As cabbage prices have sharply declined due to increased fall cabbage production and decreased demand for kimchi, the government is taking measures to stabilize the market by halting shipments of excess supply. In addition to the existing purchase stockpiling of 10,000 tons of fall cabbage, the government plans to implement a further halt on 30,000 tons. If the price weakness continues, it will also consider additional stockpiling of winter cabbage and measures to support farmers' incomes.
The Ministry of Agriculture, Food and Rural Affairs announced these additional measures for cabbage supply and demand stabilization on November 11. This proactive response comes as the likelihood of continued oversupply and price declines has increased since the ministry's announcement of measures to stabilize the supply of kimchi ingredients on November 3.
According to the ministry, the wholesale price of cabbage in early November is 1,900 won per head, which is a 42% decrease compared to the same period last year and a 32% drop from the average. The consumer price is also down to 3,211 won per head, reflecting a 14% decrease from last year and a 20% decline from the average.
The drop in cabbage prices is attributed to a combination of increased production and reduced consumption. The Korea Rural Economic Institute estimates that this year's fall cabbage production will reach 1.214 million tons, a 19% increase from last year and a 3% rise from the average. The production of winter cabbage, which will begin shipping in December, is also expected to increase to 265,000 tons, up 7% from last year and 11% from the average.
Conversely, the demand for cabbage for kimjang (kimchi-making) is projected to decline by 9.1% to approximately 583,000 tons this year. According to the ministry's earlier announcement on November 3, the percentage of households planning to make kimchi themselves has dropped to 58.6%, down from 64.2% last year. While the average amount of kimchi made by a four-person household remains similar at 23.4 heads, the decrease in households making kimchi themselves is expected to lead to an overall reduction in cabbage demand.
Additionally, the current crop conditions in major cabbage-producing regions, including Chuncheon in Gangwon Province, Seosan in South Chungcheong Province, Gochang in North Jeolla Province, and Mungyeong in North Gyeongsang Province, are favorable. The southern region, including Haenam in South Jeolla Province, is also expected to have good growth conditions as shipments ramp up later this month. If the current weather conditions persist, there is a possibility of exacerbated oversupply during the kimjang season.
In response, the Ministry of Agriculture, Food and Rural Affairs plans to halt shipments of approximately 30,000 tons of fall cabbage expected to be in oversupply compared to the average in major producing areas like Haenam. The targeted area for this measure covers about 400 hectares.
The shipment halt is a measure to control the supply by preventing produced agricultural products from entering the market. The government plans to compensate participating farmers through the Agricultural Product Stabilization Support Program, covering costs above their operating expenses.
The previously announced purchase stockpiling of 10,000 tons of fall cabbage will also begin in mid-November. The application period for contract farming through the National Agricultural Cooperative Federation has been extended from October to November. As of early November, the contracted farming volume for fall cabbage is 32,000 tons and for winter cabbage is 52,000 tons, representing increases of 27% and 14%, respectively, compared to last year.
If the decline in cabbage prices continues after the peak kimjang season, the government plans to implement additional purchase stockpiling of winter cabbage starting in late December. The specific timing and volume will be determined based on the growth and shipping conditions in major winter cabbage-producing areas like Haenam, as well as price trends.
Support measures to mitigate income losses for farmers due to price declines will also be implemented. For winter cabbage farmers participating in the Agricultural Product Stabilization Support Program, the government plans to compensate for price differences if market prices drop significantly, aiming to maintain prices at 80% of the average price in the first quarter of next year.
Farmers enrolled in import insurance can receive compensation for income losses due to decreased production and price drops, with coverage levels reaching up to 85% of average income. Currently, the area enrolled in import insurance includes 2,206 hectares for fall cabbage and 2,308 hectares for winter cabbage, accounting for 25% and 59% of the total cultivated area, respectively.
The Ministry of Agriculture, Food and Rural Affairs is also working to expand kimjang consumption alongside supply adjustments. A total of 64 billion won will be invested in discounts for agricultural and marine products, and campaigns for discounted kimjang ingredients and the 'Add One More Head of Kimchi' initiative are underway. A joint purchase of kimchi through the Korea Kimchi Association will also take place until November 24.
Minister of Agriculture, Food and Rural Affairs Song Mi-ryung stated, "This year, the increase in cabbage production and sluggish consumption have led to price declines, exacerbating difficulties for farmers. The government will collaborate with relevant agencies to mobilize all available policy tools, including proactive shipment halts and additional purchase stockpiling, to ensure the recovery of cabbage prices and stabilize farmers' management."
* This article has been translated by AI.
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