Korean Hanwoo Association urges Nonghyup Feed to withdraw price hike

The Korean Hanwoo Association has formally requested Nonghyup Feed to retract its plan to raise feed prices, expressing serious concern over the potential impact on cattle farmers. Nonghyup Feed notified the association on June 11 that it intended to increase feed prices for all livestock types by 39 won per kilogram, approximately a 7.9% rise. This increase was scheduled to be implemented starting June 15.

The association contends that this price hike will exacerbate the financial strain on Hanwoo (Korean beef) farmers, who have been grappling with management difficulties for several years. Furthermore, the association pointed out that the decision-making process for the price increase lacked adequate consultation with farmers. According to the Hanwoo Association, a consultative body with Nonghyup Central Headquarters regarding feed and slaughtering costs has been operational since last year. Through this body, discussions have occurred concerning Nonghyup Feed's business conditions and farmers' hardships, aiming for price adjustments. However, the association stated that insufficient opinions were gathered during the recent decision-making process for this specific increase.

The Hanwoo Association also argued that the proposed price increase contradicts the government's current policy of stabilizing prices. With the government emphasizing the need for stable prices for agricultural, livestock, and fishery products, a rise in feed costs could significantly increase production expenses. The association highlighted the dire financial situation of Hanwoo farms, citing the '2025 Livestock Production Cost Survey Results' from the National Data Office. This report indicates that both fattening and breeding cattle have recorded losses for four consecutive years. Consequently, any additional increase in feed costs could place an unsustainable burden on farm management.

In response, the Korean Hanwoo Association has requested Nonghyup Feed to re-evaluate its price increase plan. They are also urging Nonghyup Central Headquarters to collaborate on developing measures to alleviate the burden on farmers. Additionally, the association has appealed to the Ministry of Agriculture, Food and Rural Affairs to actively formulate policies aimed at stabilizing production costs, including feed expenses. The association stated it would monitor Nonghyup Feed's response and the government's subsequent actions.