>> MoF to tighten milk price control
>> Imported milk prices on the rise in anticipation of new law
The dairy giant, Vinamilk, said that the reasons for the recent increase in the price of milk is due to higher material costs.
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Nguyen Tien Thoa, Head of the Ministry of Finance’s Price Management Department, said the explanation is reasonable, because the costs of materials have been on a continuous incline, and the company has had to offer higher prices to dairy farmers.
According to the website, Vneconomy, since January 1, the producer has spent an additional VND500 (USD0.025) per kilogramme of raw milk, bringing the current price up to between VND10,250 (USD0.51) and VND11,520 (USD0.57).
The same explanation was submitted to the Ho Chi Minh City Department of Finance, where the company is required to register its product prices, Thoa added.
Although the ministry had requested earlier that milk prices remain unchanged, Vinamilk, who controls one third of Vietnam’s dairy market, raised their product prices by 6% or more from the beginning of 2011.
In December 2010, Vinamilk instituted a 3% price increase for all its fresh milk products for the same reason.
After seeing an inflation rate of 11.75% in 2010, Vietnam aims to control consumer prices. Many companies, including major dairy firms, have been ordered to register their prices with authorities.
