Sharp Rise in Chicken Prices... Government Urges "Explore All Supply Expansion Measures"

Chicken Wholesale Prices Up 15% in a Year Due to Chick Supply Shortage
Chicken Companies Expect Price Stabilization by Mid-May

As wholesale chicken prices continue to rise sharply, the government has urged the related industry to increase supply using all available means, including expanding chick stocking.

On the 27th, the Ministry of Agriculture, Food and Rural Affairs held the first Chicken Supply and Demand Adjustment Council meeting of 2023 to review the chicken supply and demand situation and discuss measures to stabilize supply.

According to the ministry, the wholesale price of chicken in April was 4,079 won, 14.8% higher than the previous year (3,553 won). Additionally, the Korea Rural Economic Institute recently reviewed chicken supply and demand trends and found that the number of chickens slaughtered from the 1st to the 22nd of this month was 2,539,000, a 5.6% decrease compared to the previous year. The institute explained that this was due to increased production costs and a decline in the productivity of broiler breeders, resulting in reduced chick supply.

Jung Jae-hwan, Director of Livestock Management at the Ministry of Agriculture, Food and Rural Affairs, said, "The rising trend in chicken prices, a staple food for the public, is becoming prominent. We ask to expand chick stocking for Samgye (young chickens) to increase supply, and for broilers, to extend the usage period of breeders to increase hatching egg production and thus boost chick supply. Please explore all possible measures to expand stocking."

The meeting was attended by 15 members, including officials from the Ministry of Agriculture, Food and Rural Affairs, the National Institute of Animal Science, the Livestock Products Quality Evaluation Institute, representatives of the four major chicken producer groups (layer hens, broilers, native chickens, and broiler breeders), executives from major chicken-related companies such as Harim, Dongwoo Farm to Table, Cherrybro, and Sajo Won, as well as the Korea Rural Economic Institute.

Participants forecast that the supply shortage will continue for the time being, with the number of chickens slaughtered in May expected to decrease by 4.7% compared to the previous year. However, from late May, when temperatures rise significantly, chick supply is expected to gradually recover due to improved breeder productivity. On the other hand, demand is expected to increase as outdoor activities, which were suppressed last year due to COVID-19, rise with the easing of social distancing and the spring holiday season.

Major affiliated companies, including Harim, Dongwoo Farm to Table, Cherrybro, and Sajo Won, which account for about 50% of the annual chicken production, view the recent price increase as a result of reduced chick supply caused by decreased breeder productivity, and expect prices to stabilize from mid-May. A company representative said, "To help ease the burden on consumers struggling with high prices, as part of our corporate social responsibility, we are expanding chick stocking for Samgye to restore production to last year's levels. Although broiler breeder productivity is low, we will actively work to expand the stocking of all supplied chicks to increase supply by an additional 3-5% compared to the previous month."

Packaged chicken on the display shelf

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