Cream Shortage and Strawberry Price Surge... "No Smiles Even During the Christmas Boom"

Joseon Palace Seoul Gangnam Christmas Cake.

[Asia Economy Reporter Seungjin Lee] Nationwide bakeries, which should be busy selling cakes during the Christmas season, are struggling due to a shortage of fresh cream. This is a result of reduced raw milk supply this year combined with a significant increase in fresh cream demand at the end of the year. Additionally, the price of strawberries, which are widely used in cakes, has nearly doubled in just a few days, causing small bakery owners to face difficulties even during the peak season.

On the 25th, posts seeking fresh cream have been continuously appearing on an online community for small business owners nationwide. For the past week, dozens of posts with the same content have been flooding this community every day.

The ongoing 'fresh cream crisis' is due to a decrease in the number of dairy cows raised by farms to reduce raw milk production following adjustments to the excess raw milk price, coupled with abnormal high temperatures from summer through autumn that have reduced milk production. Since fresh cream is made by separating fat from raw milk, a decrease in raw milk volume directly affects fresh cream supply. Furthermore, with the year-end approaching, demand for fresh cream has surged, sparking a nationwide scramble to secure it.

A bakery owner in Busan, Mr. A, said, "I went to all the nearby large supermarkets looking for fresh cream but couldn't find any," adding, "It seems that other small business owners in similar situations have already bought up the stock." Many other posts nationwide have also been registered urgently seeking fresh cream.

Concerns are growing that the shortage of fresh cream may cause small bakeries to miss out on the year-end peak sales. Mr. B, who runs a bakery in Daejeon, said, "We are receiving cake reservation orders, but we cannot accept all of them due to the lack of fresh cream," and appealed, "I can travel as far as Sejong and Jochiwon, so if anyone has extra fresh cream, please sell it to me."

In the third quarter (July to September) of this year, the total number of dairy cows (403,057 heads) decreased by 7,775 compared to the same period last year. In the second quarter (April to June), the number of dairy cows was 399,680, the lowest in 10 years. Most dairy cows raised domestically for milk production are Holstein breed, which is vulnerable to heat. The abnormal high temperatures from summer through autumn this year caused a sharp decline in milk production.

Moreover, the recent surge in strawberry prices is adding to the burden on small bakeries. According to the Korea Agro-Fisheries & Food Trade Corporation (aT), as of the 24th, the wholesale price of 2kg of strawberries rose 31% compared to a week ago, reaching 43,040 KRW. This price is 42% higher than the same period last year. The price surge is due to reduced shipment volumes caused by poor growth and increased consumer preference during the peak season, along with rising demand for Christmas snacks.

While small bakeries nationwide are struggling to obtain fresh cream and facing disruptions in cake production, demand for cakes from hotels and large franchises is soaring to the point where they cannot keep up during the Christmas peak. The Shilla Hotel in Seoul sold out its Christmas cake reservations priced between 70,000 and 80,000 KRW for December 24-25 before mid-December. Cake sales increased by 280% compared to the same period last year. The ‘White Tree Special Cake’ sold by the Josun Palace in Gangnam, Seoul, has exceeded the expected sales volume despite its price of 250,000 KRW.

An industry insider explained, "This year’s year-end season has seen an increase in people enjoying parties at home due to restrictions on business hours, which has raised cake demand," adding, "Small-scale cake producers and sellers are expected to face difficulties due to the fresh cream shortage until the end of the year."

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