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Milk price talks in deadlock in Seoul

Talks between South Korean farmers and dairy companies over a price increase are still in a deadlock on Wednesday after dairy farmers halted the supply of raw Milk, mounting fears over a nationwide Milk shortage.

Earlier in the day, the government suggested a price hike of 130 Won per liter in a bid to mediate the price dispute between farmers and dairy businesses.

However, both sides are finding it difficult to reach an agreement on the government’s proposal. Farmers are demanding an increase of 160 Won in the current 704 Won per liter, while dairy farms argue that they can only accept a price hike of up to 120 Won.

Amid stalled negotiations, the raw Milk supply suspension was carried out by farmers early Wednesday, marking the first time in history that dairy farmers has displayed such collective action.

Concerns over a Milk crisis are escalating as the country’s Milk supply has already been struggling following the severest foot-and-mouth disease outbreak that began last November.

Early this year, the government culled about 36,000 milk cows to tackle the spread of the highly contagious animal disease, prompting a 10-15% decrease in Milk production.

Farmers have staged a series of rallies to demand the government raise Milk prices.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.

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