For the past six months, South Korea’s dairy industry has faced unprecedented tough times as the country has struggled to contain its worst outbreak of foot and mouth disease. In a recent statement Prime Minister Hwang Sik Kim says the crisis already had cost the nation almost US$2.7 billion (EUR1.86bn) in lost livestock and in expenses to tackle outbreaks across the country.
According to South Korean press reports, some 36,000 dairy cattle are among 3.2 million livestock culled so far as part of measures to tackle the crisis. Dairy farmers are reported to be pouring away around 200 tons of milk a day due to suspected contamination from nearby foot and mouth outbreaks.
Milk supplies have fallen by eight per cent so far, forcing the government to ease tariffs on imported dairy products to prevent shortages in local supermarkets and convenience stores.
“Now is a tough time for South Korean dairy companies because of the foot and mouth out break last year but we expect the situation will be better in five or six months,” Young Bok Yoo, international business division export team manager at Maeil Dairies, says. “It has been a tough time and so the government lowered dairy import tariffs to allow milk powder to be imported under a quota to stabilise dairy product prices. The government now is thinking of various ways to help dairy farmers.”