The government and meat processing industry are slashing supply prices of major pork cuts, a staple protein for Korean consumers, by up to 30%. As food prices surge amid the ripple effects of Middle East conflicts, price reduction momentum is spreading across the food industry from instant noodles and confectionery to meat products.
According to the Ministry of Agriculture, Food and Rural Affairs on Tuesday, major meat processing companies have decided to lower supply prices for pork leg, pork belly, and pork shoulder cuts this month. The preemptive move comes as demand for popular cuts such as pork belly is rising due to recovering dining-out demand and increased outdoor activities in spring, intensifying upward pressure on prices.
For pork leg, primarily used in processed foods, three companies will reduce prices by an average of 4-5% for 750 tons of supply. For pork belly and shoulder, five companies will participate, supplying a total of 288 tons at prices reduced by an average of 5.9% and up to 28.6%.
Meat prices have shown a clear upward trend recently. According to the March Consumer Price Trend released by the National Data Center on the 2nd, the consumer price index last month stood at 118.80 (2020=100), up 2.2% year-on-year. Livestock product prices in particular rose 6.2% during the same period, far exceeding the overall inflation rate and adding to consumers' perceived price burden.
The rise in pork prices is attributed to a combination of factors. Supply instability has persisted due to reduced herd numbers and supply disruptions from the spread of African Swine Fever (ASF) this year, while production costs have increased from rising feed grain and energy prices. Adding to this, raw material prices and shipping costs have climbed due to recent Middle East instability, amplifying upward pressure on prices.
The food industry has been rolling out price cuts recently to help stabilize prices. Following the instant noodle and confectionery industries, which lowered prices on some products citing stable raw material costs, the meat processing industry has now joined the effort, extending the trend across product categories.
"It is significant that the meat processing industry is cutting supply prices despite difficult conditions including the fallout from the Middle East situation," Minister of Agriculture, Food and Rural Affairs Song Mi-ryeong said. "We will work to improve the livestock distribution system to be more fair and transparent and to reduce distribution costs."