Inflation in South Korea for one food item is producing surprising results.
The price of milk has been on the rise in the country.
According to government figures, milk prices shot up 10% last year — their fastest increase in 14 years.
Prices are also up for cheese and ice cream. One reason is a continuing drop in domestic dairy production.
The U.S. Department of Agriculture tracks milk production around the world and reported that itʻs fallen in South Korea for the past several years, as the number of dairy farms has declined.
But the sales of one kind of milk have tripled over the past three years.
The Korea Customs Service reports a sharp rise in imports of pasteurized milk. And the main selling point is price.
For example, South Korea's local media reported that milk imported from Poland is nearly 30% cheaper than the locally produced variety.
And that's not just because of a fall in local production.
The Korea Herald quoted an official of the government's Korea Dairy Committee as saying another factor is the war in Ukraine.
Most dairy farms in South Korea feed their milk cows imported grain — especially corn. And those prices have roughly doubled since Russia's invasion of Ukraine.
