August 1, 2012

China sees better milk powder quality on higher cost

The so-called formula improvement, package changing and rise of cost are all excuses for foreign milk powder brands to raise prices of their products, according to the Beijing Orient Agribusiness Consultant Company's Chen Lianfang.

"Domestic consumers rely on foreign milk powder too much. That is the main reason for foreign milk powder brands to raise prices of their products again and again."

Last week, a carcinogen was found in the milk powder of the domestic-brand Nanshan in Guangzhou, and two dairy products of the domestic dairy brand Bright were also found to have the problem of the amount of bacterial colonies exceeding the limit.

Chinese consumers' trust on domestic milk powder declined once again. In this situation, information of the Dumex milk powder raising its price has been swept by voices of questioning domestic milk powder.

Since the end of 2011, prices of foreign-brand milk powder products have been raised many times in the excuse of package changing, formula changing or product upgrading. The Abbott and the Wyeth have successively raised prices of their milk powder products by about 10% directly or in the excuse of changing the package. In April of 2012, the Mead Jonson and the Nestle also raised prices of their milk powder products by 16% and 12%, respectively.