Average Retail Price of Sirloin Up 17.6% Year-on-Year
Fewer Cattle Ready for Shipment... Hanwoo Wholesale Prices Also Rising
Meat Cuts Emerge as Popular Choice for Consumption Coupons
Holiday Gift and Dining Demand Expected to Further Drive Up Prices
With about two weeks remaining until this year's Chuseok holiday, the price of beef-a popular choice for ancestral rites and gifts-is on the rise. There are projections that the increase could accelerate if more consumers use the government's second round of livelihood recovery consumption coupons to purchase beef.
According to the Livestock Distribution Information of the Korea Institute for Animal Products Quality Evaluation on September 21, the average retail price for 1+ grade beef sirloin was 12,268 won per 100 grams, marking a 17.6% increase compared to the same period last year. This is also 3.4% higher than the average year. The average retail price for 1+ grade beef tenderloin was 15,045 won per 100 grams, up 10.6% from the same period last year and 3.2% higher than the average year. For brisket, which is commonly used for soups, the 1+ grade retail price averaged 6,144 won per 100 grams, down 7.8% from the average year but up 7.7% year-on-year. As Chuseok approaches, retail prices for tenderloin and sirloin have risen by around 1,000 won per 100 grams compared to the beginning of this month.
This trend is also evident in wholesale prices. According to the Agricultural Outlook Information from the Korea Rural Economic Institute, the average wholesale price of Hanwoo (castrated steer, carcass weight) during the four-week peak season from September 5 to October 2 is expected to be between 20,000 and 21,000 won per kilogram. This represents an increase of about 7.9% compared to the Chuseok peak season last year. The Agricultural Outlook Center at the Korea Rural Economic Institute noted that the number of cattle available for shipment during the peak season is expected to decrease by about 1.8%, from 114,000 head last year to between 111,000 and 113,000 head this year, which is likely to contribute to the rise in wholesale prices.
In fact, as purchases for gifts and ancestral rites have begun in earnest at major offline distribution channels, beef prices have continued to climb. According to a survey conducted by the Price Monitoring Center of the Korea Consumer Organization Council on September 15-16-about three weeks before Chuseok-across traditional markets, department stores, large supermarkets, corporate supermarkets (SSMs), and regular supermarkets in 25 districts of Seoul, the average price for 600 grams of beef for skewers or general use was 44,496 won, up 11.3% from the same period last year. The price for brisket, commonly used for soup, was 46,921 won, a 2.4% increase.
By business type, large supermarkets were the most expensive for skewers and general beef at 59,732 won, while regular supermarkets were the cheapest at 34,142 won. For brisket, department stores charged 73,855 won, while traditional markets offered the lowest price at 32,613 won-a difference of more than double. Starting today, the second round of livelihood recovery consumption coupons, which provide 100,000 won per person to 90% of the population based on income level, is being distributed. This is expected to stimulate prices of popular items such as livestock products, including beef.
During the first round of consumption coupon distribution in July, meat sales at designated convenience stores surged. For instance, at GS25, sales of domestic beef increased by 232.9% in the month following coupon issuance compared to the previous month. At Emart24, meat section sales rose by about 40% over the same period. The Korea Institute for Animal Products Quality Evaluation and the Agricultural Outlook Center at the Korea Rural Economic Institute forecast that the wholesale price of Hanwoo (castrated steer) in the third quarter of this year, which includes the first and second rounds of coupon distribution, will be around 20,000 won per kilogram-an increase of 6.7% to 12.2% compared to the same period last year.
An industry official commented, "Livestock products are always in higher demand during holidays, and this year, the use of consumption coupons is expected to further increase family demand at barbecue restaurants, creating multiple factors driving up prices."
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