March 9, 2023

Chicken prices in South Korea soar to record high

Prices of chicken in South Korea has reached an all-time high due to increased costs of poultry farm operating costs, which includes rising prices for fertilisers, livestock feed, electricity, and fuel, Aju Business Daily reported.

This was due to sluggish global economic growth triggered by higher fuel prices, the COVID-19 pandemic, and the Ukraine conflict.

The top menu item for South Koreans, according to data provided by the government-run Korea Agro-Fisheries Trade Corp, was Korean-style fried chicken. But consumers are becoming more concerned that fried chicken prices could reach KRW 30,000 (~US$22.70; KRW 1000 = US$0.76),

Early in 2022, the cost of fried chicken in South Korea was around KRW 16,000 (~US$12.11). Franchises selling fried chicken increased their chicken menus by about KRW 2,000 (~US$1.51) in the middle of 2022. Agricultural experts believe that the increase in chicken prices will eventually push menu prices for fried chicken to around KRW 30,000 (~US$22.70).

The Korea Broiler Council said 1 kg chicken, most preferred by fried chicken franchises, was KRW 3,190 (~US$2.42) on March 7. Early in 2023, the cost was in the KRW 2,000 (~US$1.51) range. On condition of anonymity, a non-franchise fried chicken store owner said this was the first time in 23 years that chicken prices have become this expensive.

The price increase of chickens will significantly affect prices at fried chicken franchise menus, because franchise headquarters provide store owners with processed chicken, which is more expensive than whole chickens that are supplied from poultry slaughterhouses.

-      Aju Business Daily