Sales of domestically produced beef in South Korea have fallen for the first time in three years, as persistent price increases weighed on consumer sentiment.
Domestic Beef Sales Turn Lower After Two Years
According to Dabom, the livestock distribution information platform run by the Korea Institute for Animal Products Quality Evaluation, sales of domestic beef — including hanwoo and other Korean-raised cattle — totaled 1.18835986 trillion won from January to July this year, down 3.4% from a year earlier. The figure was released on Sept. 16.
Sales had risen for two consecutive years, climbing from 1.03133880 trillion won in the same period of 2023 to 1.22972524 trillion won last year, before turning lower this year.
Sales volume over the same period fell 6.6% from a year earlier to 13.813343 million kilograms. That compares with declines of about 3% in each of the previous two years, meaning this year's drop is more than twice as steep. If the trend holds, analysts say annual sales are likely to end a two-year streak of growth.
Rising prices are cited as the main reason for the slump. The average retail price of Grade 1 beef tenderloin rose 9.8% to 15,079 won per 100 grams in July from 13,738 won in January. That was 18.8% higher than a year earlier, and 16.7% above the five-year average of 12,916 won, which excludes the highest and lowest prices over the period.
As Beef Grows Pricier, Demand Moves to Pork
Beef prices have shown no sign of easing ahead of the Chuseok holiday. In a survey of 90 retailers across Seoul's 25 districts conducted earlier this month by the price monitoring center of the Korea Consumer Federation, prices fell for 14 of the 23 items that could be compared with a year earlier, or 60.9%. Beef cuts used for holiday dishes rose, however, with general beef used for skewers up 4.1% and brisket used for soup up 3%.
With beef costs mounting, demand appears to be shifting toward pork. Domestic pork sales volume rose 2.4% from a year earlier to 44.480314 million kilograms in the January-July period, while sales value increased 4.1% to 1.23534762 trillion won.
The average July price of pork belly, the most popular cut, was 2,875 won per 100 grams, up 5.9% from a year earlier and 6.6% above the five-year average — increases that fell short of those for beef.
