Lunar new year Spurs Hanwoo, egg price surge

As the Lunar New Year holiday approaches, prices of livestock products such as pork and Hanwoo beef, as well as rice, have risen significantly compared to a year ago, increasing the financial burden on consumers' shopping baskets.

According to livestock distribution data from the Livestock Products Quality Evaluation Service on the 1st, the average consumer price of pork belly (100g) reached 2,691 Korean won as of the 28th of last month, a 6.0% increase from a year ago. This is 11.9% higher than the average annual price, calculated by excluding the highest and lowest prices over the past three years from 2021 to last year. Prices for pork loin and front leg meat also rose by 4.6% and 7.8%, respectively, compared to a year ago.

The surge in Hanwoo beef prices was even steeper. Hanwoo ribeye (100g) cost 12,607 Korean won, up 13.1% from a year ago and 5.1% above the average annual price. Brisket (100g), commonly used for braised dishes, rose to 6,734 Korean won, a 12.1% increase from a year ago and 5.2% higher than the average. Egg and chicken prices also jumped. Due to the impact of high-pathogenicity avian influenza (AI), the price of large eggs (10 pieces) surged 20.8% to 3,928 Korean won compared to last year, 11.8% higher than the average. Chicken meat (5,879 Korean won per kg) also increased by 5.5% and 3.3% from a year ago and the average, respectively.

Analysts attribute the rise in livestock prices to a combination of supply conditions and livestock diseases. According to the Korea Rural Economic Institute’s Agricultural Outlook Center, the number of Hanwoo cattle slaughtered in the first quarter (January–March) of this year is estimated to decrease by 6.5% to 220,000 head compared to the same period last year. African swine fever (ASF) and the spread of high-pathogenicity AI reduced pork and chicken shipments.

Imported beef, relatively cheaper than Hanwoo, also saw significant price hikes due to high exchange rates. U.S.-produced chilled chuck eye roll (100g) jumped 12.1% and 20.8% to 3,853 Korean won compared to a year ago and the average, respectively. Although tariffs on U.S. beef dropped to 0% this year under the Korea-U.S. Free Trade Agreement (FTA), down from 1.2–4.8% last year, consumer prices rose due to the weakening won against the dollar.

Rice prices also hit a three-month high. According to data from the Korea Agro-Fisheries & Food Trade Corporation on the 1st, the average retail price of 20kg of rice exceeded 65,000 Korean won for two consecutive days on the 29th and 30th of last month. As of the 30th, it stood at 65,302 Korean won, 22.8% (over 12,000 Korean won) higher than last year’s 53,180 Korean won and 20.6% above the average.

With increased demand for rice in Lunar New Year dishes like rice cake soup, rice cakes, and sweet rice punch, many consumers are feeling the burden of double-digit price hikes compared to last year. The Ministry of Agriculture, Food and Rural Affairs initially announced plans to isolate 100,000 tons of excess rice from the market but suspended the plan on the 23rd of last month after prices remained high for months. The ministry expects that its decision to supply an additional 60,000 tons of rice for processing, instead of market isolation, will take effect within this month, though the impact has not yet been reflected in the market.