The price of a tray of eggs has exceeded 7,000 won, marking the highest point in about four years, and it is expected that the “eggflation” (egg + inflation) will continue at least through August. The government plans to utilize all available means to strengthen risk management to ensure a stable supply of agricultural products.
According to the Livestock Product Quality Assessment Service’s distribution information, as of the 8th, the price of 30 special-grade eggs was 7,034 won, a 7.8% increase from a year ago. This is the first time since July 2021 that the price of a tray of eggs has surpassed 7,000 won.
A representative from the Ministry of Agriculture, Food and Rural Affairs explained that while the price of eggs increased due to decreased productivity caused by diseases affecting hens in late March, productivity is expected to recover in June, with daily egg production anticipated to increase by 2.0% compared to the same period last year.
However, it is expected that livestock product prices will continue to rise for some time. According to the ‘June Livestock Outlook’ report by the Korea Rural Economic Institute (KREI), the prices of pork, beef, and eggs are all expected to continue their upward trend this month.
KREI predicts that the farm price of ten special-grade eggs in June will rise by 12.4% to 18.5% compared to a year ago, and 9.9% to 15.8% higher than average prices. Factors contributing to price increases include aging hens, as well as decreased productivity caused by low-pathogenic avian influenza, infectious bronchitis, and avian typhoid.
The report predicts farm prices for special-grade eggs will average 1,750 to 1,850 won in July and August. Although consumption may decline slightly during the summer off-season, prices will remain over 7% higher than the previous year.
Meanwhile, the wholesale price of pork in June is expected to be between 5,900 to 6,100 won per kilogram, 1.2% higher than the same period last year and 8.9% higher than average, due to a decrease in butchering numbers and a shortage of domestic raw meat supplies. The number of pigs butchered in the first half of the year decreased by 2.7% compared to last year.
Beef prices are also expected to rise due to decreased supply. The report forecasts the wholesale price of Korean beef for the second quarter to be 18,000 to 18,500 won per kilogram, a 5.7% to 8.6% increase from the previous year. The strength in prices is likely to continue in the third quarter due to a decrease in butchering numbers.
Although consumer prices for premium Korean beef showed an increase in May compared to the same period last year, they remain lower than average levels.
In response, the Ministry of Agriculture, Food and Rural Affairs emphasized that although prices appear higher compared to the previous year due to factors such as excess supply and discount support measures, overall supply and demand conditions remain generally stable.
The ministry anticipates that pig prices may stabilize in the second half of the year as domestic supply increases, although they are currently elevated due to decreased imports in the first quarter attributed to exchange rate increases. The impact on domestic supply from highly pathogenic avian influenza incidents in Brazil is limited as domestic importers have stocks for two to three months.
The government believes that the base effect from last year’s reduction in supplier prices and support to reduce wholesale costs has contributed to increased perceived inflation for consumers.
In the agricultural sector, the price and supply stability for eggs and meat will be addressed with various measures, including applying a zero-rate tariff for processed products, expediting import procedures for Brazilian chicken from regions not affected by the avian influenza, and exploring alternative import sources like Thailand, while increasing domestic poultry supply.
Additionally, vegetable production is expected to remain stable in June due to increased production of spring varieties of cabbage, radish, onions, and garlic. However, summer cabbage may experience a supply reduction due to challenges related to weather conditions.
The Ministry also plans to use government-discount budget funding to provide focused support during peak purchase seasons, such as summer vacations and Chuseok, to maintain an additional supply buffer and ease price pressures.