Seoul Dairy to boost A2 milk production

[Courtesy of Seoul Dairy]

As the Korean milk market starts to shrink thanks to low birth rates and an aging population, Seoul Dairy, a dominant player in the Korean milk industry, announced its intention to raise the A2 milk ratio to 100 percent by 2030.

As concerns rise about discomfort during milk digestion, inclusing bloating and diarrhea, that is experienced by six out of ten Koreans, there is keen interest in whether A2 milk, known to reduce milk-related side effects, will become a new breakthrough product for the country‘s milk industry.

During an event held in Seoul on Monday to celebrate the release of ‘A2+ Milk,’ the company said it will supply premium milk at reasonable prices via a full transition to A2+ Milk. It also added that A2 milk will be a good solution to the increasing importation of pasteurized milk.

Seoul Dairy plans to produce about 50 tons of A2 milk daily, accounting for 3 percent of the daily average of around 1,900 tons of raw milk, by the end of 2024, and also aims to convert all its supplying farms to produce A2 milk, with the company investing around 8 billion won ($5.7 million) since 2020 to supply A2 genes and establish dedicated farms.

A2 milk differs from conventional milk by containing only A2 proteins, without the A1 proteins associated with gastrointestinal discomfort such as bloating, abdominal pain, and diarrhea. To achieve this, A2 milk uses milk sourced exclusively from cows that produce only A2 proteins, and also has a protein structure similar to human breast milk, allowing for better absorption. Bu as it still contains lactose, it may not completely resolve lactose intolerance.

The competition among companies is expected to intensify as Seoul Dairy formalizes its entry into the A2 milk market as the Korean milk market has been on a constant decline according to market data. The market size, which was 2.46 trillion won in 2020, decreased to 2.15 trillion won in 2023.