MoF takes action to halt rising milk prices
MoF takes action to halt rising milk prices
The Ministry of Finance has capped the wholesale price of 25 dairy products for children under six years of age, a move which is aimed at stabilising volatile milk prices.
This content was described in Decision 1079/QD-BTT, issued on May 20.
Products under price controls include milk formula brands Alpha Dielac, Friso Gold, Enfamilk, Enfagrow A+ and Similac.
The decision is expected to hit the country's five largest milk producers and traders, including Mead Johnson Nutrition Viet Nam Ltd Co, Viet Nam Dairy Joint Stock Company (Vinamilk), Nestle Viet Nam Co Ltd, Friesland Campina Viet Nam Co Ltd and 3A Nutrition Viet Nam Co Ltd.
According to the detailed list, the price of IMP FRISOLAC GOLD 1 will be capped at VND406,000 (US$19.25) per 900g, while the ceiling prices of IMP FRISOLAC GOLD 2 and 3, the most expensive products in the 900g category, are VND400,000 ($18.96) per 900g and VND365,000 ($17.30) per 900g, respectively.
Other types including Enfamil A +1, A +2 and Enfagrow A +3 vanilla net weight 900g will have wholesale ceiling prices of VND309,000 ($14.64) to VND381,000 ($18.06).
For products with a net weight 400g, prices range from VND72,000 ($3.41) a can for Vinamilk's Dielac Alpha 123 HG to the most expensive IMP FRISOLAC GOLD 1 at VND196,000 ($9.29) per can.
A representative of the ministry said companies and traders would set their retail prices on the basis of ceiling prices and the ministry's pricing methods, and send them to the ministry's price administration division.
The maximum retail price is determined by the maximum wholesale price and related costs but does not exceed 15 per cent of the wholesale price ceiling, the ministry said.
The decision takes effect from June 1.
The move came shortly after the Ministry of Finance reported wrongdoing by the big five dairy producers and traders related to advertising expenditure, marketing and discounts. Overspending on these activities had reportedly forced up the price of the milk products by 2.18-16.39 per cent.
Authorities are hoping the measures will stabilise volatile milk prices and enable access to dairy goods, which are considered essential goods for consumers, particularly children.
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