South Korea's Dairy Industry Overview

The dairy sector in South Korea is undergoing significant growth and transformation, particularly in the Ultra-High Temperature (UHT) milk category, which is expanding at an annual CAGR of 7.3%. This shift highlights the strong consumer preferences and increasing demand for dairy products throughout the nation.

Dairy Cattle and Farms

South Korea maintains approximately 417,000 heads of dairy cattle, emphasizing its commitment to enhancing domestic dairy production capabilities. Notable dairy farms include:

• Seoul Dairy Cooperative Farm: Recognized for its high standards and innovative practices.
• Lotte Samkang Dairy Farm: Known for its advanced dairy farming techniques.

Milk Production and Processing

Annually, South Korea produces about 2.1 million metric tons of milk, with approximately 1.9 million metric tons processed into various dairy products. Specific production volumes include:

• Cheese: 30,000 metric tons per year
• Milk Powder and Whey: 80,000 metric tons per year

Key Dairy Enterprises

• Namyang Dairy Products Co., Ltd.: A leading entity in the production and processing of diverse dairy products.
• Maeil Dairies Co., Ltd.: Known for its varied range of dairy products such as cheese and yogurt.
• Seoul Milk Cooperative: The largest dairy cooperative in South Korea, playing a pivotal role in stabilizing milk prices.

Export and Import Dynamics

South Korea exports about 10,000 metric tons of dairy products annually, targeting key markets like China, Japan, and Southeast Asia. In contrast, the country imports approximately 150,000 metric tons of dairy products, primarily from major exporters including the United States, Australia, and New Zealand.

Recent Industry Events

• A significant agreement between dairy farmers and businesses aims to maintain current raw milk prices while reducing prices for processed goods. This initiative seeks to mitigate inflation and enhance affordability.
• Namyang Dairy Products is undergoing substantial changes under new management to recover from past controversies and rebuild consumer trust, following the arrest of former chairman Hong Won-sik for breach of trust and false advertising and addressing softer demand for high-protein whey.
• Cheese exports have risen by 36%, showcasing significant growth and reinforcing South Korea's dairy industry prowess.
• The demand for diverse dairy products has led to a surge in cheese imports into South Korea.
• Following the foot-and-mouth disease outbreak in Germany, South Korea has restricted imports of German meat to safeguard its domestic industry.

Modified: 2025/02/05

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