Major Dairy Companies Raise Prices on Products Including White Milk
Measures Following Raw Milk Price Increase
Possibility of 'Milkflation' Extending to Milk-Based Products
Starting this month, the prices of dairy products, including white milk sold through distribution channels such as large supermarkets and convenience stores, will rise simultaneously. This is the result of the full reflection of the raw milk price increase decided by the Dairy Promotion Board.
According to the dairy industry on the 1st, Seoul Milk Cooperative will raise the ex-factory price of its white milk product 'Na 100% Milk' 1ℓ by 3% based on large discount stores. Accordingly, the price of Na 100% Milk, which was previously in the high 2,800 won range, will increase to the high 2,900 won range at large supermarkets. The manufacturer set the white milk price below 3,000 won only for large discount stores, considering consumer burden.
Maeil Dairies will also raise the prices of milk products by 4 to 6% starting today. Processed milk products will increase by 5 to 6%, and fermented milk and cheese product prices will be adjusted upward by 6 to 9%. The price of Maeil Dairies’ white milk product is also expected to reach the high 2,900 won range for 900㎖. A Maeil Dairies official explained, "The price increase factors are significant due to rising raw milk prices, raw materials such as sugar, packaging, processing costs, and logistics costs," but added, "We made efforts to minimize the price increase considering consumer burden relief and price stability."
Namyang Dairy Products will raise the ex-factory price of its white milk product 'Matitneun Uyu GT' (900㎖) by 4.6%, and the ex-factory prices of other dairy products will increase by an average of 7%. Dongwon F&B will also raise the prices of dairy products such as 'Denmark Danish The Healthier Milk' (900㎖) by an average of 5%. Additionally, Binggrae plans to sequentially raise the prices of white milk products 'Good Morning Milk' (900㎖) and 'Banana Flavored Milk' (240㎖) by 5.9% starting from the 6th, depending on the channel.
These dairy companies adjusted product prices following the raw milk price increase. According to the Dairy Promotion Board’s decision last July, from today, the basic raw milk price will increase by 88 won (8.8%) per liter for drinking milk and by 87 won (10.9%) for processed milk.
As milk prices rise, concerns about 'Milkflation' (milk + inflation)?where prices of bread, ice cream, coffee, and other products containing milk as an ingredient rise simultaneously?are also being raised. Binggrae has already decided to raise the price of Together ice cream by 8.3% at large discount stores starting from the 6th, and by 8.9% at convenience stores from the 1st of next month.
Previously, last year, when raw milk prices rose and dairy companies raised milk product prices by about 10%, bread prices increased by around 6%, and ice cream prices rose by around 20%.
An industry official said, "Not only raw milk prices but also ancillary costs including labor costs have risen significantly," adding, "While there is agreement on minimizing consumer price burdens, price increases are inevitable for products that use milk as a main ingredient."
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