Egg Prices Surge Ahead of Lunar New Year... Will a Carton Reach 10,000 Won? 'High Tension'

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] As egg prices soar in the new year, concerns are rising over a potential price surge ahead of the Lunar New Year holiday, when demand increases.

According to the Korea Agro-Fisheries & Food Trade Corporation (aT) on the 11th, the retail price of one tray of eggs was recorded at 6,082 won as of the 8th. Since the outbreak of avian influenza (AI) in November last year, despite the continuous spread, the price of one tray of eggs had remained in the mid-5,000 won range. However, due to movement restrictions imposed nationwide and the accumulation of culled laying hens, prices have surpassed 6,000 won in the new year.

Previously, during the 2016-2017 AI outbreak, when more than one-third of laying hens were culled, the price of one tray of eggs approached 10,000 won. At that time, supermarkets were crowded with customers lining up from early morning to buy eggs, causing an "egg crisis." With egg prices fluctuating, fears of a 10,000 won surge are widespread. Although a large accumulated supply had maintained stable prices until now, eggs have a short shelf life, and AI tends to occur in winter and continue until March of the following year. Additionally, the prolonged spread of COVID-19 has increased demand for home-cooked meals, leading to higher egg consumption, which is also a cause for concern.

The authorities view the current rise in egg prices as a temporary phenomenon caused by supply shortages due to nationwide AI spread and movement restrictions, and they do not expect a "10,000 won crisis." However, industry consensus suggests that continuous price increases until the Lunar New Year holiday are inevitable due to the prolonged AI impact.

Typically, wholesale prices affect retail prices after stockpiled supplies are exhausted. Currently, many in the food service industry are struggling with rising wholesale prices. A self-employed person running an egg sandwich specialty store said, "The wholesale price of one tray of eggs has risen from 3,000 won to 4,000 won, an increase of 1,000 won," expressing difficulties due to cost pressures.

The wholesale price surge at the end of last year will be reflected around the Lunar New Year in February. Therefore, if the spread continues and demand surges sharply before the holiday, retail prices could eventually approach 10,000 won.

Meanwhile, as culling accumulates, the consumer price of broiler chickens rose 9.7% month-on-month to 5,643 won per kilogram as of the 8th. The average wholesale price of broiler chickens traded in the franchise industry also increased by about 400 won. Duck consumer prices also jumped 2.6% month-on-month to 14,257 won per kilogram. As of 0:00 on the 10th, the total culled poultry reached 15,319,000 birds, including 1,379,000 meat ducks, 83,000 breeding ducks, 6,383,000 laying hens, 4,867,000 broilers, 501,000 breeding chickens, 364,000 native chickens, and 1,742,000 others.

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