"Has the All-Out Pressure on 'Distribution Profiteering' Worked?... Unleashed Applelation 'Stalls'"

Apple Prices Down 20% Compared to Early This Month... Recovering to Average Price Range
Government Invests 150 Billion Won to Stabilize Agricultural and Livestock Prices
Distribution Industry Also Launches Successive Agricultural and Livestock Discount Events
"Stored Apple Volume 30% Less Than Usual... Fundamental Measures Needed"

Since last year, the skyrocketing price of apples has turned into a downward trend. Government subsidies and discount events by the distribution industry aimed at curbing grocery prices appear to have driven apple prices down. However, there are also criticisms that government-level price reduction measures cannot be a fundamental solution, as the apple cultivation volume last year was lower than usual.

According to the Korea Agro-Fisheries & Food Trade Corporation (aT) on the 20th, as of the previous day (19th), the nationwide average price for 10 apples (Fuji), grade 상품 (premium), was 23,725 KRW. This is a 1.75% decrease from the previous day's price of 24,148 KRW. It is about 20% lower than the beginning of this month when prices exceeded 30,000 KRW, and even lower than the average mid-March price of 24,800 KRW in previous years.

The prices of fruits, including apples, have skyrocketed, causing an emergency in food prices. Not only consumers trying to buy fruits but also small business owners running fruit shops in the produce market are sighing deeply. On the 12th, the Garak Agricultural Products Market in Songpa-gu, Seoul, showed a quiet scene. Photo by Jo Yongjun jun21@

This is interpreted as the effect of government support measures introduced to curb grocery prices for fruits and vegetables. As agricultural product prices, including apples, continued to rise this month, the government decided on the 15th to inject an additional 150 billion KRW to stabilize prices of agricultural and livestock products. Specifically, 75.5 billion KRW will be allocated for delivery price support and 45 billion KRW for discount support. The Ministry of Agriculture, Food and Rural Affairs also provided discounts at marts, corporate supermarkets (SSMs), and traditional markets through agricultural and livestock product discount support projects.

The government and distribution industry launched discounts on agricultural and livestock products centered on apples because apple prices surged unusually. According to aT, the price for 10 Fuji apples reached 30,877 KRW on the 7th, setting a new annual high. This price is about 36% higher than the 22,749 KRW price for 10 apples in mid-March last year. Simply put, the price per apple rose to the 3,000 KRW range.

The distribution industry is also conducting discount events focused on apples and other agricultural and livestock products. Homeplus will sell '12 Brix Famous Region Fuji Apples (4-7 pieces)' for 8,750 KRW to My Homeplus membership customers during the 'Homeplus Price Stabilization Project' discount event starting on the 21st, which is explained as a price below 2,200 KRW per apple. Pears, strawberries, and oriental melons are also offered at discounted prices. Emart also sold apples and pears at discounted prices through 'Agricultural Product Discount Coupons' in cooperation with the Ministry of Agriculture.

The e-commerce industry has also joined in agricultural and livestock product discounts. Coupang started the 'Season Fruit Chance' event on the 18th, selling discounted fruits such as imperfect apples, strawberries, and tomatoes. Coupang purchased an additional 900 tons of fruit for this event. Through Rocket Fresh, which sells fresh products, imperfect apples (1.5 kg) are sold for 9,980 KRW, and Seongju sugar-selected oriental melons (1.2 kg) for 11,900 KRW. Kurly is holding the 'NH Nonghyup Card Win-Win Festival' and will sell agricultural and livestock products at discounted prices until the 31st. Gmarket and Auction are also offering 20% discount coupons applicable to fruit purchases until the 24th.

Although the government and distribution industry are making every effort to stabilize agricultural and livestock product prices, prices of other fruits such as pears and strawberries remain higher than average. According to aT, as of the 19th, the price for 10 Singo pears was 41,486 KRW, which is 11% higher than the average mid-March price of 37,225 KRW. Strawberries are also priced at 1,345 KRW per 100g, about 20% higher than the average price of 1,120 KRW.

There are also concerns that the recent apple price drop may be a 'temporary effect.' The fundamental cause of the price increase, the supply shortage, remains. According to the distribution industry, due to climate change and other factors, the volume of stored apples this year has decreased by nearly 30% compared to previous years. Although the price reduction effect was seen thanks to government subsidies and discount events by the distribution industry, prices could rise again at any time without such support measures.

These high fruit prices are expected to continue for the time being. This is because there is still a long period until the shipment season for major items such as apples and pears, which is July to August. A distribution industry official explained, "Although the government provides discount support for items with rising prices, ultimately, the price of agricultural and livestock products is determined by supply volume," adding, "Due to poor apple harvests last year, the supply of apples this year has unusually decreased, leaving almost nothing that can be done." The official also said, "Demand substitution measures such as allowing imported fruits are needed to increase supply."

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