"Year-End and New Year Peak Season a Thing of the Past"... Deepening Sighs Among Korean Pork Farmers Due to Price Collapse

Sharp Drop in Farm and Wholesale Prices Due to Consumption Decline
150,000 Won Loss per Pig Shipment

[Image source=Yonhap News]

[Asia Economy Reporter Choi Seon-hye] The sighs of pig farmers are growing deeper as the year-end and New Year holidays approach. Contrary to the hopes of farmers expecting a special demand, wholesale prices have been falling since mid-last month and continue to do so, resulting in a loss of 150,000 KRW per pig for Korean pork farmers at each shipment.

According to the Livestock Products Quality Evaluation Service on the 4th, the farm gate price of pork (price received by farmers, 110kg) was 279,000 KRW the previous day, down more than 60,000 KRW from 340,000 KRW the previous month. The average wholesale price also significantly decreased to 3,305 KRW per kg from 4,032 KRW the previous month. The consumer price of Samgyeopsal (pork belly) dropped to 17,284 KRW per kg from 17,716 KRW the previous month.

The industry cites the main causes of the pork price decline as ▲ suspension of school meal demand due to school vacations ▲ the culture of no company dinners due to the 52-hour workweek ▲ changes in year-end party culture among office workers, such as an increase in lunch year-end gatherings and small-scale year-end parties, leading to insufficient pork consumption. The number of Korean pork farmers facing management difficulties due to shipments below production costs, which has continued since last year, is increasing.

Pig Distribution Price Trends (Source: Livestock Products Quality Evaluation Service)

In response, the Korean Pork Producers Association is conducting various activities to promote pork consumption. From January 1 to 22, in collaboration with major large marts such as E-Mart (January 1?8) and Lotte Mart (January 16?22), key items such as pork neck (100g) priced below 990 KRW and pork front leg (100g) below 590 KRW are being sold at discounts of up to 30% or more to kick off consumption promotion activities. Additionally, as an extension of the discount event on Korean pork gift sets held since December 23 on the official online shopping mall ‘Handon Mall,’ promotional events and on-site discount sales of pork gift sets will be held from January 9 to 10.

Chairman Ha Tae-sik appealed, “Korean pork farmers are at a crossroads of life and death due to the price decline that has lasted for over a year,” and urged, “Please enjoy fresh and delicious Korean pork with your family, neighbors, and relatives during the year-end and New Year holidays, and support the Korean pork farmers a lot.”

This content was produced with the assistance of AI translation services.