The milk price hike predicted last month due to the crude oil price hike has come true.
The Seoul Milk Cooperative announced today (23rd) that it will raise the price of milk products by an average of 5.4% from the 1st of next month.
Among them, the price of 1 liter of white milk rises from about 2,500 won to around 2,700 won based on hypermarkets.
Seoul Milk explained, "This price increase is the first in three years since 2018, and it was decided inevitably due to the increase in subsidiary material prices, logistics costs, and production costs."
He added, “The pressure on business increased due to the increase in crude oil prices last month.
The price increase is in response to the Dairy Promotion Association raising the price of crude oil produced from the 1st of last month by 21 won to 947 won per liter in response to the government's opposition.
As Seoul Milk, No. 1 in the milk industry, raises prices, other milk companies such as Namyang Dairy and Maeil Dairy are expected to raise their prices soon.
An official from Maeil Dairy said, "There are definitely factors for the increase, so it will be raised soon, but the specific timing and width are still under review."
Due to the milk price hike, the price of other foods such as bread, sweets, coffee, and ice cream using milk as a raw material is expected to rise with a time lag depending on the industry.
An official from a large coffee shop said, "Due to the nature of business-to-business transactions, we will not have to raise the price of beverages right away because we receive delivery at a fixed price during the contract period.”