Unusual Egg Prices Expected to Rise Further in April and May

Supply Shortage... Egg Production Continues to Decline
Nationwide Supply-Demand Imbalance Expands... Upward Trend Until May

Egg (Photo by Asia Economy DB)

[Asia Economy Reporter Lee Seon-ae] Egg prices are showing unusual signs. Due to a shortage in supply since the beginning of this year, prices have been continuously rising, and the upward trend is expected to continue through April and May.

According to the Korea Agro-Fisheries & Food Trade Corporation (aT) on the 30th, as of the 27th, the price of eggs (special grade, medium quality, 30 pieces) was recorded at 5,320 KRW. This is a slight increase of 0.5% and 0.4% compared to 5,296 KRW four days ago and 5,298 KRW seven days ago, respectively. However, it is 3.5% higher than 5,143 KRW one month ago and has jumped 7.3% compared to 4,958 KRW a year ago.

Farm gate prices are also showing strength. In early March, the average farm gate price of eggs nationwide was 1,300 KRW (special grade, 10 eggs, according to the Korea Poultry Association), rising from 1,150 KRW last month.

A distribution company official handling eggs in the metropolitan area said, "Although production volume is low, demand for eggs has surged mainly in the Daegu and Gyeongbuk regions, causing prices to rise," adding, "Since March, the supply-demand imbalance has expanded to all regions."

The upward trend in egg prices is expected to continue in April. According to the Livestock Outlook of the Agricultural Outlook Headquarters at the Korea Rural Economic Institute, egg production from March to May is expected to decrease by 1.3% compared to the previous year due to a reduction in the number of laying hens aged six months or older. Accordingly, farm gate prices for eggs from March to May are expected to rise compared to the previous year due to decreased production. Specifically, the farm gate price for eggs in March is forecasted to be 950 KRW to 1,100 KRW per 10 special grade eggs, 1,100 KRW to 1,250 KRW in April, and 1,050 KRW to 1,200 KRW in May. Earlier, the average farm gate price for eggs in January was 1,164 KRW, a 45.9% increase from the previous year, and in February, it was 1,008 KRW, also higher than the previous year.

Chicken meat prices are expected to decline. Although chicken prices temporarily rose due to increased delivery demand, the trend has been slightly downward due to postponed school openings and reduced restaurant consumption. The March retail price was 1,181 KRW per kilogram, which is 25.3% and 21.5% lower than the previous year's 1,581 KRW and the average 1,506 KRW, respectively. Accordingly, the consumer price for chicken in March was recorded at 5,195 KRW per kilogram, 3.3% and 5% lower than the previous year's 5,317 KRW and the average 5,467 KRW, respectively. In April, retail prices are expected to range between 1,050 KRW and 1,250 KRW per kilogram, lower than the previous year's 1,445 KRW, due to an increase in slaughter numbers.

The Korea Broiler Association stated, "About 40% of the total slaughter volume of broilers is distributed to chicken franchise companies, while the rest is sold through various channels such as school meal providers, large supermarkets, and traditional markets," adding, "Due to the prolonged COVID-19 pandemic, consumption has contracted, and the price weakness is expected to continue."