Shine Muscat falls 45%, zucchini 54% as higher output weighs on prices

Tomatoes, zucchini to be added to discount program Thursday; export support, supply controls also planned

[Getty Images Bank]
[Getty Images Bank]

Prices for major farm produce — including paprika, Shine Muscat grapes and zucchini — have fallen by as much as 50 percent or more from average levels, driven by favorable growing conditions that boosted output and, in some cases, sluggish consumer demand. While shoppers are benefiting from lower prices, the government has stepped in with discount events, consumption-promotion campaigns and export support to ease the financial strain on farmers.

The Ministry of Agriculture, Food and Rural Affairs said Monday it is working with producer associations, the National Agricultural Cooperative Federation and local governments to roll out measures to boost consumption of farm produce — including paprika, tomatoes and Shine Muscat — whose prices have fallen sharply.

Agricultural prices have broadly stabilized in recent months. The farm produce consumer price index fell 4.0 percent in September from a year earlier, a stark contrast to the 2.9 percent rise in overall consumer prices over the same period.

Zucchini and paprika have seen the steepest declines. Early this month, the wholesale price of zucchini stood at 9,716 won per 20 units, down 54.2 percent from the average and 62.8 percent from a year ago. Paprika was priced at 18,304 won ($14) per 5 kilograms, down 47.7 percent from the average and 55.6 percent from a year earlier.

Shine Muscat grapes were selling at 6,039 won per 2 kilograms, 45.2 percent below the average and 24.4 percent cheaper than last year. Cucumbers were priced at 40,443 won per 100 units, down 25.1 percent from the average and 29.7 percent from a year ago.

The wholesale price of tomatoes stood at 17,421 won per 5 kilograms, 27.2 percent below the average. However, that figure is 22.8 percent higher than the same period last year.

Paprika and tomato prices have fallen as shipments from Gangwon Province — boosted by favorable weather — have overlapped with deliveries from the Honam and Yeongnam regions. For Shine Muscat, weak demand combined with the full-scale arrival of open-field harvests has weighed on prices. Cucumber and zucchini prices have also dropped due to increased supply.

The government is expanding discount programs to stimulate consumption of lower-priced produce. Discounts of up to 20 percent are currently in place for paprika, Shine Muscat, green onions and cucumbers. Tomatoes and zucchini will be added to the program Thursday.

Hanaro Mart has been offering discounts of 13 to 28 percent on major farm produce — including tomatoes, cucumbers, Shine Muscat and paprika — from Oct. 1 through Oct. 28, with plans to extend the promotion if needed.

Online consumption-promotion efforts are also being stepped up. Starting this week, the Ministry of Agriculture, Food and Rural Affairs will release short videos on its official YouTube channel introducing seasonal produce and recipes; cucumbers will be featured first. The ministry also plans to work with the Korean Dietetic Association to expand the use of seasonal produce in institutional meal services.

Export support and supply management at the production level will run in parallel. For Shine Muscat, the government will subsidize port concessions, cold-storage facility costs and refrigerated vehicle rentals, while expanding overseas marketing. Export support for paprika will be reinforced ahead of the peak shipping season in November and December.

Producer cooperatives are managing the supply of lower-grade Shine Muscat, cucumbers and zucchini to prevent excess from flooding the market. The National Agricultural Cooperative Federation and producer groups also plan to hold free cucumber giveaway events targeting hikers this autumn.

"We hope many people will join this farm produce consumption-promotion campaign — it is a chance to buy healthy and delicious produce at affordable prices while also easing the worries of farmers," said Seo Jun-han, the ministry's director general for retail and consumption policy.


adastra@heraldcorp.com