🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

U.S. eggs crack Korean market as Seoul fights worst bird flu outbreak

Published 23/01/2017, 08:33 pm
© Reuters.  U.S. eggs crack Korean market as Seoul fights worst bird flu outbreak

* S.Korea expects to import 25 mln eggs by week's end

* Egg prices have rocketed 70 pct since bird flu hit

* New hens won't start producing till H2 2017

By Jane Chung

SEOUL, Jan 23 (Reuters) - U.S. white-shelled eggs landed on South Korean supermarket shelves beside local brown-shelled eggs on Monday as the country scrambled to boost imports to relieve a shortage amid its worst-ever bird flu outbreak.

Some 6 million eggs, mainly from the United States, are set to hit the shelves this week as South Korea launched emergency import measures after egg prices shot up 70 percent ahead of the Lunar New Year holiday this weekend. U.S. eggs cost 8,470 won ($7.27) at Lotte Mart, one of South Korea's major discount stores, which began selling the imports on Monday.

That was down from the average retail price for local eggs of 9,285 won as of Jan. 20. Prices stood at around 5,438 won when the first bird flu case was confirmed in November, according to state-run Korea Agro-Fisheries & Food Corp.

"U.S.-origin eggs are good, but I prefer to use Korean eggs because the Lunar New Year holiday is a Korean traditional holiday. Even if local eggs are more expensive, I would buy them," said Park Hee-kil, a 64-year-old lady who was shopping at a Lotte Mart store in Seoul.

In the wake of the bird flu epidemic, Asia's fourth-largest economy culled more than 32 million farm birds, or nearly a fifth of its poultry population, mostly egg-laying hens.

The country's egg production is expected to decline 12.7 percent to 559,000 tonnes in 2017 from a year earlier, according to the state-run Korea Rural Economics Institute (KREI).

"Egg imports may be needed through the first half of this year," said Ji Seon-U, a researcher at the state-run think tank, adding that the volume would depend on how soon egg prices and output stabilised.

The Korean government expected a total of 1,500 tonnes, or roughly 25 million eggs, to be imported mainly from the United States before the holiday season. That compared with a total of 1,856 tonnes of egg products worth about $12 million imported last year, according to customs office data. of Sunday, 444 tonnes of shell eggs and 217 tonnes of egg products had been shipped to Korea since Jan.5, according to the agriculture ministry.

The ministry also plans to import a total of 200,000 baby chickens and parent stock for egg-laying hens from five bird flu-free countries, including the United States, Australia and Spain, to rebuild flocks.

"However we can't start it right away because farms have to be virus-free for three months," Ji said.

Given it takes at least six months for the offspring of parent stock birds to start laying eggs, the new hens would only start producing in the second half of this year, he said.

($1 = 1,165.4000 won)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.