South Korea is grappling with a pressing issue: a scarcity of apples leading to skyrocketing prices, dubbed the "appflation" crisis. Wholesale apple prices have surged to 5,414 won ($4.11) per kilogram, marking a staggering 97.33% increase from the previous year. This sharp rise in apple prices has also contributed to a substantial 41.2% year-on-year increase in overall fresh fruit prices, the largest surge seen in over three decades.
The root cause of this crisis lies in a multitude of factors. Apple production in South Korea has plummeted by 30% in 2023 compared to the previous year, mainly due to adverse weather conditions exacerbated by climate change. Spring frosts, cold spells, frequent rains, and outbreaks of apple anthracnose have severely hampered apple production, leading to a significant shortage in the market.
Moreover, challenges abound in the realm of apple farming. The effects of climate change are gradually shifting ideal apple-growing regions, making traditional areas less viable. Notably, regions like Daegu and North Gyeongsang Province, once primary apple-growing areas, are witnessing declines in apple-farming acreage. Conversely, Gangwon Province has seen a surge in apple orchards, signaling a shift in the country's apple production landscape.
Compounding these challenges is South Korea's strict regulatory environment regarding fruit imports. Despite the dwindling local production, stringent regulations prevent the importation of foreign apple varieties, exacerbating the shortage and contributing to the escalating prices.
Looking ahead, the outlook remains bleak for South Korea's apple industry. The long-term implications of climate change, coupled with an aging population of apple growers, paint a grim picture. Urgent measures are needed to address these challenges, including adapting farming practices to changing climatic conditions and revisiting import regulations to ensure a steady supply of apples in the market. Failure to act decisively could further exacerbate the "appflation" crisis, impacting both consumers and growers alike.
Source: kedglobal.com