Negotiations on Raw Milk Price Stalled... Dairy Promotion Committee Subcommittee to Reconsider Increase Rate

Dairy farmers and dairy companies discussed the price of raw milk this year but once again failed to reach a conclusion.

On the 24th, the Dairy Promotion Committee subcommittee decided to negotiate the raw milk price, and it is expected for the first time to exceed 1,000 won per liter. A customer is selecting milk at Seoul Hanaro Mart. Photo by Younghan Heo younghan@

The Dairy Promotion Committee subcommittee, composed of dairy farmers and dairy industry officials, attempted negotiations on the raw milk price increase on the 24th but could not narrow their differences and decided to discuss again in the future.

The renegotiation date is scheduled for the 27th.

The Dairy Promotion Committee subcommittee held its first meeting on the 9th of last month and began negotiations on this year's raw milk price, holding discussions 10 times up to this day.

Due to the increase in production costs for dairy farmers, a raw milk price increase this year is inevitable.

This year, the price increase will be decided within the range of 69 to 104 KRW per liter of raw milk.

Dairy farmers are demanding the highest possible price, but the dairy industry is not accepting this, causing prolonged negotiations.

Even if only the minimum increase of 69 KRW is applied this year, the price of drinking milk will exceed 1,000 KRW per liter, reaching 1,065 KRW.

Last year, the Dairy Promotion Committee raised the raw milk price by 49 KRW per liter, resulting in a drinking milk price of 996 KRW per liter.

When the raw milk price rises, the price of white milk products also increases. Last year, when the raw milk price rose by 49 KRW per liter, dairy companies raised milk product prices by around 10%. Accordingly, the price of 1L white milk from Seoul Milk Cooperative reached the 2,800 KRW range at large supermarkets, and the 900mL white milk product from Maeil Dairies was priced at 2,860 KRW.

Due to the rise in raw milk prices, there is also a possibility of 'milkflation,' where prices of ice cream, snacks, and other products containing milk increase. After last year's raw milk price hike, Lotte Wellfood (formerly Lotte Confectionery) and Binggrae raised some ice cream prices by 20% each. Lotte Wellfood also increased confectionery prices by around 10%.

However, the Ministry of Agriculture, Food and Rural Affairs views the impact of raw milk price increases on processed food prices as limited. This is because, domestically, the milk content in raw materials for bread and snacks is only about 5% and 1%, respectively.

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