[Egg Market Turmoil]⑤"Price Information Control Tower Urgently Needed"...How Can We Prevent the 'Golden Egg Crisis'?

Government Plans Livestock Cluster Projects
Association Calls for Vaccine Adoption
Expert Proposals from Academia and Research Institutions

Editor's Note
The average Korean consumes over 300 eggs per year. As a relatively affordable source of protein, eggs are an essential staple on the Korean table. Although we live in an era of 'one egg a day,' the price of a 30-egg tray at major retailers like large supermarkets and grocery stores easily exceeds 10,000 won. The price hikes are mainly attributed to a shortage of laying hens caused by infectious diseases such as avian influenza (AI), which swept through laying hen farms last winter. Nevertheless, even as the government tries to fill the supply gap by importing eggs and rolling out various discount policies, instability in supply and demand persists. The market points to an outdated distribution system and regulations that fail to reflect real-world conditions as major issues. The absence of a systematic price determination system, coupled with theoretical debates about improving farming environments, has further exacerbated the egg shortage crisis. The Asia Business Daily has examined the tangled state of egg distribution in Korea and sought solutions for the 'golden egg era' by reviewing overseas practices and expert recommendations.

The so-called 'golden egg' phenomenon, characterized by a sharp jump in egg prices, has intensified this year, amplifying calls for countermeasures to stabilize domestic egg supply and pricing. The challenges are attributed to both the rapid fluctuations caused by avian influenza (AI) and other factors, as well as the outdated distribution structure and price determination system, which are further aggravating the situation. In addition to short-term solutions for supply and demand issues, there is a pressing need for comprehensive and long-term reforms in the distribution structure and price-setting mechanisms.

On August 11, according to related industry sources, the Ministry of Agriculture, Food and Rural Affairs (MAFRA) plans to resolve the recurring egg supply issues by establishing large-scale laying hen farms (livestock production zones) in AI-free regions such as Gangwon and North Gyeongsang provinces, thereby ensuring a stable supply. In case of oversupply, the government also plans to stockpile eggs in forms such as liquid eggs to regulate supply and demand, and is set to unveil related projects next month. MAFRA anticipates that, once the planned livestock zones are complete, they will be able to both secure sufficient quantity and flexibly manage supply levels.

Government: "Stable Supply Through Large-Scale Farms"...Laying Hen Association: "Introduce HPAI Vaccination Policy"

MAFRA's livestock zone plan is a modernization project aimed at consolidating scattered, small-scale egg farms in designated regions to improve disease control and distribution efficiency. The initiative seeks to move beyond fragmented laying hen operations and establish integrated complexes equipped with robust biosecurity infrastructure.

A MAFRA official stated, "There are mountainous regions in Gangwon and North Gyeongsang that have never had avian influenza outbreaks. We're planning to build massive farms capable of producing over 5 million eggs to ensure the supply of fresh eggs, and in cases of oversupply, we will stockpile eggs to later distribute to institutional clients, such as large-scale food services."

The Laying Hen Association advocates that the key to stabilizing egg prices lies in introducing a highly pathogenic avian influenza (HPAI) vaccination policy. As HPAI is now an annual occurrence and there are clear limitations to biosecurity measures alone, the association argues that Korea should preemptively block HPAI through vaccination—as has already been implemented in China, Canada, and France, and is under consideration in the United States—by referencing these global precedents.

Yonhap News

France was the first country in the European Union (EU) to implement a nationwide commercial vaccination program for all chickens and ducks in 2023. Following the campaign, the spread of HPAI dropped significantly, and France regained and reported its HPAI-free status to the World Organisation for Animal Health (WOAH) last year. China and Mexico have been mandating vaccinations for all poultry, including chickens and ducks, since the early 2000s. Meanwhile, the United States and New Zealand administer vaccinations on a limited basis, targeting only endangered or rare bird species and not for commercial use.

The association also stresses the need to foster buffer industries to absorb supply and demand fluctuations. They highlight the importance of initiatives such as liquid egg stockpiling that can supply eggs in the event of shortages, as well as promoting processing industries that utilize surplus or lower-grade eggs, including cracked or double-yolked eggs.

"Distribution Structure Needs Reform"...Suggestions for Overhauling Price Information System and GP Center Management

Experts from academia and research institutions diagnose that the first step toward egg price stabilization should be the creation of a buffer mechanism to manage supply shocks. Given that eggs are difficult to store long-term, transforming them into liquid form for stockpiling can serve a dual function—not only providing reserves to release during price spikes, but also supporting prices when they fall. This ability to withstand price drops is vital for farmers to maintain their operations, which in turn provides the resilience needed to weather future supply shocks.

They add that policy measures—such as tightening standards for animal density—should account for the recurring rises and falls in production costs facing farmers. Cheolmoo Heo, a professor at Hoseo University Graduate School of Venture Studies, stated, "From a long-term perspective, improving animal welfare and tighter density standards are necessary from a food safety standpoint. However, for farmers, such policies may mean a short-term reduction in supply and higher facility costs, so policies must account for these burdens."

Simultaneously, there is a consensus that Korea’s egg distribution structure must be fundamentally overhauled. Because eggs are fragile, highly perishable, and often vary in quality, experts agree that establishing a wholesale market system is not practical. With the egg logistics network already reorganized around grading and packing (GP) centers, they contend that creating a wholesale market would only add another unnecessary step.

Wonjoo Cho, professor of agricultural economics at Chungbuk National University, explained, "International standards dictate that egg prices are discovered through information-based mechanisms rather than auctions, and there are ample ways to determine prices outside of auctions." She added, "Online wholesale markets or B2B exchanges could serve as complementary solutions over the long term, but for these to have meaning, trade volumes need to be consolidated, and this cannot happen unless transaction conditions become more transparent first."

Given that a significant portion of eggs is currently distributed via networks of individual collection and sales operators for table eggs, proposals have emerged to redesign the entire distribution structure with this reality in mind.

Wontae Kim, a research fellow at the Korea Rural Economic Institute (KREI), noted, "Currently, simply reporting is sufficient to establish a GP center, and many egg producers also operate their own GP centers. It is necessary to separate the roles of egg producers and GP center operators and, after investigating currently operating centers, to designate large-scale GP centers in each region as logistics hubs, managed accordingly."

Experts also call for reform of the current post-settlement price determination system for eggs. Although the government is pushing for the institutionalization of a standard contract that specifies prices, grades, and transaction conditions to improve business practices, there are still obstacles to implementation, largely because farmers are not yet convinced of its necessity. Thus, additional measures are needed. Experts also say that overhauling the egg price information system is necessary as well.

Professor Cho noted, "A standard contract should specify in writing the price at delivery, settlement period, standards for breakage rates, and inspection criteria—this should be the starting point." She continued, "As for the price information system, a new system is being developed in which investigation (by the Korea Institute for Animal Products Quality Evaluation), forecasting (by the Korea Rural Economic Institute), and verification (by an independent verification panel) are conducted independently. However, just because public institutions are in charge of investigation, forecasting, and verification does not mean all problems will be resolved. It is equally important to ensure publicized prices do not become rigid benchmark prices by default, so appropriate safeguards are needed."

There are also suggestions to establish a consultative body to discuss supply and demand management for eggs. Research fellow Kim commented, "A system is needed in which the government, producer organizations, and experts form a council to discuss supply and demand management for eggs. For producers to see value in participating, the government should consider offering incentives to participating farms."

Experts stress that it is impossible to simply transplant models from major countries such as Japan, the United States, or Germany. However, they note that the global trend is for governments not to set prices directly but rather to add antitrust safeguards when disclosing price information. Professor Heo suggested, "Since Korea's issues have already been identified, we need to examine standardization of distribution, benchmark prices for market transactions, and implementation of real-time supply and demand monitoring." Professor Cho advised, "Rather than importing the forms of foreign systems, we should redesign their underlying principles to suit our own circumstances."

This content was produced with the assistance of AI translation services.