Onion prices, which had plunged, have rebounded nearly 80% in two months as NongHyup joined the government and local authorities in adjusting shipments and expanding sales channels.
NongHyup said on the 9th that the wholesale price of top-grade onions at Garak Market fell to an average of 570 won per kilogram in May this year but recovered to 1,022 won as of the 8th of this month. That represents an increase of about 79.3%.
This year, onion farmers experienced a sharp price decline as increased production was compounded by accumulated inventory of stored onions from last year. Inventory of stored onions from last year stood at 95,000 tons, 14,000 tons more than the average inventory of 81,000 tons.
In response, NongHyup worked with the government and local authorities to preemptively pursue market isolation and shipment adjustment of early- and mid-season onions. From June, when mid- and late-season onions began full-scale shipment, it implemented a price recovery plan worth 88.2 billion won.
Specifically, NongHyup allocated special interest-free funds to support the purchase of onions at production sites and their commercialization and sorting. It also expanded the volume shipped to NongHyup auction markets and the volume participating in joint marketing, and compensated for losses arising from the mid-season shipment deferral program.
NongHyup also expanded overseas sales channels in parallel. Through export logistics cost support and loss compensation, NongHyup expanded exports of domestic onions to Taiwan and other markets, working to disperse the domestic surplus. It also promoted consumption campaigns at Hanaro Mart stores nationwide, expanded military supply volumes, and provided onion juice at heat shelters and NongHyup gas stations. Earlier, in May this year, NongHyup also held an onion-selling event at the NongHyup Seoul headquarters in Gangdong-gu, Seoul, bringing together urban and rural NongHyup branches.
"The recovery in onion prices is a result that NongHyup, the government, and farmers achieved together," said Kang Ho-dong, chairman of the National Agricultural Cooperative Federation. "NongHyup will continue to closely monitor supply and demand conditions and do its best to ensure that farmers' efforts are fairly rewarded."
