World dairy prices continue to soar.
According to the United Nations Food and Agriculture Organization (FAO) on the 16th, the global dairy price index last month was 148.7, marking the highest level in 2 years and 4 months since October 2022 (149.2). The price index is a figure that compares against the average prices from 2014 to 2016, set at 100.
The dairy price index fell to 112.0 in September 2023 but has been rising each month since August last year due to increased demand, jumping to 148.7 last month. The price index last month was 23.2% higher than a year ago and rose by 4.0% compared to the previous month. Last month, the decline in milk production in the Oceania region was cited as a major reason for the rise in dairy prices.
Domestic food companies are watching fluctuations in raw material prices to determine whether to adjust product prices. South Korea's self-sufficiency rate for dairy products is only 44%, necessitating imports of many dairy products such as cheese and cream. Price adjustments for imported dairy products are made at the request of the original manufacturers.
Recently, food companies have increasingly raised product prices due to rising raw material costs, leading to a 2.5% increase in the consumer price index for food and other living expenses compared to the same month last year.