In the midst of the ‘era of 3,000 won for 1 liter milk’, some milk companies raised the price more than the basic price of raw milk and announced that it was due to the ‘government’s crude oil increase’. The government said, “A 5% increase in the basic price of crude oil is only a factor of a 2% increase in consumer prices.” The Dairy Farming Promotion Association raised the basic price of raw milk by 49 won (5.0%) per liter on the 17th, but some stores that deliver milk to homes sent out notices to consumers that they would increase the price by up to 15%.
The Ministry of Agriculture, Food and Rural Affairs distributed explanatory materials on the 22nd and said, “Considering the situation where the price of raw milk is regarding 40% of the consumer price of plain milk, the 5% increase in the basic price of raw milk acts as a factor in increasing the consumer price by regarding 2%.” “However, as labor and logistics costs of dairy companies and distributors were additionally reflected, the consumer price of hypermarkets was adjusted to a higher level,” he said.
Actual raw milk prices rose by 49 won (5.0%) per liter, while the consumer price of plain milk at hypermarkets increased by 180 to 340 won (6.6 to 12.8 percent) per liter, depending on the dairy industry.
The Ministry of Agriculture, Food and Rural Affairs also announced that crude oil price hikes reflected only feed prices (58% of production costs) due to rising international grain prices, without considering labor and logistics costs during negotiations between crude oil producers and dairy companies. The Ministry of Agriculture, Food and Rural Affairs said, “It is clearly wrong for some agencies to send a notice to consumers that the price increase is caused by the government crude oil price. .
Correspondent Sejong Kang Ju-ri
