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"Stable Trend in Agricultural and Livestock Products to Continue in June"... Ministry of Agriculture Expands Discount Support and Launches Vacation Season Discounts

The government has decided to implement proactive measures to stabilize production and supply, such as expanding discount support and providing additional discounts during the summer vacation season, in anticipation of potential negative impacts on crop growth due to weather disasters like heavy rain and heatwaves during the summer.


The Ministry of Agriculture, Food and Rural Affairs announced on June 9 that, according to the May consumer price index survey, prices of agricultural and livestock products fell by 0.6% year-on-year (down 3.0% from the previous month), indicating a stable trend.


"Stable Trend in Agricultural and Livestock Products to Continue in June"... Ministry of Agriculture Expands Discount Support and Launches Vacation Season Discounts

The Ministry expects that the stable trend will continue for vegetables in June, citing increased spring production of napa cabbage and radish, as well as higher supply of 2025 onions and garlic. However, summer napa cabbage, which is shipped from July to October, is characterized by sharp fluctuations in crop conditions depending on weather factors such as heatwaves. This year, due to low prices during the sowing and transplanting period (May to June) and rising temperatures in highland areas, significant effort is required for napa cabbage cultivation, leading to a projected 9% decrease in cultivated (intended) area compared to last year. In particular, there are concerns that the decrease in market supply in August and September may be significant.


Accordingly, the Ministry plans to secure approximately 4,000 tons of additional supply by signing advance purchase contracts with farms that plant extra crops for shipment in August and September, and to secure 2.5 million reserve seedlings to support rapid replanting in case of emergencies such as weather disasters or pest outbreaks.


In addition, the government is stockpiling the largest-ever available quantities of spring napa cabbage and other vegetables (23,000 tons of napa cabbage and 7,500 tons of radish) to ensure supply during periods of instability and peak demand seasons such as Chuseok.


On the other hand, for onions, where increased production has led to lower prices, the Ministry plans to stabilize prices by managing market supply through market isolation (30,000 tons), producer-centered quality control, shipment delays (5,000 tons), and export support.


For fruits such as apples and pears, stable supply is being maintained through staggered shipments of 2024 stored produce. However, there are concerns that production may decrease again this year due to wildfire damage and damage from low temperatures or hail. A Ministry official stated, "The area of apple orchards directly affected by wildfires is 473 hectares, which is about 1.4% of the total national cultivation area. Damage from weather disasters such as low temperatures is also minor compared to an average year, so considering fruit setting and other growth conditions, production is expected to be at average levels. However, there are concerns that the proportion of top-grade products may decrease somewhat due to hail damage."


The Ministry will strengthen monitoring of crop growth to prepare for any additional weather disasters and provide on-site technical guidance, such as tree vigor management and fruit thinning, to help improve quality.


For livestock products, prices have risen compared to the same period last year due to base effects from last year's oversupply and discount support, but overall supply and demand remain generally favorable. In May 2025, the retail price of Korean beef (grade 1 sirloin) increased compared to the same period last year, but remains lower than the average year. Pork wholesale prices are somewhat high due to reduced imports in the first quarter of this year, partly caused by rising exchange rates, but the Ministry expects prices to stabilize in the second half as domestic supply increases.


For chicken, importers are holding inventories equivalent to 2-3 months of supply, so the impact of the highly pathogenic avian influenza outbreak in Brazil on domestic supply is limited. Egg prices rose due to a decline in productivity caused by consumptive diseases among laying hens from late March, but productivity is expected to recover in June, with average daily egg production projected to increase by 2.0% compared to the same period last year. The Ministry also believes that the base effect from last year's support for lowering supply prices contributed to higher perceived consumer prices.


The Ministry is applying quota tariffs (zero tariffs) to processed pork used in food manufacturing and processed egg products used for confectionery and baking. The government is expediting the approval process for imports of chicken from regions in Brazil not affected by highly pathogenic avian influenza, securing alternative import sources such as Thailand, and actively promoting measures to increase domestic chicken supply, such as expanding chick placement and extending the productive age of breeding stock.


Additionally, the government plans to use the supplementary budget allocated for discount support (a total of 228 billion won) to provide concentrated support during peak seasons for agricultural and livestock product purchases, such as the summer vacation period and Chuseok. In particular, the Ministry plans to improve the system so that consumers using traditional markets and supermarkets can also benefit from discounts.


A Ministry official stated, "We expect the current supply stability to be maintained through June. As we approach the summer, we will strengthen management of risk factors such as weather disasters and mobilize all available resources to ensure the stable supply of agricultural and livestock products continues."


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