Ministry of Agriculture, Food and Rural Affairs "Suspends Dairy Reform Talks with Dairy Association... Serious Trust Damage"

[Asia Economy Sejong=Reporter Son Seon-hee] The Ministry of Agriculture, Food and Rural Affairs announced on the 28th that it will temporarily suspend consultations on the dairy system reform with the Korea Dairy and Beef Cattle Association.

In a press release on the same day, the ministry stated, "Recently, serious incidents have occurred that severely damage the trust between the Dairy Association and the government," adding, "The government has determined that it is meaningless to proceed with consultations with the Dairy Association under conditions of insufficient trust, and has decided to suspend discussions on system reform and raw milk price determination until trust is restored."

It continued, "We plan to continue the ongoing meetings and briefings with dairy farmers, agricultural cooperatives, and local governments to discuss the introduction of a differentiated pricing system by usage," and added, "Once trust is restored and conditions improve with the Dairy Association, we plan to immediately resume discussions."

The core issue in the dairy system reform is the introduction of a 'differentiated pricing system by raw milk usage.' This plan involves distinguishing raw milk into drinking milk and processed milk and applying different prices according to usage. Previously, prices were determined solely based on drinking milk regardless of usage, but prices have risen regardless of market demand, gradually widening the price gap with advanced dairy countries such as the United States and Europe. As a result, domestically produced raw milk has lost price competitiveness, leading to an increase in dairy product imports and a declining self-sufficiency rate.

The government aims to correct this by changing the current raw milk price determination structure, but the Dairy Association, concerned about a decrease in farmers' income due to cost reductions, has opposed this and has been in confrontation since last year.

The association has recently even mentioned a 'milk delivery refusal,' signaling a tough struggle. With the government declaring the suspension of consultations, concerns have arisen that if the delivery refusal materializes, a 'milk supply shortage' could occur.

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