This article was published on April 4, 2025, at 5:21 a.m. on the ChosunBiz RM Report site.
As domestic egg prices rise rapidly, concerns have been raised regarding grocery prices. With the spread of highly pathogenic avian influenza (AI) reducing supply, an increase in demand for school meals and requests from the United States for imports of Korean eggs are intensifying price pressures.
According to the Korea Institute of Animal Products Quality Evaluation, as of March 31, the farm gate price for eggs (30 large eggs) recorded 5,094 won. This marks a 15.9% surge from early March (4,397 won). The price of eggs soared as supply decreased and demand increased.
Highly pathogenic AI is a seasonal epidemic. It began spreading in October last year, and by the end of March this year, there were a total of 20 cases of highly pathogenic AI reported on domestic layer farms. As a result, more than 4.3 million layers were culled. Notably, seven of these cases occurred in March alone. Consequently, 1.69 million layers, accounting for 2.2% of the total layer population (77.58 million), died within a month.
Typically, March is a period when highly pathogenic AI rarely occurs. Statistics based on the past five years show an occurrence level of around zero to five cases, making this year's numbers unusually high. An industry insider noted, "The increase in AI cases due to the rise in wild birds is a major cause of the rising egg prices."
Additionally, March is a time of skyrocketing egg demand. With the start of the new semester, schools are increasing their demand for eggs for meals. Eggs are essential goods, and major retailers are busy securing eggs ahead of spring discount events.
Particularly this year, the increase in requests for egg imports from the United States is also driving prices up. The U.S. is facing challenges in egg supply due to the spread of AI. U.S. Secretary of Agriculture Brooke Rollins noted on March 20 (local time) that "We will import more eggs from Korea." According to local media, the U.S. requested monthly exports of 10 million eggs from Korea until the end of the year. This amount is equivalent to one-fifteenth of the country's average monthly egg production. If realized, it is highly likely that egg prices will rise further.
Last month, 40 tons of large eggs, 20 tons each from Gyerim Farm in Asan, South Chungcheong Province, and Mujigae Farm in Chungju, North Chungcheong Province, were exported to the U.S. This export volume still accounted for only 0.06% of the domestic average monthly egg production. However, if requests for imports from the U.S. continue, price pressures are expected to increase further.
The government has stated that the situation is not yet a cause for concern. A representative from the Ministry of Agriculture, Food and Rural Affairs noted, "The eggs exported to the U.S. in March were the initial volume for market exploration led by the private sector," adding, "There were no official negotiations between nations." They added that "Domestic egg production is continuously increasing, so the impact on supply and demand is very minimal."
Nevertheless, in the retail industry, news of large-scale purchases of eggs by the U.S. is prompting a scramble to secure eggs. Concerns about an egg supply shortage are growing. A representative from a major supermarket commented, "If the spread of AI intersects with U.S. exports, there may be price increases due to supply instability for eggs."
Since the first case of highly pathogenic AI in October last year, more than 4.3 million layers have been culled, which amounts to 5.5% of the total population. Experts have analyzed that if the U.S. egg crisis continues, there may be a red flag for price stability in the domestic market.
Lee Jong-woo, a professor of business administration at Ajou University, said that "the increase in demand for exports of Korean eggs due to the U.S. egg crisis should be considered in the interest of the state's benefit, and the government must respond appropriately."
Consumers' burdens are also increasing. The Korea Institute of Animal Products Quality Evaluation reported that the actual retail price of eggs at major supermarkets and online shopping malls is 6,554 won for 30 large eggs, up about 7% from last year (6,097 won).
This situation adds a new element of uncertainty to the already soaring food prices. Last month, prices for processed foods such as bread, ham, kimchi, and snacks increased. According to the Consumer Price Trends report released by Statistics Korea on March 3, prices for processed foods rose 3.6% compared to the same month last year, marking the highest increase in 15 months since December 2023 (4.2%).
A representative from the Ministry of Agriculture, Food and Rural Affairs stated, "Looking at the changes in egg farm prices over the last three years, we see a consistent trend where prices drop to their lowest in February with reduced demand, followed by a rise in March due to increased demand," adding, "The government will thoroughly manage to ensure that egg supply and prices remain stable."