"Chicken and Beer After Work?" I Was Surprised... Now I Hesitate

According to Statistics Korea on the 12th, chicken prices rose by 6.6% last month compared to the end of last year.

[Asia Economy Reporter Hwang Sumi] Among dining-out items this year, chicken prices have risen the most.

According to Statistics Korea on the 12th, the dining-out price index last month was 109.81 (2020=100), up 7.4% compared to the same month last year. Compared to December last year, it also rose 4.2%, exceeding the overall consumer price index increase rate of 3.4%.

The prices of all 39 dining-out items increased compared to the end of last year. Price increases were particularly notable for flour-based foods such as jajangmyeon, tteokbokki, kalguksu, and jjambbong. Especially, chicken had the highest increase rate at 6.6%. Compared to the same month last year, it rose 10.9%, marking a double-digit increase for the first time.

In fact, Genesis BBQ, which operates the chicken franchise BBQ, raised product prices by 2,000 won starting from the 2nd of last month. With this price increase, BBQ’s signature menu, Golden Olive Chicken, rose from 18,000 won to 20,000 won, and Golden Olive Chicken Drumsticks increased from 19,000 won to 21,000 won. This was BBQ’s first price hike in four years since November 2018. Previously, Kyochon Chicken and BHC raised prices in December last year. These companies’ price increases came after 7 and 8 years, respectively.

The background for the chicken price increase is attributed to rising raw material purchase costs such as flour. Recently, due to supply instability of wheat and corn starch caused by Russia’s invasion of Ukraine and rising logistics costs, flour prices have increased. Export restrictions on raw materials and food by various countries have also contributed to price inflation.

Chicken meat prices have also risen. According to the Livestock Products Quality Evaluation Institute, the average transaction price of 10-ho chicken supplied to franchises in May (excluding brining, cutting, packaging fees, and VAT) was 3,518 won, up 17.9% from 2,983 won in December last year.

In this regard, some have pointed out that the Fair Trade Commission’s sanctions on recent collusion among chicken manufacturing and sales companies have had little effect.

Earlier, in March, the Fair Trade Commission imposed fines totaling 175.823 billion won on 16 companies, including Harim, for colluding 45 times over 12 years in manufacturing and selling fresh broiler meat. Five companies, including Allpum and Maniker, were also referred to the prosecution. In April, the commission imposed a fine of 1.21 billion won on the Korea Broiler Association for collusion. It is known that chicken manufacturing and sales businesses such as Harim are members of this association.

However, these sanctions have not stopped the rising trend of chicken prices. Moreover, there are rumors that the results of the Fair Trade Commission’s sanctions have been passed on to consumers through prices. Judging from the trend of price increases, the high-flying chicken prices are expected to continue.

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