December 17, 2010

Vinamilk raises milk's purchase price to aid farmers

Vietnam Dairy Products Corporation (VNM), or Vinamilk, decided to increase purchase prices by more than 8% to further support dairy farmers, local news reported Monday (Dec 13).

The company will pay an extra VND650 (US$0.03) to farmers and VND100 (US$0.01) to the delivering firm or individual for each kilogramme of cow milk it buys. The new fresh milk will be between VND9,750-VND10,250 (US$0.50-$0.53) a kilogramme, depending on the region.

Vinamilk said the increased prices are meant to help the farmers overcome financial difficulties and encourage them to increase the number of cows as well as raise the quality of milk.

The company also said it would raise the price of its fresh milk products by 3%. Vinamilk says it has raised its purchase price several times this year, totaling 29%.

The company has been listed by Forbes Asia as being among 200 best small and medium enterprises in Asia this year.

Vinamilk, the country's leading diary product maker, made a net profit of VND2.885 trillion (US$147.95 million) in the first nine months of this year, surpassing 8.2% of its full-year target.