From December, Dongwon Tuna Prices to Increase by an Average of 6.4%
About 5 Years Since the Price Increase in 2017
[Asia Economy Reporter Lim Hye-seon] Dongwon F&B announced on the 19th that it will raise the prices of 22 types of canned tuna products, including ‘Dongwon Tuna Light Standard,’ by an average of 6.4% starting next month on the 1st. This is the first price increase in about five years since 2017.
Accordingly, the price of the main item, 'Dongwon Tuna Light Standard 150g,' will increase by 8.5% from 2,580 won to 2,800 won, and 'Dongwon Tuna Light Standard 135g 4-pack' will rise by 5.0% from 9,980 won to 10,480 won. The ‘Dongwon MSC Tuna’ launched in August and the ‘Dongwon Tuna Cube’ brand products released in October are excluded from the price increase. The price hike will apply to large supermarkets, supermarkets, and online channels, excluding convenience stores.
A Dongwon F&B official stated, “In recent years, manufacturing costs have risen due to increases in prices of major raw materials, labor costs, and logistics expenses,” adding, “We have endured the pressure of cost increases through cost reduction and productivity improvements, but due to continuous profitability deterioration, we have inevitably decided to raise prices.”
The edible oil, a major ingredient in canned tuna, has recently reached its highest price in the past decade due to global supply instability. The international prices of canola oil and soybean oil have risen by 151% and 147%, respectively, compared to the previous year. The raw materials for canned cans, iron ore and aluminum, have also increased by 64% and 81%, respectively, compared to the previous year.
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Additionally, the international price of skipjack tuna, the raw material for canned tuna, has shown a continuous upward trend, rising about 50% from $1,080 per ton in the second half of 2019 to $1,600 per ton as of this month. Due to increased overseas demand caused by the prolonged COVID-19 pandemic, rising oil prices, and low catch volumes, the international price of skipjack tuna is expected to continue its upward trend for the time being.
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