South Korea: Dairy Industry Agrees to Freeze Milk Prices Amid Inflation
Source: The DairyNews
In a bid to ease the public's burden amid ongoing inflation, South Korea's dairy farmers and businesses have agreed to freeze the price of raw milk, while also reducing the price of milk for processed dairy goods. This announcement was made by Korea's Ministry of Agriculture, Food and Rural Affairs on Tuesday.
Following negotiations that began in June to tackle rising production costs, the ministry stated that the price of milk for direct consumption will be fixed at 1,084 won ($0.78) per liter starting Thursday. Additionally, the price of milk used for processed goods, such as cheese and powder, will see a reduction of 5 won to 882 won per liter.
Major domestic milk producers, including Seoul Dairy Cooperative, Maeil Dairies, and Namyang Dairy Products, have pledged to maintain the retail prices of their plain milk. This initiative is expected to help limit price hikes for related products that use milk as an ingredient.
According to data from Statistics Korea, the production cost of milk increased by 4.6 won per liter compared to the previous year. Despite this, the prices of agricultural, livestock, and fisheries products rose by 6.5 percent year-on-year in June, even as overall consumer price increases slowed to an 11-month low of 2.4 percent.
Major domestic milk producers, including Seoul Dairy Cooperative, Maeil Dairies, and Namyang Dairy Products, have pledged to maintain the retail prices of their plain milk. This initiative is expected to help limit price hikes for related products that use milk as an ingredient.
According to data from Statistics Korea, the production cost of milk increased by 4.6 won per liter compared to the previous year. Despite this, the prices of agricultural, livestock, and fisheries products rose by 6.5 percent year-on-year in June, even as overall consumer price increases slowed to an 11-month low of 2.4 percent.
