"Strawberry Prices Fall for the First Time in a While, 'Now in Season'"

Nonggyeongyeon Report on 'Supply and Demand Trends and Outlook for Strawberry, Gamgyul, and Paprika'

Sancheong Strawberry. Photo by Asia Economy DB

The price of strawberries, now in season, is showing a downward trend, which is expected to increase consumer demand for strawberries. Due to the surge in heating costs, the supply of strawberries is likely to decrease and prices are expected to rise, making now the optimal time to consume strawberries.

According to the recent report "Strawberry, Tangerine, and Paprika Supply and Demand Trends and Outlook" published by the Korea Rural Economic Institute, the price of strawberries in January this year was 29,000 KRW/2kg, a 27% decrease compared to the same period last year (39,800 KRW).

The decline in strawberry prices is due to an increase in shipments compared to the same period last year, when high temperatures caused blight disease and poor crop yields.

The price of strawberries this month is also expected to fall to around 21,000 KRW/2kg, down from 22,700 KRW last year, due to increased shipments. Strawberry shipments this month are expected to increase by 5% compared to last year.

However, the future outlook for strawberry supply and demand is not optimistic. This is because the cost of electric heating has risen to an unbearable level, and prices for kerosene, fertilizer, and labor are also rising one after another.

This year, agricultural electricity rates have increased by more than 30% compared to last year. Although kerosene is relatively cheap as it is a government tax-exempt fuel, the price of tax-exempt kerosene, which was 900 KRW per liter, has exceeded 1,300 KRW this year.

Strawberry farms must maintain temperatures above 10 degrees Celsius, so they need to run heaters all day even in winter. On top of that, a cold wave with minimum temperatures dropping below minus 20 degrees Celsius has intensified, causing heating usage to increase more than in previous years.

Due to this surge in heating costs, many farmers are giving up strawberry farming. Those who continue strawberry farming are likely to raise consumer prices due to the burden of heating costs.

Kim Won-tae, head of the Horticulture Division at the Korea Rural Economic Institute, analyzed, "Heating costs account for more than 20% of expenses in facility vegetable farming, which can make farm operations difficult and may also affect production volume."

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