The government is directly importing U.S. eggs for price stability and distributing them to the market. While concerns are being raised that the move may have limited effectiveness considering the input expense and the actual supply-demand situation, some in the distribution industry say it is serving as a kind of signal that pressures price adjustments.
According to the industry on the 5th, of the first batch of 36,000 trays (30 eggs per tray) of "U.S. white fresh eggs" that Homeplus Co. began selling on Jan. 31, about 70% had been sold as of the 2nd. Sales of the second batch of 9,000 trays also began the previous day. Converted to individual eggs, the total is 1.35 million.
Earlier, the Ministry of Agriculture, Food and Rural Affairs brought in 2.24 million U.S. fresh eggs (75,000 trays) to Korea in two shipments starting on Jan. 22. Of these, 60% are sold through big-box stores (Homeplus Co.), and the remaining 40% are supplied to food material companies such as restaurants and meal services. The entire volume is expected to be supplied by the 6th.
With peak consumer demand ahead of the Lunar New Year holiday, most of the imported eggs are expected to sell out by the end of the month. The laying dates for the imported eggs are the 20th for the first batch and the 23rd–24th for the second batch, meeting Korea's egg consumption period standard of 45 days.
U.S. eggs are drawing consumer attention with relatively lower prices. The price of U.S. white eggs sold at Homeplus Co. is 5,990 won per tray, more than 17% cheaper than the average retail price of domestic extra-large eggs (7,229 won).
Since the start of the year, domestic egg prices have remained high. Concerns over the spread of highly pathogenic avian influenza (AI) have been cited as the main reason. According to the Korea Institute for Animal Products Quality Evaluation, as of Jan. 22, the consumer price for a tray of eggs (30 extra-large) was 7,213 won, up about 18.9% from the previous year (6,067 won).
The Agriculture Ministry says it secured U.S. supplies preemptively in case egg prices rise further if AI-driven culling of laying hens spreads. Generally, when the culling scale of laying hens exceeds 4 million, egg production falls and prices are affected.
However, farmers, led by the Korea Laying Hen Association, have pushed back. They say it is not a situation that warrants importing eggs with a budget of several billion won, including logistics costs such as air freight. The association claimed the government imported the eggs at about 27,000 won per tray.
Moreover, the 2.24 million imported eggs amount to less than 5% of Korea's average daily egg production of about 50 million. With the large-scale AI culling that was feared not yet occurring, the industry says supply and demand can be managed without major issues using domestic production alone.
There is also the interpretation that behind the decision to bear the expense burden to import U.S. eggs and supply them at low prices lies an intent aimed at the retail market. As concerns over AI spread and expectations of price increases overlapped, major retailers such as big-box stores did not release enough inventory, causing a temporary price spike, and the government sent a kind of "signal" to keep that in check.
Some effects have appeared. Since U.S. eggs hit the market, domestic egg prices fell from the 7,200-won range to the 6,200-won range and have stayed around that level for about a week. While the import expense burden is heavy, analysts say the welfare effect was actually larger when considering consumer benefits from the price drop.
Farmers also agree to a degree that egg prices rose excessively in the distribution process. As big-box stores focused on selling graded eggs from large corporate affiliates, they formed high-margin structures, widening the gap between farm-gate prices and consumer prices, critics say. The current producer sale price for domestic extra-large eggs is only 4,800–4,900 won per tray.
In effect, importing U.S. eggs is less a fundamental solution to adjust supply volumes than a kind of "emergency measure" to spur retail market sentiment and adjust prices in the short term. The fact that prices adjusted quickly with only small imports suggests egg prices respond sensitively to market sentiment rather than actual supply-demand.
For the time being, the government plans to monitor the spread of AI and egg price trends and review additional measures. If necessary, it says it will consider imports from alternative countries in Europe, Central and South America, and Southeast Asia, as well as the United States. During past AI outbreaks, the government imported Spanish eggs in addition to U.S. eggs.
A Korea Agro-Fisheries & Food Trade Corporation (aT) official said, "We cannot be assured through March, so we will keep the possibility of additional imports open, while judging volumes carefully," and added, "We will maintain a balanced response to prevent heavier burdens on consumers while minimizing damage to farmers."