By Lee Hyo-sik
The resumption of milk exports into China is expected to help ease the chronic milk oversupply here, according to dairy industry officials Tuesday.
Korea has been struggling with increasing milk inventories over the years as people drink less milk amid falling birthrates. The increasing availability of diverse beverages that substitute for milk has also reduced consumption.
The increasing popularity of cheese and other processed dairy products has not mitigated the oversupply because dairy firms import cheaper foreign milk to produce the goods. However, despite the falling consumption, the number of dairy cattle has not decreased.
China’s recent decision to import fresh milk from Korea again will likely help alleviate pressure on dairy farmers, according to the daily industry.
“Dairy farmers are upbeat about China using Korea’s fresh milk because it will reduce milk inventories,” said an official at the Korea Dairy & Beef Farmers Association. “We hope that milk exports to China continue to increase in the coming months.”
In 2012, Koreans consumed an average of 28.1 kilograms of fresh milk per person, but the amount declined to 26.9 kilograms. Because of the falling consumption, dairy farmers have turned the increasing volume of fresh milk into dried milk powder to store it for a longer period of time.
The milk power inventory reached 23,000 tons in March, the largest in 45 years, according to the Ministry of Agriculture, Food and Rural Affairs.
Against such a backdrop, dairy companies turned their eyes to China to capitalize on the growing number of health-conscious Chinese consumers who drink milk.
Korea first exported fresh milk to China in 2011, worth $390,000, and the shipments jumped to $9.57 million in 2014.
However, the world’s second-largest economy stopped importing milk in June of last year, after taking issue with its longer shelf life.
Following the import ban, the Korean government and local dairy companies called on the Chinese government to make Korean milk available to Chinese consumers.
After a series of negotiations between government officials from the two countries, three Korean milk producers recently gained an export license from the Chinese government. They are Maeil Dairy, Seoul Milk and Yonsei Milk.
On Tuesday, Maeil Dairy shipped five tons of fresh milk, which was sterilized in its plant in Gochang, North Jeolla Province, to China. The milk will be delivered to retailers in Beijing and Shanghai where Korean food products are popular.
Maeil said it will ship about 100 tons of fresh milk a month to the mainland from August. Seoul Milk and Yonsei Milk also plan to resume milk export to China soon.