Due to Egg Supply Disruptions,
National Mayonnaise 'Qupi' Also Implements Price Increase
[Asia Economy Reporter Jeon Jin-young] As the outbreak of highly pathogenic avian influenza (AI) in Japan worsens the egg supply issue, related industries such as mayonnaise and confectionery have begun to feel the impact. The popular Hokkaido-made biscuit among Korean tourists, ‘Shiroi Koibito,’ is expected to see its production cut by half, and ‘Q.P.,’ known as the national mayonnaise, will start raising prices from April.
According to the Hokkaido Shimbun on the 3rd, Ishiya Confectionery in Sapporo, which sells Shiroi Koibito, began gradually adjusting production from the 23rd of last month. The period for production reduction has not been determined. Although Ishiya Confectionery has not officially announced the reduction figures, the Hokkaido Shimbun reported that “production will be cut to about 50% of the usual output.”
Photo of Ishiya Confectionery's Shiroi Koibito 18-piece product. (Photo by Ishiya Confectionery official website)
An Ishiya Confectionery official told the Hokkaido Shimbun, “We decided to reduce production because we cannot secure the necessary number of eggs,” adding, “Even if we want to return to the original production system, it depends on the supply situation.” For the time being, Ishiya Confectionery will only produce the 18-piece Shiroi Koibito product, which has high demand, and will also adjust production of Baumkuchen and roll cakes sold together.
As a Hokkaido souvenir, concerns are growing in tourist hubs such as Sapporo. This is because late January and February are the periods when the Snow Festival is held, attracting a surge of tourists. Stores catering to tourists are already expressing concerns, saying, “How can we do business without Shiroi Koibito?”
The egg supply impact is affecting not only specialty products but also everyday shopping baskets. According to the Nihon Keizai Shimbun (Nikkei), the Japanese mayonnaise brand Q.P. announced plans to raise prices on 36 items, including mayonnaise, starting in April.
Q.P. raised prices in July 2021 for the first time in eight years due to a sharp increase in the cost of raw materials such as vegetable oil, and has gradually increased prices four times over two years. Q.P. told Nikkei that the reason for the price hike is “the rise in egg prices due to the spread of avian influenza.”
Nikkei views this egg supply disruption as a result of poultry farmers reducing the number of laying hens due to soaring feed prices, compounded by the avian influenza outbreak that began in October last year.
In fact, the wholesale price of medium-sized eggs in Shinjuku, Tokyo, averaged 280 yen per kilogram in January, an 85% increase compared to the same month last year. For January alone, this was the highest price in 37 years since 1986.
Nikkei analyzed that the rise in egg prices and supply constraints are likely to continue for the time being. Takeru Yamashita, head of the 3rd division of the Japan Poultry Association, told Nikkei, “Usually, AI in Japan tends to subside in spring, but this time it is difficult to predict the future,” adding, “Even if it is resolved, the introduction of laying hens varies by poultry farm, so prices are expected to continue rising through summer.”
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