South Korea's Dairy Industry: An In-depth Analysis
South Korea's dairy industry has witnessed substantial growth, largely fueled by strong consumer preferences and rising demand for dairy products across the nation. A key trend is the expansion of the Ultra-High Temperature (UHT) milk category, which is currently growing at a compound annual growth rate (CAGR) of 7.3%.
Dairy Cattle and Farms
The country hosts approximately 417,000 heads of dairy cattle, reflecting its commitment to boosting domestic dairy production capabilities. Among the prominent dairy farms are the Seoul Dairy Cooperative Farm, known for its high standards and innovative practices, and Lotte Samkang Dairy Farm, recognized for advanced dairy farming techniques.
Milk Production and Processing
South Korea produces around 2.1 million metric tons of milk annually, with about 1.9 million metric tons processed into various dairy products. Key production volumes include 30,000 metric tons of cheese and 80,000 metric tons of milk powder and whey each year.
Key Dairy Enterprises
Several enterprises play pivotal roles in the South Korean dairy market. Namyang Dairy Products Co., Ltd. is a leading entity in producing and processing diverse dairy products. Maeil Dairies Co., Ltd. is renowned for its extensive range of dairy products such as cheese and yogurt. The Seoul Milk Cooperative, the largest dairy cooperative in South Korea, is crucial in stabilizing milk prices.
Export and Import Dynamics
South Korea exports about 10,000 metric tons of dairy products annually, targeting markets like China, Japan, and Southeast Asia. Conversely, it imports approximately 150,000 metric tons of dairy products, mainly from major exporters such as 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 lowering processed goods prices, aiming to mitigate inflation and enhance affordability. Namyang Dairy Products is undergoing substantial changes under new management after past controversies, including the arrest of former chairman Hong Won-sik for breach of trust and false advertising.
Cheese exports have surged by 36%, highlighting the significant growth in South Korea’s dairy industry prowess. The demand for diverse dairy products has also led to a rise 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.
Fonterra’s mozzarella cheese product is gaining popularity, with increased demand through hypermarket chains in South Korea. Meanwhile, the dairy industry is closely monitoring developments in China, South Korea, and Japan amid rising trade complexities. Trading on South Korea’s Kospi index was temporarily halted amidst fluctuating economic conditions, and the U.S. has imposed a 25% tariff on South Korea, affecting trade dynamics.
South Korea was among the top ice cream suppliers to China, with exports to China valued at $763,000 by the end of July. Additionally, South Korea exported a record amount of ice cream to Russia in July, with 316.3 tons imported by Russia, amounting to a total of 1 million USD.
Increased demand for cheddar has resulted in cheddar shipments rising by an astounding 143%, driven by increased demand from Central America, the Caribbean, South Korea, and Japan.
Modified: 2025/09/27