Extreme heat squeezes fresh cream supply, pushing prices higher

This summer's extreme heat has rippled into the dairy industry, triggering another fresh cream shortage as heat-stressed cows produce less raw milk.

Raw milk output has been declining this month, according to the dairy industry. Supplies of fresh cream delivered to hypermarkets and supermarkets have also fallen. At one hypermarket chain, volumes on sale this month dropped to 30 to 40 percent of normal levels, while another retailer's supply fell to about 85 percent of its usual amount. "As supply volumes shrink, we are seeing products sell out earlier than usual," a hypermarket industry official said.

Fresh cream is produced as a byproduct when milk is processed into skim milk powder or low-fat products. The summer shortage is a recurring problem, with extreme heat as the primary driver — cows worn out by high temperatures sharply reduce their raw milk output. Compounding the problem, raw milk produced in summer naturally contains less milk fat, and rising consumption of milk-based drinks such as lattes further cuts into the cream available for production.

"The fresh cream shortage is continuing at a level similar to last year," a dairy industry official said. "This year in particular, large stockpiles of skim milk powder led producers to scale back summer output, which also reduced the supply of fresh cream as a byproduct."

Small business owners unable to secure fresh cream are growing increasingly anxious. Unlike business-to-business clients who receive stable contracted volumes, independent cafes and bakeries must source fresh cream on their own. Online prices have surged as a result. A 500-milliliter carton of Seoul Milk animal-based fresh cream is selling on Coupang Inc for around 16,000 won ($11) — roughly double its usual retail price.

Kim, a 33-year-old who runs an independent cafe in Seongsu-dong, Seoul, said the shortage is hitting just as hard as last summer. "Even when I order more, it sells out faster than I expect," Kim said. A dessert cafe in Songdo, Incheon, announced it would produce reservation-only items only on weekends until the supply crunch eases.

Concerns are mounting in small-business owner online communities, with posts reading: "I haven't received fresh cream in over a week," "I'm hitting every mart on foot and searching online at 7 every morning," and "I don't know if I'll be able to open this weekend."

The shortage is expected to ease gradually once the heat breaks. "Last year, too, the fresh cream supply stabilized as the weather cooled after summer," an industry official said.