Ministry: Milk prices decided by different factors

12-Nov-2014 Intellasia | TBKTSG | 7:32 AM Print This Post

In explaining why local milk prices have remained stubbornly high, the Ministry of Finance’s Price Management Department said material milk cost alone cannot decide prices of local dairy products as it is one of many factors that constitute the manufacturing cost.

Nguyen Anh Tuan, head of the department, said on the ministry’s website that despite the fall in input dairy material costs on global markets, none of the domestic dairy firms had registered to adjust down the prices of their powdered milk products for children under six.

Tuan explained that prices of dairy material from Western Europe, Australia and elsewhere were actually those for futures contracts. Moreover, prices of finished products imported from June to September were declared unchanged, according to customs declarations by big importers of finished milk products.

Therefore, prices of unprocessed and finished milk products of producers and importers have been kept almost unchanged, thereby leaving no impact on the domestic dairy market, Tuan said.

However, he said the finance ministry has still requested processors to reduce cost and tightly control input factors.

The ministry also told local authorities to conduct regular checks and keep track of price registrations and declarations of producers of dairy items for children under six.

Provincial finance departments and relevant agencies have been asked to review six months of carrying out the government’s price stabilisation programme for dairy products for children under six.

The ministry made clear that it would strictly deal with any infringements related to dairy prices, including announcing them in the media.


Category: Business, Vietnam

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