Vietnamese dairy prices increase amid government pressure

Citing the higher dong/dollar exchange rate, dairy producers in Vietnam have unanimously raised prices of dairy products by 5-10% at the start of the New Year despite government requests to lower prices and end unnecessary expenditures.

According to dairy producers, higher rates of the dong/dollar and the state's decision on a basic salary increase are reasons that force them to raise prices.

Experts pointed out that dairy producers and distributors can still raise prices because Vietnamese consumers, who always favour foreign products, accept the high prices.

Hancofood dairy products prices have increased by 10%. The distributor of powder milk products from Abbott, 3A Company confirmed that it will apply new prices, with an average increase of 7.4%.

Friesland Campina Vietnam, the owner of Dutch Lady Friso, also plans to raise most product prices by 10%, and liquid products will rise 2%.

Meanwhile, Tien Tien Company, the distributor of Mead Johnson in Vietnam, has also announced increase of 7-9% for Enfa A+ series from January 9, 2010.