Samyang Foods, which expanded its footing in the global market with the "Buldak" brand, is reviewing a dairy business using its own ranch. The company is examining production potential focused on dairy products such as cheese, yogurt and ice cream, in what appears to be a move to shore up the ranch business as profitability deteriorates.
According to the food industry on the 26th, Samyang Foods is reviewing the potential to develop dairy products using raw milk from cows raised at Samyang Roundhill (formerly Samyang Ranch). In particular, it is said to be considering developing fresh cheeses such as burrata and ice cream using raw milk.
Samyang Roundhill is a ranch established in 1972 in Daegwallyeong, Pyeongchang County, Gangwon Province, spanning about 6 million pyeong, and it raises about 200 dairy cows. It also produces "Samyang Ranch Organic Milk." At one point it launched yogurt products under the "Ornic," brand, but those products are currently no longer sold.
Samyang Foods says it has not yet decided whether to commercialize the business. A Samyang Foods official said, "We are in the stage of reviewing what additional products could be made using the organic raw milk produced by Samyang Roundhill," and added, "We are also recruiting general research personnel related to dairy products such as cheese, but no specific direction has been set." The official continued, "For now, we are attempting small-scale product diversification," and added, "We are also looking into whether it is possible to directly produce products, moving beyond the current method of supplying raw milk to external dairy companies for production."
The need to improve profitability is cited as the background for Samyang Foods' review of in-house dairy production. Samyang Roundhill has generated revenue through production of organic raw milk as well as visitor admission fees and sales at its cafe and mart. But because the structure relies heavily on admission fees and on-site sales, finding additional revenue sources using raw milk has become important.
Samyang Roundhill's sales edged down from 7.911 billion won in 2023 to 7.903 billion won in 2024. Over the same period, operating profit turned to a loss, from 449 million won to minus (-) 1.48594 billion won. In its audit report at the time, Samyang Roundhill said it "is drawing up a ranch master plan to improve profitability."
In the industry, many view Samyang Foods' review not as a simple business expansion but as a move to utilize existing assets. Because it owns its own ranch, the move appears aimed more at increasing internal utilization rather than merely supplying raw milk externally.
In particular, the consideration of processed dairy products such as cheese and ice cream is seen as an effort to add value beyond plain milk. It is a choice to broaden brand use while avoiding head-to-head competition with incumbent dairies. The dairy market is already fiercely competitive, led by large companies. As a latecomer, Samyang Foods has little choice but to approach the market with premium products or experience-based consumption.
A raw milk industry official said, "Dairy is a market where distribution networks and brands matter," and noted, "If a brand with domestic and international recognition like Samyang Foods approaches not with regular milk but with dessert products or experience-based consumer goods, it could gain competitiveness." A food industry official said, "There would also be synergies in creating new consumer experiences, such as combining the 'Buldak' brand's spiciness with cheese and desserts."
Some say there are not a few hurdles to clear before actual commercialization. A food industry official said, "Operating its own ranch is a strength, but the key is how to turn that into products and connect it to revenue," adding, "Success or failure will hinge on how tightly it designs the structure from raw milk production through dairy processing and sales."