Pork prices soaring on high demand in S. Korea

A passerby looks at the price of samgyeopsal in downtown Seoul on May 14. [Photo by Han Joo-hyung]

Pork prices in South Korea have risen by almost 20 percent over the past month due to a surge in demand for the popular meat. This uptick in demand is mainly driven by an increase in outdoor activities, such as camping and hiking, as the spring season sets in. Furthermore, the Korean government’s recent announcement of an end to the Covid-19 pandemic has led to expectations of a further increase in demand for pork, as gatherings and events are expected to pick up after three years of restrictions.

According to the Korea Institute for Animal Products Quality Evaluation on Sunday, the average wholesale price of pork was 6,380 won ($4.76) per kilogram as of May 11, representing an increase of 19.1 percent from 5,356 won per kg a month ago and 12.0 percent from 5,697 won on May 1.

Market observers attribute the recent rise in wholesale pork prices to the increased demand for pork. Pork prices tend to rise from spring to summer when demand for gatherings and outdoor activities increase. In May last year, the wholesale price of pork rose to 7,000 won per kg following the lifting of almost all COVID-19 social distancing rules.

The prices of grains used for pig feed, including soybean meal, have also risen significantly this year, raising concerns about additional pork price hikes. Soybean meal is a key raw material for mixed feed, and its supply sharply decreased recently as Argentina, which accounts for 45 percent of the world’s soybean meal exports, suffered a severe heat wave and drought in March, which is considered the worst in 63 years.

As a result, retail prices for pork are also rising. The consumer price per kg of pork stood at 25,930 won on May 11, up 14.9 percent from 22,570 won at the end of March, according to the data.

The average price per serving of samgyeopsal or pork belly (based on 200 grams) in March in Seoul was 19,236 won, up 12.1 percent from a year ago, according to data released by the Korea Consumer Agency at the end of last month. Reflecting the steep rise in pork wholesale prices since April, the average price per serving of grilled samgyeopsal, which is a representative restaurant menu for ordinary people, is expected to exceed 20,000 won soon.

“Just as many Korean beef restaurants have reduced the weight per serving of Korean beef to 130 grams instead of raising the price of Korean beef, more and more samgyeopsal restaurants are reducing the weight of the pork belly to 150 grams per serving,” said an official in the restaurant industry.

Meanwhile, the wholesale price of chicken has been hovering around 4,000 won since March after rising from 3,363 won per kg in January. The price of Korean beef was about 16,000 won per kg as of May 12, which is lower than about 19,000 won a year ago. However, foot-and-mouth cases have recently been confirmed in several Korean cattle farms in Cheongju, North Chungcheong Province, raising the possibility of a temporary price rise as quarantine measures are strengthened for cattle breeding farms and livestock facilities nationwide.