With Chobok Approaching... Concerns Grow Over Health Food as Chicken Prices Rise

July Chicken Retail Prices Up 11% YoY
Samgyetang Prices Also Rise, Exceeding Average 16,000 Won
Supply Decreases Due to Rising Feed and Production Costs

With the peak of the summer heatwave approaching, demand for summer health foods such as Samgyetang is expected to increase, but rising production costs are causing chicken prices to trend upward, which is likely to increase the financial burden on consumers.

On the 26th, which is a duplicate solar term day, citizens lined up in front of a Samgyetang specialty restaurant in Jongno-gu, Seoul. Photo by Kim Hyun-min kimhyun81@

According to livestock distribution information from the Animal Products Quality Evaluation Service on the 5th, the average retail price of chicken per kilogram as of the 4th was 6,253 won, an 11.0% increase compared to the same day last year (5,633 won). Wholesale prices are also on the rise. The average transaction price last month for No. 10 chickens supplied in bulk to franchises was 3,668 won, up 4.3% from 3,518 won in the same period last year.

As chicken prices rise, dining-out costs are also increasing. According to the Korea Consumer Agency’s comprehensive price information portal, Chamgagaek, the average price of Samgyetang at restaurants in Seoul in May was 16,423 won, a 12.7% increase compared to 14,577 won in the same month last year. Chicken prices have also risen, with Kyochon F&B raising consumer prices by up to 3,000 won since April, bringing the era of “one whole chicken costing 30,000 won” closer.

This year, rising production costs such as feed prices, labor costs, and logistics expenses have led to a decrease in the number of chickens raised by poultry farms, which has contributed to the recent increase in chicken prices. According to the Korea Rural Economic Institute, 65.35 million broilers were slaughtered domestically last month, down 2.4% from a year earlier and 7.5% compared to the average year. This month, slaughtering is expected to be between 69.17 million and 70.61 million birds, representing a decrease of about 2.6% year-on-year and about 6.8% compared to the average year. The burden of production costs has increased, leading to a reduction in the number of chicks stocked and a decrease in the number of broilers available for slaughter.

As supply shortages continue and the summer season?when chicken consumption such as Samgyetang peaks?approaches, the government has also taken action. Since the 1st, the Ministry of Economy and Finance has lowered tariffs on chicken imports, aiming to secure supply volumes by taking preemptive import measures to prepare for supply instability. Under this measure, chicken, which was subject to a basic tariff rate of 20-30%, will be subject to a 0% tariff on 30,000 tons until the end of the year. The Ministry explained that the tariff reduction was made to stabilize prices in anticipation of increased summer chicken demand due to more outdoor activities and health food consumption. However, to minimize damage to poultry farms caused by increased imports, the timing and volume of chicken imports will be adjusted considering domestic supply and import inventory levels.

Meanwhile, as the prices of dining out for Samgyetang and chicken, as well as fresh chicken prices, rise, demand for convenient Samgyetang meals is also rapidly increasing. According to CJ CheilJedang, sales of the ‘Bibigo’ Samgyetang product in May increased by more than 15% compared to the same period last year. Shinsegae Food also reported that sales of its ‘Olban’ Samgyetang product in the first quarter of this year rose 62% compared to the same period last year.

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