Up 16% in 2 Weeks but 'Not Over'... Tension Over 'Cattle and Pork Movement Restrictions'

Wholesale Price of Hanwoo Beef Rises 16% in May
Supply Instability Due to Foot-and-Mouth Disease Outbreak
Increased Demand During Holiday Season Also a Factor

With all-around price increases, the financial situation of ordinary people is becoming increasingly tight, and the outbreak of foot-and-mouth disease after four years has caused prices of livestock products such as beef and pork to surge, further increasing the burden on grocery bills. Concerns about the spread of foot-and-mouth disease remain, and demand is expected to continue rising through the summer vacation season, so the upward trend in meat prices is expected to persist for the time being.

According to the Livestock Products Quality Evaluation Service's Livestock Distribution Information on the 22nd, the average wholesale price of Korean beef (Hanwoo) was 15,162 KRW per kilogram as of the 19th, marking a 16.3% increase compared to the beginning of this month. The average wholesale price of Hanwoo, which was 13,036 KRW on May 1st, the first trading day of the month, showed an upward trend and even rose to 16,580 KRW on the 16th.

Pork prices are also rising. As of the 11th, the average wholesale price of pork was 6,380 KRW per kilogram, up 19.1% from a month earlier (5,356 KRW). Compared to the 1st (5,697 KRW), it became 12.0% more expensive in just ten days. As wholesale prices rise, retail prices are naturally increasing as well. Although the wholesale price slightly dropped to 5,744 KRW on the 19th, the consumer price of pork belly continued to rise, reaching 26,520 KRW per kilogram, a 16.4% increase compared to the beginning of the month (22,780 KRW).

Relatively inexpensive chicken is no exception. According to the Korea Broiler Association, the wholesale price of broiler chicken No. 9-10 per kilogram was 5,000 KRW as of that day, a 27.5% increase compared to the same day last year (3,923 KRW). This price is also about 16.5% higher than the average price over the past year (4,292 KRW). The broiler price, which was 4,846 KRW at the beginning of this month, rose to 5,154 KRW on the 10th, then slightly declined but still remains in the 5,000 KRW range.

The recent rise in livestock product prices is attributed to increased demand due to more gatherings and company dinners as COVID-19 transitions to an endemic phase, combined with concerns over supply disruptions caused by foot-and-mouth disease. According to the government, foot-and-mouth disease occurred at a Hanwoo farm in Cheongju, Chungbuk Province on the 10th. This is the first outbreak in South Korea in four years and four months since January 2019, causing fluctuations in prices of livestock products such as beef and pork. If the government strengthens quarantine measures such as restricting the movement of cattle and pigs to prevent the spread of foot-and-mouth disease, supply disruptions of livestock products may occur.

Additionally, increased dining-out demand due to May being the month of family celebrations has also fueled the rise in livestock product prices. Pork prices typically rise from spring to summer, when demand increases due to gatherings and outings, and then fall after Chuseok. This year, the transition to endemic has increased gatherings and company dinners, boosting demand, while the prices of grains used in pig feed and breeding costs have also risen, acting as additional factors for price increases.

As wholesale prices of livestock products rise, the burden of dining-out costs is also increasing. According to the Korea Consumer Agency's Chamgagaek, the average price of pork belly (200g) last month was 19,236 KRW, up 12.1% from a year ago, approaching 20,000 KRW, and during the same period, Samgyetang (ginseng chicken soup) also rose 12.7% to an average of 16,346 KRW.

With the burden of food prices increasing, the upward trend in livestock product prices is expected to continue for the time being. Concerns about the spread of foot-and-mouth disease remain, and although culling due to foot-and-mouth disease is limited, it continues, and movement restrictions are also expected to last until the end of this month. Pork is also a product whose price tends to rise due to increased demand every summer, which is likely to have an impact. However, the government assesses that the possibility of nationwide spread of foot-and-mouth disease is low due to vaccination, and expects the likelihood of a sharp rise in livestock product prices to be low.

The outlook for broiler prices is also not optimistic. Despite increasing demand, slaughter volumes in May and June are expected to decrease. Lee Hyung-woo, head of the Livestock Observation Team at the Korea Rural Economic Institute, predicted, "Due to a decrease in the number of breeding hens and a decline in productivity, the number of slaughtered chickens in May is expected to decrease by 7.7% compared to the average year, and by 8.7% in June." However, he added, "There is a possibility that the number of slaughtered chickens may increase beyond the forecast as breeding hen productivity recovers."

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