Egg prices expected to remain high through August due to aging hens, avian flu

Egg prices at farms are expected to remain high at least through August, driven by a drop in laying productivity caused by poultry diseases such as avian influenza (AI).

Eggs sold at a supermarket in Seoul on June 8 [NEWS1]

Egg prices at farms are expected to remain high through August, driven by a drop in laying productivity caused by poultry diseases such as avian influenza (AI).

According to the June issue of the “Agricultural Outlook” report published by the Korea Rural Economic Institute (KREI) on Sunday, the wholesale price of a pack of 10 large eggs this month is projected to range between 1,850 and 1,950 won ($1.36 and $1,44) — about 12.4 to 18.5 percent higher than the same period last year. Compared to the average of the past four years, the price is expected to be 9.9 to 15.8 percent higher.

The farmgate price of eggs has been rising in recent months. While the March price was similar to the year before, prices rose to 1,773 won in April and 1,838 won in May — up by 10.2 and 12.2 percent year on year, respectively, for each month. KREI forecasts that prices between July and August will range from 1,750 to 1,850 won, slightly lower than June due to declining demand, but still 7.6 to 13.8 percent higher than July 2023 and 8.2 to 14.4 percent higher than August 2023.

The institute attributed the price hike to an aging population of hens and outbreaks of diseases such as low-pathogenic avian influenza, infectious bronchitis (IB) and fowl typhoid, which have lowered overall productivity. The report noted that high-pathogenic AI cases concentrated in the Chungcheong region disrupted supply across different areas, leading to an overall increase in the national average price in March.

Eggs sold at a supermarket in Seoul on June 8 [YONHAP]

The Korea Egg Producer Association said it has raised its recommended farmgate price per egg from 146 won to 190 won since March — an increase of about 30 percent — which has led to a rise in wholesale prices. The association rejected claims that producers were to blame for the surge, arguing instead that government regulations and excessive retail margins were behind the price increase.

The association also warned that egg prices will likely rise further starting in September, when revised regulations under the Livestock Act will increase the minimum space per laying hen from 0.05 to 0.075 square meters — a 50 percent expansion — reducing the number of hens that can be raised and leading to a decline in egg production.

Consumer prices have also risen in tandem with farmgate prices. The average retail price of a 30-egg tray last month reached 7,026 won, topping 7,000 won for the first time in four years since July 2021. This was 6 percent higher than the same month a year earlier and 4.2 percent higher than the average of recent years.

Separately from eggs, the farmgate price of chicken meat last month was about 1.5 times higher than the same period last year. Reduced shipments and a shortage of large-sized chickens led to a drop in the supply of cut chicken parts. However, KREI expects chicken prices to fall this month, forecasting a drop to 2,100 to 2,200 won per kilogram — a decrease of 8.4 to 12.6 percent from the previous month.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff. BY KIM JI-HYE [yoon.soyeon@joongang.co.kr]