Last month, the consumer sale price of a tray of eggs reached the highest level of the year. With high pathogenic avian influenza (AI) spreading ahead of the Lunar New Year holiday, there is growing concern among consumers as the possibility of egg prices exceeding 7,000 won is raised.
According to the Livestock Products Quality Assessment Service on the 3rd, the average consumer sale price of a tray of eggs (30 eggs) in December last year was recorded at 6,949 won. This is 7.8% more expensive than the same month the previous year (6,444 won) and was the highest on a monthly basis in 2024.
The main reasons for the price increase are cited as the spread of high pathogenic AI, a sharp rise in feed prices, and decreased productivity of laying hens due to extreme heat in the summer.
High pathogenic AI first occurred in a duck farm in Yecheon, North Gyeongsang, last October, and spread nationwide, significantly affecting egg production. According to the Ministry of Agriculture, Food and Rural Affairs, out of the 19 confirmed cases of high pathogenic AI, eight were confirmed in laying hen farms. Up to now, approximately 999,000 laying hens have been culled. This accounts for 1.23% of the total laying hen population of 81.2 million.
AI is spreading nationwide. It is concentrated in major laying hen dense areas such as Gyeonggi, North Chungcheong, South Chungcheong, and Sejong, putting farms and quarantine authorities on alert. The Ministry of Agriculture, Food, and Rural Affairs is reinforcing quarantine inspections on laying hen farms in 11 cities and counties until the 10th of this month, and is conducting a 'nationwide intensive disinfection week' until the 14th, with intensive disinfection twice a day around migratory bird spots and poultry farms.
Choi Jeong-rok, head of the Quarantine Policy Bureau at the Ministry of Agriculture, Food, and Rural Affairs, urged, “As many of the AI-affected farms are located near migratory bird sites, we ask each local government and livestock farm to make thorough use of available disinfection resources for quarantine.”
The rise in production costs, including feed prices, is also impacting the increase in egg prices. The price of mixed feed for poultry, which was 428 won per kg in 2020, reached an average of 578 won from January to November last year. Decreased productivity of laying hens due to extreme heat in the summer and various diseases is also adding to the upward pressure on egg prices. An industry official noted, “Although the supply of laying hens itself is not insufficient, the simultaneous decline in productivity and AI spread is increasing the pressure on egg price increases.”
There is also an analysis that the recent increase in consumer demand for eggs has influenced the rise in prices. According to the Korea Rural Economic Institute, the egg sales amount in major domestic large supermarkets in the third quarter of last year was 84.1 billion won, an 8.6% increase from the same period the previous year. During the same period, the sales volume increased by 6%, surpassing the increase in sales price (2.5%). This is attributed to the rising prices of livestock products such as beef and pork, leading to increased consumer demand for relatively cheaper eggs.
However, there is a possibility that egg prices will stabilize after the Lunar New Year holiday. The Korea Rural Economic Institute predicts that the number of laying hens in March this year will increase by 4% compared to the same period the previous year, and with the subsequent increase in production, the price of eggs in the production area after the holiday is expected to fall by about 3% compared to the previous year. However, if the spread of AI does not subside, the timing of price stabilization could be delayed.
Ahead of the Lunar New Year holiday, the government plans to implement a discount support policy to stabilize egg prices. A representative from the Ministry of Agriculture, Food and Rural Affairs stated, “We plan to issue agricultural product discount coupons ahead of the Lunar New Year holiday, when egg demand increases, and plan to continue additional discount support using funds after the holiday.”