Government interventions to regulate import quantities as a means to manage inflation are not feasible for apples. (Image courtesy of Yonhap)
SEOUL, Mar. 6 (Korea Bizwire) – Despite the significant increase in fruit and vegetable prices, government interventions to regulate import quantities as a means to manage inflation are not feasible for apples, which have seen substantial price hikes, earning them the nickname “golden apples.” The stringent quarantine system is the primary barrier.
According to the Korea Agro-Fisheries & Food Trade Corporation (aT), as of March 4, the price for a bundle of 10 Fuji apples surged to 29,758 won, marking a 31% increase from the last year’s 22,714 won and a 19.1% rise from last month’s 24,980 won.
The significant drop in apple production due to last year’s frost damage is a key factor contributing to the price increase.
While the government is exploring various measures to stabilize supply, the unique circumstances surrounding apples, unlike other agricultural products, prevent the use of strategies like applying tariff-rate quotas to expand imports due to sanitary and phytosanitary (SPS) import restrictions.
In fact, according to customs export-import trade statistics, there were no apple imports last year.
The main reason for restricting apple imports is the potential spread of pests and diseases, such as the Mediterranean fruit fly, into Korea.
To import apples, a comprehensive eight-step import risk analysis process, including preliminary risk assessment, pest risk assessment, and risk management evaluation, must be successfully completed.
According to the Ministry of Agriculture, Food and Rural Affairs, 11 countries, including the U.S., have inquired about exporting apples to Korea, but none have completed the import risk analysis process.
Most are stuck in the initial stages, with Japan being the furthest along, having reached the fifth stage. A ministry official emphasized the need for caution, given the risk of spreading pests and diseases not currently present in Korea.
The government has stated it does not plan to expedite apple imports to help ease apple prices. Agriculture, Food and Rural Affairs Vice Minister Han Hoon mentioned in a recent briefing that there are no plans to accelerate the quarantine process in relation to current inflation factors.
Instead, the government aims to enhance climate resilience for apples and other crops through a management consultative body and establish a roadmap for a stable production foundation in the mid to long term, expected to be released this month.
Ashley Song (ashley@koreabizwire.com)
