Milk prices to stay steady as raw milk prices unchanged

[Photo by Yonhap]

White milk prices are expected to remain unchanged this year, as the price of raw milk stays steady. Consequently, the prices of dairy products made from raw milk are also likely to remain stable.

According to the Ministry of Agriculture, Food, and Rural Affairs on Wednesday, the Korea Dairy Committee has agreed to freeze or reduce raw milk prices by usage to consider the consumer burden amidst high inflation. The price of raw milk for milk products will be frozen. This marks the first freeze in raw milk prices in four years since 2020.

As a result, the price of raw milk for drinking milk products will be maintained at 1,084 won ($0.78) per liter. The price of raw milk for processed dairy products such as cheese and powdered milk, will be reduced by 5 won per liter. The price of this raw milk will drop from 887 won to 882 won per liter starting next month.

The Korea Dairy Committee made this decision in response to concerns about milkflation, where prices of white milk, dairy products, snacks, bread, and ice cream, which contain raw milk, were feared to rise due to high inflation. Consequently, major dairy companies such as Seoul Dairy Cooperative, Maeil Dairies, and Namyang Dairy Products plan to freeze the prices of their white milk products.

In the negotiation of raw milk purchase volumes by usage, the committee decided to reduce the purchase of drinking milk by 9,000 tons while increasing the purchase of raw milk for processed products by 9,000 tons. The newly decided purchase volumes will be applied for two years starting January next year.