(Yonhap)
Demand for imported meat and eggs in South Korea is rising as higher feed costs and the spread of livestock diseases have pushed domestic livestock prices up by about 10 percent compared to a year ago.
According to the Korea Institute for Animal Products Quality Evaluation on Sunday, the price of domestic pork belly was 2,801 won ($1.9) per 100 grams as of Saturday, up about 10 percent from a year ago.
This is the first time since October last year that pork belly prices have reached the 2,800 won range. On a monthly basis, prices rose from 2,601 won in March to 2,644 won in April, and have averaged around 2,805 won so far in May.
Prices of domestic chicken and eggs are also climbing.
As of Tuesday, broiler chicken prices reached 6,505 won per kilogram, up about 15 percent on year. Monthly averages increased from 5,926 won in January to 6,376 won in March, and 6,582 won in April, marking an 11 percent gain over three months.
Egg prices have also topped 7,200 won per tray of 30. Although the import of 2.24 million Thai eggs temporarily pushed prices down to the 6,900 won range, prices rebounded to the 7,200 won level as of Friday, showing signs of stabilization rather than continued decline.
Since eggs are widely used in processed foods and the food service industry, rising egg prices are contributing to overall food inflation.
The surge in prices is largely attributed to the spread of livestock diseases. Outbreaks of African swine fever, highly pathogenic avian influenza, and foot-and-mouth disease last winter reduced livestock inventories.
Rising feed costs are another major factor.
According to the Ministry of Agriculture, Food and Rural Affairs, the feed ingredient price index rose 5 percent on month in March and is expected to gain another 4.2 percent in the second quarter, reflecting higher grain import and logistics costs amid escalating tensions in the Middle East. Feed accounts for 40-60 percent of production costs, amplifying the impact on prices.
As domestic prices climb, retailers and consumers are turning to imports.
According to the Korea Meat Trade Association, pork imports reached 48,104 tons in March, up 22 percent from a month earlier. Chicken imports totaled 22,227 tons, up about 19 percent from the previous month and well above last year’s monthly average of 18,079 tons.
Egg imports also surged. Fresh egg imports reached 66 tons in March, up 220 times from 0.3 tons a year earlier. The government recently imported 2.24 million Thai eggs to stabilize prices, but the effect has been limited. While the move eased prices briefly, it has not resolved the underlying supply shortfall.
Major retailers are increasing the share of imported livestock products, including from Europe.
Emart Inc. said it is expanding stockpiles of Spanish pork to manage price volatility, increasing inventory from the usual two to three months to about six to seven months. For beef, it has imported Irish beef since December last year at prices about 30 percent below prevailing levels, diversifying sourcing beyond the U.S. and Australia. The retailer is also reviewing imported eggs depending on supply conditions.
Lotte Mart is operating an in-house brand for imported meat products. The company said its Canadian pork belly and shoulder products are sold at more than 30 percent lower prices than domestic pork belly.
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