The 4th Dairy Industry Development Committee Meeting Held... Discussion on Differential Pricing by Raw Milk Usage and More

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Moon Chaeseok] The Ministry of Agriculture, Food and Rural Affairs announced that the 4th Dairy Industry Development Committee meeting will be held on the afternoon of the 13th at the Osong Convention Center in Chungbuk, chaired by Vice Minister Kim Jonghun.

According to the Ministry, Vice Minister Kim will gather opinions from consumers, producers, demanders, and experts regarding the introduction of a 'differential pricing system by usage' for raw milk and plans to reorganize the Dairy Promotion Association at the meeting. The differential pricing system by usage distinguishes raw milk into drinking milk and processed milk, maintaining the current price level for drinking milk while lowering the price for processed milk.

The government proposes setting the price of drinking milk at 1,100 KRW per liter (ℓ) and processed milk at 899~900 KRW per liter, applying 100 KRW per liter for quantities exceeding contract levels.

It also introduces a plan to increase the number of board members of the Dairy Promotion Association from the current 15 to 23, increasing representatives from the government, academia, and consumer groups. Additionally, a proposal to remove the condition that two-thirds of the total board members must be present to convene a board meeting will be presented.

Currently, the domestic raw milk price is linked to production costs. This has led to continuous criticism that when production costs rise, prices increase regardless of demand changes, creating a structure where raw milk prices go up.

The government tried to reform the raw milk price determination system through the Dairy Promotion Association, which includes consumers and the dairy industry, but faced opposition from the dairy industry and others. Therefore, it formed the Dairy Industry Development Committee to proceed with the raw milk price setting system and the reorganization of the Dairy Promotion Association.

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