Supply Normalizes with Expanded Greenhouse Cultivation
Dessert Industry: "Cost Pressures Have Eased"
Some Consumer Prices Remain Elevated
Strawberry prices have shown a clear downward trend since December, entering a stable range. Last year, due to the heatwave and heavy rains, the planting of seedlings was delayed and shipment volumes dropped significantly, leading to the term "gold strawberries." However, this year, production and supply have been relatively smooth, and experts believe that a repeat of last year's situation is unlikely. Although strawberry consumption typically peaks toward the end of the year due to seasonal factors, the market expects that supply and demand conditions for strawberries this winter will remain stable without major disruptions.
According to the Korea Agro-Fisheries & Food Trade Corporation (aT) on December 8, strawberries were traded at 16,265.5 won per kilogram in wholesale markets nationwide on this day. Prices, which were in the 18,000 won range at the beginning of the month, have dropped rapidly and recently stabilized in the 15,000 won range. Distribution data from the Korea Agro-Fisheries & Food Trade Corporation also shows that the price of a 2kg box of regular-grade strawberries at Garak Market was 30,507 won, down from 36,224 won in the same month last year.
Last year, a combination of summer heatwaves, heavy rains, and insufficient sunlight led to delayed planting of seedlings, causing strawberry prices to soar. The slow recovery in crop growth further reduced shipment volumes compared to average years, and with demand peaking in winter, both wholesale and retail prices increased. As a result, dessert and beverage businesses, which rely on winter strawberry menus as a key source of revenue, faced growing pressure to raise their prices across the board.
In fact, the dessert cafe Sulbing raised the price of its seasonal menu item "Fresh Strawberry Tree Sulbing" by 400 won (2.6%) from 15,500 won to 15,900 won last year, while Compose Coffee increased the price of its "Fresh Strawberry Juice" by 100 won (2.4%) from 4,200 won to 4,300 won. Paul Bassett also raised prices for its "Seolhyang Strawberry" menu items, and Twosome Place increased the price of its Christmas cake "Strawberry Yogurt Tree" by 6.7%.
In contrast, this year, the expansion of greenhouse cultivation and the stabilization of production have strengthened the supply base compared to last year. Although there was some weather volatility in the first half of the year, most farms have shifted to greenhouse cultivation, making it easier to manage crop recovery and shipment timing than before, according to industry sources.
The dessert and beverage industry is breathing a sigh of relief. In winter, strawberries are a core seasonal product for dessert and beverage businesses, and demand typically surges at the end of each year. In the past, the industry has had to worry more about cost pressures than sales growth due to unstable raw material prices during these periods of increased demand. However, with supply remaining relatively stable this year, there is a sense that "at least the cost risk has eased."
An industry insider said, "Strawberry menu items contribute significantly to winter sales, but price volatility for raw strawberries has always been a variable. This year, with price risks not being significant, we expect to be able to implement our sales strategies with more stability."
However, it is difficult to say that all consumer prices have come down. Sulbing raised the prices of "Fresh Strawberry Sulbing" and "Pure Yogurt Fresh Strawberry Sulbing" by 400 won each, while hotels such as Banyan Tree and Lotte Hotel also increased their strawberry buffet prices by 3% to 28%. This is interpreted as the result of several factors, including the delayed reflection of last year's sharply increased costs, pricing strategies in response to growing demand for premium desserts, and brand-specific margin structure adjustments, rather than just the stabilization of wholesale prices.
Another industry official said, "While consumption starts to rise in December, supply is not expected to be unstable enough to cause a sharp price spike. The seasonal demand will remain, but it is unlikely that the term 'gold strawberries' will make a comeback."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
