The Korean government is initiating a comprehensive overhaul of the inefficient livestock distribution system, where falling producer prices are not immediately reflected in consumer prices. By unifying the stages from slaughter to processing and sales, the government aims to reduce costs and establish a rational pricing system that benefits both producers and consumers. On June 13, the Ministry of Agriculture, Food and Rural Affairs announced its ‘Livestock Distribution Structure Improvement Plan,’ focusing on streamlining distribution, expanding price transparency, improving breeding methods, and activating online transactions. These reforms are being developed through a task force involving producer organizations and experts.
To enhance Hanwoo beef distribution efficiency, the proportion of direct processing at agricultural cooperative auction houses will be increased from the current 32% to over 40% by 2030. The new Bucheon Integrated Logistics Center, scheduled for completion in late 2028, will unify dispersed sales functions, including online sales and military supply, aiming to reduce distribution costs by up to 10%. The government will also identify successful direct transaction cases and provide store-specific price information through the ‘Yeogigogi’ price comparison service, along with priority support for related facilities and operating funds. Hanaro Mart outlets will expand from 980 to 1,200 by 2030, and Hanwoo Plaza locations from 192 to 210. The average Hanwoo breeding period will be shortened from 32 to 28 months, with tailored support for farms that reduce breeding time.
To increase transparency in pig transactions, wholesale markets will expand from 10 to at least 12 by 2030, and online auctions will be promoted. The auction ratio will rise from 4.5% to over 10% by 2030, and pig purchase prices by processing companies will be surveyed and disclosed for use as transaction standards. This year, a pilot project will secure over 20 participating companies, expanding public disclosure to cover 40% of pig transaction volumes. To address excessive fat in pork belly, fat ratio standards will be adjusted, and a production management certification system will be introduced, along with support for facility upgrades and renewable energy installations.
Chicken price surveys will shift from whole chicken to cut and breast meat to reflect changing consumption patterns, while egg prices will be calculated using a weighted average of premium and large eggs to mitigate seasonal distortions. Standard contracts for egg transactions and centralized price surveys will be institutionalized, and the Egg Industry Development Council will provide enhanced inventory and supply forecasts. Online transactions will be expanded for cattle, pigs, and eggs, with remote auctions and price comparison services linked to promotional events. The government aims to deliver tangible price stability through ongoing communication with producer groups and related agencies.
This government-led reform of the livestock distribution structure is poised to deliver substantial benefits to both producers and consumers. Streamlining distribution and enhancing transaction transparency are expected to stabilize prices and boost the overall competitiveness of the livestock industry. The emphasis on online transactions and data-driven price disclosure reflects a forward-thinking approach, likely to improve market trust and efficiency in Korea’s livestock sector.