"Only Milk Prices Below 3,000 Won at Marts"... Will Seoul Milk's 'Sneaky Price Hike' Spread Across the Industry?

Dairy Companies Including Maeil Dairies Preparing Price Increases
Seoul Milk Raises 1ℓ White Milk Price by 3% at Supermarkets
Convenience Store Supply Products Price Increase Ranges from 4.9% to 11.7%

Seoul Milk Cooperative (hereinafter 'Seoul Milk') has announced price increases not only for white milk but also for processed milk and yogurt products starting next month. Meanwhile, other dairy companies such as Maeil Dairies, Namyang Dairy Products, Binggrae, and Dongwon F&B are expected to follow Seoul Milk's 'Seoul Milk-style' price hike, adjusting only the price increase range for white milk sold in supermarkets.

Seoul Milk, which holds the number one market share in the dairy industry, officially announced at the end of last month that it would minimize the price increase rate of its main product, 1ℓ of white milk (Na 100% milk) supplied to large discount stores to around 3%, setting the consumer price in the high 2,000 won range. However, in reality, the increase rates were set differently depending on distribution channels and products, with some products seeing price hikes of more than 25%.

Na100% Milk
Photo by Seoul Milk Cooperative

According to the industry, major dairy companies such as Maeil Dairies, Namyang Dairy Products, Binggrae, and Dongwon F&B are also reviewing price increases for their main products. These companies are expected to announce product-specific price adjustment plans as early as next week. So far, Seoul Milk's price adjustment plan has served as a kind of guideline in the dairy industry, so other companies are also expected to set the price of 1ℓ white milk supplied to large supermarkets below 3,000 won, while varying the increase rates for other distribution channels and products.

In the case of Seoul Milk, the price increase for dairy products supplied to convenience stores was significantly higher. From October, the prices of white milk sold at convenience stores will rise from 1,100 won to 1,200 won for 200㎖, from 3,050 won to 3,200 won for 1ℓ, and from 5,550 won to 6,200 won for 1.8ℓ, with increase rates ranging from 4.9% to 11.7%. In particular, the price of the popular yogurt product 'Biyotte' rose by 500 won from 1,800 won to 2,300 won, an increase rate of 27.8%. Following criticism that the Biyotte price hike was excessive, Seoul Milk announced on the 14th that it would renegotiate and readjust the supply price with the convenience store industry.

This year, the base price of raw milk is 1,084 won per liter, up 88 won (8.4%) from the previous year, and the dairy industry insists that price increases are inevitable. Seoul Milk also raised its product shipment prices by an average of 6% last November to reflect the increase in raw milk prices. The industry stated that not only raw milk prices but also labor costs, electricity fees, and raw material prices have all risen, creating a difficult situation, but they are refraining from price increases at the same level as last year in cooperation with the government's efforts to stabilize prices. Therefore, instead of increasing the price of the flagship white milk product significantly, it is expected that profitability will be improved by raising prices of other products such as processed milk and yogurt.

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