Food prices surge as extreme weather, consumption vouchers deepen supply-demand gap
Napa cabbage and radishes are displayed at a large supermarket in Seoul, Tuesday. Yonhap
Food prices are climbing sharply in Korea as supply struggles to keep pace with rising demand, government officials and market observers said Thursday.
While extreme weather conditions this summer — including torrential rains and heat waves — have disrupted the production of agricultural, livestock and fishery products, demand has surged following the distribution of government-issued voucher-based cash handouts, they added.
According to data from the Korea Agro-Fisheries & Food Trade Corporation, the retail price of a head of napa cabbage reached 6,349 won ($4.60) as of Tuesday, a 74.7 percent spike from 3,639 won a month earlier, driven by a decline in yields due to the summer heat.
Spinach prices soared 81.1 percent to 2,109 won per 100 grams over the past month. Other key vegetables have also seen significant increases, with cabbage prices rising 23.2 percent, the price of 100 grams of lettuce climbing 38.8 percent and radish prices increasing by 29.7 percent.
As for fruit, a bundle of 10 apples was priced at 31,061 won as of Tuesday, marking a 7.7 percent increase from 28,826 won the previous month and a 4.4 percent rise from 29,744 won a year earlier.
The average price of a watermelon reached 32,581 won, jumping 30.6 percent from the previous month and 14.8 percent compared to the same time last year.
“Recent cycles of scorching heat and torrential rain have increasingly hindered the growth of crops and livestock,” an official from the Ministry of Agriculture, Food and Rural Affairs noted.
The consumer vouchers distributed by the government since July 21 are also cited as a factor contributing to rising food prices.
In a recent survey by the Korea Rural Economic Institute, 54.4 percent of respondents said they planned to purchase more fruit and vegetables after receiving the vouchers. In fact, agricultural and livestock goods accounted for the largest share of voucher spending, making up 34 percent.
Market observers noted that as supply falls due to adverse weather while demand rises, the resulting imbalance is amplifying inflationary pressure on food prices.
In response, the government is intensifying its inflation control efforts with frequent monitoring of food prices and various stabilization measures.
“In an effort to address poor napa cabbage yields, we have doubled the supply of reserve stock, releasing 200 to 300 tons daily to wholesale markets,” the agriculture ministry official said. “We are also supporting rain-damaged regions by providing backup seedlings and distributing treatment products to help reduce heat-related damage to apples.”