“What if even the kimchi goes up?”… Industry makes “all-out effort to expand supply and demand” as raw material prices rise

by times news cr

2024-04-28 07:29:46

2023.3.13/News 1

While producer prices have been on the rise for four consecutive months, prices of cabbage, onions, and garlic are on the rise, raising concerns about an increase in the price of commercially available kimchi.

According to the Korea Agro-Fisheries and Food Trade Corporation (aT) on the 28th, the average retail price of one head of cabbage as of the 24th was 4,578 won, up 21.3% from the previous month. This is a 9.1% increase compared to the previous year.

The average retail price of 1 kg of red pepper powder was 34,082 won, up 1.28% from the previous month and 1.83% from the previous year. The average retail price of 1kg of onions was 2,339 won, down 11.8% from the previous month but up 0.09% from the previous year.

According to the Bank of Korea, producer prices last month recorded 122.46, up 0.2% from a month ago. This figure has risen for four consecutive months, reflecting the impact of rising prices of agricultural, forestry and fishery products.

In particular, producer prices for agricultural, forestry and fishery products rose by 1.3% compared to the previous month, and cabbage in particular soared by 36.0% and onions by 18.9% compared to the previous month. Producer prices are the prices traded between companies (producers) before they are sold to final consumers, and are considered an indicator that precedes consumer prices.

As the prices of cabbage, onions, and red pepper powder are on the rise, the price of commercially available kimchi is also attracting attention.

According to Agricultural Policy Focus, published by the Korea Rural Economic Institute, last year’s survey of consumers’ panel intention to make kimchi showed that the rate of making kimchi themselves was decreasing, while the purchase of commercially available kimchi was increasing.

In fact, sales of Daesang, CJ CheilJedang, and Pulmuone, which are leading the commercial kimchi market, are also on the rise.

In the case of Daesang Jongga House Kimchi, sales from January to March of this year increased by 18% compared to the same period last year. CJ CheilJedang recorded a 10% growth rate, and Pulmuone recorded a 5% growth rate.

The industry is cautious about the plan to increase the price of kimchi due to the increase in raw material prices. The explanation is that the government is emphasizing price stability and has secured stockpiles, so they will monitor future price fluctuations.

A Daesang official said, “Although agricultural product prices are on the rise, we believe there will be no problems with supply and demand so far as we have secured stockpiles through contract cultivation. However, we need to see the trend until the secured stocks are exhausted.” Regarding price increases, he added, “There are no plans as of yet.”

An official from CJ CheilJedang said, “We believe that the sales volume of packaged kimchi has increased compared to self-made kimchi due to the increase in raw material prices,” and added, “There are no plans to increase prices in the future.”

A Pulmuone official also said, “We are responding by securing three months’ supply in January and June each to prepare for times when supply and demand are difficult,” adding, “There is a risk of raw material increases, but we have no plans to increase prices yet.”

An industry official predicted, “It is a difficult situation with raw material prices rising, but there are government regulations and requests to stabilize prices, and each company is responding by securing stockpiles, so it will not be easy to raise prices for the time being.”

(Seoul = News 1)

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2024-04-28 07:29:46

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