bhc Chicken, Headquarters Bears Full 6 Billion KRW Cost Increase in Broiler Prices Due to AI

[Asia Economy Reporter Seungjin Lee] bhc Chicken announced on the 17th that it is supporting its franchise stores by maintaining the supply price despite the increase in broiler purchase costs due to avian influenza (AI).

Since the end of last year, despite the rise in purchase costs caused by the increase in broiler market prices, bhc Chicken has been supplying to franchise stores at the existing supply price without reflecting the increase factors, aiming to overcome the difficulties caused by AI together.

Through maintaining this supply price, the indirect support amount borne by the headquarters for franchise stores reached 2 billion KRW in January alone. Since the broiler market price has not yet stabilized, bhc Chicken plans to continue the supply price maintenance policy until March. The expected support amount is about 6 billion KRW.

bhc Chicken expects that this broiler supply price maintenance policy will positively impact overcoming the AI crisis by eliminating additional burdens on franchise stores.

Since the end of last year, the chicken industry has faced difficulties in securing quantities and price increases due to the spread of AI and the popularity of partial meat menus, such as wings and legs, causing unstable supply of partial meats. In response, bhc Chicken is actively securing quantities to ensure stable supply to franchise stores.

Meanwhile, since last year, bhc Chicken has been conducting a win-win support program worth 10 billion KRW targeting franchise stores with outdated facilities or those needing support such as store relocation.

A bhc Chicken official said, “Although broiler prices have increased due to the spread of AI and imbalance in partial meat supply, the headquarters has borne the increase factors, effectively blocking the rise in chicken prices in advance,” and added, “During these difficult times due to COVID-19, we will continue to strive to develop various policies that allow franchise stores and customers to coexist.”

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