South Korea Defends Brazil Egg Import Costs

Citizens shop at a supermarket in Seoul on Oct. 10. (Provided by Yonhap News Agency) Pilot Shipment Aimed To Test Supply Chain Diversification After Bird Flu Disruptions The Ministry of Agriculture, Food and Rural Affairs said the import of Brazilian eggs was a pilot measure aimed at diversifying the supply chain, explaining that the actual cost of purchasing the eggs was about one-eighth of the total import bill amid criticism that the government had wasted public finances by importing Brazilian eggs at high prices. The ministry said most of the cost consisted of long-distance air freight charges and tariffs that accrue as domestic tax revenue. In an explanatory release on Oct. 15, the ministry said that of the approximately 1.6 billion won ($1.18 million) spent on importing Brazilian eggs, the local purchase cost was about 200 million won ($148,000). The remaining 1.4 billion won ($1.03 million) consisted of air transport costs using Korean Air cargo aircraft, as well as tariffs and other charges. Accordingly, the import unit price of Brazilian eggs was calculated at 43,923 won ($32.49) per tray of 30 eggs. The ministry made clear that this import was not a commercial transaction intended to generate profit. It said the move was a policy decision aimed at stabilizing egg supply and easing the burden on consumers. In fact, regardless of the import cost, the government released the supply into the domestic market at an average supply price of about 131 won per egg. This year, the government imported a total of 133.24 million fresh eggs from four countries: the United States, Thailand, Brazil and Denmark. The budget投入 for importation and domestic distribution came to about 81.9 billion won ($60.58 million). Of that total, Brazilian eggs accounted for about 1.12 million eggs, or just 0.8% of all imports. Behind the pilot introduction of Brazilian eggs was a strategy to diversify supply chains. Last winter, 11.34 million laying hens were culled following outbreaks of highly pathogenic avian influenza, and the need to secure alternative import sources became urgent after the United States, a major import partner, also canceled contracted shipments because of the spread of AI. The government assessed the pilot import as having achieved results by confirming the administrative procedures needed for actual introduction of Brazilian eggs, including quarantine, customs clearance and domestic distribution. In that sense, it amounted to a kind of simulation for possible emergency supply disruptions in the future. The ministry said it is aware of the heavy cost burden associated with long-distance transport. Accordingly, it plans to comprehensively review the appropriateness of the import costs and the effectiveness of the pilot introduction. Any decision on additional imports and their volume will be made in consideration of domestic supply-and-demand conditions and transportation costs, it said. Meanwhile, President Lee Jae Myung instructed Minister of Agriculture, Food and Rural Affairs Song Mi-ryeong during a closed session of the Cabinet meeting on Oct. 13 to respond strictly to the spread of false information regarding imported Brazilian eggs.