After U.S. egg prices skyrocketed, it was reported that the export route for domestic eggs was opened, and just three months later, domestic egg prices also surged. Some have raised concerns that this might not be a prudent export move.
According to the distribution industry on the 10th, recent domestic egg prices have reached their highest levels in about four years. Based on the egg production prices, the average price for a box of large eggs (30 eggs) exceeded 7,000 won. The price of a box exceeding 7,000 won is the highest in about four years since July 2021. It appears that egg production prices began to rise significantly in April.
Several factors have been identified as the reasons for the price rise. The primary cause is considered to be the outbreak of highly pathogenic avian influenza (AI). In March, there was a concentrated outbreak of highly pathogenic AI in the Chungcheong region, leading to an imbalance in supply between regions and resulting in an increase in the national average production price.
The Association of Egg Producers has a different perspective on the causes. They believe the issue stems from the 'enforcement decree amendment to the Livestock Act' that will take effect in September. This denotes that government regulation is the problem. With the enforcement decree amendment, the area requirements for raising laying hens will be expanded by 50%, which will inevitably reduce the number of hens that can be raised.
Moreover, there is also an opinion that the egg exports, which began in March, are a problem. In March, while the United States experienced severe egg inflation, domestic egg prices remained stable, allowing for the first export. Gearyeong Farm, located in Asan, Chungcheongnam-do, announced that it exported 20 tons (11,172 boxes, 335,160 eggs) of large eggs to Georgia in the eastern United States.
At that time, there was an atmosphere emphasizing the significance of the first export of eggs. A representative from the Ministry of Agriculture, Food and Rural Affairs said regarding the egg exports, 'Thanks to successful biosecurity measures against AI, there is no reason to block exports, as the supply and prices of eggs are stable,' and noted, 'We are paying attention to the quality of exports.'
However, just three months later, domestic egg prices have risen, and the outbreak of AI is cited as the reason.
A representative from the distribution industry remarked, 'Recently, discussions about prices have been held with the new government, and if there were any factors contributing to price increases at that time, it seems there wouldn’t have been a situation to proceed with exports.' They added, 'While it can be said that the small export volume did not contribute to the recent price rises, there were problems with situation perception and judgment.'
The problem is that egg prices are expected to continue rising in the future. According to the Korea Rural Economic Institute's 'Agricultural Outlook for June', the production price of eggs is projected to rise by 12.4% to 18.5% compared to last year, with the price for 10 large eggs estimated to be between 1,850 and 1,950 won. This is 9.9% to 15.8% higher than the average price over the past three years from 2020 to last year.
Eggs are one of the cheapest ingredient sources for protein. This will inevitably impact the cost of food on the tables of ordinary citizens as well as self-employed restaurant owners. Kim, a 56-year-old self-employed person running a meal restaurant in Sillim-dong, Seoul, said, 'I have stopped offering unlimited fried eggs,' and expressed, 'It’s really awkward to explain when regular customers ask for more, and I worry they might not come back.'