South Korea: 69 to 104 won per liter of raw milk rises, the government “limited milkflation”
South Korea
Published Jun 13, 2023
Tridge summary
Negotiations to determine crude milk prices this year have begun in earnest. According to the Ministry of Agriculture, Food and Rural Affairs on the 13th, the Dairy Rural Development Association formed a subcommittee and began negotiations to adjust the basic price of raw milk, according to the Ministry of Agriculture, Food and Rural Affairs on the 13th. are doing The Dairy Farming Promotion Association, consumers, and dairy industry officials participate in this event. When the National Statistical Office announces the production cost of the previous year once a year, producers and consumers decide the price of crude oil for the year based on the production cost of the previous year announced by the National Statistical Office. 'Results of the 2022 Livestock Production Cost Survey' announced by the National Statistical Office on May 26 According to the report, milk production costs in 2022 were tallied at 958.71 won/ℓ, up 115.76 won (13.7%) from 2021. It is analyzed that the effect of the increase in feed costs and self-labor costs has been analyzed. Through discussions with producers, consumers, and consumers over the past two years, the government has improved the existing crude oil price determination system, which used to reflect only production costs to determine crude oil prices, to reflect production costs and market conditions.
Original content
Accordingly, this year, we plan to discuss a price increase in the range of 69 to 104 won per liter of crude oil. Compared to 104-127 won per liter before the system reform, the increase has been reduced. The system reform has the effect of reducing crude oil prices by up to 58 won per liter. However, considering that farm milk production costs rose by 13.7% due to feed cost hikes following the war between Russia and Ukraine last year, crude oil price hikes are expected to be inevitable. . In Korea, production costs of farm households are reflected in crude oil prices one or two years later. Due to the increased production cost last year, it was confirmed that the income per cow of the farmhouse decreased by 23.3% from 3,651,000 won in 2021 to 2,801,000 won last year. In order to at least partially alleviate the difficulties of farmers due to the decrease in income, some level of crude oil price increase is inevitable this year.” + Inflation) is likely to occur. According to the ...
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