Ministry of Agriculture Launches Intensive Crackdown on Pork and Egg Hoarding: "Will Inspect Meat Processor Inventories"

Signs of Hoarding Pork Hind Leg Meat, the Main Ingredient in Sausages

"Will Investigate Whether Prices Were Artificially Raised"

Policy Improvements for Stabilizing Livestock Product Prices to Be Prepared by the End of May

The government has begun cracking down on hoarding of pork, eggs, and related products. This action comes after authorities discovered signs that some meat processing companies may be stockpiling pork hind leg meat—the primary raw material for processed meats such as ham and sausages—for extended periods in order to drive up prices.

According to the Ministry of Agriculture, Food and Rural Affairs on March 13, the government plans to conduct on-site inspections of pork hind leg meat inventories held by the top six major meat processing companies: Dodram Pig Farmers’ Cooperative, Bugyeong Pig Farmers’ Cooperative, Daejeon Chungnam Pig Farmers’ Cooperative, Farm Story, Farmsco, and Daesung Industrial.

A representative from the Ministry explained, "Since February this year, we have been operating a task force to review the distribution structure. During this process, concerns were raised that certain companies were holding excessive inventories in anticipation of price increases. We will examine whether there are any unfair practices, such as the current status of companies' inventories, and investigate whether prices have been artificially raised."

Additionally, the Ministry is considering various measures to root out unfair practices, such as excluding from policy funding support—starting this year—the following nine companies that were sanctioned by the Fair Trade Commission for price collusion: Daesung Industrial, Daejeon Chungnam Pig Farmers’ Livestock Cooperative, Bugyeong Pig Farmers’ Cooperative, CJ Feed & Care, Dodram Food, Bodam, Sunjin, Farm Story, and Haedream LPC.

Furthermore, the Ministry is closely examining reports that "some layer farms are demanding extra payments from distributors" to determine whether such transactions constitute unfair practices. The Ministry plans to implement institutional measures to prevent these issues.

The spokesperson added, "We will do our utmost to stabilize prices for essential goods by regularly and intensively inspecting the market for practices that disturb the market in pursuit of excessive profits. By the end of May, we will prepare policy improvement measures to stabilize livestock product prices."