise 2024 Korea Hanwoo Sale" from the 2nd to the 13th.
This event is a special sale designed to help farmers struggling with falling wholesale prices of Hanwoo and to reduce consumer burden during the Chuseok holiday. Although the schedule will vary by store, most stores will hold discount events from the 4th of this month through the weekend of the 7th and 8th. Store-specific schedules can be checked on the official websites of the Hanwoo Fund and the National Hanwoo Association.
Online malls and Nonghyup Hanaro Mart will offer discounts on various cuts, including sirloin, bulgogi, and soup meat. Large supermarkets are expected to focus their discount events mainly on sirloin. Additionally, the "Hanwoo Market" operated by Nonghyup-affiliated Hanaro Mart, online malls, and the Hanwoo Fund will include "1++" grade sirloin among the discounted products.
Hanwoo gift sets have also been prepared in cooperation with Nonghyup at prices discounted up to 50%. The variety and quantity of practical Hanwoo gift sets priced under 100,000 won have been significantly increased and will be sold at Hanaro Mart.
Meanwhile, Hanwoo wholesale prices have declined throughout the first half of this year due to an increase in slaughtered meat volume, resulting in an oversupply of Hanwoo in the market. Some farmers have expressed concerns that the cost of producing Hanwoo may surpass the selling price, causing a reversal phenomenon.
Meanwhile, the number of Hanwoo and beef cattle raised has also decreased. According to Statistics Korea's "2024 Q2 Livestock Trend Survey," the total number of Hanwoo and beef cattle raised was 3,562,000, a decrease of about 186,000 heads or 5% compared to the same period last year.
Rising feed costs are also burdening farmers. According to data from the Korea Rural Economic Institute, the price of compound feed for meat production was 578 won per kilogram last year, a 3.1% increase compared to the previous year. Compared to 2020, it has surged by about 40%.
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