Inflation fear as 2 brands up milk price
By Feng Jianmin |
July 6, 2011, Wednesday
|
Print Edition
Print Edition
FOREIGN milk powder brands Wyeth and Abbott have announced they will raise prices by 10 percent for upgraded products in China, despite the government's efforts to tame inflation.
Media officers at Pfizer, which owns Wyeth, and Abbott both attributed the price hike to the launch of new products and packaging changes, and said that the older versions, whose original prices remain unchanged, will gradually be withdrawn from market.
Other firms including Mead Johnson and domestic dairy producers are not changing prices.
The measures mark a setback in the Chinese price bureau's efforts to control the prices of imported milk powder. The National Development and Reform Commission in early May checked the profit margins of six foreign brands and ordered the companies to comply with China's anti-trust and pricing laws.
The increases took place despite a decrease in raw material prices, the 21st Century Herald reported, citing an unidentified domestic dairy firm manager.
"Low consumer confidence on domestic dairy products offers foreign firms rooms of expansion and price increases," the manager said.
In April, Ausnutria and Friso raised prices of several types of products by 10 percent.
However, consumption of foreign milk powder continue to boom in China despite rising prices. Data from customs showed China imported nearly 50 percent more milk powder from abroad over the first 5 months of this year than the same period last year.
Consumer confidence in China dropped after a milk scandal broke out in 2008 involving illegal additives of melamine.
Media officers at Pfizer, which owns Wyeth, and Abbott both attributed the price hike to the launch of new products and packaging changes, and said that the older versions, whose original prices remain unchanged, will gradually be withdrawn from market.
Other firms including Mead Johnson and domestic dairy producers are not changing prices.
The measures mark a setback in the Chinese price bureau's efforts to control the prices of imported milk powder. The National Development and Reform Commission in early May checked the profit margins of six foreign brands and ordered the companies to comply with China's anti-trust and pricing laws.
The increases took place despite a decrease in raw material prices, the 21st Century Herald reported, citing an unidentified domestic dairy firm manager.
"Low consumer confidence on domestic dairy products offers foreign firms rooms of expansion and price increases," the manager said.
In April, Ausnutria and Friso raised prices of several types of products by 10 percent.
However, consumption of foreign milk powder continue to boom in China despite rising prices. Data from customs showed China imported nearly 50 percent more milk powder from abroad over the first 5 months of this year than the same period last year.
Consumer confidence in China dropped after a milk scandal broke out in 2008 involving illegal additives of melamine.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
