"Grandma, Do You Want Ice Cream?"... Surprised by the Price Overheard at a Convenience Store?

Rising Crude Oil Prices Lead to Increased Milk and Ice Cream Prices

Following the price increase decisions by the dairy industry including Seoul Milk Cooperative, Maeil Dairies, and Namyang Dairy Products, Binggrae and Dongwon F&B have also decided to raise prices on some products starting next month, heightening concerns about "Milkflation" (milk + inflation). When milk prices rise, a chain reaction occurs where the prices of bread, snacks, ice cream, and other products using dairy in their manufacturing process also increase, creating the milkflation phenomenon.

According to the dairy industry on the 29th, Binggrae’s flagship processed milk product, Banana Flavored Milk (240ml), will see its convenience store price increase from 1,700 won to 1,800 won starting November 1, a 100 won (5.9%) hike. Binggrae’s ice cream product Together will also have its convenience store price raised by 8.9% from November 1.

In large retail channels such as supermarkets, white milk products like Good Morning Milk (900ml) will increase by 5.9%, and Yoplait Original will rise by 8.6% respectively.

Dongwon F&B will raise prices of products such as Denmark Danish The Healthier Milk (900ml) by an average of 5%. Convenience stores will implement the price increase from the 1st of next month, with other distribution channels like discount stores following sequentially from next month.

[Image source=Yonhap News]

This price increase is due to the rise in raw milk prices. The dairy industry produces milk by sourcing raw milk from dairy farms, and the Dairy Promotion Board’s board of directors has decided to raise the raw milk price for drinking milk (white milk) by 88 won per liter to 1,084 won starting November 1. For processed milk, the price will increase by 87 won per liter to 887 won.

Accordingly, Seoul Milk Cooperative has already decided to raise the shipment price of its white milk product "Na 100% Milk" (1L) by 3% based on large discount stores starting next month, while Namyang Dairy Products and Maeil Dairies will raise white milk product prices by 4.6% and 4-6% respectively.