Milk prices climb by up to 10%

Although the Ministry of Finance has made many efforts to stabilise the market, milk prices have remained high, with another increase again in the middle of July after two rises in the first months of the year.

According to agents, there has been an average 3-10 per cent increase, including a 10 per cent increase for 17 kinds of fresh and powder milk under Danone Viet Nam Co’s Dumex and Dulac brand name, 5-7 per cent for some Friesland Campina Viet Nam products and South Korean XO which pushed prices up by 2.5 per cent.

The price of Dumex Mama Gold baby formula milk powder stands at VND233,000 (US$12.2) per 800-gramme can up from VND212,000 ($11.1) before, Dupro Gold 3 increased to VND499,000 ($26.2) per 800-gramme can from a previous VND454,000 ($24), and Dulac Gold increased to VND328,000 ($17.2) from VND298,000 ($15.6) per can.

The increase has been attributed by milk producers to the appreciation of some major foreign currencies, especially the US dollar, and price increases of input materials.

Nguyen Ngoc Kinh Luan, head of the foreign relations department of Friesland Campina Viet Nam, said his company adjusted the milk product prices on July 15. The increase was caused by rising input costs and the Vietnamese dong/US dollar exchange rate.

According to statistics from the Price Management Department, imported milk prices increased 7-9 per cent early this year and in March continued to rise at an average 8-10 per cent.

However, the department said the current import milk price rises were unreasonable because current world prices were lower compared with those in May.

In the first seven months of the year, Viet Nam’s milk products import turnover reached $432 million, an increase of 60 per cent over the same period last year, according to the Viet Nam General Department of Customs.

A Ministry of Industry and Trade survey show, the retail prices of some imported dairy products are four times higher than the invoiced import costs.

However, baby formula product dairy makers Mead Johnson, Nestle, Dumex and XO still retain a large market share in Viet Nam. — VNS

Tags: Vietnam milk prices