Milk prices rise - Consumers are hesitant to choose.

(Baonghean)In recent days, the media has reported extensively on the unreasonable price increases of milk by major market-leading brands. These price hikes have left parents concerned, wondering if they can simply stop using their children's milk. In Vinh City, large and small milk distributors, including foreign brands, have increased prices by 7-10% starting March 1st, with some brands even announcing a 10% increase starting March 18th.

With price increases of up to 20% over the past two months, some milk brands have raised prices by 40,000 to 100,000 VND. Ms. Nguyen Thi Thu, owner of a milk distributor on Le Hong Phong Street (Vinh City), said: “Most milk products from Abbott, a US company, have seen the biggest price increases; since the Lunar New Year alone, they have announced two price hikes. Mead Johnson and Dumex have also adjusted their prices upwards by about 10%, and soon, brands like Notifood and Vinamilk will also have new price increases of 7-10%. Consumers are suffering, and so are we, because it's the manufacturers' fault, not ours to arbitrarily raise prices.”

Ms. Thai Thi Thuy, owner of the Thuy Thoa milk agency on Le Loi Street (Vinh City), said that for nearly two weeks, customers have been very upset about the price increase. Most customers want to change their children's milk brands, switching from expensive to cheaper options, while some have decided not to change for fear of affecting their children's digestion. Ms. Tran Thi Hai Yen from Doi Cung, Vinh, is considering which milk to buy for her child, saying: “With milk prices increasing every few weeks like this, where will we get the money for my children? We have two young children, both needing milk daily, costing at least 2 million VND per month. If we continue giving them Abbott milk, we'll have to spend several hundred thousand more!” Mr. Nguyen Truong Giang, a resident of Hung Chinh (Vinh City), said: “My child finishes a 900g box of Pediasure milk every week. We're already struggling, and now this brand is increasing in price again. I don't know if we should switch to domestic milk for my child!”



Abbott, a dairy company, is offering promotional gifts to its customers.

Abbott, a leading milk brand with a large market share at milk distributors and a large advertising campaign, has seen price increases. Accordingly, the price of Glucerna chocolate (400g box) has risen from 303,500 VND to 312,500 VND, Prosure (380g box) from 349,000 VND to 377,000 VND, and Similac Gain (360g box) from 264,000 VND to 277,000 VND. Some products, such as Glucerna 900g, Gain Plus 900g, and 1.7kg, are being delivered to distributors in small quantities for unclear reasons. Milk products like Grow (900g box) have increased from 310,000 VND to 360,000 VND, and Pediasure (975,000 VND to 415,000 VND).

According to small traders, milk from brands such as Friesland Campina, Vinamilk, Nutifood, and Nestle will also be implementing new prices this March. Not only have small retailers reported an upcoming price increase for these brands, but even supermarkets have received notifications of the new prices. According to Big C supermarket management: “Big C's purchasing department received requests for milk price increases from several suppliers since mid-February. Friesland Campina plans to increase prices by 10% for 40 powdered milk products on March 31st. Vinamilk also announced a price increase of 7-8% for approximately 80% of its powdered milk, condensed milk, and baby food products, excluding price-stabilized products. Nutifood also proposed a 10% price increase for all powdered milk products, effective March 18th. Currently, Big C is waiting for the companies to provide reasons for the price adjustments and will only agree to the increase if the reasons are reasonable. Big C will only apply the new prices after the market has already implemented the price increase.”

Based on our observations, some retailers seem to be deliberately hoarding certain products that are about to see price increases. When customers inquired about French milk products like Friso, the retailers replied that they were currently waiting for the 900g size because the company hadn't yet imported it. Similarly, retailers also reported that they were waiting for the 900g size of some Korean and Japanese products like XO and Wakado. It is known that these milk products will see a new price increase of 7-10% on March 18th.

The owner of a large milk distributor on Phong Dinh Cang Street said: "Around mid-March, there will be another price increase for some brands. If customers don't stock up on a few boxes for their children, they will have to pay higher prices!" Looking at the distributor's warehouse, there were many boxes of milk from Friso (France) and Nutrillat (Netherlands), brands that have announced price increases in mid-March.

At Thuy Thoa's store, the most common items are "imported" French milk brands like Allco and Dacco from Germany, which the owner advertises as easy to drink, rich in nutrients, easily absorbed, and high in calcium. Notably, these "imported" milk brands haven't seen any price increases compared to March. However, these brands are still quite expensive, ranging from 500,000 to 680,000 VND per 900g box. When asked about popular milk brands on the market, the store owner said: "My store has all kinds of milk. These 'imported' milk brands are a bit more expensive, but they are absolutely safe. If you need imported French milk, you'll have to wait a few days; we don't have the 900g size right now!"

Consumers are often upset after milk price increases, as it significantly impacts household expenses, and once parents have chosen a particular type of milk for their children, they are usually reluctant to switch. With an increase of 7-10%, consumers now pay around 40-100 thousand dong more per carton than before.

Thanh Nga