Tuesday, December 19 2017

VietNamNews

Local milk prices on the rise

Update: February, 17/2012 - 11:01

HA NOI — Many milk firms increased prices for their milk products this month after Vinamilk did the same in January due to high input and production costs from last year.

In January, Vinamilk, a local dairy producer, increased prices by 5-7 per cent for some of its products because of increases in input costs and exchange rates between the Vietnamese dong and US dollar.

Reasons for the increase include a 20 per cent hike in milk material prices, a 40-60 per cent hike in related material prices and a 10-15 per cent up in input costs, according to Vinamilk.

Other dairy firms have also announced increasing retail prices for some of their milk products.

"After one year of stabilising dairy product prices, FrieslandCampina Viet Nam decided to increase its retail prices by 5 per cent based on Dutch Lady ready-to-drink milk and condensed milk, effective from February 13, to compensate for high input costs and to ensure product quality," said Tran Quoc Huan, deputy managing director of FrieslandCampina Viet Nam.

Some input and production costs increased by as much as 36 per cent in the last 12 months. The price of raw milk increased from 8 per cent to 22 per cent, diesel by 36 per cent, labour costs by 11 per cent and electricity by 5 per cent, Huan said.

Mead Johnson Viet Nam announced a 18-19 per cent price increase for three of its dairy products while the price for Abbott milk products surged by 9 per cent. Nestle Viet Nam also experienced rising prices by 8-10 per cent. The Fontera Brands Viet Nam increased prices of its Anlene and Anmun milk products by 10 per cent.

Tran Chien Thang, a customer at a shop in Lo Duc Street, Ha Noi, said the increase of milk product prices affected his family expenses.

Nguyen Thi Bich Dao, from Thai Ha Street, said the increase was too high for middle-income people to afford.

"The increase in milk product and essential goods prices has made life dear seeing as incomes have remained unchanged," Dao said.

Milk products are essential goods for families, especially those with kids. That means the demand for milk is always high though milk product prices have increased many times, according to customers.

Nguyen Tien Thoa, head of the Price Management Department under the Ministry of Finance, said there were insufficient regulations forcing firms to register increases in milk product prices, making investigation cumbersome, he added.

Firms had the right to increase prices if input costs increased while the State retained little leverage in influencing such decisions, Thoa said. — VNS

Send Us Your Comments:

See also: