"'Only Going Outside' Restaurants Are 'Empty'... Vegetable and Meat Prices Also 'Drop'"

Import Restrictions on Food from China After the Novel Coronavirus Outbreak

Concerns Over Rising Food Prices

Demand at Restaurants Slows Due to Reduced Outings

Vegetable Prices Drop Up to 64% Compared to the Previous Month

[Asia Economy Reporter Lim Hye-seon] Despite concerns that food prices would rise due to import restrictions on food products from China following the novel coronavirus (COVID-19) outbreak, vegetable and meat prices have instead fallen. It is analyzed that the decline in demand from large-scale consumers and food service businesses due to reduced outings has influenced the prices.

According to the Ministry of Agriculture, Food and Rural Affairs on the 9th, as of the 7th of this month, the average wholesale price of radish (medium grade, 4kg) was 7,800 KRW, which is 64.0% lower than the price a month ago. Compared to the average price of previous years, it also dropped by 30.7%.

The average wholesale price of perilla leaves (2kg) also fell by 39.6%. Spinach (4kg) dropped by 25.1%, strawberries (2kg) by 35.7%, cherry tomatoes (5kg) by 35.0%, and carrots (20kg) by 28.4% compared to the previous month. Prices of green onions (1kg, 27.4%), water parsley (15kg, 17.8%), and red chili peppers (10kg, 11.2%) also declined.

This result is contrary to expectations that domestic prices would rise due to a decrease in imports from China.

An official from the Korea Agro-Fisheries & Food Trade Corporation explained, "In the case of radish, perilla leaves, and water parsley, transactions were active as ingredients for soups in restaurants due to the severe cold, but recently, transactions have been sluggish due to reduced outings." They added, "Although lettuce is steadily shipped from greenhouse cultivation with winter heating, demand from large-scale consumers and food service businesses has weakened due to reduced outings caused by the novel virus, leading to inventory accumulation in wholesale markets and a downward trend in prices." The official further predicted, "Prices are expected to remain slightly weak for the time being due to reduced outings caused by the impact of the novel coronavirus."

Although napa cabbage and cabbage are trading at prices 25-45% higher than average years, the Ministry of Agriculture, Food and Rural Affairs explained that these are items whose prices had already risen since last month due to poor crop conditions.

The situation with meat prices is similar. In particular, pork prices are in a difficult situation as demand has decreased following the novel coronavirus outbreak, on top of the sharp price drop last year due to African Swine Fever (ASF). The wholesale price of pork has fallen to the low 2,000 KRW range per kilogram, reaching levels seen 17 years ago. According to the Livestock Products Quality Evaluation Service, the wholesale price of pork (1kg) was 2,986 KRW, down 26.2% from the previous month.

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