Apple→Gamgyul→Orange... Domino Rise Triggered by Applelation

Government Direct Import of Bananas and Oranges 2000t
Monthly Import Volume Only 8% and 4.4%
Apple and Pear Substitutes Cause Tangerine Prices to Rise
Orange Prices Also on the Rise

The government’s injection of 150 billion won in emergency price stabilization funds for agricultural and livestock products has led to a rebound in the prices of apples and pears, which had previously declined. Amid the continued rise in seasonal fruit prices, including tangerines, due to the soaring apple prices, the government plans to stabilize fruit prices by directly importing 2,000 tons of imported fruit. However, market experts argue that this measure is insufficient.

According to the agricultural product distribution information from the Korea Agro-Fisheries & Food Trade Corporation (aT) on the 21st, the retail price of 10 apples (Fuji, standard grade) was 23,776 won as of the 20th, up 0.2% from the previous day (23,725 won). Apple prices had exceeded 30,000 won (30,877 won) on the 7th of this month but then fell about 20% until the day before and have since fluctuated.

Apple and Pear Prices Stalled Then Rebounded... Government’s Direct Import Volume Also Small

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, appeared quiet. Photo by Jo Yongjun jun21@

The retail price of 10 pears (Shingo, standard grade) was 41,594 won, up 0.3% from the previous day (41,486 won). Compared to a year ago (27,273 won), the price is about 14,000 won higher.

The government held an 'Emergency Agricultural and Food Supply Stability Meeting' the day before and decided to directly import 1,400 tons of bananas and 600 tons of oranges within this month to supply them to supermarkets at prices 20% lower, aiming to disperse demand for the sharply rising apples and pears.

However, the volume supplied this time is grossly insufficient, and especially for oranges, which are more expensive than usual, it is pointed out that this will hardly help. According to the Korea Customs Service, 2,532 tons and 7,431 tons of oranges were imported in January and February this year, respectively. Bananas were imported at 31,056 tons and 31,446 tons during the same period. Based on last month’s import volume, the additional supply by the government corresponds to only 8% for oranges and 4.4% for bananas.

Unlike bananas, which show relatively stable prices, orange prices are high. According to agricultural product distribution information, the retail price of 10 oranges (Navel, U.S., standard grade) was 16,236 won as of the 20th, 4.3% higher than last year (15,561 won). Orange prices exceeded 17,000 won on the 7th of this month at 17,197 won but have since fluctuated around 16,200 won since the 15th.

The problem is that despite the government applying tariff quotas to stabilize fruit prices, orange prices have actually risen. Oranges have had their tariffs reduced from 50% to 10% starting January 19th due to tariff quotas and have been subject to 0% tariffs since this month, yet prices have increased compared to the previous year.

An industry insider said, "Orange prices have risen due to increased labor costs at production sites and exchange rate effects," adding, "The additional banana supply by the government only covers about two days’ worth, so it is difficult to expect fruit price stabilization."

Price Increases Extend to Substitute Fruits... "Need to Monitor the Situation Further"

The rise in orange prices is also influenced by the increase in prices of similar fruits like tangerines. Tangerine prices have risen alongside apples and pears. The price hikes in some fruits have triggered a vicious cycle of price increases in other fruits. According to agricultural product distribution information, the wholesale price of a 5kg box of tangerines sold at Garak Market was 54,712 won on the 19th, which is 18.5% higher than last month (44,553 won). Compared to the price a year ago (26,190 won), this is a 52.1% increase.

Apple and pear prices rose due to reduced production caused by last year’s abnormal weather and poor harvests. However, tangerine shipments have not significantly decreased, yet prices have shown the unusual phenomenon of rising by more than half. According to the Korea Rural Economic Institute, tangerine open-field shipments increased by 3.1% in December last year compared to the previous year and are expected to decrease by only 0.2% since January this year. The price increase in tangerines is attributed to the rise in prices of popular fruits like apples and pears. Consumers have chosen tangerines as substitutes for the more expensive apples and pears, driving up prices. The Korea Rural Economic Institute explained regarding the tangerine price increase, "Despite increased shipments, prices have risen compared to the previous year due to the price increase of substitute fruits."

Because some popular items are leading overall price increases, the distribution industry is wary of 'agflation'?inflation driven by rising agricultural product prices. According to the 'February Consumer Price Trends' released by Statistics Korea on the 6th, consumer prices last month rose 3.1% compared to a year earlier. Fruits and vegetables were the main contributors to the price increase, with apples up 71.0%, tangerines up 78.1%, and pears up 61.1% compared to the same month last year.

There are also forecasts that fruit and vegetable prices will continue to rise for the time being. The Korea Rural Economic Institute, in its 'Agricultural Outlook March Issue' report published on the 10th, projected that prices of major fruits and vegetables such as tomatoes, strawberries, and oriental melons will rise sharply compared to the same month last year. Wholesale prices of tomatoes and cherry tomatoes are expected to increase by 43.9% and 11.2%, respectively, while wholesale prices of strawberries and oriental melons are expected to be 17.7% and 5.1% higher than last year’s same month.

An industry insider said, "It is premature to talk about price stabilization just because prices of certain products fall," adding, "There may be short-term fluctuations, but it seems difficult for overall prices to return to normal levels before July, when new-season apples and other fruits come out."

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