Spring Season Production Volume Fully Shipped... Vegetable Prices Recovering Stability

'Major Vegetable Supply and Demand Trends and Outlook'
March Agricultural and Livestock Product Consumer Prices Up 0.3% Month-on-Month
Government Continues Stability Measures Including Release of Stockpiled Supplies

Vegetable prices are analyzed to have stabilized due to improved weather conditions and the full-scale shipment of spring production.

On the 9th, the Ministry of Agriculture, Food and Rural Affairs released a report titled "Supply and Demand Trends and Outlook for Major Vegetables" containing this information. Kim Jong-gu, Director of Distribution and Consumption Policy at the Ministry, stated, "Although prices of some vegetables were high due to production decreases caused by cold wave damage at the end of January, they are gradually stabilizing following favorable weather and the full-scale shipment of spring produce since mid-March." Wholesale prices of onions, which had maintained high prices, have been falling since mid-March with the shipment of early-season onions, and supply stability is being promoted through measures such as applying import vegetable tariff quotas and releasing government stockpiles for other vegetables.

Last month, the consumer price inflation rate for agricultural and livestock products was 0.3% compared to the previous month and 2.3% compared to the same month last year.

Starting mid-March, early-season onions from Jeju Island for the 2023 crop have been shipped, gradually lowering wholesale prices, and consumer prices are expected to stabilize progressively with some time lag. The cultivation area for mid-late season onions, which will be shipped from June, is about 15,000 hectares, a 3.3% increase from the previous year, and production is expected to increase by approximately 15.6% compared to last year. The Ministry plans to coordinate with self-help organizations to encourage early shipment of early-season onions and monitor the growth status of mid-late season onions to respond promptly to changes in weather conditions such as drought.

In the case of napa cabbage, winter napa cabbage production increased by 12.8% and 4.4% compared to the previous year and the average year, respectively, leading to lower prices. The storage volume of winter napa cabbage shipped until early May has also increased compared to last year, so low prices are expected to continue for the time being. To prepare for poor spring and summer napa cabbage harvests due to abnormal weather such as drought or heavy rain, the Ministry announced a prior government purchase and stockpiling of about 8,000 tons of spring napa cabbage on the 22nd of last month.

Radish prices remain high due to reduced production caused by cold wave damage in Jeju in January. Storage volume has also decreased, so prices are expected to remain somewhat high until early June when open-field spring radishes are shipped in earnest. To stabilize radish supply, the government has been supplying 50 to 100 tons daily of government stockpiles to wholesale markets since the 6th and plans to secure stockpiles through contract cultivation of about 7,500 tons with Jeju farmers. Prices of imported radishes, mainly used for processed products such as pickled radish and ssammu (radish wraps), have also risen, and an import tariff quota (tariff rate from 30% to 0%) will be applied to imported radishes during the first half of the year.

Garlic production fell by 11.6% compared to the previous year due to poor crop conditions in 2022, but peeled garlic prices have remained similar to last year due to the release of 1,600 tons of government stockpiles. The cultivation area for the 2023 crop is 25,000 hectares, a 4% increase from the previous year, and production is expected to increase by 12.6% to about 328,000 tons. The government plans to continue releasing stockpiles and prepare supply stabilization measures if necessary.

For potatoes, production of open-field spring potatoes and highland potatoes in 2022 decreased by 14.1% and 14.6% compared to the previous and average years, respectively, maintaining a 12.3% price premium due to a shortage of stored potatoes in 2023. However, the cultivation area for facility spring potatoes increased by 2.2% and 1.8% compared to the previous and average years, respectively, and favorable weather conditions predict an increase in shipments from mid-April. To address the shortage of stored potatoes, the government is supplying 60 to 100 tons of stockpiled potatoes daily to wholesale markets, so prices are expected to gradually stabilize. The Ministry plans to stabilize supply by purchasing and stockpiling 6,500 tons of open-field spring potatoes and applying an import tariff quota (from May to November, 12,810 tons, tariff rate from 30% to 0%) for potatoes used by confectionery companies.

For facility vegetables, growth was generally delayed due to a cold wave in late January and reduced sunlight in mid-February, leading to decreased shipments and higher prices. However, since mid-March, rising temperatures and expanded shipments of cucumbers and zucchini have rapidly brought prices into a stable trend.

The Ministry supports a 20% discount (30% at traditional markets) up to 10,000 KRW per person weekly for items with prices higher than the previous and average years. Onions are the discount target until the 12th. Detailed information can be found on the ‘Agricultural Food Information Nuri’ website.

Additionally, the Ministry will continue monitoring supply and demand for items expected to have strong prices and expand supply through releasing stockpiles and securing additional cultivation areas.

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