Egg Prices Surge Again Amid Lax Government Oversight...

Expansion of Egg Distribution Margins... Concerns Over Recurrence of 'Gold Egg Crisis' Early Next Year if AI Resurges in Winter

Eggs are displayed at a large supermarket in Seoul. Photo by Mun Ho-nam munonam@

[Sejong=Asia Economy Reporter Son Sunhee] Egg prices, which soared to nearly 10,000 won last summer before finally dropping, have started to rise again this month. The distribution margin, which had been suppressed by strong government control, has expanded once more, and with the re-spread of avian influenza (AI) during the winter season, there are concerns that if supply disruptions occur, the ‘golden egg’ crisis threatening the cost of living for ordinary people’s meals early next year could reoccur.

According to the Agricultural Products Distribution Information website of the Korea Agro-Fisheries & Food Trade Corporation (aT) on the 20th, the nationwide average egg price (based on 30 special eggs) has steadily increased since the beginning of this month, reaching 6,401 won as of the 16th. The price of one carton of eggs rising back into the 6,400 won range is the first time in two and a half months since September 29 (6,466 won).

Looking at the monthly trend, egg prices, which surged from the beginning of this year, remained in the mid-to-high 7,000 won range from February to July. Then, after dropping to 6,949 won in August, prices continuously declined in September (6,541 won), October (6,071 won), and November (5,983 won). Despite the government’s year-round efforts to ‘control egg prices,’ it has still failed to recover to the average price (5,603 won).

At least, egg prices, which showed a stabilization trend in the second half of the year, have started to rise again this month. A Ministry of Agriculture, Food and Rural Affairs official explained, "The farm gate price of eggs has fallen, but the distribution margin, which had been kept low to stabilize prices recently, seems to be expanding mainly in large supermarkets," adding, "The AI outbreak has not yet affected egg supply to a significant extent." According to the Ministry, since the first confirmed AI case in the second half of this year on the 9th of last month, a total of 14 cases have been reported as of today. Similar to last year, if AI spreads comprehensively to laying hen farms and culling occurs, egg prices are highly likely to surge again.

Concerned about the supply situation, the Ministry of Agriculture, Food and Rural Affairs announced today the introduction of an egg auction market. The purpose is to improve the previously opaque farm transaction structure and provide transparent price indicators through the auction market. The Ministry stated, "When laying hen farms ship eggs through online and offline channels, various buyers participate, and transactions are conducted through bidding, fixed-price, and negotiated sales methods," expressing expectations that "since eggs produced by multiple farms can be compared and selected, transaction costs will decrease."

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