'Cage Regulation' Delayed for Two Years... Egg Prices Expected to Remain High for Now

Egg Prices Continue to Rise, Leading to Reduced Consumption Due to Price Burden
Ministry of Agriculture Delays Cage Space Expansion for Laying Hens by Two Years Amid Price Concerns
Structural Measures Needed, Including Expansion of Public Wholesale Market Transactions

As egg prices continue to rise, increasing the burden on consumers, the government has decided to postpone the expansion of the minimum cage space regulation for laying hens, which was scheduled to take effect this month, by two years. While this move is expected to help prevent a short-term supply contraction and ease the sharp price increases, concerns are growing that market instability may resurface after the regulation is implemented in 2027. Ultimately, long-term price stability will require not only abolishing the price posting system, but also expanding public wholesale market transactions and establishing structural mechanisms such as stockpiling and import linkages.

Egg Prices Continue to Rise, Increasing Consumer Burden

According to the Livestock Distribution Information of the Korea Institute for Animal Products Quality Evaluation, as of September 8, the average retail price for a tray of 30 extra-large eggs was 7,143 won, up 13.2% from the same period last year (6,309 won). Compared to the average year (6,398 won), this is an increase of 11.6%. Recently, egg prices have been rising month after month. The average farm price for 10 extra-large eggs in June was 1,920 won, a 16.7% increase year-on-year; in July, it rose to 1,941 won, up 19.4%, and last month, it remained at 1,941 won, representing a 20.1% increase from the previous year.

As the burden of egg prices increases, household egg consumption is also declining. According to sales data from retail distribution channels, egg sales over the past three months (May to July 2025) totaled 24.86 million units, a 2.4% decrease from the same period last year (25.46 million units). There is also a shift in packaging preferences, with consumers opting for smaller packs of 10 or 15 eggs rather than the traditional tray of 30 eggs.

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The upward trend in egg prices is expected to continue this month. The Agricultural Outlook Center forecasts that the number of laying hens in September will be 79.29 million, down 1.6% from the previous year, and the number of hens aged six months or older (capable of producing eggs) will be 57.41 million, a 0.8% decrease year-on-year. As a result, the average daily egg production in September is projected to be 49 million eggs, down 1.1% from last year (49.53 million eggs).

With supply declining due to the aging of laying hens and the impact of heat waves, and demand rising with the Chuseok holiday peak season, egg prices are expected to remain high for the time being. The Agricultural Outlook Center predicts that the farm price for 10 extra-large eggs in September could reach as high as 1,950 won, higher than in August. In October and November, after the Chuseok peak season, demand is expected to decrease and new laying hens will begin producing eggs, which could bring prices down slightly to around 1,900 won.

Postponement of Cage Space Regulation... Need for Fundamental Supply and Demand Stabilization Measures

Yonhap News Agency

As egg prices continue to rise, the government has postponed the implementation of the expanded cage space regulation that was to take effect this month. The Ministry of Agriculture, Food and Rural Affairs had initially planned to require new flocks of laying hens to be provided with 0.075 square meters per bird, a 50% increase from the current 0.05 square meters, starting this month. However, due to ongoing concerns over egg supply and price instability, the ministry announced on September 7 that the full implementation of the expanded cage space requirement would be postponed for two years, until September 2027.

The Ministry stated that after September 2027, farms that do not comply with the cage space requirement will be subject to fines, and eggs produced in the narrowest cage environment (0.05 square meters per bird) will not be distributed, as their identification numbers will be removed. Additionally, the ministry will abolish the price posting by the Korea Laying Hen Association, which has served as the basis for determining farm prices, later this month, and the Korea Institute for Animal Products Quality Evaluation will instead publish weekly market outlooks for egg supply and prices.

This postponement is expected to help stabilize egg prices in the short term by alleviating supply concerns such as reduced flock replenishment among farms. However, merely delaying the regulation is not a complete solution to stabilizing egg prices, and structural measures will be necessary to prepare for the period after September 2027.

First, the government's decision to abolish the price posting system, which has been criticized for distorting prices, and to publicly announce supply and demand trends, is expected to improve market reliability and transparency by providing price forecasts based on data from a public institution rather than the previously opaque private system. However, it remains uncertain whether the forecasted prices will be reflected in actual transactions, as over 90% of egg trading currently occurs through direct transactions. Without revitalizing public wholesale market transactions, official price indicators may serve only as reference values.

An industry official stated, "Ultimately, the proportion of transactions through public wholesale markets needs to be increased. To achieve this, follow-up measures such as reducing transaction fees and linking subsidies to transactions should be implemented to provide incentives and increase actual trading volume, thereby making price indicators more effective." There are also calls to mandate the disclosure of wholesale and retail distribution margins and to strengthen price comparison on online platforms to enhance transparency in the distribution process.

Furthermore, long-term supply management is also necessary. Egg price instability is caused by periodic overlaps of factors such as disease outbreaks among laying hens, culling of old hens, and seasonal effects. Currently, the government's main response to supply crises has been temporary measures such as releasing imported or frozen eggs into the market. The Korea Rural Economic Institute suggests that, going forward, the government and public institutions should establish an automatic stabilization system by maintaining a constant stockpile of eggs, releasing them when prices rise above a certain level, and institutionalizing a regular stockpiling and release system.

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