February 13, 2012

State media reported Friday (Feb 10) that Vietnam's prices of dairy products from different producers and distributors are expected to rise in next week.

Friesland Campina Vietnam, a company that offers Vietnamese consumers a wide range of quality dairy products under brand names Dutch Lady, Friso, Fristi and Yo Most, on February 9 officially announced an increase of 5% on several of its products.

The hike in price on fresh and sweetened condensed milk will be effective from February 13. The company explained the hike on increased cost of raw materials and production overheads that have skyrocketed compared to the same period last year. On the same day, most of the milk agencies were informed of new prices for formulas.

A dozen dairy products of Fonterra Brands in Vietnam, including Anlene, which is a formula for adults to help maintain optimal bone health and Anmum, which helps boost health of both mothers and babies, will increase by 10% from February 13.

Earlier, the Vietnam Dairy Products Corporation (VNM) or Vinamilk, the Vietnamese leading producer of dairy products, raised its products' prices by 7-9% from January 23.

The Vietnamese domestic fresh milk output meets only 28% of the local demand and the country has to spend billions of dollars to import milk material for processing.

Due to heavy independence to imports, prices of milk products in Vietnam's market are higher compared with that in other countries.