Raw Chicken Prices Expected to Fall to Average Levels This Month

[Sejong=Asia Economy Reporter Kim Hyunjung] Chicken prices, which had risen due to culling caused by the spread of highly pathogenic avian influenza (AI), have recently stabilized, and it is expected that prices will return to normal levels this month.

According to the Korea Rural Economic Institute on the 2nd, the Agricultural Outlook Headquarters stated in the recently released "Broiler Outlook May Issue" that the live poultry distribution price this month is expected to decline from the previous month and form prices at normal levels. The live poultry distribution price refers to the price at which farms not affiliated with integrated companies trade live chickens. From the 1st to the 23rd of last month, the live poultry distribution price was 1,339 KRW per kg, which was 6.8% higher than the average year and 46.9% higher than last year.

However, the price showed a downward trend starting from the third week, dropping from 1,458 KRW per kg during April 1?14 to 1,168 KRW per kg during April 15?23. The highly pathogenic AI, which had the greatest impact on raising chicken prices, stopped spreading after it occurred on the 7th of last month (at a broiler duck farm in Jangheung, Jeonnam).

The Agricultural Outlook Headquarters explained, "Until the second week of April, the number of slaughtered chickens was lower than the previous year, which kept prices high, but from the third week, consumption was sluggish and the number of slaughtered chickens increased compared to the average year, resulting in a downward trend."

Retail chicken prices recorded 5,405 KRW per kg on the 30th of last month, remaining in the mid-5,000 KRW range throughout the month. Monthly retail prices have shown a downward trend from an average of 5,760 KRW in February to 5,548 KRW in March and 5,471 KRW in April.

The number of broilers raised this month is expected to be 102.2 million, an increase of 0.8% compared to the average year but a decrease of 2.9% compared to last year. The number of slaughtered chickens is projected to be 90.06 million, 0.4% higher than the average year but 2.4% lower than the previous year. Accordingly, the Agricultural Outlook Headquarters forecasts that the live poultry distribution price this month will decline from the previous month to a normal level of around 1,100 to 1,300 KRW per kg.

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