The Fresh Cream Crisis: A Growing Concern for Korean Businesses
A severe shortage of fresh cream has created a major challenge for small businesses across South Korea. This crisis has been triggered by record-breaking heatwaves that have significantly impacted raw milk production. As a result, the price of 500mL of fresh cream has skyrocketed from 7,000 won to between 29,000 and 30,000 won within just three weeks. Major online platforms like SSG.com and Market Kurly have reported that fresh cream is currently out of stock, leaving many businesses in a difficult position.
Impact on Small Businesses
Small business owners, particularly those running cake and dessert cafes, are facing unprecedented challenges. To keep their operations going, some have started "open runs" at nearby markets, hoping to secure enough fresh cream to meet customer demand. However, even these efforts have proven insufficient due to the limited availability of the product.
Fresh cream is a critical ingredient for many of these businesses, and the current shortage has forced them to rethink their strategies. With supply levels remaining low and demand steady, there is a growing consensus among business owners that they may need to increase prices to stay afloat. This trend is already being observed in certain areas, with some shops raising their cake prices as a direct response to the scarcity of fresh cream.
Causes of the Shortage
The root cause of the fresh cream shortage can be traced back to the extreme heat affecting dairy cows. In South Korea, Holstein Friesian cattle are the most commonly raised breed, and they are known to stop feeding when temperatures exceed 27°C. During recent heatwaves, which saw temperatures surpass 32°C, milk production dropped significantly, with some farms reporting a decline of up to 20%.
According to the Seoul Dairy Cooperative, the average daily collection of raw milk has fallen by around 100 tons, from approximately 1,900 tons. A representative from the cooperative noted that resuming normal production is challenging, and current shipments are only at about 70% of usual levels. It is unlikely that fresh cream supplies will stabilize before early September.
Maeil Dairies also reported a 5-10% decrease in daily milk collection compared to the period just before the heatwave began. These figures highlight the severity of the situation and the long-term implications for the dairy industry.
Challenges for Retailers and Consumers
Retailers are also feeling the pressure. Seoul Milk’s 500mL fresh cream, which typically costs between 6,000 and 7,000 won, is now sold out at major retailers and e-commerce platforms such as E-Mart, Kurly, and Homeplus. On Coupang, the same product is priced at 29,320 won or 30,370 won per unit.
The short shelf life of fresh cream—typically 3 to 5 days, with a maximum of 7 days—makes it difficult for businesses to stock up in advance, even when prices are lower. This has left many cafe owners scrambling to find alternative solutions to maintain their operations.
Personal Stories from Business Owners
Ms. Oh, a 40-year-old owner of a small cake cafe in Mapo District, described the situation as particularly challenging. She mentioned that while she had experienced fresh cream shortages during previous summers, the early arrival of this year’s heatwave has made things more difficult. “I used to sell cake slices, but now I only accept pre-orders for whole cakes because there’s just not enough cream,” she said.
Similarly, Ms. Choi, who runs a dessert shop in Jung District, shared her struggles. She explained that distributors and wholesalers are finding it hard to source fresh cream. “I usually use 280 to 300 units every month, but lately, there’s just not enough supply,” she said. To cope, she has started making open runs to supermarkets, but even that is not a guarantee of availability.
Price Increases and Future Outlook
Some shops have already begun increasing their cake prices in response to the shortage. Kim Jae-eun, a 27-year-old corporate worker in Dobong District, shared her experience of ordering a birthday cake. “A small whole cake cost 35,000 won this time, but last year it was around 25,000 to 26,000 won,” she said. When she asked the owner about the price hike, the reason given was the fresh cream shortage.
Industry insiders believe that if the current heatwave persists, cake and dessert prices will likely continue to rise. One source emphasized that as extreme weather events become more frequent, supply chain disruptions will directly affect product pricing. Monitoring these fluctuations closely could help businesses develop effective countermeasures to navigate the ongoing crisis.
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