Pork Price Skyrocketing
By Kim Hyun-cheol
Staff Reporter
Poor man's beef is losing its virtue. The upswing amid overall inflation and controversy over U.S. beef imports resumption is seeing local pork prices surge to increase the burden on ordinary customers.
The average pork price reached 4,517.4 won ($4.4) per kilogram in May, up 658.8 won or 23 percent, from January's 3,858.6 won, according to data from the Korea Swine Association (KSA).
The upturn is even bigger in retail outlets, where "samgyeopsal,'' or belly meat strips, was being sold at 2,050 won per 100 grams at E-Mart Monday, up over 33 percent from 1,540 won in January.
During the same period, the price of shoulder loin jumped 38.5 percent to 1,800 won at the same retailer. Foreshank and hindshank were sold at 960 won and 840 won, respectively, up 50 percent and 44.8 percent from five months ago.
"We don't see any fall in pork prices coming in the near future,'' an E-Mart official said. "Demand for pork is constantly growing and samgyeopsal is consumed the most in the summer as a holiday season. Additionally, pork supply is slumping.''
Sales of pork last month increased by 20 percent year-on-year to surpass those of beef, which fell by 10 percent, the nation's biggest discount store retailer added.
The slaughtering of pigs has also fallen by nearly 10 percent from last year due to soaring fodder prices, which started late last year as corn prices were boosted on the global market and high oil prices led to a steep hike in shipping costs.
The number of pig-farming households also decreased to 7,900 nationwide as of March, from 10,800 a year earlier. This means about 27 percent of pig breeders turned their backs on the business during the period.
The recent increase in demand is mostly attributable to local consumers' aversion to other kinds of meat over fears of mad cow disease and avian influenza, causing a sharp rise in pork prices. Already existing demand, however, would have caused the rise even without those particular issues, the KSA says.
"There will be no significant fall in pork consumption even though U.S. beef imports resume,'' said Lee Kwang-ho, a senior clerk of the KSA Guidance and Planning Department.
The official also said the current bullish pork prices are likely to fall in autumn.
"Pork prices initially tend to go down from September as supplies go up at that time. If local customers ever get more familiar to consuming U.S. beef by that time, price drops could be even larger.'' Lee said.
"Everybody seems to be scared of the idea, but no one knows how long it will last either.''