PIG FARMERS STRUGGLE OVER FARMING COSTS

[Anchor Lead]

African swine fever has been continuing for four years in South Korea. Recovering from the damage, pig farmers are beginning to raise the animals again. However, soaring farming costs leave farmers hopeless.

[Pkg]

This pig farm in Hwacheon, Gangwon-do Province, was affected by the African swine fever in the fall of 2020. All of the some 700 pigs it was raising were culled and then buried. One and a half years have passed since and the farmer brought in 40 piglets this year. The farmer can carry on with his business now. But there is another trouble ahead for him. He must sustain losses when selling the pigs.

[Soundbite] Hong Soon-kyu(Pig Farmer) : “We are selling pigs despite the loss of some 50,000 won per pig. We are seriously worried, even when it's time to sell.”

It is due to a hike in production costs, while pig prices remain flat. According to the Korea Pork Producers Association, the cost for raising one pig jumped from 340,000 won in 2020 to 390,000 won late last year. That's a 17 percent rise on-year. It is because of a 40 percent surge in feed prices, which was caused by soaring oil prices and poor harvest in countries exporting animal feed.

[Soundbite] Cho Woo-hyung(Pig Farmer) : “Around this time last year, feed costs were about KRW 80 mn or KRW 90 mn. But the expenses have jumped to KRW 120 mn or KRW 130 mn. It is out of our hands. We are helpless.”

The situation will unlikley improve in the near future, since a quarter of corn and barley used for animal feed is produced in Ukraine and Russia, countries still amid a war. The Korea Pork Producers Association proposed to create a feed price stabilization fund as a solution.

[Soundbite] Bae Sang-geon(Korea Pork Producers Association) : “We propose that farmers, the government and feed producers each make contributions to create the fund.”

On top of the four-year-long African swine fever crisis, rising feed prices are adding to the troubles facing pig farmers.