Urgent Supply: US Eggs to Enter Distribution Next Week... Will It Ease 'Table Price' Inflation?

Average Unit Price 5,486 Won Awarded
Three Major Marts Collaborating with Government on Discount Events Did Not Participate in Bidding
Supply Shortages and Retail Restaurant Struggles Affect Prices More Than Direct Pricing
"Will Help Stabilize Prices Across the Market"

[Asia Economy Reporter Kim Yuri] U.S.-imported eggs, urgently airlifted from the United States, will be distributed next week. Although the three major large retailers and key confectionery companies did not participate, major wholesalers joined, easing the supply of eggs to restaurants and retailers, and it is expected to help stabilize overall prices.

◆ U.S. eggs sold at an average price of 5,486 KRW = According to the Korea Agro-Fisheries & Food Trade Corporation (aT) on the 27th, 33,840 trays (1,015,200 eggs, approximately 60 tons) of fresh U.S.-imported eggs auctioned the previous day were sold at an average price of 5,486 KRW per tray. The highest bid started at 6,512 KRW, and the lowest bid was 4,400 KRW. These imported eggs will be shipped out by February 2. Once market distribution begins in earnest next week, imported eggs are expected to appear on general household tables as well.

Recently, egg prices have been rising by 50 KRW per tray (30 eggs) daily. According to aT, as of the 26th, the retail price of a tray of eggs (special grade) was 6,718 KRW, up 27.65% compared to the same period last year (5,263 KRW). Compared to the average price (5,404 KRW), it is also a 24.32% increase. Large retailers conducted a 20% discount event through the "Let's Buy Korean Agricultural Products" campaign led by the Ministry of Agriculture, Food and Rural Affairs until this day, but egg prices are expected to rise further from the 28th.

◆ Three major marts did not participate in the auction = In the auction held the previous day, the three major large retailers?Emart, Homeplus, and Lotte Mart?as well as major confectionery companies such as Paris Baguette and Tous Les Jours did not participate. This was because the first batch of imported eggs accounted for only about 2.1% of the domestic daily average egg production (approximately 46 million eggs), and the supply-demand situation had not yet deteriorated enough to require urgent importation.

During the 2017 egg crisis, when the price of a tray of eggs nearly reached 10,000 KRW, large retailers other than Lotte Mart did not handle imported eggs. This was due to the lack of significant price advantage compared to domestic eggs and consumer doubts about freshness. However, as imported eggs were eventually distributed in the market, supply increased, and the retail price of a tray of eggs stabilized to the 3,000 KRW range after 10 months.

An Emart representative said, "Currently, eggs can be purchased at a promotional price of 4,780 KRW, which is cheaper than the market price of 6,000 to 7,000 KRW," adding, "There are no plans to distribute imported eggs at this time, and we will monitor the market situation after the promotion ends."

◆ Stability expected more from supply-demand than price = The distribution industry believes that U.S.-imported eggs will not directly impact price stabilization. Due to the import and customs clearance process, the shelf life is shortened, reducing the product's appeal as fresh eggs, and the average auction price is not particularly low. However, the increased supply capacity to restaurants and retailers struggling with egg supply is expected to help stabilize overall prices.

A distribution industry official said, "Even when the price of a tray of eggs approached 10,000 KRW in the past, imported eggs circulated and brought stability to supply and demand," adding, "Based on that experience, the industry has relatively well-prepared by securing multi-channel distribution, so the situation is not expected to worsen to the worst case." Another official said, "Sometimes, due to excessive price markups by intermediate wholesalers, the actual farm gate price is low but the retail price is high. If the supply imbalance is partially resolved through imported eggs, prices will stabilize."

The government has decided to temporarily apply an emergency tariff quota (0%) on a total of 50,000 tons of imported fresh eggs and processed egg products, which normally have basic tariff rates of 8-30%, until June 30. This includes 14,500 tons of fresh eggs and 35,500 tons of processed egg products. aT plans to flexibly operate future additional imports by combining public competitive bidding and direct supply to actual demand companies, considering price conditions.

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