Strawberry prices in South Korea are increasing during the winter period, while growers report difficulties marketing fruit profitably. The situation reflects a divergence between rising consumer prices and pressure at the farm level linked to processing demand and distribution structures.
According to data from the Korea Agro-Fisheries & Food Trade Corporation's Agricultural Products Distribution Information system, the retail price of strawberries stood at 2,820 won per 100 grams (about US$2.09) as of the 2nd. This is around 16 per cent higher than the previous year's average price of 2,430 won (about US$1.80) and roughly 24 per cent above the multi-year average of 2,275 won (about US$1.69). On this basis, prices exceed 14,000 won per 500-gram pack (about US$10.40). The wholesale price for a 2-kilogram box was reported at 45,980 won (about US$34.10), up around 36 per cent year on year and about 41 per cent compared with an average year.
Market analysts attribute the price rise to stronger seasonal demand toward the end and beginning of the year. Demand for strawberries has expanded in the food sector, with strawberries increasingly used for cake decoration and dessert products. As a result, prices for medium-grade strawberries have moved closer to those of higher-grade fruit. Analysts expect prices to remain elevated in the short term due to seasonal patterns and promotional activity by food companies.
At the farm level, however, conditions are more constrained. According to reports cited by KBS, some strawberry growers have discarded fruit in the field or reduced harvests. This is linked to limited intake by processors and increasing use of imported frozen strawberries. Imported frozen strawberries are reportedly priced at around half the cost of domestic strawberries. In the previous year, imports of frozen strawberries for processing rose by more than 30 per cent year on year to over 16,000 tons.
Production costs are also affecting competitiveness. The Rural Economic Research Institute has pointed to ageing labour availability, rising labour costs, input costs, and distribution expenses as factors reducing the competitiveness of domestic strawberries. These cost structures make it difficult for domestic producers to compete with imported frozen products.
As consumer demand weakens at higher retail prices and producers face limited processing options, calls are increasing for changes in distribution practices. Researchers stated, "The strong strawberry prices are not due to poor crop conditions, but to abnormal distribution structures and failure to adjust supply and demand, and it is a typical economic deterioration agricultural product that does not lead to farm household income," adding, "We need to open up trading practices and margins."
Source: Maeil Business Newspaper
