The Hanoitimes
– The recent increase in domestic milk prices is an unavoidable trend amid the price hike in the world market, one official said.
Nguyen Quoc Chien, head of the HCM City Department of Finance’s Price Office, made the statement at a seminar on goods supply and prices, held in HCM City.
According to Chien, milk product prices in the world market have been increasing recently. Prices of weight gain products have sharply increased from USD3,700 per tonne last April to USD4,500 per tonne last December, then to USD5,700 per tonnes as of February 5.
Currently, there are only three to four major dairy providers in the world. Due to consecutive price increases, they have recently been signing exclusively short-term distribution contracts for one to three months instead of annual contracts.
The situation has forced domestic milk producers and importers, including Abbott, FrieslandCampina, Nestle, Mead Johnson to increase the prices of their products.
Other milk products, such as Dumex and Meiji are expected to increase prices in the next few days.
He went on to say that prices in the world market may fall in the near future and local authorities are closely monitoring the situation and may request domestic firms to lower prices.
“Milk companies proposed the application of a 10%-14% price hike in the lead up to Tet but we negotiated with them to delay the increase and make it more modest, from 5%-7%, to share the burden with consumers after Tet. The price of milk products that are subject to the price stabilisation programme in HCM City will be maintained at least through March 31,” he added.
By Tuan Minh
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