Dairy producers in Vietnam are allegedly cheating consumers by blaming their third consecutive price hike of milk products for soaring production costs following high price of imported materials, local experts asserted.
Milk companies have repeatedly exerted cost factors to increase the price of their products, said an expert from local dairy industry.
The latest price hike of imported materials was recorded late 2006 and already led to the two previous price increases of the products at local market earlier this year.
Meanwhile, current prices of imported raw materials were estimated at the beginning of this year as almost all domestic milk companies often sign contracts on buying input materials with foreign partners every three or six months in advance.
It is, thus, impossible for domestic milk producers to go on such pretext as an excuse for raising prices of most of kinds of dairy products by around 3-10 per cent at this time, the expert said.
At present, an 800g Anline Phyto K can is now selling at VND140,000 instead of VND127,000, while the price of an 800g Anlene (enriched with calcium) can has increased by VND15,000/can to VND162,000.
Nestle products have also seen sharp price increases. Nestle 3+ is now selling at VND113,300/900g can (up by VND10,000). Other Nestle’s products, including cereal powder and rice powder, also increase by VND2-3,000/unit.
As Vietnam now has to import 80 per cent of the total powder milk needed for local production, domestic prices of milk products will continue to rise following announcement recently made by foreign suppliers that they would raise the prices of materials. (Youth)
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