February 27, 2004

 

Korea Sees Revived Confidence in Consuming Chickens

 

Amid recovering chicken sales, prices are seen picking up in Korea, the nation's major retailers said yesterday.

 

Leading retailer Lotte Mart said that it would end its discount offer and increase chicken prices from the current 1,680 won per 900 grams to about 3,500 won.

 

Homeplus, the retail arm of Samsung Group, will also join the move this weekend by lifting chicken prices to 2,500 won per 900 grams from the discounted 1,180 won.

 

"Chicken sales are obviously picking up. We have seen a 30 percent increase compared with the previous year," said Lee Kwon-jae, a manager at Lotte Mart.

 

"Given the strong sales, we think it is the right time to end the discount offer and raise the price," he said.

 

The rising prices are a clear indication that the poultry market, hit hard by the outbreak of bird flu last December, is on the road to recovery. The spread triggered widespread fear of infection among consumers and prompted them to avoid chicken.

The price plunged from 1,000 won per kilogram to 611 won last month.

 

"Demand has recovered to the level before the outbreak. The daily sales of major chicken dealers have reached 591 tons, very close to the 599 tons last December," said Lee Gee-poong of the live stock management division at the Ministry of Agriculture and Forestry.

 

To tackle the declining consumption caused by the flu outbreak, supermarkets launched numerous promotions and discount offers. In order to instill consumer confidence in the safety of chicken, The Korea Poultry Association recently provided 2 billion won insurance coverage in case of flu infection.

 

The Agriculture Ministry launched a public campaign to encourage chicken consumption on Feb. 11. The ministry designated every Wednesday for its staff to eat chicken and duck, leading other government agencies and private companies to start similar campaigns.

 

The campaigns among public and private sectors are widely believed to have quashed the fear of eating chicken and bring consumption back to normal.

 

"Nationwide campaigns have succeeded in convincing people that eating chicken is 100 percent safe. Everything seems to be back on track," said the ministry's Lee.