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This is the price I expected, but still didn't want to believe. Since October, the basic price of raw milk used in fresh dairy products such as white milk and fermented milk has increased by 88 won per liter (ℓ).
This is the second largest increase since the introduction of the milk price index in 2013. In the first year, the price increased by 106 won, resulting in a base price of 1084 won per liter for drinking oil and 887 won per liter for processed oil.
Consumers sighed deeply at the large price hike, and when they have no choice, they look for alternatives. With the rate of increase, consumers became more interested in sterilized milk or alternative milk that was not affected by the price hike.
Is this the beginning of the end for pasteurized and alternative milk?
Unprocessed milk increased by 88 won... 3,000 won for 1 liter |
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It is expected that the raw milk price hike tentatively agreed on today will be finalized through the board meeting on the 10th of next month. As a result, the price of drinking milk will increase by 88 won per liter to 1084 won.
In fact, this year's raw milk price hike was in order, as the Russian-Ukrainian war and abnormal weather caused feed prices to rise significantly, increasing the burden on farmers. The production cost of raw milk for Nanhai farmers was 570.34 won per liter, up 13.7 percent year-on-year.
According to the Korea Consumer Price Index, the price of a 1-liter carton of milk is in the 2,800 won range, and the price of white milk is expected to exceed 3,000 won.
'Milkflation' fears...government says "exaggerated" |
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Nowadays, instead of drinking less white milk, there are many dairy products on the market that are derivatives of cow's milk: processed milk, liquid fermented milk, cultured milk, cheese, and butter.
Whipped cream for cakes and formula for babies are both made from milk, as are café lattes, which Koreans love to drink. Many foods contain milk, such as creamy pasta, and whey, which is an essential source of protein for athletes.
The possibility of "milk inflation" recurring due to the increase in raw milk prices was also mentioned. Last year, the price of some ice creams increased by 20% and sweets by 10% after the increase in raw milk prices. The milk industry reacted to the outcome of the negotiations by saying, "It will be difficult to pass on the increase in the price of raw milk immediately."
The government also emphasized that concerns about milk inflation in the market were exaggerated, as only a small proportion of major food products, except for dairy products and ice cream, use raw milk, white milk, and dairy products as raw materials. The Ministry of Agriculture, Food, and Rural Affairs has convened several meetings with dairy companies and distributors to ask them to refrain from raising prices.
Consumers turn away, look for 'alternatives' |
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For long-term preservation, pasteurized milk is produced using ultra-high temperature sterilization, which is heated at 135~150℃ for 2~5 seconds to completely kill all microorganisms that can grow at normal room temperature. It can be stored at room temperature for 10 weeks (up to 6 months), which is why it is difficult to import regular milk (pasteurized milk) because it can only be stored for about 10 days in the refrigerator, but sterilized milk has a long shelf life and can be imported anywhere in the world.
Pasteurized milk is very different from fresh milk in that it kills harmful bacteria while leaving beneficial bacteria behind. Pasteurized milk kills both harmful bacteria and beneficial bacteria such as lactobacilli.
In recent years, when the price of milk has increased due to the advantages of 'safe quality' and 'cheapness' even though it lacks the freshness of milk, more and more consumers are looking for sterilized milk. Although there was a stigma that it lacked the flavor of regular milk, it has recently been attracting attention as a substitute for fresh milk, and the taste bias has also been washed away.
For this reason, pasteurized milk is also known as 'half-price milk', 'cost-effective milk', and 'cheap milk'. In fact, according to statistics from the Korea Customs Service, the import volume of pasteurized milk reached 14,675 tons in the first half of this year, up 57% from 9,326 tons in the same period last year.
The hike in milk prices has pushed South Korean consumers to look beyond the country to find the cheapest milk in the world, and the cheapest milk among consumers is from Poland. According to the Polish Trade and Investment Representative, the average price of local milk in Poland is 480 won per liter as of June 2021.
Polish pasteurized milk products cost between 1,300 won (Mlekowita) and 1,500 won (Milkisma) per liter, while domestic milk costs 2,700 won (Seoul Milk) per liter, which is about twice as expensive as Polish milk.
Currently, there are 28 sterilized milk products imported from seven countries, including Poland, Germany, Italy, the United Kingdom, Australia, France, and Austria. Poland is the largest importer (75.1%), followed by Germany (10%), Italy (7.7%), and Australia (5.3%).
However, imported pasteurized milk is not labeled with the grade of raw milk, which raises concerns not only about quality but also about taste and freshness.
Price and freshness, which side of the fence will domestic consumers choose? We're interested to see how this plays out.
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