South Korea: Dairy and Products Annual

Since the FMD outbreak in 2010, local raw milk production has rebounded, but has outpaced slower growing demand. As a result, higher ending stock levels in 2014 carried over into 2015. Overall local raw milk products recorded 2 percent negative volume, but per capita volume consumption continued to increase in 2015. Drinking milk products recorded negative volume and value growth in 2015 as per capita volume consumption continued to decrease. Consumers who continue to drink milk will shift to reduced fat milk from full fat fresh milk. The share of reduced fat fresh milk is projected to be 19% in 2020, up from 16% in 2015. Flavored milk drinks contain sugar, so it is unlikely to post strong growth given health and wellness trends. All cheese categories recorded positive value growth in 2015. The introduction of different types of processed cheese led to growth. Cheddar sliced processed cheese dominated processed cheese but the range expanded to include Mozzarella, Gorgonzola, Gouda and Camembert sliced processed cheeses. The potential uses on product packaging promoted use of cheese on hamburgers, sandwiches, instant noodles and Gimbap. A new type called snack cheese or portion cheese also helped processed cheese to continue positive value growth. Local NFDM production decreased 20 percent in 2015 from the previous year while consumption remained relatively flat. However, year end inventory remained high mostly due to less expensive imports.

South Korea: Dairy and Products Annual