SEOUL, March 30 (AJP) - Surging chicken prices are putting South Korea's poultry industry on alert. The spread of highly pathogenic avian influenza has cut broiler supplies, while a weaker won has added to feed-cost burdens, increasing pressure for broader price hikes.
According to market insiders on Monday, major poultry producers, including Harim, Allpum, and Maniker, have recently raised prices to large retailers by about 5 to 10 percent. The increase comes amid a supply shortage caused by the outbreak of avian influenza, which typically occurs in winter but has persisted into spring this year, leading to larger-than-usual culls.
About 440,000 chickens were culled, roughly 3.7 times the 120,000 culled a year earlier, accounting for about 5 percent of the total broiler breeders raised last year (9.22 million).
Production costs have also risen, as the ongoing conflict in the Middle East has pushed up the won's exchange rate and driven sharp increases in prices for feed additives including amino acids.
According to data from the Korea Institute for Animal Products Quality Evaluation, the average retail price of chicken in the fourth week of March rose to 6,612 won per kilogram, up 10.6 percent from 5,976 won in the first week of January, the highest level this year. Over the same period, the wholesale price climbed 12.9 percent from 3,857 won to 4,353 won.
The impact is already being felt in restaurants. Some chicken franchise stores have faced delivery delays and difficulties securing steady supplies.
Despite the government repeatedly urging restaurants not to raise prices in order to curb inflation, many say increases will be unavoidable if supply disruptions and cost pressures persist. Some franchises were quick to move, with KFC recently raising prices on about two dozen menu items, reversing its earlier stance that it had no plans to do so.
With most signature menu items at major chicken brands priced between 26,000 and 27,000 won, costing almost 30,000 won once delivery fees are included, many consumers are hesitant to place orders.
Citing a spike in raw material costs ahead of months of increased outdoor activity, an industry insider said, "If supply instability persists, we will have no choice but to consider raising prices."
Meanwhile, the Ministry of Agriculture, Food and Rural Affairs said it plans to import 8 million eggs and gradually distribute them starting this month to respond to expected demand during the summer months.
According to market insiders on Monday, major poultry producers, including Harim, Allpum, and Maniker, have recently raised prices to large retailers by about 5 to 10 percent. The increase comes amid a supply shortage caused by the outbreak of avian influenza, which typically occurs in winter but has persisted into spring this year, leading to larger-than-usual culls.
About 440,000 chickens were culled, roughly 3.7 times the 120,000 culled a year earlier, accounting for about 5 percent of the total broiler breeders raised last year (9.22 million).
Production costs have also risen, as the ongoing conflict in the Middle East has pushed up the won's exchange rate and driven sharp increases in prices for feed additives including amino acids.
According to data from the Korea Institute for Animal Products Quality Evaluation, the average retail price of chicken in the fourth week of March rose to 6,612 won per kilogram, up 10.6 percent from 5,976 won in the first week of January, the highest level this year. Over the same period, the wholesale price climbed 12.9 percent from 3,857 won to 4,353 won.
The impact is already being felt in restaurants. Some chicken franchise stores have faced delivery delays and difficulties securing steady supplies.
Despite the government repeatedly urging restaurants not to raise prices in order to curb inflation, many say increases will be unavoidable if supply disruptions and cost pressures persist. Some franchises were quick to move, with KFC recently raising prices on about two dozen menu items, reversing its earlier stance that it had no plans to do so.
With most signature menu items at major chicken brands priced between 26,000 and 27,000 won, costing almost 30,000 won once delivery fees are included, many consumers are hesitant to place orders.
Citing a spike in raw material costs ahead of months of increased outdoor activity, an industry insider said, "If supply instability persists, we will have no choice but to consider raising prices."
Meanwhile, the Ministry of Agriculture, Food and Rural Affairs said it plans to import 8 million eggs and gradually distribute them starting this month to respond to expected demand during the summer months.
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