Namyang Dairy Products and Binggrae are increasing the price of dairy products following recent hikes by other milk producers.
A customer looks at cartons of milk on the shelves of a discount store in Seoul Thursday. The Seoul Dairy Cooperative said Thursday that it will raise milk prices by an average 5.4 percent from the beginning of next month.
Cafes and restaurants are introducing vegan options as an increasing number of people prefer a plant-based diet.
Chuseok is set to be more expensive with inflation driving up the prices of items commonly given to colleagues, family and friends during the holiday, which falls on Sept. 21 this year.
Milk prices are rising fast, and the government is working to keep them in check via a change in the raw milk pricing system, but dairy businesses are strongly opposed.
Milk production per cow plummeted due to the hot weather as the animals are vulnerable to heat, and dairy product manufacturer Maeil Dairies announced it will cut milk supply by some 5 percent.
A customer shops for milk at a big discount mart in Seoul on Sunday. Milk prices are likely to increase as the Korea Dairy Committee has decided to increase the price of raw milk to 947 won ($0.84) per liter from 926 won starting August.
Despite a slump in milk consumption, the country’s largest milk seller, Seoul Dairy Cooperative and Maeil, posted improved earnings last year by expanding its range of milk products.
An employee organizes cartons of milk on the shelves of a discount store in Seoul Monday after the dairy industry decided to freeze raw milk prices, which determine the price of dairy products, to ease the economic impact from the Covid-19 pandemic.
Raw milk prices, intended to be in place for two years starting Aug. 1, are due to be finalized Thursday after four rounds of talks between dairy farmers and dairy producers that started on May 29.