July 8, 2008

Vietnam's milk prices to rise further in July

Milk prices in Vietnam are to rise again, as domestic milk producers attempt to keep pace with rising costs.

Milk prices have rose 5-7 percent, a move that domestic milk producers said they have no choice but to take.

Vietnamese milk producers import large quantities of powdered milk to use as raw materials. The rising cost of raw materials, freight and packaging as well as the change in the Vietnamese dong and US dollar exchange rates have forced milk prices to go up, according to a representative of Dutch Lady Vietnam.

Many milk producers have increased prices several times since the beginning of the year. Some milk producers did not change the prices but instead reduced weights.

The last increase of 5-6 percent was in April.