SEOUL: The South Korean government said Friday that it will remove import tariffs on egg products in a bid to resolve a supply shortage sparked by the worst outbreak of avian influenza in the country. The Ministry of Agriculture, Food and Rural Affairs said that zero percent import duties will be imposed on eight types of egg products including egg yolk and powdered egg starting from January for six months. Currently, some 8 to 30 percent tariffs are levied on such imported egg products.
The measures came after the country is suffering from a short supply of eggs, which was caused by the rapidly spreading bird flu that has destroyed more than 20 million chickens and ducks nationwide since the first case was reported in mid-November. The country’s daily egg output had been 42 million eggs on average, but it decreased 20 percent since the bird flu outbreak. As a result, prices of eggs have risen sharply due to a supply shortage and hoarding by some retailers.
The government also said it will crack down on retailers and large bakery chains which buy up eggs. Earlier in the day, the government said it will make full efforts to control rising living costs largely driven by the worst outbreak of avian influenza here and a gain in oil prices.
At an emergency economic response team meeting chaired by Vice Finance Minister Choi Sang-mok in Seoul, the government discussed ways to partly ease the restriction on egg supply in order to stabilize prices, according to the Ministry of Strategy and Finance. It will also keep close tabs on prices of oil-related products as gas prices at the pumps have already shown an increase in accordance with the hike in global oil prices. It will also have public utilities firms refrain from raising heating bills and other public service charges this winter.
