Dairy Price Hike Rush Expected as Early as Next Month... Cheese and Cream Prices Rose First

Dairy Farmers and Dairy Industry to Finalize Raw Milk Price Negotiations This Month
Likely Increase of 47~58 Won per Liter
Price Hike for Milk and Dairy Products Confirmed
Cream and Cheese Prices Already Raised

[Asia Economy Reporter Song Seung-yoon] Starting next month, prices of dairy products such as milk are expected to rise one after another. Once the raw milk price negotiations between dairy farmers and the dairy industry are finalized this month, dairy companies are expected to sequentially raise product prices.

According to the industry on the 23rd, the Raw Milk Basic Price Adjustment Negotiation Committee, composed of dairy farmers and dairy companies, agreed to complete raw milk price negotiations by the 31st of this month. Previously, both sides had agreed to finish negotiations by the 15th, but due to differences in opinion, the negotiation schedule was postponed once more. Dairy farmers and dairy companies are showing disagreements over the extent of the raw milk price increase and the timing of its application. There are also reported differences in opinion regarding the retroactive application of the raw milk price increase.

Typically, once the raw milk basic price is set, major dairy companies such as Seoul Milk, Maeil Dairies, and Namyang Dairy Products have successively implemented milk price increases. Usually, dairy farmers and dairy companies start raw milk price negotiations in June and apply the new prices in August, but this year, due to ongoing conflicts over the dairy system reform plan?which changes the price determination system from the existing production cost-linked system to a differentiated price system by usage?negotiations have not even taken place well past August. Initially, dairy farmers strongly opposed the reform plan but changed their stance to cooperate after several negotiations, and the reform plan was passed at the Dairy Promotion Board meeting on the 16th of last month. Subsequently, raw milk price negotiations officially began on the 20th of the same month.

The industry expects the new raw milk price increase to be decided between 47 and 58 KRW per liter. In this case, the consumer price of plain milk, currently in the mid-2700 KRW per liter range, is also expected to exceed 3000 KRW. The price hike trend is also expected to continue for other dairy products using raw milk, such as creams, cheese, and ice cream. Previously, Seoul Milk Cooperative raised the shipment price of some cheese products, including Cheddar cheese, by about 20%. Maeil Dairies also increased the prices of sour cream and whipping cream by 6?7%. Namyang Dairy Products raised prices of cheese products such as Da Vinci by about 10% earlier this year.

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