Tightening the 'golden ring', milk prices drop across the board

On the first day (June 11) of the wholesale milk price ceiling taking effect, the four largest dairy companies in the market registered to sell 121 more products with prices reduced from 15,000-70,000 VND/box, mostly equal to the ceiling price.

The Ministry of Finance said that Friesland Campina Company, which owns the Dutch Lady and Frisolac brands, registered 47 milk products; Mead Johnson Nutrition, which owns the Enfagrow and Enfamil brands, registered 34 products; Nestle, which owns Nan and Lactogen milk, registered 18 products; and 3A Nutrition Company, which distributes Abbott milk with the Abbott and Similac brands, registered 42 products.

Thus, for these 4 companies alone, in addition to the 20 specific products listed by the Ministry of Finance for price ceilings, there are now 121 more dairy products with price ceilings according to calculations by companies registered with the Ministry of Finance.

The fifth dairy company in the list of 5 companies "named" to be used as the price ceiling standard is Vinamilk, which registered its price at the Ho Chi Minh City Department of Finance.

In general, the ceiling prices determined by the companies themselves are lower than before, ranging from 30,000 VND to 70,000 VND/box.

Of these, Mead Johnson Nutrition alone has 29 milk products, including new products, with registered prices lower than the ceiling price by a few to a few dozen dong.

Some new products have a difference of more than 100 VND/box. For example, Enfagrow A+3 360° Brain Plus milk is priced at 699,435 VND/1,800g box, more than 19,000 VND/box lower than the ceiling price. Enfamil A+ Gentle Care 360° Brain Plus milk has a registered price of 248,325 VND/box, 175 VND/box lower than the ceiling price. Enfamil A+ Lactosefree 360° Brain Plus milk has a registered wholesale price of 212,146 VND/box, 154 VND/box lower than the ceiling price.

According to regulations, retail milk prices will decrease on June 21, but many businesses have quickly reduced prices to expand market share (photo by Vietq)

Nutramigen milk box 400g has a registered price of 257,323 VND/box, 177 VND/box lower than the ceiling price.

The reason for this difference is that Mead Johnson Nutrition implemented wholesale prices in the dealer system before the price ceiling was approved.

The remaining three dairy companies all registered wholesale prices at the ceiling price approved by the Ministry of Finance.

For example, the maximum wholesale price of Friesland Campina's 900g Dutch Baby GOLD STEP1 milk is 265,400 VND/box, 76,600 VND/box lower than the old price. The same product line, 400g box is 134,800 VND/box, 36,200 VND/box lower than the old price of 171,000 VND/box.

Other popular lines such as Dutch Lady 123 GOLD milk 900g box is priced at 229,800 VND, 62,200 VND/box lower. Dutch Lady 456 GOLD milk 900g box has a ceiling price of 215,300 VND/box, 56,533 VND/box lower.

Nestle's milk products have a more modest reduction, under 40,000 VND/box.

For example, NAN AL 110 DS082-4 milk box 400g Vietnam has a new wholesale price of 162,041 VND/box, only 14,686 VND/box lower, or NAN PELARGON BL NWKB003 milk box 400g N5 VN has a new price of 189,488 VND/box, 30,239 VND/box lower. AALACTOGEN 1 Gold NWB050 milk type 400g VN has a new price of 140,452 VND/box, only 12,729 VND/box lower.

However, we have to wait another 10 days, on June 21, for the retail price ceiling to be applied to consumers to begin.

The Ministry of Finance said that retail price ceilings will only be allowed to increase by no more than 15% compared to the above wholesale price ceilings. At the same time, these new prices must also ensure that they do not exceed the current retail prices on the market.

Recently, only Abbott milk announced an early retail price reduction from May 28. Accordingly, the retail price of Similac Gain Plus IQ milk 900g box is 425,000 VND/box, only 4% higher than the wholesale ceiling price. The retail price of Grow G Power 900g milk is 378,000 VND/box, Abbott Grow 3 900g milk is 271,000 VND/box, both are only 5% higher than the wholesale ceiling price.

The Ministry of Finance believes that this is a positive move to gain market share for the milk company. Although there are still 10 days left until the deadline, the Ministry encourages businesses to reduce retail prices earlier for consumers. This demonstrates the responsibility of businesses to share with consumers and protect the rights of millions of Vietnamese children.

Also according to the regulations, the registration of retail prices with the Department of Finance will only apply to general agents and milk wholesalers. If milk wholesalers have a policy of distributing goods to retail outlets in the form of discounts, these units are responsible for registering prices with the Department of Finance, retail outlets only have to list prices and sell at the listed prices.

However, if retail stores buy and sell in bulk, they will be required to register the price with the Department of Finance.

According to Vietnam.net