This year’s value of agricultural products is projected to reach 45 trillion 646 billion won, 2.7% less than 2013 according to the KREI’s 2014 Agricultural Outlook Report.

The Korea Rural Economic Institute (KREI, president: Choi Sei-kyun) held “2014 Agricultural Outlook Conference” at Lotte Hotel World in Jamsil on January 22, 2014. About 1,700 people related to the farming sector attended the conference.

Korea’s rice price in the 2014 grain year is expected to average 173,000 won/80kg. Rice cultivation areas in 2014 will decrease to 831,000ha, down 0.2% from last year. When production yield of 493-509kg/10a is applied, milled rice production is projected to be 4,101,000-4,226,000 tons.

The wholesale price of Korean beef in 2014 is expected to be 13,420 won per kg, up 5.3% from 2013, and the pig carcass price 3,883 won per kg, up 7.9% from 2013.

This year’s number of cattle for Korean beef is projected to reach 2,770,000 head, down 4.9% from last year. From 2014, calf prices are expected to increase, which will raise breeding. Therefore, the number of beef cattle will begin to grow from a trough in 2017, which will slow the increase in Korean beef prices. This year’s number of pigs is projected to average 9,350,000 head, down 7.3% from 2013, due to the decrease in sows.

As for fruits in 2014, the prices of apples and pears will be higher than last year, and those of sweet persimmons and peaches lower. This year’s cultivation areas for 6 major fruits are expected to be 109,400ha, 0.6% less than last year. If the average year’s production yield per unit area is applied, fruit production in 2014 is projected to be 2,010,000 tons, 0.3% more than 2013.

Cultivation areas for apples and pears will decline slightly, and the average year’s production yield per unit area is lower than last year’s. Therefore, this year’s apple and pear production will decrease 7.5% and 5.2% respectively from 2013. Sweet persimmon and peach production will increase 11.3% and 12.3% respectively from 2013, because of production recovery. This year’s imports of oranges and grapes will be less than last year’s, as the import prices will increase due to the cold injuries in California and Chile respectively.

In the first half of 2014, the supply of seasoning vegetables is expected to grow, and their prices decline from 2013. In case of dried chiles, due to 2013’s good stock, 13% more than last year, the wholesale price in the first half is projected to be 6,800 won per kg, lower than the average and last year’s levels. As for garlics and onions, because of the increased production in 2013 and large stocks, low prices will continue until the harvest season (May and June).

In 2014, cultivation areas for dried chiles and garlics will decrease 5% and 11% respectively from 2013, and those for onions increase 9%. When the average year’s production yield per unit area is applied, production of dried chiles and garlics will decline 14% and 24% respectively from 2013, and that of onions grow 7%.

This year’s value of agricultural products is estimated at 45 trillion 646 billion won, 2.7% less than 2013. The estimated value of rice production is 8 trillion 74 billion won, down 7.2% from last year due to a decline in production.

The value of vegetable production is projected to be 10 trillion 458 billion won, 1.8% less than 2013. The value of production of chili peppers, tomatoes and strawberries will increase; that of cabbages, garlics and onions decrease.

The value of fruit production is expected to reach 3 trillion 935 billion won, up 0.7% from 2013, due to an increase in citrus fruits and sweet persimmons. The value of livestock and sericultural production is estimated at 16 trillion 806 billion won, 1.1% less than last year, due to a decrease in the value of livestock production except pig farming.