"How Much Will Milk Raw Milk Prices Rise?"... One Day Left Until Deadline

Negotiation Deadline for Dairy Promotion Committee Subcommittee on the 19th
Expected Price Increase Set at 69~104 Won per Liter

With the deadline for negotiations between dairy farmers and dairy companies to set this year's raw milk price approaching in one day, the related industry is paying close attention to the extent of the price increase.

A consumer is selecting milk at a supermarket in Seoul city. [Image source=Yonhap News]

According to the industry on the 18th, the Dairy Promotion Committee subcommittee, composed of dairy farmers and dairy industry representatives, has set the negotiation deadline for the 19th. The subcommittee began its first meeting on the 9th of last month and has been negotiating raw milk prices for over a month, but both dairy farmers and the dairy industry have yet to narrow their differences regarding the rate of increase.

If the raw milk price rises, an increase in production costs for dairy farmers is inevitable. Production costs are the most important factor in determining raw milk prices, and when these costs rise, raw milk prices also follow suit.

The related industry expects this year's raw milk price increase to be set within the range of 69 to 104 KRW per liter. If the raw milk price rises as expected, the price of white milk products using it as the main ingredient will also increase starting from the 1st of next month. Last year, the basic raw milk price was raised by 49 KRW per liter, and each dairy company increased the price of white milk products by around 10%.

The price of 1 liter of white milk from Seoul Milk Cooperative has risen to the 2,800 KRW range at large supermarkets, and the price of 900 ml white milk products from Maeil Dairies increased from 2,610 KRW to 2,860 KRW. Last year, the price of 1 liter or 900 ml white milk products was below 3,000 KRW, but if the raw milk price rises within the expected range this year, product prices are likely to exceed 3,000 KRW.

However, although the Dairy Promotion Committee subcommittee has set the raw milk price negotiation deadline for the 19th this year, there is a possibility that the schedule may not proceed as planned. The negotiation deadline was originally the 30th of last month but was extended once to the 19th of this month.

Meanwhile, separately from the subcommittee, the Ministry of Agriculture, Food and Rural Affairs gathered opinions from the dairy industry and dairy farmers on the 7th and 12th, respectively. It is reported that the ministry requested restraint from excessive price increases during these meetings.

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