Food For Thought

Most foreigners are shocked by the prices of fruit and other food in Korea. When I first arrived, I was surprised as well. Here are some prices of food in the U.S.

1 lb. (453 grams)

Bananas: 63 cents
Strawberries: $1.91
Broccoli: $1.60
Chicken: $1.18
Bacon: $3.66
Lettuce: 86 cents
Apples: $1.36
1 gallon of milk (3.75 liters): $3.79
(Source: U.S. Dept. of Labor CPI June 2008)

(Recently, Americans have been complaining about the soaring cost of food, because U.S. food prices have risen around 20-50% since 2006.)

For 1 lb. (453 Grams) of white rice:

Kuwait 64 cents
Australia 67 cents
Brazil 76 cents
U.S. 87 cents
Hong Kong 90 cents
Taiwan $1.00
South Africa $2.26
Germany $2.49

According to research done by a Canadian firm, Koreans spend 27% of household income on food, making food the largest expenditure category in a Korean household.

By contrast, the average American family spends about $280 a month on groceries.

Korea imposes tariff rates of more than 40 percent on table grapes, beef, apples, pears and some citrus fruits. Thirty percent tariff rates are imposed on certain meats, some fruits and nuts, many fresh vegetables, starches, peanuts, vegetable oils and some dairy products.

Also, South Korean consumers must pay a 243 percent tariff for imported honey, a 487 percent tariff on soybeans and a 630 percent levy on sesame, according to the Korea Rural Economy Institute.

Korea Development Bank wrote a report on consumer prices, "The purpose of our study was to answer why the general public perception is that our consumer prices are extremely high, but our study found that it is because our everyday necessities like rice, meat and fruits are high compared to major big cities," Kim said. "The results further reinforce the need for our country to further open up our market for basic goods."

Ram Garikipati, chief editor of the EU Chamber of Commerce, said weak consumerism also plays a role in the high cost of living. “It is not just supply and demand which determines the cost here but also the mentality of many citizens who do not really mind paying higher prices. Society has come to accept it,” he said.

If the government truly wants to "stimulate" the economy, then steps need to be taken to lower the cost of food. High food prices are a burden to all households and could be more damaging than high oil prices. The last time I checked, everyone needs to eat. Finally, I believe food prices around the world will continue to rise for the foreseeable future.