FAS/Seoul Monitoring of Media Reporting on Agricultural Issues 

Today's Date: Friday, September 6,  2024

For Coverage:  August  31 ~ September 6, 2024

Rising Prices Impact Chuseok Gift Sales
https://www.koreatimes.co.kr/www/biz/2024/09/126_381896.html
Summary:  This year, Chuseok gifts sales are being affected by inflation as consumers face high living costs despite consumer prices easing down to 2 percent in August, the lowest level in nearly three and a half years. According to a Korea Consumer Agency (KCA) survey, 54.3% of the 895 Chuseok gift sets are priced between 10,000 and 40,000 won ($29.80). The KCA said that the supply of gift sets in this price range increased by 7.5% nationwide compared to the previous year and by 10.5% at discount store chains. The KCA also noted that the findings show consumers are looking for low-priced gifts despite inflation moderation and shrinkflation.

Growing Demand for Ultra-low-price Products
https://news.mt.co.kr/mtview.php?no=2024090513140965002
Summary:  The YONO (You Only Need One) trend in Korea has led to surging demand for products priced at less than 1,000 KRW. To meet demand, the food industry is beginning to showcase an array of low-cost options. CU, a convenience store chain, has introduced chocolate-flavored and strawberry-flavored milk at 990 KRW each, half the price of their usual products, by minimizing unnecessary marketing costs. CU also saw a 23.3% year-on-year sales increase in the less-than-1,000 KRW product category in 2022, compared to 10.4% in 2021. A hypermarket chain, HomePlus, launched a canned beer product at 1,000 KRW last month and 70,000 units were sold within three days. Typically, ultra-low-price products are used as bait items to attract consumers in the beginning. However, as the number of price-sensitive consumers is growing amid prolonged high living costs, the industry is positioning the ultra-low-price products as key reasons why consumers visit stores.

Climate Change Puts Korea’s Beloved Cabbage Dish at Risk
https://www.koreatimes.co.kr/www/nation/2024/09/371_381750.html
Summary:  Korea’s famous kimchi is increasingly falling victim to climate change. Napa cabbage, which is the main ingredient of kimchi, thrives in cool climates and is usually planted in mountainous regions where optimal temperatures are between 18 and 21 degrees Celsius. However, new studies show that warmer weather is now threatening these crops and Korean producers might not be able to grow napa cabbage in the future due to rising temperatures. According to government statistics, the area of highland cabbage farmed last year was less than half (3,995 hectares) of what it was 20 years ago (8,796 hectares). In addition, climate change scenarios by the Rural Development Administration project the farmed area of cabbage in Korea’s highlands to shrink dramatically in the next 25 years, to just 44 hectares, with no cabbage grown in the highlands by 2090. Kimchi imports through the end of July of this year were up 6.9 percent, to $98.5 million, driven by lower-priced kimchi imported from China that is primarily served by restaurants. The government relies on large, climate-controlled storage facilities to prevent price spikes and shortages, but scientists are also trying to develop crop varieties that can grow in warmer climates and that are more resilient to significant fluctuations in rainfall and infections.

Record-high Exports of Ramen, Snacks, Beverages and Rice Processed Food
http://www.foodnews.co.kr/news/articleView.html?idxno=109702
Summary:  According to the Ministry of Agriculture, Food and Rural Affairs (MAFRA), agricultural food product exports from January to August this year totaled $6.48 billion, an increase of 8.7% compared to the same period last year. Exports of ramen, snacks, beverages, and processed foods containing rice, which are the top export items, reached an all-time high. Ramen exports increased 31.7%, to $800 million, over the same period last year, largely driven by the popularity of spicy ramen. Snack and beverage exports also increased by 10%. Among the major items, the product with the highest growth rate was processed foods containing rice, such as instant rice and frozen kimbap, showing a 41.7% increase from the same period last year. Exports to the United States, in particular, increased 22.8% year-on-year, to $1 billion, on the growth of ramen and processed foods containing rice. MAFRA is focused on expanding into the southern region of the United States, where K-food is less well known by increasing promotion, marketing, and working with large-scale distribution stores.

Consumer Prices for Agricultural and Livestock Products in August Rise 2.5 Percent from Last Year
http://www.foodnews.co.kr/news/articleView.html?idxno=109694
Summary:  According to Statistics Korea, the consumer price inflation rate for agricultural and livestock products, which soared to 13.1% in March, fell to 2.5% in August compared to the same month last year.  Among agricultural products, fruit prices fell 0.7% from the previous month due to increased production of seasonal fruits such as peaches and grapes but rose 9.4% from the previous year as apples and pear stocks were low from the previous year. Vegetable prices rose 16.3% from the previous month due to summer weather conditions such as heavy rains and heat waves but fell 1.7% from the previous year. Livestock product prices fell 1.5% from the previous month and rose 0.8% from the previous year due to smooth supply of all livestock species. Processed food prices and dining out rose 1.9% and 2.8%, respectively, and have continued to slow since the peak in September 2022. Meanwhile, the Ministry of Agriculture, Food and Rural Affairs is promoting measures to stabilize the supply and demand of Chuseok seasonal products in high demand, by expanding the supply of seasonal products and discount sales before Chuseok.