The new national standard of dairy products has risen again

The controversy over the new national standard for dairy products has not stopped. At this time, the price of milk powder has risen.

"This is the robbery," said Wang Dingmian, director of the Guangzhou Dairy Association, when interviewed by the "Securities Daily" reporter. He also condemned: "At this moment, the domestic dairy industry has seen a crisis of trust, domestic inflation, and other factors. The foreign milk powder will only maximize its profits."

Zhou Sianran, a food industry researcher at China Investment Consulting Group, said in an interview with a reporter from Securities Daily: “The price increase of foreign milk powder is mainly based on the consumer’s distrust of domestic milk powder. It firmly grasps domestic consumers’ efforts to ensure the safety of milk powder. Even if the price of foreign milk powder rises, it is unwilling to choose the mentality of domestically produced milk powder.In the near future, the controversy over the lowest level of China's dairy industry has been buzzing and the crisis of mistrust of domestic milk powder has erupted again. It is no doubt that raising the price of foreign milk powder is very appropriate at this moment. ”

The price of foreign milk powder is only maximizing profits In May of this year, the National Development and Reform Commission interviewed six “foreign milk powder” companies for price stabilization. However, in less than two months, the “foreign milk powder” headed by Abbott and Wyeth again rose across the board, with an increase of 10%. According to statistics provided by the East Iger Agricultural Consulting Center, since 2008, after several rounds of price increases, some foreign brand milk powder prices have risen by about 50%. Compared with the price increase of “foreign milk powder”, the price of domestic milk powder has not risen significantly.

“Domestic raw materials are actually rising, but it does not mean milk powder should be raised. If raw materials are rising, companies are feeling the pressure. Why are domestic milk powder prices not rising? The motivation for rising milk prices is obvious.” Mu De told the "Securities Daily" reporter.

According to media statistics, since June 20, foreign milk powder prices have become popular, Abbott’s products have basically increased prices by 10%, of which the largest price increase is the Abbott phase 900g, rose from 210 yuan to 261 yuan, or nearly 20%. After Abbott, Wyeth also increased its product price by about 10% on the grounds of “formula upgrade”.

Abbott’s correspondent in China said in an interview with the media: “Abbott has always been compliant with the price method and does not comment on price adjustments.” The Wyeth milk powder hotline operator stated that the Wyeth formula has been upgraded and the price has increased. Within a reasonable range.

"The so-called formula upgrade or price increase due to formula reform is an excuse, all milk formula are similar, the price of foreign milk powder is to maximize the benefits." Nadamed said in an interview with the Securities Daily.

Zhou Siran believes that in recent years, the size of foreign milk powder continues to grow, sales revenue and profits continue to increase, and market pricing power and discourse power have reached an unprecedented height. Looking at the history of foreign milk powder price hikes, the frequency of price increases for foreign milk powder has increased, and the cycle of price increases has gradually shortened. This situation undoubtedly indicates that foreign milk powder has gradually acquired the dominance of China's milk powder market, especially the high-end milk powder market. At the same time, domestic consumption The lack of trust in domestically produced powdered milk has helped push the foreign milk powder's disguised monopoly position in the Chinese market.

The promoters of foreign milk powder price hikes earlier, the price division of the National Development and Reform Commission convened meetings with six foreign manufacturers of milk powder such as Abbott, Dumex, Wyeth, and Nestlé to learn about the quantity, price and production of imported dairy products. However, after a month, the major ocean milk powder brands could not resist the price increase.

"Political means can't solve the fundamental problem, and from the current perspective, the NDRC's interview is only valid for central enterprises, and other foreign brands do not buy it," said Nadamud.

According to customs data, in January of this year, China imported 58,000 tons of milk powder, a substantial increase of 42.4%, accounting for 60% of China's total dairy product imports during the same period; its average import price was US$3414.2 per ton, up 25.1%.

The sudden increase in consumer dependence on foreign milk powder has increased the foreign right to speak in the domestic market.

In March 2011, "Shenzhen Evening News" co-organized a number of local media to organize a "Mother's favorite, I trust the most - the 2011 red and black list of dairy product quality safety and public opinion selection" activities.

In the recovery of nearly a thousand valid questionnaires, many of the data are worrying.

In early February of this year, the mainland’s mothers rushed to buy milk powder in Hong Kong and Macau, which directly led to “milk shortages” in Hong Kong and Macau, triggering the introduction of a “ban on purchase” order. In the survey, domestic brands did not have a list, many consumers choose to buy a certain brand of formula milk powder, mostly because of "foreign brands, quality and safety" or "friends recommend, rest assured" and other factors. From the perspective of buying channels, many parents often choose the “Hong Kong purchase or local supermarket” approach.

“According to my statistics, foreign milk powder accounts for 55% of the total domestic milk powder market, and the total amount only accounts for 40%, but sales account for 65%, because although he only has a total amount of 40% but the price is high, sales account for domestic sales. 65% of the market, this form has been very serious.” Wang Ding cotton said.

“Chinese consumers are still too fragile” and cannot withstand too many storms. For example, the melamine incident. In fact, there has been no major problem in the domestic dairy industry since melamine, but some individual small businesses have sold them privately, causing consumers to feel that The problem of China's dairy industry is not trustworthy, but it is actually not the case, and foreign milk powder is being looted at this time.” Nadamud expresses his indignation.

At the same time, he said: "Chinese milk companies should step up publicity efforts and strictly control quality."

China Investment Advisor Food Industry Researcher Zhou Siran: Foreign milk powder prices increase, profits increase, which will benefit the company's production operations and scale expansion, but also increased its capital to increase sales efforts. The competitive pressure on domestic milk powder is further aggravated and domestic milk powder is increasing. Under the premise of price prudence, only through internal cost control and other ways to deal with. At the current stage where inflation is still severe, the KFA should still propose to the industry that “we should also actively maintain the reasonable price level of the product while safeguarding the quality of dairy products”, assist relevant departments in regulating the self-management of the industry and promote fair competition among enterprises.