Milk Price Slightly Increased... Will Bread and Coffee Prices Also Rise?

The photo shows milk being sold at a large supermarket in Seoul on the 27th of last month. [Image source=Yonhap News]

[Asia Economy Reporter Seungjin Lee] The domino effect of milk price increases has become a reality. Following the price hike by Seoul Milk Cooperative (Seoul Milk), the industry leader, Maeil Dairies and Namyang Dairy Products have also raised their prices.

According to the dairy industry on the 2nd, Namyang Dairy Products will raise the prices of milk products by an average of 4.9% starting from the 14th. Fermented milk and processed milk products will be increased by an average of 0.3% and 1.6%, respectively.

This price increase is due to the average increase of 21 KRW per liter in raw milk prices last August. Namyang Dairy Products explained that the price hike is inevitable due to the overall rise in production costs, including raw materials, logistics, and labor costs.

With the average price of milk products rising by 4.9%, Namyang Dairy Products' best-selling product, "Mat-it-neun Milk GT 2-pack," is expected to be priced in the high 4,700 KRW range at distribution outlets, increasing to the high 4,900 KRW range. Single-pack products are also expected to rise from the low 2,500 KRW range to the mid-2,600 KRW range.

Maeil Dairies plans to raise milk prices by 4% to 5% starting from the 7th. Prices of Maeil Milk, easily digestible milk, and related dairy products will also increase.

Dongwon F&B will raise prices by an average of 6% starting from the 6th. A representative product, "Denmark Danish THE Healthy Milk" 900ml (2-pack), will increase from 4,480 KRW to 4,780 KRW, a 6.7% rise.

Binggrae will also raise prices from mid-month, increasing its "steady seller" Banana Flavored Milk by 7.1% and Yoplait Original by 6.4%. Accordingly, the convenience store price of Banana Flavored Milk will rise from 1,400 KRW to 1,500 KRW, a 100 KRW increase, and Yoplait Original Multi-pack (4-pack) will increase from 2,800 KRW to 2,980 KRW (discount store price), a 180 KRW rise.

Earlier, Seoul Milk raised prices across the board starting from the 1st. The average increase rate was 5.4%, marking the first hike in three years since 2018.

Due to the price increase, Seoul Milk's 200ml products such as white milk, low-fat milk, strawberry milk, and chocolate milk will rise by 50 KRW from 950 KRW to 1,000 KRW. One liter of white milk will increase by 150 KRW from 2,700 KRW to 2,850 KRW, and 1.8 liters will rise by 300 KRW from 4,900 KRW to 5,200 KRW. Products like Biyotte and Chocoring will also increase by 100 KRW from 1,400 KRW to 1,500 KRW.

This milk price increase is expected to lead to higher prices for bread and coffee as well. Large franchises such as Paris Baguette and Tous Les Jours raised prices earlier this year, so no additional price hikes are expected this year. However, small and medium-sized self-employed businesses are likely to face difficulties absorbing cost burdens, leading to overall price increases.

This content was produced with the assistance of AI translation services.