'Applelation' Extends Until June... Why Are Apple Imports Not Allowed?

Apple Prices Soar... Quarantine Regulations
Short-Term Apple Imports Impossible
Distribution Industry "Prices Soaring Until New Apples Arrive"

As apple prices soar to unprecedented levels, calls for countermeasures are growing louder. While there are suggestions to consider imports to stabilize prices, it is pointed out that this is not easy due to strict quarantine procedures and the need to protect local farms. It is expected that the upward trend in prices will continue until the new apple harvest is released this year.

According to the Korea Agro-Fisheries & Food Trade Corporation (aT) on the 12th, the retail price of 10 apples (Fuji, premium grade) was recorded at 30,079 won as of the 8th. This is about 3,200 won higher compared to 26,838 won a month ago. Considering that the price of apples was 22,972 won a year ago, the price has surged by 23.6%.

The rise in apple prices is due to a decrease in apple orchards and a reduction in harvest caused by various disasters. According to Statistics Korea, apple production, which was 545,000 tons in 2017, sharply dropped to 394,428 tons last year. The cultivation area also increased from 23,355 hectares in 2017 to 26,302 hectares in 2021, but then decreased again to 24,687 hectares last year.

The impact of poor harvests is also significant. According to the Korea Rural Economic Institute, apple storage last year was a total of 203,000 tons, a 31% decrease compared to 292,000 tons the previous year. The institute explained, "Production decreased due to adverse weather during the growing season and disease outbreaks." Apples are generally very important as the spring blooming period largely determines the year's harvest. However, last March, unusually high temperatures caused apple blossoms to bloom early, and subsequent temperature drops led to severe cold damage, affecting production. Additionally, concentrated heavy rains in summer and anthracnose during the harvest period further negatively impacted apple farming.

Some suggest importing apples from abroad to stabilize prices. Unlike manufactured goods, it is impossible to quickly increase production in a short period for apples. However, the government is hesitant to make a quick decision on apple imports due to quarantine negotiations. The government has designated apples as a prohibited import item under the Sanitary and Phytosanitary Measures (SPS) to prevent the introduction of foreign pests and diseases.

Due to the surge in agricultural product prices, especially fruits, consumer prices, which had stabilized at 2.8% in January, returned to the 3% range within a month. On the 6th, a customer visiting the Hanaro Mart Yangjae branch in Seocho-gu, Seoul, hesitated to purchase apples. Photo by Jinhyung Kang aymsdream@

According to the Ministry of Agriculture, Food and Rural Affairs, a total of eight steps (receipt, commencement notification, preliminary risk assessment, individual pest risk assessment, risk management plan evaluation, draft quarantine requirements preparation, draft announcement, and official notification) must be passed to import fruits. For apples, quarantine negotiations are currently underway with 11 countries, but Japan, which started negotiations in 1992, remains at step 5. The United States and New Zealand have been stuck at SPS step 3 for about 30 years.

Considering that it takes an average of 8 years and 1 month to pass the eight-step quarantine negotiations, it means that apple imports are impossible in the short term. Song Mi-ryeong, Minister of Agriculture, Food and Rural Affairs, said at a press conference shortly after taking office, "Just because last year's apple harvest was poor and prices are high this year, importing apples immediately will not have an effect," adding, "Price strength is inevitable until the new fruit harvest."

There are also concerns that importing apples could lead to local farmers giving up cultivation, further reducing production. The Korea Rural Economic Institute, through a study titled 'Empirical Analysis of the Economic Effects of Lifting the SPS Import Ban on Apples,' estimated that if domestic consumers' preferences for domestic and foreign apples were the same as of 2015, the damage to the apple sector from imports could reach 408 billion won annually. In this case, the damage to the agricultural GDP is expected to reach 598 billion won.

The distribution industry is busy preparing countermeasures, anticipating that apple prices will continue to soar for the time being. A representative from a major supermarket explained, "Most apples sold at the beginning of the year are those harvested and stored from August to October of the previous year, released during this period," adding, "Since apple production cycles are aligned with one year, there is no easy way to lower prices in the short term."

Therefore, apple prices are expected to continue rising until June, when the new fruit harvest is released. However, if abnormal weather or pests and diseases similar to last year occur again this year, apple prices are expected to remain high even after July. According to the 'Agricultural Outlook 2024' report by the Korea Rural Economic Institute, the apple cultivation area is expected to decrease by about 1% annually from 33,800 hectares this year to 30,900 hectares in 2033. Another major supermarket representative said, "The new fruit harvest season for apples is usually around July," adding, "While we need to consider the weather conditions and various correlations in the first half of this year, it is highly likely that apple prices will continue to rise until June."

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