It is projected that farm gate prices of eggs will remain strong until August. This expectation is due to the overlap of highly pathogenic avian influenza (AI) that occurred in February in the Chungcheong region and the aging of laying hens, maintaining a price level about 10–20% higher than usual.
On the 8th, the Korea Rural Economic Institute (KREI) forecasted in the June edition of the Agricultural Outlook report that this month's farm gate price of eggs would rise by 12.4–18.5% compared to a year ago, reaching 1,850–1,950 won for ten large-size eggs.
This is 9.9–15.8% higher compared to the average price over three years from 2020 to last year, excluding the maximum and minimum prices.
KREI noted, "Due to the aging of laying hens and the occurrence of consumptive diseases, a decline in productivity is expected," adding, "However, after July, the price is expected to fall compared to the previous month due to decreased egg consumption during the summer off-season." Although the price shows stability compared to the previous month, it is estimated to be about 8.2–14.4% higher compared to August last year.
This year, the farm gate price of eggs was similar to a year ago as of February, but in April and last month, the price for ten large-size eggs rose to 1,773 won and 1,838 won, respectively, marking increases of 10.2% and 12.2% compared to the same months the previous year.
In an explanatory document issued last month, the Ministry of Agriculture, Food and Rural Affairs estimated that from late February onwards, egg production temporarily declined by 4–6% due to the occurrence of consumptive diseases such as infectious bronchitis during the change of seasons in many farms.
As the farm gate price of eggs rises, consumer prices are also on an upward trend.
The average consumer price for eggs last month was 7,026 won for a tray of thirty large-size eggs, exceeding 7,000 won for the first time in four years since July 2021.
Separately from egg prices, last month the farm gate price of chicken also rose to 1.5 times the level of a year ago.
This is due to the decrease in shipments and the shortage of larger chickens, leading to a reduction in the supply of cut parts.