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MoF monitors rising price of milk

2014-02-14 11:53:04

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The Ministry of Finance (MoF) plans to closely manage domestic milk prices, in cooperation with relevant bodies, given that one milk trader has increased its prices while others plan to follow suit.


Since the first day of this year, Mead Johnson Nutrition, one of the milk trading companies in Viet Nam, has hiked the price for nine of its 35 product lines, according to the Ministry of Finance.


According to Mead Johnson Nutrition, the increase was in response to a 12.6-12.8 per cent surge in import prices for three kinds of products sold in Viet Nam since August 1, 2013, and due to losses incurred from the sales of other products.


Nguyen Anh Tuan, director of the ministry's Price Management Department, told Thoi bao Kinh te Viet Nam (VnEconomy) newspaper that other dairy traders were asked to review their price plans before proposing a hike in prices of dairy products to the ministry.


Under existing regulations, all six dairy traders in Viet Nam must register any amended selling prices with the Ministry of Finance to gain official approval.


The traders include the Friesland Campina Viet Nam Ltd Co, Mead Johnson Nutrition Viet Nam Ltd Co, Dinh Duong 3A Ltd Co, and Tien Tien Distribution Ltd Co. Nestle Viet Nam Ltd Co and Organic Viet Nam Trading and Development Joint Stock Co.


Tuan noted that one milk trader has already registered an application to raise the price of its products, but the ministry has not yet given it the green light. Instead, it has asked the company to provide a more detailed explanation of its reasons for increasing the prices.


Of the others, four milk traders have not yet registered for an increase in their product prices, he claimed.


Truong Van Toan, legal and external relations director of the FrieslandCampina, told Viet Nam News, "At present, the company has not decided to increase the prices of its milk products, but it may do so in the future, depending on the cost of raw materials from suppliers.


"Next week, the company's leaders will meet to re-calculate the prices for its products before issuing a decision."


Every year, the prices of milk products typically rise at the start of the year, after which, the prices become stable, Tuan said.


The department will closely follow developments and create solutions to stabilise the market.


The ministry has also required the Ministry of Industry and Trade and other relevant ministries to keep an eye on the market.


Source: vns