Korean Government removes import tariffs as Bird Flu spread causes egg shortages

*An outbreak of the highly contagious H5N8 strain of avian influenza in South Korea resulting in short supplies and rising prices has induced the Korean Government to remove import tariffs on fresh eggs and egg products till June 30, 2021

Isola Moses | ConsumerConnect

South Korea’s poultry industry has been ripped by an outbreak of the highly contagious H5N8 strain of avian influenza, otherwise known as Bird Flu, which led to the culling of more than 25 million birds across the country since October 2020.

It was gathered egg prices have soared, and are pushing inflation with food prices in January climbing faster than the previous two years despite the country’s tight COVID-19 social distancing rules.

Agency report indicates given the scale of culling, South Korea is among the worst hit in the world, but it’s not alone in its struggles.

New infections of H5N8 and H5N1 have been found in at least a dozen countries in Europe, where more than 3.5 million birds have died, including ducks used for France’s famed foie gras.

India, the second-biggest egg producer, reported cases in 13 states and territories.

Lee Hyungwoo, a researcher at Korea Rural Economics Institute, said: “The influenza is spreading sporadically this time, compared to what we saw in 2016-17, meaning it’s harder for authorities to do epidemiological investigations.”

The expert sees prices easing after Lunar New Year holidays as the number of egg-laying hens culled ─ 18% of the total ─ is lower than previous years.

Eggs sold by South Korean farmers almost doubled from year-ago levels to about 1,924 won ($1.71) for 10 extra-large ones, report noted.

Kim Jeong-uk, who has been helping his wife to run their store since its opening three years ago, related his experience, saying: “We go on a daily hunt to find as many eggs as possible despite the price surge because we can’t bake anything without eggs.

“We need about 150 eggs a day and we’re having trouble getting the amount we need.”

A 61-year-old retired teacher and consumer from the small town of Gunsan, a city south of Seoul, has become increasingly picky about what she puts on the dinner table after her husband was diagnosed with prostate cancer.

She said with eggs becoming one of the main sources of protein for her husband who can’t have meat in his diet, the recent price rally has been a burden.

The former teacher stated: “I wouldn’t mind buying imported eggs if it weren’t for my husband’s condition.

“I’m just hoping prices won’t go out of control to a point where I have to switch to imported eggs.”

According to the Agriculture ministry, retail prices rose 43% to 2,477 won whereas Chicken, which a South Korean person consumes more of than a Japanese or Chinese, gained 16%.

Meanwhile, in seeking a solution to the current challenge while moderating prices ahead of the Lunar New Year when consumption peaks as eggs are used in many traditional dishes such as Korean pancakes, the government has removed import tariffs on fresh eggs and egg products through June 30.

It is also bringing in more than 20 million eggs from the United States (US) by February 10 to bolster supply in the country.

The agriculture ministry disclosed that prices would stabilise from the end of this month as restaurants and retail shops start to replace local eggs with imported supply in South Korea.