Shine Muscat grapes, once the symbol of premium gift fruit in South Korea, are losing their standing as oversupply drives prices sharply lower. With this year's Chuseok holiday falling earlier than usual, shipments are likely to concentrate ahead of the holiday, raising concerns about a price collapse in September and October.
North Gyeongsang Province, the main growing region for Shine Muscat, said on the 3rd that the province has 7,826 hectares of vineyards, the largest area in the country. Shine Muscat accounts for 4,743 hectares, or 61% of that total. Auction prices for the variety at Seoul's Garak Market, which topped an average of 22,000 won per 2 kilograms in 2020, fell to the 8,000-won range on the 31st of last month. That marks a 35% decline from a year earlier.
Choi Byung-geun, a member of the North Gyeongsang Provincial Council, called for countermeasures in a recent plenary session speech. "Prices have fallen by nearly half in just three years, and with production costs rising as well, the financial burden on farms in North Gyeongsang, the country's largest grape-growing region, is reaching its limit," the council member said, adding, "Once shipments of open-field and rain-shelter grapes begin in earnest from September, prices will fall further because of the concentration on a single variety and the volume hitting the market at once."
In response, the provincial government held a meeting on the 2nd at its offices with cities and counties in major growing areas, farmers and related agencies. Participants included officials from Gimcheon, Yeongcheon, Sangju and Gyeongsan, along with farmers, agricultural processing centers (APCs), the Nonghyup North Gyeongsang regional headquarters and the Gyeongbuk Agri-Food Distribution and Education Promotion Institute.
Participants first agreed to keep fruit loads at appropriate levels and to ship only produce with sugar content of at least 16 brix and bunch weights of 400 to 1,000 grams. Nonghyup and the agricultural processing centers agreed to manage produce closely from the intake stage to keep low-quality fruit out of distribution.
They also agreed to stagger shipping schedules through cold storage and other means so that volumes do not reach the market all at once, and to build stable distribution networks by using large retailers, online channels, direct sales and exports.
As medium- and long-term measures, they agreed to speed up the spread of new varieties such as Glory Star and Red Claret, to seek out bulk buyers including processing companies and school cafeterias, to expand direct sales through large retailers and to diversify exports to markets such as Taiwan, the United States and Canada.
Shine Muscat drew strong demand despite its high price thanks to its thin skin, lack of seeds and high sugar content. Once called a "noble fruit" and a "luxury grape," it has seen prices trend downward as planted area and output surged and lower-quality fruit reached the market. North Gyeongsang accounts for 60% of national grape production and 77% of the country's Shine Muscat acreage. Shine Muscat makes up 62% of the province's grape output.
"We will actively support farms, Nonghyup and distributors in working together to build orderly shipping and distribution," said Park Chan-guk, director general of the provincial agriculture, livestock and distribution bureau.
