"Eel Prices Plummet"?Thinking of Dining Out, But Only Farmers Suffer?

Eels Unsold Even Below 10,000 Won Per Kilogram
Wholesale Prices Plummet, But Restaurants Maintain High Prices
Half of Eel Farms Face Mass Bankruptcies Ahead

Grilled Eel (Photo to aid article understanding). Photo by The Asia Business Daily DB

The price of freshwater eel, a dish widely regarded as a representative health food, has plummeted to a record low at the production site. This drastic drop is attributed to overfarming caused by an unprecedented catch of juvenile glass eels. According to a report by Gwangju MBC on November 19, eel farmers are now facing the risk of mass bankruptcies due to the widening gap between production site prices and consumer prices.

According to the report, eel prices have recently fallen to their lowest level ever. While eels typically sold for around 28,000 won per kilogram in previous years, it is now difficult to sell them even at 10,000 won per kilogram. Considering that the cost of feed and labor required to raise one kilogram of eel is at least 23,000 won, farmers are incurring losses with every sale.

Farmers could avoid losses if consumer prices fell in line with the decreased production site prices, but the disparity between the two makes it hard to avert mass bankruptcies. While it is now difficult to sell eels at 10,000 won per kilogram at the production site, restaurants are still charging at least 40,000 to 70,000 won per kilogram.

Analysts warn that if the plummeting production site price does not become linked with consumer prices, eel consumption will shrink further, potentially leading to a wave of bankruptcies among freshwater eel farms in the future.

One freshwater eel farmer lamented, "In reality, no one will take them even at 10,000 won. The financial interest is the scariest and most difficult part."

Shin Youngrae, President of the Korea Freshwater Eel Producers Association, explained, "Each of us is transporting, processing, and selling eels using our own trucks. We are selling at extremely low prices, but restaurants are keeping their prices at the highest level, which is causing ordinary people to avoid eel due to the burden."