October 8, 2012

 

Vietnam's milk prices up by 7% in October 2012

 

 

Vietnam's dairy companies have announced a rise of 5%-7% for milk and sweetened condensed milk prices at the beginning of October 2012.

 

The price rise was due to higher costs for raw materials, production, labour and transport. Milk raw materials had increased by 5% compared to last year, said Vu Minh Phu, chairman of the Hanoi Supermarket Association.

Since September 24, Abbott has increased the price of Gain IQ, Similac Gain IQ and Grow Vanilla powdered milk by 5%-10%.

 

FrieslandCampina Vietnam recently increased the price of milk and sweetened condensed milk, including brands Dutch Lady and Ovaltine, by 3.8%-5%.

 

The company will try to maintain the same prices on several kinds of products, according to Nguyen Ngoc Kinh Luan, representative of Friesland Campina.

 

Luan added that his company had to change the prices of milk products to adapt to the market.

 

Nguyen Anh Tuan, deputy head of the Department of Price Management, said no dairy firm had asked his department to approve the increase of prices for their milk products this month.

 

However, under the law, only powdered milk products for children under six months of age require approval.

 

The prices of other products depend on the respective companies.

 

Many milk agents said powdered milk prices had increased by 5%-10% because of limited supply, with many distributors out of stock of items.

 

Tran Thi Minh, an owner of a company for milk-trading agents in District 12, said the discount on milk products of 5%-7% to agents had been eliminated, and retailers would have to pass along the price increase to customers.

 

Market experts said they were concerned that prices would rise in the near future because of higher gold prices, raw materials and bank interest rates.