The prices of dairy and bakery products will likely surge after dairy farms and the industry decided to raise the basic price of raw milk by 49 won to 999 won per liter through the year's end.

According to the agriculture ministry on Friday, the actual price will rise by 52 won per liter on the Korea Dairy Committee’s decision to apply an additional three won hike in light of the relatively late increase near the end of the year.

Industry insiders predict that consumer prices could jump by some 500 won, increasing the price per liter from about two-thousand-700 won to more than three-thousand won, in turn raising the prices of baked goods, ice cream and coffee shop beverages containing milk.

A senior official from the ministry said the government is urging the industry to minimize the price hike for milk that affects many other food products and refrain from additional increases in processed food prices.

The official added that the industry is not expected to announce a drastic price surge amid a continued decline in milk consumption, substantial sterilized milk imports as well as ongoing economic uncertainties.