About 1.12 million eggs, just 0.8% of total imports, brought in as a pilot to secure new supply chains
US egg imports disrupted by bird flu; Thailand, Brazil and Denmark added as alternative sources
Airfreight and tariffs totaled 1.4 billion won; ministry to assess cost-effectiveness
The government spent about 44,000 won ($33) to import 30 eggs from Brazil, with airfreight, tariffs and other concessions running seven times higher than the cost of the eggs themselves. The Brazilian shipment was a small-scale pilot, accounting for just 0.8 percent of total egg imports this year. Officials said the move was aimed at securing new import channels in case existing suppliers are cut off by outbreaks of highly pathogenic avian influenza, or AI.
The Ministry of Agriculture, Food and Rural Affairs said Thursday that importing about 1.12 million eggs from Brazil this year cost 1.6 billion won in total. Of that, roughly 200 million won went toward purchasing the eggs, while the remaining 1.4 billion won covered airfreight, tariffs and other import-related expenses.
The per-unit import price worked out to 43,923 won per 30 eggs, reflecting the heavy cost burden of long-distance air transport. The eggs were shipped aboard Korean Air cargo flights, and tariff revenue was collected as domestic government income.
The government's decision to import Brazilian eggs despite the high cost was driven by an AI outbreak last winter, during which about 11.34 million laying hens — roughly 13.7 percent of the national flock — were culled. Because it takes six to nine months for egg production to fully recover after restocking laying hens, imports were needed to fill the supply gap.
Supply disruptions also emerged from the United States, previously the main source of egg imports, as AI spread there as well. In January, a shipment of American eggs waiting to depart from Atlanta airport was canceled after an AI outbreak was confirmed at the local source.
In response, the Ministry of Agriculture, Food and Rural Affairs moved to diversify its import sources to reduce dependence on the US. Of 10 countries assessed as eligible to export fresh eggs to Korea, Spain and the Netherlands were ruled out due to heat-wave damage, while Poland and New Zealand had no exporters willing to ship. The government ultimately kept US imports running while adding Thailand in March, Brazil in July and Denmark in September.
The government sees Brazil — located in the Southern Hemisphere, where seasons are reversed — as a potential alternative supplier during the Korean winter, when AI outbreaks tend to peak domestically. Japan imported about 20 million fresh eggs from Brazil through August this year.
The Brazilian pilot focused on verifying whether a full supply chain was workable, checking every step from import sanitary requirements and overseas facility registration to international shipping, quarantine, customs clearance and domestic retail distribution. The Brazilian eggs passed domestic animal quarantine and food safety inspections before being released for sale.
In total, the government imported about 133.24 million fresh eggs from four countries — the United States, Thailand, Brazil and Denmark — this year, spending roughly 81.9 billion won on imports and domestic distribution. Brazil's share came to about 0.8 percent of the total volume.
The government maintains that fresh egg imports are a policy measure to stabilize supply and ease the burden on consumers, not a commercial transaction aimed at profit. Accordingly, a policy-set supply price was applied regardless of the actual cost per country of origin. The average supply price across the entire import period was about 131 won per egg.
Egg prices have been falling since late July, reflecting the recovery in domestic production, fresh egg imports and reduced tariffs on processed egg products. The retail price of a 30-pack of large eggs dropped from 7,429 won in July to 7,014 won in early October, though that is still 3.2 percent higher than the same period last year.
The ministry said the pilot's main significance lies in having established a new supply route that can be activated in an emergency. However, given the high costs and fiscal burden associated with long-distance transport, it plans to conduct a comprehensive assessment of the cost-effectiveness and overall impact of the pilot program.
Going forward, decisions on whether to import and in what volumes will be made based on domestic egg supply conditions, the reliability of supply from each country and transportation costs. The government also plans to strengthen the domestic production base through tighter AI biosecurity measures, modernization of laying-hen farm facilities, improved supply management and reforms to the distribution system.
adastra@heraldcorp.com