Nestle poised to raise milk powder prices in China

The world's largest food company, Nestle SA, will be increasing the price of some milk powders by 5-10% in China next year.

The company said five products will be affected by the price increase, and they account for a minor proportion of its overall milk products range.

Nestlé said the price increase was due primarily to rising costs for raw milk on the international market.

Dairy expert Wang Dingmian noted that the price of imported raw milk powder has risen from RMB22,000 (US$3,222) per tonne in August to RMB32,000 (US$4,687) per tonne by last month.

Dairy makers including Dumex, Mead Johnson and domestic brand Mengniu have yet to announce any price increase.

Prices of domestic milk powders have risen twice this year.