Due to Rapid Rise in Cabbage and Radish Prices... Government to Release Stockpiled Supplies into Wholesale Market

Measures to Stabilize Supply and Demand
of Baechu and Radish by the Ministry of Agriculture, Food and Rural Affairs

The government has decided to release government stockpiles and increase imports to stabilize the prices of baechu (napa cabbage) and radish.

The Ministry of Agriculture, Food and Rural Affairs announced the "Baechu and Radish Supply and Demand Stabilization Plan" at the Economic Relations Vice Ministers' Meeting held on the 7th.

(Photo)

According to the Ministry, baechu and radish production declined due to poor growth caused by high temperatures and heavy rains during the sowing and transplanting periods, as well as heavy snow and cold waves in winter. Baechu production dropped to 216,000 tons, down 13.3% from the average year, and radish production fell to 298,000 tons, down 21.4%.

As a result, the wholesale price of baechu in late February rose to 5,014 won per head, an increase of 71.1% compared to the average year. Radish prices surged 153.2% to 2,713 won per piece. Retail prices also increased significantly. In late February, baechu was priced at 5,192 won, up 36.9%, and radish at 3,247 won, up 81.1% compared to the average year.

The Ministry expects that due to the decrease in production, baechu prices will remain strong until late April, and radish prices until mid-May, compared to previous and average years.

Accordingly, the government plans to expand market supply and promote alternative consumption to ensure stable supply of baechu and radish. First, government stockpiles of baechu and radish will be supplied more widely to major consumption areas until next month. Baechu stockpiles (2,600 tons) will be supplied to wholesale markets at about 100 tons per day. Radish stockpiles (500 tons) will be supplied to large supermarkets at about 70% of the wholesale price.

Imports will also be increased. The government will actively introduce quantities subject to tariff quotas, and the Korea Agro-Fisheries & Food Trade Corporation (aT) will supply directly imported quantities to wholesale markets nationwide. If necessary, direct supply will also be made to actual demand companies such as processing companies and food material marts outside wholesale markets.

The government plans to promote alternative consumption and expand discount support, and induce supply stabilization of baechu and radish after mid-April through expanded cultivation. To this end, promotion of alternative crops such as spring cabbage (bomdong), young napa cabbage (eolgal-i), and young radish (yeolmu) will be conducted along with discount support for these alternatives, and the discount period for baechu and radish will be extended until next month. Additionally, contract cultivation volumes for spring baechu and radish will be increased by 7,000 tons and 1,000 tons respectively, and government purchase stockpiles will be expanded by 50%.