Average retail price of 10 premium eggs tops 5,000 won for first time; livestock prices surge

Heatflation fears grow as early heat wave, monsoon season loom

Government mobilizes supply stabilization task force ahead of peak summer heat

Eggs are displayed at a hypermarket in Seoul as egg prices continue to climb. [Yonhap]
Eggs are displayed at a hypermarket in Seoul as egg prices continue to climb. [Yonhap]

Prices for eggs, chicken and other key agricultural and livestock products have risen sharply across the board, adding to household food costs this summer. An earlier-than-usual heat wave is compounding concerns about what analysts are calling "heatflation" — a portmanteau of heat and inflation — as extreme temperatures disrupt farm production.

The national average retail price of a 10-pack of premium eggs this month reached 5,222 won, according to data from the Korea Institute for Animal Products Quality Evaluation — the first time the monthly average consumer price has exceeded 5,000 won since records began.

That is 38.6 percent higher than June last year, when the price stood at 3,786 won, and 16.7 percent above last month's 4,476 won.

Premium egg prices held in the 3,000-won range from March 2022 through April this year before breaking above 4,000 won for the first time last month and climbing into the 5,000-won range in recent weeks. The average consumer price for a 30-pack of premium eggs also rose to 7,465 won this month, up 6.5 percent from a year earlier.

Chicken prices have climbed steeply as well. The national average retail price for broiler chicken reached 6,650 won per kilogram this month, up 19.4 percent from a year earlier. Broiler prices hovered in the upper 5,000-won range through February before rising to the 6,300-won range in March, the 6,500-won range in April and May, and surpassing 6,600 won this month.

The primary driver behind the surge in egg and chicken prices is a supply shortage. A large-scale culling of laying hens due to highly pathogenic avian influenza last winter, combined with reduced output from adjustments to stocking density, has tightened supply. Early summer heat has also stoked demand for restorative dishes such as samgyetang — a ginseng chicken soup traditionally consumed in hot weather — adding further upward pressure on prices.

According to the Korea Consumer Agency's price monitoring service, the average price of a single serving of samgyetang in Seoul exceeded 18,000 won (about $12) for the first time in August last year and averaged 18,154 won from January through May this year. At many restaurants in major commercial districts in Seoul, the dish already costs more than 20,000 won, and analysts say prices could rise further if summer demand growth coincides with abnormal weather.

Watermelons are displayed at a hypermarket in Seoul on June 19 as an early heat wave boosts demand for summer foods. [Yonhap]
Watermelons are displayed at a hypermarket in Seoul on June 19 as an early heat wave boosts demand for summer foods. [Yonhap]

Produce and seafood prices are also trending upward. The average retail price of watermelon — a staple summer fruit — reached 24,292 won this month, up 8.9 percent from a year earlier, according to KAMIS, the agricultural price information system run by the Korea Agro-Fisheries and Food Trade Corporation.

Red and green leaf lettuce, both heavily used in the restaurant industry, averaged 1,023 won and 1,024 won per 100 grams respectively nationwide, returning to the 1,000-won range. Welsh onion retail prices rose to 2,827 won per kilogram, up 18.4 percent from a year earlier, while imported salted mackerel jumped 26.5 percent year-on-year to 10,803 won per pair.

Market observers are increasingly worried that heat-wave-driven production disruptions could push food prices even higher. Seoul's typical high temperature in mid-June hovers around 27 to 28 degrees Celsius, but this year temperatures have been running well above 30 degrees. The city's first heat wave advisory of the season, issued June 18 for the southeastern and southwestern districts of Seoul, came 12 days earlier than last year.

In response, the government on June 17 formed a summer agricultural and livestock supply stabilization task force and activated a response framework. The Ministry of Agriculture, Food and Rural Affairs plans to conduct weekly checks on key supply-monitored items, secure stockpiles, and ensure availability of 34,000 metric tons of cabbage and radish, more than 30 million fresh eggs, and 17 million hatching eggs to buffer against supply disruptions.

The Ministry of Oceans and Fisheries is also releasing up to 8,000 metric tons of government-stockpiled seafood onto the market while expanding support for high-water-temperature response equipment to minimize damage to aquaculture operations.


y2k@heraldcorp.com