'Even Fresh Cream Ran Out'... Cafe Small Business Owners Face Year-End Slump

Egg Prices Soar, Followed by Fresh Cream Shortage
Self-Employed Face 'Double Hardship' Amid Consumer Sentiment Decline

[Asia Economy Reporter Song Seung-yoon] The expressions of self-employed business owners facing the year-end peak season are growing gloomy. They are suffering from a double burden due to the contraction of consumer sentiment, followed by a sharp rise in egg prices and a shortage of fresh cream.

According to the industry on the 26th, the shortage of fresh cream products continues at large supermarkets and online malls. The demand for fresh cream, which is necessary for making cakes and bread, usually increases significantly at the end of the year, but supply is not smooth compared to this demand. Currently, the 500ml Seoul Milk fresh cream product, which is most commonly used by businesses, is temporarily out of stock on Seoul Milk Cooperative's online mall 'Na100 Shop.' In other shopping malls, relatively inexpensive products are quickly running out of stock. The same is true at large supermarkets. Due to this situation, some open markets have started selling products at about twice the original price. A Seoul Milk official said, "We expect the supply and demand situation to gradually improve after this month, when fresh cream demand peaks."

Neighborhood bakeries and dessert cafes are feeling the heat. Especially with the increase in fresh cream demand ahead of Christmas, many missed the Christmas peak season that continued over the weekend. On online communities where self-employed business owners gather, posts asking for extra supplies or suppliers are frequently posted.

Kim Ye-rin (32, pseudonym), who runs a personal cafe in Yangcheon-gu, Seoul, said, "My supplier said the stock of the product I usually receive is insufficient, so I am reluctantly receiving mixed products," adding, "I expect cake and bakery demand to increase until the end of this month, and I am worried about what to do."

The price of eggs, widely used as a main ingredient, also shows no sign of falling. According to the Livestock Products Quality Evaluation Institute's Livestock Distribution Information, as of the previous day, the national average consumer price for one tray of eggs (30 extra-large eggs) was 6,672 won. This is more than 4% higher than 6,397 won a year ago and about 20% higher than the average price (5,547 won). Since this price has been maintained for more than a week, some expect the average consumer price to exceed 7,000 won. Many places are already selling eggs for more than 7,000 won. The biggest reason driving up egg prices is the increased supply anxiety caused by the spread of avian influenza (AI) infection in poultry farms nationwide. The rise in feed prices has also fueled this. The egg price surge could lead not only to price increases in the dining industry but also to related product price hikes and overall inflation. The government plans to import eggs in preparation for a worsening domestic egg supply situation. First, it decided to introduce 1.21 million Spanish eggs as an initial batch next month on a trial basis.

Consumer sentiment is also declining. According to the Bank of Korea's November Consumer Sentiment Survey, the Consumer Confidence Index (CCSI) recorded 86.5, down 2.3 points from 88.8 in the previous month. This marks a decline for two consecutive months. It means that more consumers are trying to reduce spending due to inflation and economic recession.