Amid COVID-19 Hardships, 'Dining Table Prices' Also Soar

Increase in Disposal of Winter Stocked Vegetables Leads to Decreased Shipments
Pork Stockpiles Rise, Prices Increase Due to Higher Consumption
COVID-19 and Shopping Burden Combined

Due to the impact of COVID-19, consumer sentiment is shrinking, and on the 11th, Lotte Mart Seoul Station branch in Jung-gu, Seoul, is showing a quiet scene. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Seungjin Lee] Amid the increasing number of people seeking home-cooked meals due to the impact of the novel coronavirus infection (COVID-19), the prices of food ingredients such as vegetables and meat have surged sharply, increasing the burden on grocery shopping.

According to the Korea Agro-Fisheries & Food Trade Corporation (aT) on the 12th, the retail price of 1 kg of onions was 2,529 won. The price in February was 1,766 won, marking a sharp increase of about 43% (769 won). Compared to the average price of 1,969 won, it is about 28% more expensive.

The prices of vegetables mainly used for side dishes have also risen simultaneously. The price of potatoes per 100g rose by 47% in one month to 479 won. Sweet potatoes increased by 15% during the same period to 4,682 won per 1 kg. Ginger rose by 19.1% compared to a month ago, reaching 13,536 won per 1 kg. Green chili peppers increased by 11.3% in one month to 1,790 won per 100g, which is 40.4% more expensive than the average price.

The sharp rise in vegetable prices is due to a decrease in shipment volume. Typically, March is the period when vegetables stored over the past winter are discarded. This year, due to the impact of COVID-19, the dining-out industry experienced a severe recession in January, resulting in reduced production and increased disposal. Additionally, although vegetable consumption by dining-out businesses has not yet recovered, increased household consumption has driven prices up sharply.

An aT official explained, "We expect prices to stabilize again in April to May when harvesting and shipment resume as the weather warms up," adding, "Most vegetable prices are on the rise in March, and the impact of COVID-19 has overlapped, causing a sharp increase."

The price of pork, which had fallen due to ASF (African Swine Fever), has also surged. The price of domestic refrigerated pork belly per 100g rose from 1,591 won a month ago to 1,902 won, surpassing the average price of 1,809 won. Last month, the distribution industry, including large supermarkets, planned pork promotion events in cooperation with the Korea Pork Producers Association (Han-don Jajogeum), significantly increasing supply, and prices have continued to rise since then.

The main reason is the increased wholesale demand to stockpile pork due to COVID-19. A meat wholesale company official said, "Demand for pork belly was extremely low due to the recession in dining-out businesses, but we are currently stocking meat inventory expecting that demand from the dining-out industry will increase soon as the COVID-19 situation calms down," adding, "Prices are surging as retail demand within households is also increasing."

Prices of rice, eggs, and milk, which have seen a sharp increase in sales due to COVID-19, have remained stable without significant fluctuations so far. From the 19th of last month to the 5th of this month, sales of rice, eggs, and milk at Lotte Mart increased by about 50% compared to the same period last year.

aT analyzed that these items largely depend on demand from meal service providers, and with school openings delayed due to COVID-19, demand has stagnated, maintaining price stability. They forecast that there will be no price increase factors for the time being due to the prolonged COVID-19 situation.

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