Article: [Issue+] Why are dairy 'quota prices' rising?

Published 2025년 11월 21일

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[Livestock and Fisheries Newspaper=Reporters Hee-kyung Ahn and Shin-ji Kim] It has been reported that the price of quotas is rising as scale-up is being implemented to reduce production costs and improve farmers' income. According to the dairy industry, as the burden of fixed costs such as feed costs and labor costs continues to rise, the movement of dairy farmers to secure cost reduction effects through scale-up is spreading, increasing the demand for standard milk volume, i.e., quotas. As more farmers pursue business stability through scale-up, the upward trend in quota prices is expected to continue for the time being. # More farmers choosing scale-up In the case of the Seoul Milk Cooperative, the quota price, which was 620,000 won per liter last year, has risen.

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Rising feed costs and labor costs... Competition for securing quotas to maintain production base intensifies Large-scale farms must also hold many quotas to achieve 'profit' To reduce production costs Increase raw milk production through cow improvement Focus on reducing the number of cows raised As consolidation progresses to reduce production costs and increase farmer profits, recent data shows that quota prices are rising. According to the dairy industry, as fixed costs such as feed costs and labor costs continue to rise, dairy farmers are spreading the movement to secure cost reduction effects through consolidation, increasing the demand for standard raw milk, i.e., quotas. As more farmers pursue business stability through consolidation, the upward trend in quota prices is expected to continue for the time being. # Farmers choosing consolidation are increasing For instance, the price of a quota at the Seoul Milk Cooperative last year, which was over 620,000 won per liter, has ...

Source: Aflnews