Farmers blame low milk prices on unfair tests

Dairy farmers in HCM City, Long An and Binh Duong provinces are complaining they have to sell milk so cheaply they can’t cover expenses.

Farmers say fresh milk prices offered Friesland Campina, previously known as Dutch Lady, have decreased by 300-900 dong per kilo.

Nguyen Thi Huong in Long An province says the price of feed for dairy cows has increased by 100 dong per kilo, while milk sale prices have decreased by 300 dong per kilo.

However, Friesland Campina have countered saying the reason for the low price is down to low quality milk. It’s left Huong losing several hundred thousands of dong every day for 200 kilos of milk sold.

But Huong is not alone – in Duc Hoa district farmers are also protesting over price decreases. From October 12 to October 18, the average milk price dropped to 6,835 dong per kilo from 7,280-7,300 dong per kilo in the week before.

Local residents in Cu Chi district and other suburb districts of HCM City have also reported milk price reduction of 200-500 dong per kilo, since Friesland Campina applied the new calculation method.

A woman in Binh Duong province related that the company quotes the purchase price at 7,651 dong per kilo of standard milk, which means an increase of 100 dong per kilo over the previous price level. However, farmers cannot sell milk at the price level, because the dairy processor argues that the milk does not meet quality requirements.

The woman said that she can sell at 6,142 dong per kilo only.

Luu Van Tan, a senior executive of Friesland Campina, said the allowed percentage of bacteria in fresh milk is 350,000 bacteria per ml maximum. Therefore, if the actual bacteria ratio is higher than the allowed level, farmers will have milk prices lowered by 300-900 dong per kilo.

Tan stressed that the company’s milk material programme aims to heighten the quality of dairy products and that farmers have been trained to ensure milk quality.

“Farmers have been warned that the milk they sell to us must meet the required quality,” Tan said.

However, farmers think the company has set up a new quality indicator just to force milk prices down. At first, price deductions were between 70 dong and 490 dong per kilo. Meanwhile, deductions have been raised up to 900 dong per kilo since September 4, 2009.

Farmers say milk does not meet company indicators because of sample testing methods. They say the problem lies in the fact that the company does not take samples at milk collection points, but instead at freezing centre. They say that the milk quality will change after it travels the required 30-40 kilometres.

Disagreements between farmers and dairy processors have been commonplace in recent years. Farmers criticise dairy processors for refusing to collect domestic milk, preferring instead to import powdered milk.

Meanwhile, dairy processors say milk from domestic sources does not meet requirements.

Tags: Vietnam agriculture, Vietnam business news, Vietnam milk price