Government struggles to contain meat prices

By Kim Tong-hyung

A full-blown meat crisis has fallen on Korean supermarkets, where butchers and consumers are reeling from falling supplies and rising prices, thanks to the country’s ineptitude in containing the foot-and-mouth outbreak.

Add this to the problems created by poor weather and a fresh avian flu outbreak that are combining to elevate poultry prices, it seems as there was never a better time to be vegetarian.

The government is promising to use ``every means possible’’ to suppress meat prices from climbing further, but the bold speechifying confesses to a lack of options as policymakers look woefully out of tricks aside of extra imports. The discomfort over prices has become even greater as the Lunar New Year’s holiday approaches.

``We are seriously concerned over the supplies of pork, which have dramatically declined due to the foot-and-mouth outbreak. Every possible measure will be considered to aggressively attack this problem, including increasing imports,’’ vice finance minister Yim Jong-yong said during a meeting between government agencies over anti-inflation policies.

``The Ministry of Food, Agriculture, Forestry and Fisheries and National Agricultural Cooperative Federation (Nonghyup) will be investigating farms, retail and import companies to examine the supply situation, and there will be discussions about improving financial support provided to them. We will be importing major agricultural products like cabbages and garlic as soon as possible to increase supply during February.’’

As part of stabilizing meat prices, the finance ministry has eliminated the 25-percent tariffs on 60,000 tons of pork through June, and is considering increasing this volume.

Around 2.8 million farm animals, including 2.4 million pigs, have been culled since last November, when the first case of foot-and-mouth was reported at a farm in North Gyeongsang Province, and the restrictions placed on the movement and slaughter of livestock are beginning to make an impact on price tags.

According to government officials, the recent retail prices of pork rose by an average of 28 percent compared to last year, and beef prices have been inflating dramatically too.

The country is relying on imports to plug the supply gap, but this also results in extra cost in the retail process, which is starting to be felt by consumers. The import prices of beef jumped 25.1 percent per kilogram in January compared to the same month last year, while pork prices jumped 16.7 percent during the same period, according to the Korea Customs Service.

The winter weather, which has been affecting the production of vegetables, eggs and newborn chickens and ducks, is also providing a challenge to price stability. The situation could worsen quickly should the government fail to control the avian flu outbreak.

According to the Korea Poultry Association, the average price of a whole chicken currently stands at 2,200 won, up 37 percent from the 1,600 won a month earlier.