Vegetables, Fruits, and Instant Rice Cost Over 100,000 Won... Dining Table Prices Rise Ahead of Chuseok

Korea Rural Economic Institute Reports Decrease in Agricultural and Livestock Product Shipments, Price Increase in Apples and Pears

[Asia Economy Reporter Lee Seon-ae] "A bunch of buchu costs 5,000 won, a bundle of cucumber peppers is 4,000 won, and one zucchini nearly reaches 6,000 won. I only bought a few vegetables and fruits, instant rice, and snacks, but the total easily exceeded 100,000 won. Prices are really frightening." On the morning of the 12th, housewife Chae So-yeon, whom I met at a Homeplus store in Seoul, clicked her tongue while looking at the receipt after finishing payment. The price increase trend is serious compared to just a month ago.

Following the sharp rise in vegetable prices due to the longest rainy season, heatwaves, and typhoons, even processed food prices such as instant rice and snacks have increased, triggering alarm bells for dining table prices. With vegetable and fruit prices expected to rise further due to consecutive typhoons, processed food companies are also reflecting raw material cost increases one after another, raising concerns about a price crisis ahead of Chuseok. Experts also foresee that deteriorating supply conditions for agricultural and livestock products will raise Chuseok prices, intensifying the burden on shopping baskets.

Vegetables and Fruits as Expensive as Gold

Prices of some vegetables and fruits are expected to rise further ahead of Chuseok. According to the Korea Rural Economic Institute's report titled '2020 Chuseok Peak Season Major Agricultural and Livestock Products Shipment and Price Forecast,' the shipment volume of agricultural products during the Chuseok peak season (17th?30th) is expected to decrease.

In particular, the institute predicted that prices of apples, pears, and Korean beef (Hanwoo) will rise. This is because spring frost damaged fruit production, and the summer saw the longest rainy season on record, reducing the shipment volume of major agricultural products. First, the shipment volume of apples is estimated to decrease by 12.8% compared to the same period last year, to around 57,000 tons. Due to the shipment decrease, the average wholesale price per 5kg box of Hongro apples is predicted to jump 56.1% to 36,000?40,000 won.

Pear prices are also expected to rise due to reduced shipment volume. Damage from low temperatures and typhoons, along with increased pests and diseases after the rainy season, are expected to reduce shipment volume by 5.1% compared to last year, to 54,000 tons. The wholesale price per 7.5kg box of Singo pears during the Chuseok peak season is forecast to rise 34.2% to 30,000?33,000 won.

Cabbage and radish prices are also expected to continue their upward trend. They are anticipated to maintain their rise during the Chuseok peak season.

Cabbage shipment volume is projected to decrease by 11.4% compared to last year due to reduced cultivation area and yield. Although the shipment volume of highland cabbage will increase from two weeks before Chuseok, the wholesale price per 10kg (based on Garak Market) is expected to rise 21.8% to around 13,000 won compared to last year. Radish shipments will also increase from two weeks before Chuseok, but the overall shipment volume is expected to decrease by 10.7% compared to last year, with the wholesale price per 20kg forecast to rise 4.2% to 16,000 won.

Prices of Hanwoo and chicken are also notable. The Korea Rural Economic Institute predicts that the average wholesale price of Hanwoo (per 1kg) from September to November this year will trade at 19,500 won, up to 6.2% higher than the same period last year. Especially during the Chuseok peak season until September 29, the average wholesale price of Hanwoo is expected to be around 20,000 won, about 10% higher than the same period last year (18,280 won). The entrusted livestock price in September is forecast to increase 2.6% year-on-year to 1,340 won per 1kg.

According to the 'August Consumer Price Trends' released earlier by Statistics Korea, prices of agricultural, livestock, and fishery products rose 10.6% year-on-year. In particular, vegetable prices surged 28.5%, pushing agricultural product prices up 12.1%.

Processed Foods such as Instant Rice and Snacks Increase

Processed food prices are also rising. Ottogi raised the price of instant rice (based on shipment price) by 8% starting from the 1st of this month. The 'Ottogi Rice' (210g), previously priced at 710 won, increased to 770 won. This is Ottogi's first instant rice price increase in about three years since November 2017. Ottogi explained, "Rice prices have risen by about 10?20% annually, making the price increase unavoidable."

Prices of snacks and ice cream have also increased. Lotte Confectionery raised the prices of throat candy and Chaltteok Pie by an average of 10.8% this month. The price of throat candy in small boxes rose from 800 won to 1,000 won, a 200 won (25%) increase. Instead of raising the price of Chaltteok Pie, the quantity was reduced. The 6-piece pack decreased from 225g to 210g, and the 10-piece pack from 375g to 350g. Lotte Confectionery also raised the price of its ice cream brand 'Natuur' by an average of 10.5%. Lotte Confectionery explained, "The price adjustment is due to worsening overall business conditions caused by increases in raw material costs, labor costs, and promotional expenses."

An industry insider said, "Due to the impact of the novel coronavirus (COVID-19), the rainy season, and typhoons, raw material burdens are significant, and price adjustments for processed foods will continue. With fresh food prices soaring due to the rainy season and typhoons, consumer burdens may increase during the high-demand Chuseok season."

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