FrieslandCampina Vietnam yet to raise milk prices

Source: Pano feed

Minh Tam


A consumer inspects dairy products on sale in HCMC. Milk price hikes have prompted authorities to intervene - Photo: Minh Tam

A consumer inspects dairy products on sale in HCMC. Milk price hikes have prompted authorities to intervene - Photo: Minh Tam



The dairy firm is still working with the Price Management Department of the Ministry of Finance over its price hike plan.


Truong Van Toan, corporate affairs, legal and regulatory director at FrieslandCampina Vietnam, has attributed the planned price spikes to 5-48% rises in costs of imported material. Global material milk prices are predicted to edge up further, he noted.


Toan said his company has also seen an average increase of 15% in costs of direct and indirect labor since April last year.


He emphasized his firm never colludes with others to raise milk prices.


The Prime Minister has ordered a probe into the recent hikes of prices of dairy goods for children under six. Nestle Vietnam, Mead Johnson, Vinamilk and FrieslandCampina Vietnam are among the firms to be inspected over price hikes.


A source from the Ministry of Finance said Nestle Vietnam, Mead Johnson and FrieslandCampina Vietnam have been requested to give explanations about their price adjustment plans. Vinamilk has increased prices after having worked with the HCMC Department of Finance.


Having shown convincing evidence on higher input material costs, Mead Johnson has got approval for its price spike. FrieslandCampina Vietnam and Nestle Vietnam are still working with the authorities over the rationale behind their price increase plans.


Nestle Vietnam began its price hikes on January 31, 12 days ahead of the authorities’ intervention.


In addition to these four leading dairy firms, 3A Nutrition has been put on the inspection list as it is the official distributor of Abbott products, of which some have surged in prices. 3A has just submitted a plan for raising prices of a couple of items.


Following the Prime Minister’s order to look into the milk price increases, the ministries of finance, and industry-trade, and other relevant government agencies met up on Tuesday to work out plans to cope with the issue.


They decided to set up five teams to inspect the five dairy companies in order to gather information and data to see whether they are strictly observing price regulations, and whether they are employing anti-competitive practices.


The Price Management Department of the Ministry of Finance said it might consider measures provided in the Pricing Law to stabilize prices, or setting ceiling prices for certain dairy products.




Đăng ký: VietNam News

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