Notice of Egg Sales Suspension Posted at Mart... AI Penetrates Nationwide "Alert to Price Surge Fear" (Comprehensive)

Sales of eggs produced near the outbreak site halted at major marts
Housewives rush to buy more amid price hike concerns
Chicken and egg prices remain stable, but long-term could lead to a surge

A notice about the suspension of ultra-fresh egg sales posted at Emart Wangsimni branch visited on the 10th.

[Asia Economy reporters Lee Seon-ae and Lee Seung-jin] Avian influenza (AI) has spread nationwide for the first time in 2 years and 8 months since the 'Egg Crisis' in 2016, triggering red alerts not only in grocery shopping but also in the food industry.

Supermarkets Halting Fresh Egg Sales

At 8 p.m. on the 10th, a notice was posted at the egg sales counter of Emart Wangsimni branch in Seongdong-gu, Seoul, announcing the suspension of sales of ultra-fresh eggs, which are 'eggs laid yesterday and sold only today.' The farm producing these eggs is located within 3 km of the AI outbreak area in Yeoju, and as a preventive measure, all laying hens were culled, making it impossible to operate. Although there was no shortage of supply, customers flocked to the egg counters. Joo Mi-ryeong (pseudonym), a housewife in her 40s, said, "I usually buy a carton of 30 eggs when I shop, but today I bought an additional carton of 15 eggs," adding, "I am stocking up in advance in case egg prices suddenly double like before."

When AI first occurred in the early 2000s, consumption of chicken and eggs plummeted due to infection concerns, causing prices to crash. However, as AI came to be seen as a 'yearly visitor,' consumption remained steady, and prices typically surged due to reduced supply from culling. Between 2016 and 2017, 36% of laying hens were culled, triggering the 'Egg Crisis' where the price of a carton of eggs (30 eggs) exceeded 10,000 won in some areas, leading to imports of eggs from the United States. This year, due to increased home dining demand amid the COVID-19 pandemic, there are concerns that prices could rise even more if AI prolongs.

Increasing Reserves and Diversifying Production Areas

The distribution industry is taking preemptive measures in anticipation of difficulties in chicken and egg supply. A representative from a large supermarket said, "We are considering various countermeasures such as expanding processed products and securing farms in Gyeongsang-do, an area unaffected by AI." Convenience store chains are also responding by increasing supply volumes of processed foods containing chicken and storing some stock.

The government maintains that supply capacity is still sufficient. This year, the number of laying hens and broilers raised is 4.5% and 8% higher than average, respectively. Frozen broiler stock has also increased by 41%. According to the Korea Agro-Fisheries & Food Trade Corporation (aT), the retail price of chicken per kilogram on the 10th was 4,999 won, 100 won cheaper than a year ago.

The food industry also states that there is no AI crisis like in the past but is closely monitoring the situation as prolonged AI would inevitably cause damage. A representative from Harim said, "We are strengthening quarantine measures and monitoring the situation. Although there is currently no impact on supply and prices, if the issue prolongs, disruptions are inevitable, but we do not expect it to escalate into a serious crisis."

A franchisee of A Chicken said, "When AI spreads, chicken orders tend to decrease somewhat, though not as much as before, and with the year-end peak approaching, concerns are growing. Raw material prices have not risen yet, but if the situation prolongs, the burden will increase."

The egg sales stand at Emart Wangsimni branch visited on the 10th.

Baking Industry Hit the Hardest

The baking industry, which was expecting a surge in cake sales for Christmas and year-end parties, is showing anxious expressions due to the spread of AI. Since about 10% of annual cake sales are concentrated in this period, a rise in egg prices, the main ingredient, would cause significant losses. Eggs cannot be frozen, so pre-stocked supplies cannot be used, and if culling of laying hens intensifies, the industry will be directly hit.

An SPC Group representative explained, "Currently, the farms affected by AI are not contracted farms, so there is no immediate major impact, but we are monitoring the spread."

Meanwhile, AI has spread nationwide within two weeks. Starting from a meat duck farm in Jeongeup, Jeonbuk on the 27th of last month, outbreaks have consecutively occurred this month at a laying hen farm in Sangju, Gyeongbuk; a meat duck farm in Yeongnam, Jeonnam; a laying hen farm in Yeoju, Gyeonggi; and a quail farm in Eumseong, Chungbuk, followed by confirmation at a meat duck farm in Naju, Jeonnam on the 9th. On the 11th, a suspected case of highly pathogenic AI was found at a meat duck farm (with about 17,000 birds) in Jeongeup, Jeonbuk.

This content was produced with the assistance of AI translation services.