Will Milk Prices Stabilize... Deputy Minister of Economy and Finance Reviews Public Institution Designation Requirements for the Dairy Promotion Association

Presided over the '2nd Vice Ministerial Meeting on Prices' on the 14th

Milk Price Decision by Dairy Promotion Board
7 of 15 members are producers... Efforts to End Disruptions

"Trends in Dining Prices for Pizza, Chicken, etc.
Weekly Disclosure on aT Website Starting February"

Lee Ok-won, First Vice Minister of the Ministry of Economy and Finance, presides over the 2nd Vice Ministers' Meeting on Prices and delivers opening remarks at the Seoul Agro-Fisheries & Food Corporation on the 14th. (Photo by Ministry of Economy and Finance)

[Sejong=Asia Economy Reporter Moon Chaeseok] Lee Okwon, the 1st Vice Minister of the Ministry of Economy and Finance, stated on the 14th, "Raw milk prices will be restructured to be differentially determined according to their uses, such as for drinking or processing, and we will review whether the Dairy Promotion Committee meets the criteria to be designated as a public institution in order to reform the current decision-making system of the Dairy Promotion Committee." This is the first time he revealed plans to review structural reforms to prevent producers (farmers), who occupy 7 out of the 15 directors of the Dairy Promotion Committee that determine raw milk prices, from disrupting board meetings. Additionally, starting next month, prices of dining-out items such as pizza and chicken will be surveyed weekly and posted on the Korea Agro-Fisheries & Food Trade Corporation (aT) website.

At 9 a.m. that day, Vice Minister Lee visited the Seoul Agro-Fisheries & Food Corporation located in Garak-dong, Songpa-gu, Seoul, at the wholesale market for agricultural and marine products, and presided over the '2nd Vice Ministerial Meeting on Price Relations,' where he made these remarks. Until now, raw milk prices were determined based on production costs regardless of their use, whether for drinking milk or processed products like cheese, leading to criticism that prices were excessively high compared to imports. Vice Minister Lee said, "Raw milk prices are among the highest in the world, except for Japan, due to the problem that prices are determined by production costs regardless of demand," adding, "We will restructure the system so that the scale is determined by demand according to use, and prices are differentially set." He continued, "To reform the current Dairy Promotion Committee decision-making system, which is producer-centered and makes it difficult for institutional improvement proposals to pass, we will review whether the Dairy Promotion Committee meets the criteria for designation as a public institution."

He explained, "We aim to take this opportunity to improve the distribution structure and the unreasonable price determination system to structurally prevent price bubbles and stabilize prices." He added, "In the case of eggs, two auction markets (wholesale markets) were opened this year to transparently determine prices through auction methods, and we will continue to expand transaction volumes. We will also buffer supply and demand instability caused by weather conditions through government stockpiles and expansion of the vegetable price stabilization system. For processed foods and dining-out sectors, we will actively promote short-term financial and tax support, mid- to long-term technological development support, and deregulation."

Last month, prices of agricultural, livestock, and marine products rose 7.8% compared to the same month last year. Processed food prices increased by 3.8%, and dining-out prices rose by 4.8%. Accordingly, the Ministry of Agriculture, Food and Rural Affairs and the Ministry of Oceans and Fisheries plan to lead responses to prices of agricultural, livestock, and marine products, processed foods, and dining-out sectors. Vice Minister Lee also announced plans to newly survey price trends of dining-out items such as pizza and chicken starting next month so that consumers can properly recognize dining-out prices. He said, "From this year, we will expand the number of items and targets for price surveys of agricultural, livestock, and marine products by aT. We will also newly survey price trends in the dining-out sector, such as pizza and chicken, and from next month, publish weekly price change results by region, brand, and menu on the aT website to support consumers in making rational choices through accurate price comparisons."

Vice Minister Lee said, "We will closely examine and actively manage factors behind recent price increases in strawberries, flowers, and other items," adding, "(Especially for strawberries,) we will ensure thorough inspection and supplementation of cold wave preparedness for cultivation farms, centered on the NongHyup and local governments."

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