US beef joins list of pricey imports as exchange rate, supply woes bite

Prices of imported foods such as beef and mackerel are surging, driven by a weak won and soaring logistics costs stemming from the prolonged conflict in the Middle East.

According to retail data from the Korea Institute for Animal Products Quality Evaluation released Monday, the national average retail price of US chuck eye roll (chilled) per 100 grams stood at 4,343 won as of Sunday, up 28.6% from a year earlier when it was 3,377 won. The price is also 40.5% above the historical average of 3,092 won. After averaging 3,737 won in January, the cut has exceeded 4,000 won for two consecutive months since May. US galbi (chilled) per 100 grams also rose to 4,947 won, up 7.7% year-on-year and 12.3% above the historical average.

Rising oil prices and a shrinking US supply are cited as the main causes. According to the US Department of Agriculture, total US beef supply this year is projected at 31.1 billion pounds (about 14.1 billion kilograms), down 2.5% from a year earlier and the lowest since 2019. Australian beef, typically cheaper than its US counterpart, has also climbed. The average retail price of Australian chuck eye roll (chilled) was 3,819 won per 100 grams as of Sunday, up 28.2% year-on-year and 30.2% above the historical average.

The won-dollar exchange rate hovering around 1,500 won is also a significant factor. The Bank of Korea's May import-export price index showed that the import price index for beef stood at 144.02 in dollar terms, up 16.0% from a year earlier. In won terms, which reflect the exchange rate, the index rose to 181.85 — a 23.9% increase.

Prices of imported mackerel are also climbing sharply. The retail price of a pair of imported salted mackerel stood at 11,077 won ($7) as of Friday, up 28.3% from a year earlier and 43.8% above the historical average. By contrast, the retail price of a pair of domestically caught salted mackerel fell 9.5% year-on-year to 6,770 won. Norway's reduction of its mackerel fishing quota has had a direct impact: the country cut its quota this year by 52% from a year earlier to 79,000 tons.

The government plans to dispatch a special envoy next month to secure additional overseas mackerel supplies. It intends to directly import 2,000 tons of Norwegian mackerel and sell them to consumers at reduced prices, while also identifying new import sources such as the United Kingdom and the Faroe Islands. The government is also pursuing a plan to redirect domestically caught mackerel earmarked for export to the local market, buying it directly and supplying it to consumers at half price. A discount program for agricultural, livestock and fishery products worth 350 billion won is also in the works.

Kim Dae-jong, a professor of economics at Sejong University, said government measures offer only temporary relief and that keeping the exchange rate stable is the most critical factor. "If the exchange rate does not stabilize, import prices will have no choice but to keep rising," he said.