Foreign dairy products are rapidly permeating the dinner table of Koreans. According to the Korea Rural Economic Institute (KREI), the import volume of 'milk and cream,' including sterilized milk, reached 90,000 tons last year, an increase of 14% compared to the previous year. Foreign skim milk powder, butter, cheese, and ice cream, which boast price competitiveness, are quickly increasing consumption while pushing domestic products out of the market.
Amidst the import of dairy products from various countries, the growth of Polish products is particularly striking. Polish dairy products formally entered the Korean market in 2022, led by sterilized (UHT) and low-temperature sterilized milk, and in just two years, the scale and value of exports have nearly doubled. Last year, about 90% of the sterilized milk imported into Korea was from Poland.
Polish dairy products are known for their high quality while being relatively inexpensive compared to those from other countries. The import unit price of Polish sterilized milk is $0.75 per kg, which is lower than Germany ($0.83/kg), France ($0.97/kg), and Austria ($0.98/kg). ChosunBiz discussed the marketability of Polish dairy products in a written interview with Anna Wagodzinska, head of the Polish Trade and Investment Office in Seoul.
The Polish Trade and Investment Office is a state-run agency that supports Polish corporations operating in various countries, playing a similar role to the Korea Trade-Investment Promotion Agency (KOTRA). Since its establishment in 2018, the Seoul office has supported Polish dairy corporations targeting the Korean market. Anna has been the representative of the Polish Investment and Trade Agency's Seoul office since June 2020. Below is a Q&A.
How much has it grown in the Korean market so far?
"Polish dairy products have established a strong foothold in the Korean market in a short period since they began exporting sterilized and low-temperature sterilized milk in 2022. The export volume of milk and cream products, including sterilized milk, increased by 84% in two years, from 23,834 tons in 2022 to 43,789 tons last year, while the export value nearly doubled from $16.82 million to $33.02 million. By May of this year, the export volume also reached 12,788 tons, with an export value of $9.58 million."
What are the strengths of Polish dairy products compared to other countries?
"Poland applies a less industrialized dairy production model compared to other EU countries such as Germany and France. Based on natural grazing agriculture, cows are raised on open pastures, which reduces their stress, resulting in superior taste and nutrition of the milk.
They also use fewer synthetic feed additives and primarily utilize natural pastures, hay, and silage to maintain the milk's natural composition. As a result, milk rich in nutrients such as omega-3 fatty acids and CLA (conjugated linoleic acid) is produced, with a clean and natural taste. Meanwhile, Poland presents various dairy products, including local specialty cheeses, made according to traditional recipes.
Poland is also strict about quality control. In every production process, antibiotic residues, fat and protein content, and somatic cell counts are inspected, and the feeding method and animal health management meet high standards. Through modern processing technologies, production expenses are reduced, enabling the provision of premium quality dairy products at reasonable prices."
How can you prove that Polish dairy products are of high quality?
"Polish dairy products thoroughly comply with the world's strictest EU regulations regarding food safety, animal welfare, and environmental protection. Specifically, all farms in Poland adhere to global good agricultural practices (GAP), ensuring animal welfare, feed safety, and hygiene.
In processing facilities, food safety management certification standards (HACCP) and international food safety management systems (ISO 22000) are adopted, and cheeses made using traditional methods, such as Oscypek, are guaranteed quality through protected designation of origin (PDO) or geographical indication (PGI) labels."
What is the key to maintaining high quality?
"It is the result of various elements coming together. In addition to the strict quality monitoring throughout the entire production process mentioned earlier, regular milk testing, thorough factory cleaning and hygiene management rules, and ongoing education and support for farmers and producers are carried out.
In particular, I would like to introduce the 'Drop of Excellence' program. This program, which runs for three years, greatly helps enhance milk quality by promoting education at the farm level and responsible practices regarding the environment. It is organized by the Polish Cattle Breeders and Dairymen Association (PFHBiPM) and is co-financed by the EU."
What are the goals for the Korean market?
"Poland regards the Korean market as a dynamic and high-potential market for dairy exports. Our goal is not just to introduce Polish dairy products but to also enhance consumers' understanding and build trust in dairy products in the long term.
First, we are disseminating information on how to consume and prepare Polish dairy products and demonstrating how they can be used in Korean cuisine. We are presenting ideas to integrate cheese, yogurt, and buttermilk into popular Korean dishes.
Additionally, we are increasing communication with Korean consumers through tasting events, chef demonstrations, and cooking workshops both online and offline, helping consumers understand the labels, safety systems, and advantages of Polish dairy products in the process. Our strategy is to ensure that Korean consumers recognize the excellence of Polish dairy products and develop a fondness for them."
What other Polish products are popular in Korea besides dairy products?
"In the food and beverage (F&B) sector, products from Polish brands such as Wedel, Wawel, and Colian have become extremely popular on e-commerce platforms like Coupang. Additionally, following the resumption of pork exports last year, poultry exports were also resumed at the beginning of this year, leading to a steady influx of Polish meat into Korea. Particularly, pork has made a significant presence in both Korea and Asia due to its competitive pricing and high quality.
Other key export products to Korea include cosmetics, ship equipment, IT services, and defense industry items. Korea is reviewing the introduction of Polish drones to strengthen defense cooperation with Poland while continuing major weapon transactions. In 2020, a $22 billion contract for Polish arms was signed, with additional contracts for tanks and howitzers expected to be secured from last year to this year."
Finally, what message do you want to convey to Korean consumers and investors?
"In recent years, various Polish products, including dairy, chocolate, cosmetics, and advanced industrial products, have won the love of Korean consumers. I appreciate the interest and trust in the 'Made in Poland' label.
Poland is doing its best to offer products that combine high quality, competitive prices, and sustainable values to Korean consumers. Moreover, Korea's innovation, quality, and global perspective greatly inspire Poland.
I encourage Korean investors to see Poland not just as a trading partner but as a 'gateway' to the EU. Poland offers abundant opportunities for long-term, mutually beneficial partnerships based on a strong economy, skilled workforce, and a strong spirit of cooperation. I hope to expand business opportunities through the Polish Investment and Trade Agency."