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Milk prices rise despite lower costs

In Uncategorized on December 4, 2008 at 1:39 pm







Several dairy product producers and importers have raised prices despite a drop in the cost of raw materials in recent months. — VNA/VNS Photo Anh Tuan

HCM CITY — A number of dairy product producers and importers have raised prices despite a drop in the price of raw materials in recent months.


Hanco Food Joint Stock Co deputy director Pham Ngoc Chau called the increase “unreasonable” in light of falling prices on the global market.


The price of skim milk powder has fallen by about US$1,000 per tonne to around $2,700-2,800, while whole milk powder was selling for $3,800 per tonne.


By jacking domestic prices, dairy importers were earning windfall profits, Chau added.


Meanwhile, the higher wholesale prices were being passed on directly to retail consumers.


The distributor of the Abbott milk brand in Viet Nam, 3A Pharmaceutical Products Co Ltd has raised the price of a 900g can of Pediasure BA milk powder by VND29,000 to VND352,000.


Le Huu Binh, deputy director of 3A, said the price hikes applied to new products with superior quality.


But a 900g can of Nestle’s Nan Pro milk powder has also gone up in price from VND325,000 ($19) to VND348,000 ($20.50), and the price of a can of condensed milk has risen by VND690 to VND3,800, depending on the brand, according to Citimart deputy director Ngo Van Hai.


And more is coming. Vinamilk will raise retail prices on powdered milk and other powdered nutrition products by VND1,000-6,000, with Vinamilk deputy director Tran Bao Minh blaming the increase on rising costs of packaging and milk fat.


While many of the companies pushing up prices say new packaging designs or products with more nutrient additives were costing more, nutritionists were arguing that additives such as taurine and choline have little benefit.


Chau said the Government needed to inspect the retail market more carefully to ensure protection of consumer rights. —

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