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There is a saying that shopping is scary at the rising prices, but now the price of milk is also going up. The increase in crude oil prices, which the dairy industry had delayed by one year, has been confirmed, and the government has announced that it will change the structure of determining the price of crude oil by the end of the year.



Reporter Hwa Kang-yoon reports.



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Board of Directors of the Dairy Promotion Association decided to raise the price of raw milk by 21 won to 947 won per liter last year, with a grace period of one year.



Today (17th), the board of directors was going to discuss whether to postpone the increase further, but 7 directors from the producer side did not attend, so the increase proposal was confirmed as it is.



It became inevitable to reduce the price of milk, as well as food products such as dairy products, bread, and sweets.



Dairy farmers are in the position of not being able to delay the price increase due to the economic difficulties caused by the abnormal weather and the soaring price of raw ash.



[Yoo Byung-chan / President of Sejong Dairy Farming Federation: The price of atomic ash has risen, so dairy farming is in a state of collapse. (If you sell 1 liter) Giving us



milk is only paying

for 200 ml.]

The rebound in the price of crude oil despite a sharp drop in demand due to the suspension of school lunches due to Corona 19 is a unique pricing decision focused on protecting dairy farmers. because of the structure.



Since crude oil is obtained through living organisms, it is difficult to artificially increase or decrease production.



Therefore, the government is operating a crude oil price indexing system that determines prices based on production costs rather than supply and demand for stable supply and demand management.



As the price of crude oil did not match the market conditions and caused difficulties in price management, the Ministry of Agriculture and Forestry announced that it would come up with a plan by the end of the year to determine the price by reflecting market demand as well.



However, a careful approach is required as it may lead to the abandonment of dairy cows by farms and the collapse of the production base itself.



(Video coverage: Kim Min-cheol, video editing: Kim Jun-hee)