kude.punny

Milk price rises, housewives cry

VietNamNet Bridge – The third wave of the milk price increases began today, August 1, 2007.

As of August 1, 2007, Mead Johnson’s products sell at new price levels with the price increases of between VND20-96,000/unit. The distributor of Dumex products has also announced the price increases of VND6-23,000 per unit (5-10%), since August 1.

A Dulac 1 Gold BB 400 gr is now selling at VND143,000/unit instead of VND132,000, while Dulac Gold 3 1,800 gr is selling at VND342,000 instead of VND321,000.

So far this year, consumers have witnessed three waves of milk price increases, the two previous waves came in March and June. Every dairy producer has raised selling prices twice at least with the lowest increase of 15%.

Representative of Abbot in Vietnam said that the company has raised the selling price once only in early March, and there would be no changes in the pricing policy until the year end. However, the author of the story has found out that Abbot’s products increased once more in price in June. Grow Advance IQ, for example, increased by another VND9,000/1kg box over March’s level, and this product has increased by VND20,000/1kg box in price so far this year.

Most of distributors of imported dairy products explained that the higher input material price has led to more expensive products.

However, dairy products in Vietnam have the selling prices higher than in Thailand. For example, Similac Advance IQ 900 gr in Vietnam is selling at VND275,000/box, while it is selling at VND224,000 only in Thailand.

Abbot’s representative said that the producer applies the single pricing policy, but the selling prices vary in different countries because of different tariffs applied by different countries.

The representative said that Vietnam levies 30% on the dairy products for children, while the tax rate is just 15% in Thailand. Besides, the different levels of distribution cost have also led to different selling price levels.

The price increases have put a heavier burden on Vietnamese people, if considering that the income per capita in Vietnam is $715, while the figure is nearly $3,000 in Thailand.

Tran Bao Minh, Deputy Director General of Vinamilk said that the local fresh milk output is just enough for making water-based products, while companies still rely on imported materials to make other products.

According to a recent market survey conducted by AC Nielsen on dairy companies’ ranking, Vinamilk is leading in the number of sale agents, followed by Dutch Lady, Abbot and Nutifood. However, Abbot is leading in terms of turnover.

In order to compete with other rivals, dairy companies have spent a lot of money on marketing and advertisement. Analysts said that the huge sums of money for advertisement have also resulted in the higher selling prices.

(Source: TN, Lao dong)

được đăng bởi kude.punny @ 05:34