[Reporter’s Notebook] The Domino Effect of Milk Price Increases Becomes Reality

[Asia Economy Reporter Moon Hyewon] As everything except salaries is rising, the price increase of milk has entered its final countdown. Seoul Milk's white milk 1ℓ will rise from 2,710 won to the high 2,800 won range at major supermarkets, and Maeil Dairies' white milk 900㎖ will increase from 2,610 won to 2,860 won. Namyang Dairy Products and Dongwon F&B will also raise milk prices within this month. The increase rate ranges from 6% to 9% depending on the company.

Consumers are expressing not just dissatisfaction but fear over the growing milk inflation. The reason consumers are paying attention to the milk price hike is not simply because a bottle of milk is becoming more expensive, but because it triggers a chain reaction of price increases in processed dairy products and food items such as bread, coffee beverages, ice cream, cheese, and butter.

Coffee shops are considering price increases. Lattes, which contain milk and butter, are among the best-selling items at coffee shops, and dessert products like ice cream and bread are also sold in large quantities. Although Americano is generally the best-selling menu item, latte varieties often rank second in sales. Especially items popular among young customers, such as salt bread and macarons, which mainly use milk or fresh cream as ingredients, face fierce market competition.

For now, large franchises are hesitant to immediately raise prices due to concerns about consumer backlash. However, small-scale cafes run by small business owners are relatively more burdened by the milk price increase, so they are more likely to raise prices. Ultimately, this cost will inevitably be passed on to consumer prices.

Earlier, Starbucks raised prices on 46 types of beverages, including cafe lattes, by up to 400 won starting January this year, about three months after the milk price increase last year. Of course, the price hike was due to a combination of factors including increases in coffee bean prices, raw material costs, and labor costs, but the milk price increase was the decisive factor at that time. There is already fear that the same phenomenon will repeat this time.

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