Samgyeopsal Price Decline... "Prices Drop as Accumulated Dining-Out Demand Eases"

[Asia Economy Reporter Song Seung-yoon] The price of domestically produced Samgyeopsal, which had been struggling with the so-called ‘golden pork belly’ controversy due to rising feed costs, has turned downward. The industry sees consumer prices stabilizing somewhat as demand, which had surged following the lifting of social distancing measures, disperses.

According to the Livestock Products Quality Evaluation Service on the 22nd, as of the 20th, the consumer price of domestic Samgyeopsal was 27,570 KRW per kilogram, down 6.9% from the recent peak of 29,480 KRW on the 17th of last month. Samgyeopsal prices have been declining daily for about a month since the 27th of last month. The price is approaching the 26,000 KRW range from the same period last year.

The industry analyzes that the price surge was temporary due to a rush in dining-out demand following the lifting of social distancing, and this effect is now fading. Previously, throughout May, Samgyeopsal prices surged sharply, with consumer prices per kilogram rising about 20% compared to the same period last year. A representative from the Korea Pork Producers Association stated, "As the explosively increased pork consumption gradually decreases, the market is returning to its usual trend," adding, "Wholesale and auction prices are also fluctuating within a stable range."

In this situation, domestic pig farmers are facing difficulties. With production costs significantly increased due to soaring feed prices, they are in an even tougher position if consumption shrinks due to the government’s tariff-free import policy on imported pork. The Korea Pork Producers Association estimates the production cost of pork at about 5,000 KRW per kilogram. Meanwhile, auction prices range between 5,500 and 6,000 KRW. Following pork, 0% tariff quotas are also planned for imported beef and chicken, prompting the livestock industry to unanimously criticize government policies. They argue that increased imports will reduce domestic livestock consumption, causing prices to fall and self-sufficiency rates to plummet.

The Livestock-Related Organizations Council held an emergency meeting of livestock producer group leaders on the 20th and launched the ‘Emergency Committee to Protect Livestock Livelihoods.’ The committee plans to respond to the current situation and advocate for the demands of domestic livestock farmers. A representative from the Livestock Producer Group of the Council said, "Feed prices have surged over 40% due to rising international grain prices, forcing farmers to ship at prices below production costs," adding, "The government remains indifferent to stabilizing feed prices and focuses only on stabilizing grocery prices, thereby pressuring livestock farmers."

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