Ministry of Agriculture and Food launches wholesale egg market… Price transparency – Cheonji Ilbo

[천지일보 세종=이진희 기자] A view of the Ministry of Agriculture, Food and Rural Affairs. ⓒChunji Ilbo DB

Improvement of post settlement transaction

Set standard specifications for shipped eggs

[천지일보 세종=이진희 기자] The era of eggs being traded in the wholesale market just like general agricultural products and cattle and pigs is opening up.

The Ministry of Agriculture, Food and Rural Affairs announced on the 20th that it would start introducing an egg market, which has been promoted since 2018, in Yeoju, Gyeonggi Province, based on the ‘Act on the Distribution and Price Stabilization of Agricultural and Fisheries Products’.

In the past, egg trades were exchanged between laying hen farms and distributors, with the quantity and specifications specified in the transaction statement without the price being decided. This is an ex-post settlement method, and it is paid to the farmer on a monthly basis by reflecting changes in market prices and distribution costs during distribution.

In the case of ex post settlement, a discount rate is applied based on the price announced by the Korean Poultry Association, but it has a disadvantage in that the market supply and demand situation is not reflected in a timely manner. In addition, it is difficult to plan management because farmers cannot know the sale price at the time of shipment. For this reason, farmers have been demanding that a transparent and fair price settlement system be established.

The egg market is similar to the wholesale market for agricultural products, and when eggs are shipped online or offline, various buyers participate in the transaction through bidding, fixed price, and private sale. The Ministry of Agriculture, Food and Rural Affairs plans to focus on online transactions at the initial stage in consideration of the non-face-to-face situation caused by the novel coronavirus infection (COVID-19), which has recently been spreading rapidly and concerns about the spread of highly pathogenic avian influenza.

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Online transactions can be delivered directly to a location designated by the buyer. It has the advantage of maintaining egg quality by reducing the occurrence of cracked eggs due to loading, unloading, and transportation as well as convenience in transactions.

The pilot trading will start on the 20th and initially open 2 days a week on Mondays and Wednesdays, and the opening days will be extended according to the fluctuations in the trading volume to expand the public market and transaction volume in the future. As for the transaction method, the bidding transaction in which the prospective purchaser who offers the highest price becomes the successful bidder and the fixed price transaction method in which the purchaser is traded at the price agreed in advance are combined.

You can also participate in online transactions through the aT Agricultural Food Exchange Internet network.

The Ministry of Agriculture, Food and Rural Affairs established reasonable egg quality standards in preparation for this egg market to build trust among market stakeholders for listed transactions.

The standard specifications for market eggs were established in consideration of the fact that eggs are traded at different values ​​depending on the age of the laying hens, freshness, and the degree of broken eggs in the current egg distribution market.

An official from the Ministry of Agriculture, Food and Rural Affairs said, “Online trading will provide high-resolution photos and various information that affects the quality as it is traded without seeing real eggs. We plan to support it,” he said.


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