"Shopping is Scary"... Eggs and Pork Prices Soar Like Gold

[Asia Economy Reporter Seungjin Lee] Complaints about the fear of grocery shopping due to the impact of the novel coronavirus infection (COVID-19) are emerging everywhere. This is because thorough social distancing has led to home-cooked meals surpassing school meals and dining out, concentrating consumption on certain ingredients and causing prices to surge.

According to the Korea Agro-Fisheries & Food Trade Corporation (aT) on the 1st, the retail price of eggs (special large, 30 pieces) reached 5,528 won, marking the highest level in three years since August 2017, with prices rising for two consecutive months since COVID-19 began intensifying in February. Additionally, the price of pork belly (domestic refrigerated) started to soar from January after plummeting last year due to African Swine Fever (ASF), rising from 1,690 won per 100g in January to 2,019 won per 100g in April, showing a continuous upward trend.

The price increase of these ingredients is largely due to the rapid increase in the population eating home-cooked meals amid COVID-19. Not only has the amount consumed increased due to spending extended time at home, but consumption has also concentrated on certain ingredients because of the nature of side dishes consumed at home. In particular, demand for eggs and pork has risen, surpassing the lost school meal demand due to postponed school openings and the reduced dining-out demand.

The increase in the home-cooked meal population is reflected in the sales trends of distribution companies. According to the Ministry of Trade, Industry and Energy’s “February Major Retailers Sales Trends,” food sales on online shopping malls such as Coupang and 11st increased by 92.5% compared to the same month last year. During the same period, overall sales of offline retailers such as large supermarkets and supermarkets declined, but food categories all showed sales growth. For example, Lotte Mart’s fresh food sales in March increased by approximately 15.5% for vegetables, 15.3% for livestock products, and 8.3% for seafood compared to the previous year.

Regarding this, an aT official explained, “According to internal consumption analysis data, consumption of eggs, pork, and certain fruits and vegetables increased further due to the impact of COVID-19,” adding, “There was no difference in crop yields compared to last year for these ingredients, so the increased consumption is analyzed to have driven the price rise.” However, the official also noted, “Prices for items other than those mainly consumed at home are all on a downward trend in both wholesale and retail markets.”

In fact, while the price of domestic refrigerated pork has been rising daily, prices for frozen and imported pork have been declining. Frozen and imported pork are mainly consumed by dining-out establishments, and the reduction in dining out due to social distancing has significantly decreased consumption. It is also interpreted that when pork is consumed at home, there is a preference for refrigerated meat, which is considered relatively higher quality.

Even if COVID-19 stabilizes domestically, it is predicted that food prices at the table will maintain an upward trend for the time being. This is because the global spread of COVID-19 has caused supply disruptions for imported ingredients. For example, the price of U.S. beef (short ribs) was in the 2,500 won range per 100g last year but rose to the 3,200 won range after COVID-19. Also, supply disruptions are expected for German and Chilean pork, which are mainly used by dining-out establishments, so price increases are anticipated if dining-out demand rises after COVID-19.

An aT official said, “Grains such as wheat and corn are mostly imported, and some countries have banned grain exports, so supply disruptions are expected,” adding, “While prices of some ingredients that rose due to COVID-19 will stabilize, prices of ingredients mainly consumed by dining-out establishments may increase.”

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