Rising costs may force Chinese dairy prices up

China's dairy maker, Bright Dairy & Food Company Limited, has plans to raise its product prices from 1.8%-3% in the near future. 

Although other industry players have not come up with plans to follow suit, analysts believe that further price hike in dairy products is inevitable.

The company is highly burdened by its amounting costs, says Gong Yanqi, spokesperson for Bright Dairy. In addition, costs arising from raw materials, transportation, and energy have been trending higher, and their logistics costs have climbed 10% already.

On the other hand, Bright Dairy is set to offset the rising costs by optimising the industry chain and raising prices.

Industry analysts say dairy makers will have to come down a peg or two in marketing and advertising save for price hikes in an effort to cut costs.

Latest numbers from the National Bureau of Statistics show that prices for pasteurised milk have already hit their historical highs on December 10 this year.