▲ Workers prepare imported Thai fresh eggs for distribution at an egg processing facility in Dangjin, South Chungcheong Province, on June 16.
The South Korean government is set to spend 121.2 billion won to import 231.39 million fresh eggs by August to stabilize domestic egg prices.
According to the Ministry of Agriculture, Food and Rural Affairs on June 28, the government has allocated 21.5 billion won for the import of 31.39 million fresh eggs from the United States, Thailand, and Brazil between January and early July of this year. An additional 99.7 billion won will be spent to import 200 million eggs from next month through August.
This means more than 120 billion won in public funds will be spent over an eight-month period this year to stabilize food prices for households.
The cost of imported fresh eggs is not determined solely by overseas market prices.
Additional expenses are incurred for cold chain logistics to maintain freshness, transportation, customs clearance and quarantine, repacking, and domestic distribution.
Air freight is cited as the largest cost factor.
When eggs must be supplied to the domestic market quickly to stabilize prices, the government utilizes air transport, which is several times more expensive than sea freight.
Based on reports from the laying hen industry and the government, the cost of bringing imported eggs into the country, including air freight and repacking, can reach up to 20,000 won per tray of 30 eggs.
To lower market prices, the government implements a policy of using public funds to subsidize a portion of transportation and repacking costs. Specifically, the government covers the price difference between the import cost and the market price, allowing imported eggs to be sold at a discounted rate of 5,000 to 6,000 won per tray, which is below the actual cost.
Kim Gyeong-du, executive director of the Korea Egg Producers Association, criticized the move, stating, "If the government follows through with its plan to import 230 million fresh eggs this year, a significant portion of taxpayers' money will essentially be wasted."
In response, Lee Jae-sik, director general of the Livestock Policy Bureau at the Ministry of Agriculture, Food and Rural Affairs, said, "We are using public funds to ease the burden on the public economy and household budgets amid a shortage in egg supply. While criticism is possible, this is a necessary use of tax revenue to stabilize prices and enhance public welfare."
The laying hen industry points out that the current surge in egg prices is due to the introduction of regulations that increase the required floor space per hen from 0.05 square meters to 0.075 square meters.
The industry estimates that these regulations, which will be fully enforced starting in September 2027, will reduce domestic production capacity by more than 33%, leading to a supply shortage of over 12 million eggs per day against a daily consumption of approximately 50 million eggs.
In particular, the industry argues that because it takes about 19 months from the introduction of laying hens to production and culling, current egg prices already reflect the impact of facility improvements and reduced flock sizes in anticipation of these regulations.
The Korea Egg Producers Association criticized the situation, saying, "The government's regulations have triggered a decline in domestic production and a rise in prices, and now it is committing the contradiction of filling the shortfall with foreign eggs produced in environments much more cramped than domestic standards."
On the other hand, the Ministry of Agriculture, Food and Rural Affairs maintains that the direct cause of the current price surge is the culling of 11.34 million laying hens (13.7% of the total) due to the highly pathogenic avian influenza (HPAI) outbreak last winter.
The ministry also countered that the floor space regulation was introduced in 2018 as an essential measure to improve egg hygiene and transition to animal-welfare livestock farming, adding that many farms have already completed facility transitions after agreeing on the necessity of the policy.
To assist farmers with facility improvements, the government has been providing approximately 357.4 billion won in loans and interest rate subsidies from 2024 through this year to facilitate a soft landing.
The ministry further explained that facility costs account for a minimal portion of egg production costs.
According to national data, feed costs account for the largest share of egg production costs at 56.9%, followed by chick costs (20.3%), labor costs (4.4%), and facility costs (1.5%).
(Photo: Provided by Korea Agro-Fisheries & Food Trade Corp., Yonhap News)
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