Egg prices in South Korea have surged by 11% in the past month, and experts are concerned that this increase may continue due to the rising demand from the United States, which has been severely impacted by avian influenza (AI).
According to the Korea Institute for Animal Products Quality Evaluation, the average wholesale price of a carton of 30 large eggs stood at 5,193 won (about $3.89) on Friday, marking an 11.4% rise from 4,660 won (about $3.50) just a month earlier.
The primary reason behind the price increase is higher demand. The Korea Rural Economic Institute reports that egg sales and volume at major supermarkets in the fourth quarter of last year increased by 7.4% and 5.4%, respectively, compared to the same period in the previous year.
On Thursday, U.S. Secretary of Agriculture Brooke Rollins announced that the U.S. would begin importing more eggs from South Korea, raising concerns that the domestic supply might become even tighter in the future.
The egg-laying industry reports that the U.S. has requested monthly shipments of up to 300 containers (approximately 100 million eggs) until the end of the year. Recently, Geulim Farm in Asan, South Chungcheong Province, became the first South Korean farm to export 20 tons (11,172 cartons, or 335,160 eggs) of large eggs to Georgia. On the same day, Mujigae Farm in Chungju, North Chungcheong Province, sent another 20 tons to the U.S.
Eggs exported to the U.S. are reportedly sold at 15-30% higher prices than those sold domestically, which is encouraging South Korean farmers to pursue exports more aggressively.
Despite the potential benefits, both the South Korean government and the Korea Egg Producers Association have expressed concerns about the growing export volume. They argue that the U.S.’s requested export volume could account for about one-fifteenth of South Korea’s average monthly egg production, leading to significant price fluctuations in the domestic market.
On Sunday, Ahn Doo Young, president of the Korea Egg Producers Association, told The Korea Economic Daily, “While exporting eggs to the U.S. is a positive development for our farmers as it opens up new markets, we’re concerned that a large increase in exports could drive up egg prices and lead to consumer backlash.”
Ahn added that the association would limit exports to the U.S. to 1-2 containers (330,000 to 660,000 eggs) per week, emphasizing that this amount would have minimal impact on the domestic egg supply.
Comments0