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FTC launches probe into egg price conspiracy

Published: 16 Jun. 2025, 19:42

Shoppers select eggs at a large supermarket in Seoul on June 8. [NEWS1]

Following suspicions that farms colluded to fix farm-gate egg prices, which have recently surged, the Fair Trade Commission (FTC) has launched an on-site investigation.

The FTC dispatched investigators to three locations — the Korea Egg Producer Association’s headquarters in Osong, North Chungcheong, and its regional branches in Gyeonggi and South Chungcheong — on allegations of violating the Fair Trade Act, according to the poultry industry on Monday.

The egg association is a nonprofit organization established in 2022 by those engaged in the rearing of laying hens and breeding stock. The organization is suspected of having forced member companies in March to adhere to high posted farm prices.

The monthly farm-gate egg price jumped over 23 percent from 146 won (11 cents) per egg in February to 180 won in March. By May 20, the price had climbed further to 190 won. The FTC is investigating whether this led to higher wholesale prices, which in turn raised retail prices.

Last month, the average retail price for a tray of 30 extra-large eggs reached 7,026 won, surpassing 7,000 won for the first time in nearly four years since July 2021.

Farms attribute the spike in farm-gate prices to several factors: reduced domestic supply due to outbreaks of highly pathogenic avian influenza, increased exports to the United States that cut into local supply and rising production costs due to tightened government regulations — particularly the expanded space per hen for animal welfare.

Nevertheless, the FTC considers the farm-gate price hikes to be excessive, even when accounting for these factors. “We cannot confirm details of individual investigations,” an FTC official said.

Meanwhile, the government announced measures to stabilize retail egg prices. It plans to abolish producer groups’ authority to set farm-gate prices and centralize price surveys and announcements under the Korea Institute for Animal Products Quality Evaluation. Additional actions include increasing the tariff-free quota for processed egg imports from 4,000 to 10,000 tons, supporting facility investment in livestock farms to boost productivity and offering up to 1,000 won per carton in price reduction support to major retailers.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM MIN-JOONG [[email protected]]