Seoul Dairy to hike prices up to 28% in Oct.

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Seoul Dairy to hike prices up to 28% in Oct.

Published: 12 Sep. 2023, 18:19 Updated: 12 Sep. 2023, 18:36

SEO JI-EUN
seo.jieun1@joongang.co.kr

Seoul Dairy Cooperative's products shelved at a convenience store in Seoul [YONHAP]

The price of milk, yogurt and other dairy products sold by Korea's largest milk seller will increase by up to 28 percent at convenience stores starting in October, sparking concerns about potential inflationary effects within the dairy market.

Seoul Dairy Cooperative, holding a 40 percent market share in Korea's milk industry, has informed major convenience store chains of their decision to raise the factory price of dairy products. The price change ranges from 4.9 percent to 27.8 percent.

"There are limited varieties, smaller quantities, and higher logistics costs for convenience store products, and this lead us to establish variations in factory prices across different distribution channels," a spokesperson for Seoul Dairy Cooperative said Tuesday.

Seoul Dairy Cooperative's flagship milk brand Seoul Milk will increase by 4.9 percent in price, moving from its current price of 3,050 won ($2.30) for the 1-liter product to 3,200 won.

However, the price increases for other volumes of white milk are more pronounced.

The 200-milliliter product is set to rise by 9.1 percent, increasing from 1,100 won to 1,200 won, while the 1.8-liter product will increase by 11.7 percent, going from 5,550 won to 6,200 won.

These price adjustments will also apply to processed dairy and yogurt products.

Flavored milk, such as chocolate milk and strawberry milk, will see an 11.1 percent price increase, going from 1,800 won to 2,000 won for a 300 milliliter serving.

The cost of its Viyott yogurt brand is set to rise by 27.8 percent, increasing from 1,800 won to 2,300 won.

Seoul Dairy Cooperative had disclosed plans to increase the wholesale price of 1-liter Seoul Milk by just 3 percent at large discount retailers, minimizing the impact on consumers. The price increase is linked with the planned 8.8 percent, or 88 won per liter increase, in raw milk prices that will come into effect in October.

Maeil Dairies had said that price changes are under discussion, with a focus on minimizing the financial burden on consumers. Similarly, Namyang Dairy Products echoed an understanding of public concern surrounding the inflation-triggered price hikes and expressed its meticulous commitment to reviewing prices and timing.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]