Korean government calculates fresh money subsidy for farmers

The global cereal price crisis is weighing heavily on countries such as South Korea, which has to depend on imports for food supply, and especially the sharp increase in animal feed prices, which has put additional pressure on the food industry. household spending.

Tracking platforms show that South Korea's consumer inflation rose much faster than forecast and hit its highest level in more than 13 years in April. Accordingly, the consumer price index rose 4.8% last month compared with last year's period, higher than the increase of 4.4% shown in a recent Reuters survey.

According to a report by China Media Group (CMG), as of Thursday this week, the price of pork belly - meat commonly loved by Koreans - has climbed to 150 yuan/kg, equivalent to 22. USD 4/kg, up 20% from last month.

The reason for sharp increase in the price of pork was mainly due to the increase in the price of pig breeds and the price of animal feed. According to official data, the pork producer price index in Korea increased by 28.2% in April. In addition, continued high feed costs also pushed up the prices of chicken and poultry eggs.

According to data from CMG, a chicken farmer in South Korea said that the cost of raising his family's farm has increased by 42,000 yuan per day ($6,272), or 50% more than last year, due to prices. animal feed increased.

CMG has conducted a price survey at a number of large-scale supermarkets and local markets in Korea, showing that the price of poultry eggs has also increased by about 10% compared to the previous month.

Analysts said that Korean consumers will most likely face higher costs as world cereal prices are still on the rise. Meanwhile, the Korean government said it is considering a cash subsidy for livestock farmers to support the purchase of animal feed, in order to ensure the domestic food supply.

Studies show that Korea's food self-sufficiency performance is the lowest among member countries of the Organization for Economic Cooperation and Development (OECD).