What’s behind unusual popularity of imported milk?

Jan 31, 2024 11:30

Despite mixed reactions to taste, nutritional value, consumers are turning to imported milk due to price benefits

Imported pasteurized milk has been enjoying unexpected popularity in Korea recently, with the import volume more than tripling over the past three years alone.

According to the Korea Customs Service, imports of pasteurized milk totaled 3.74 metric tons in 2023, a more than threefold increase from 2020.

Consumers have shown mixed opinions about the taste and nutritional benefits of the imported products, but many say the competitive pricing of imported milk and deepening "milkflation" here have driven them to choose overseas products over local produce.

Currently, the flagship one-liter milk products from the nation’s top three milk processing companies -- Seoul, Maeil, and Namyang -- are priced at 3,200 won ($2.4) at local convenience stores. But milk from Poland’s Mlekovita is sold at 2,100 won for the same amount, almost 30 percent cheaper than the Korean rivals.

"Nowadays, customers often ask about the availability of imported pasteurized milk," said a 55-year-old owner of a local convenience store in Seoul. "In contrast to previous years when imported pasteurized milk wasn't as popular, I now need to check the inventory daily to ensure it stays in stock."

The unforeseen popularity of imported milk comes after months of price hikes by local milk producers.

While the prices of raw milk remained relatively stable between 2016 and 2020 with an average annual increase of 0.2 percent, there was a notable surge starting in 2021, which saw a 6.5 percent increase. In 2022 and 2023, the prices continued to increase by 4.4 percent and 7.4 percent, respectively.

"In Korea, most dairy farms feed their milk cows with imported grains, particularly corn. When the Ukraine-Russia conflict broke out, global prices of corn more than doubled," said an official from the Korea Dairy Committee, an affiliate of the Ministry of Agriculture, Food and Rural Affairs responsible for negotiating raw milk prices for dairy farmers.

"The war also brought increases in other costs such as shipments, electricity and labor. The recent decision to raise the price of raw milk reflects these challenges."

Despite some resistance from consumers and milk producers, the committee decided to raise the basic price of raw milk to 1,250 won per liter to soothe the financial burdens of local farmers. The price hikes of raw milk had a chain reaction, raising prices of milk products and other food items using local raw milk.

In the meantime, reactions to imported pasteurized milk remain mixed among consumers and retailers.

"When I have a sip of imported pasteurized milk, it tastes like powdered milk. Sometimes, I wonder whether it contains fewer nutrients compared to Korean milk," said Jeong, a 29-year-old customer at a local convenience store. "I'm planning to add some espresso, like in a latte, to mitigate the taste."

Consumer hesitancy has also led to local retailers being cautious about embracing pasteurized milk, despite its cost advantages.

"Of course, the recent increases in milk prices have added pressure. However, we cannot fully embrace pasteurized milk as an alternative because consumers are still concerned about the taste difference," said an official of a specialty coffee chain who wished to be unnamed.

"If consumers perceive our products as less valuable in any aspect, it will adversely impact our brand reputation, which is a significant concern for us as a food and beverage company."

In the meantime, Park Jung-sook, a professor of food science and nutrition at Baekseok University, says that taste differences do not necessarily indicate differences in nutritional value.

“In Poland and Australia, for instance, farmers allow their livestock to graze, resulting in cows typically consuming hay, whereas in Korea, cows are primarily fed with feed,” Park said.

"When it comes to pasteurizing milk, certain nutrients such as vitamin B, may be reduced. However, its protein and calcium content remain unaffected, and these are the key reasons why people consume milk daily."

Park warned that imported milk could secure more price competitiveness when a new set of free trade agreements take effect with the US and European countries in 2026.

"If the prices of local milk continue to soar, there will come a point where people start to find imported pasteurized milk more attractive,” Park added.

omona, do you drink milk?

source: The Korea Hearld

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