In a statement on June 8, the Egg Association pointed out that "it has been over a year since the association stopped providing price reference information, yet egg prices have reached record highs." This statement was made in response to the FTC's assertion last month that the association's benchmark prices had led to increased farm gate prices, resulting in the fine.
According to the association, some small to medium-sized supermarkets are selling 30-egg cartons for over 9,000 won, and there are even purchase limits in place. Additionally, the food service industry is reportedly reducing egg usage, indicating ongoing supply instability.
The association cited several factors contributing to the price increase, including culling due to highly pathogenic avian influenza (AI), decreased laying rates from diseases, expanded farming area policies, and increased costs from grading systems. They also argued that the cessation of price reference information has made it difficult to gauge farm transaction prices, leading to greater market uncertainty.
The association also expressed opposition to the Ministry of Agriculture's review of the potential cancellation of its establishment license based on Article 38 of the Civil Act. This article states that a government authority can revoke a license if an organization conducts business outside its purpose, violates licensing conditions, or engages in actions detrimental to the public interest.
Kim Kyung-doo, executive director of the Egg Association, stated, "Price notifications served as a barometer for understanding the breakeven point for eggs by considering feed costs and trends in egg imports. The transparent disclosure of farm prices also prevented the distribution sector from arbitrarily raising prices." He added, "I understand that the FTC's decision will be released this month, and we plan to respond with an administrative lawsuit."
In contrast, the Ministry of Agriculture maintains that the price notifications themselves violate the conditions of the association's approval. A ministry official stated, "The Egg Association was granted its establishment license on the condition that it would not issue price notifications, and the association has continued to do so. Our stance on reviewing the cancellation of the establishment license remains unchanged."
* This article has been translated by AI.
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