Signs of Cabbage Oversupply... Government Implements Supply Measures Including Market Quarantine of Quantities

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kim Hyunjung] As the price decline continues due to oversupply and reduced consumption of napa cabbage, the government will implement proactive supply and demand measures such as market isolation of excess quantities.

The Ministry of Agriculture, Food and Rural Affairs announced on the 29th that it plans to predict the supply and demand of napa cabbage based on wholesale market and production area surveys and expert analysis, and to isolate the entire expected oversupply volume from the market. According to the supply and demand analysis, the cultivation area of winter napa cabbage increased by 3.6% compared to the average year, and production is expected to reach 299,000 tons, an increase of 2.9% compared to the average year.

Although the number of crops per unit area decreased by 0.7% (December forecast) compared to the average year due to delayed seedling transplantation and temporary low temperatures during the growing period, considering the recent favorable weather conditions and the increasing trend in crop numbers, the final decrease in crop numbers is expected to be minimal. In addition, due to decreased consumption of kimchi napa cabbage, 22,000 tons of autumn napa cabbage that was not absorbed in the market has been carried over to the winter growing season, which is expected to further intensify oversupply. Furthermore, napa cabbage demand is expected to shrink compared to the average year, considering the sharp decline in consumption after the kimchi season and reduced dining-out consumption due to strengthened social distancing measures.

Accordingly, the Ministry of Agriculture, Food and Rural Affairs will stabilize winter napa cabbage prices through supply and demand stabilization measures. This measure aims to isolate all the expected oversupply compared to the average year from the market, and will be implemented in two stages considering market volatility. First, from the end of this month to early next month, 18,000 tons of volume will be isolated from the market as a priority. Using the Vegetable Price Stabilization System, the cultivation area of 3,000 tons of autumn napa cabbage and 7,000 tons of winter napa cabbage will be adjusted, and 2,000 tons will be purchased and stored in preparation for cold waves and the Lunar New Year holiday. In addition, voluntary reduction by farmers of 2,000 tons of autumn napa cabbage and 4,000 tons of winter napa cabbage will be carried out simultaneously.

From mid-January, the remaining oversupply will be fully isolated based on local governments' voluntary reduction efforts, and the scale of measures will be determined by reviewing the effects of the first-stage measures and weather conditions such as cold waves. Voluntary reduction will be promoted in Jeonnam and Haenam-gun, the main winter napa cabbage production areas, and market isolation using emergency price stabilization funds and additional purchase and storage if necessary will also be considered.

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