Deep shadow over farmers due to falling price of South Korean beef calves

The Korean beef industry is currently facing a challenge of oversupply and increasing production costs, leading to a significant decrease in the price of Korean beef calves and female calves. The average price of these calves has fallen by 5.9% and 7.2% respectively, year-on-year, mirroring the decline in wholesale Korean beef prices. The decrease in wholesale prices is attributed to a domestic economic recession and a decline in consumer sentiment. Consequently, farmers are hesitant to purchase calves due to the low profit margins, further decreasing demand and pushing calf prices down. The problem of oversupply is exacerbating the issue, as farmers are unable to process all the Korean cattle, reducing their ability to place calves and leading to a vicious cycle of declining calf prices. Additionally, rising production costs are increasing the economic burden on farms. Experts recommend a strategy of supply control and consumption activation to stabilize the Korean beef market.