Milk prices increased 16 times in three years

Milk prices in Vietnam have been adjusted upward 16 times over the past three years, causing difficulties for a lot of consumers, news website VietNamNet reported Sunday.

It quoted the Vietnam Chamber of Commerce and Industry (VCCI) as saying dairy companies had hiked their prices by 3-10 percent every two to three months.

Regular reasons cited by dairy firms included new package designs, higher input costs and increases in foreign exchange rates.

Milk prices have been raised by 4-10 percent this year by major brands including Abbott, Mead Johnson, Friesland Campina Vietnam, XO, Dumex, Meiji, VCCI said.

According to a recent report by the Vietnam Competition Administration Department, up to 80 percent of milk powder products in Vietnam are imported.

This means the local milk market is closely connected to the world market, but the problem is that domestic prices have continued to surge irrespective of global price trends.

The department said although it could not find evidence showing that dairy firms in Vietnam colluded with each other to hike prices, there was still a chance that such a ploy was used.

While milk prices keep surging, dairy farmers are struggling nationwide.

Nguyen Dang Vang, vice chairman of the National Assembly’s Science, Technology and Environment Committee, told Thanh Nien that dairy firms only pay local farmers around VND7,000 per liter of milk.

At this price, farmers suffer losses and find it too difficult to expand production, he said, noting that the country’s dairy cow population only grew 4.9 percent in recent years.

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Milk prices increased 16 times in three years

Milk prices in Vietnam have been adjusted upward 16 times over the past three years, causing difficulties for a lot of consumers, news website VietNamNet reported Sunday.

It quoted the Vietnam Chamber of Commerce and Industry (VCCI) as saying dairy companies had hiked their prices by 3-10 percent every two to three months.

Regular reasons cited by dairy firms included new package designs, higher input costs and increases in foreign exchange rates.

Milk prices have been raised by 4-10 percent this year by major brands including Abbott, Mead Johnson, Friesland Campina Vietnam, XO, Dumex, Meiji, VCCI said.

According to a recent report by the Vietnam Competition Administration Department, up to 80 percent of milk powder products in Vietnam are imported.

This means the local milk market is closely connected to the world market, but the problem is that domestic prices have continued to surge irrespective of global price trends.

The department said although it could not find evidence showing that dairy firms in Vietnam colluded with each other to hike prices, there was still a chance that such a ploy was used.

While milk prices keep surging, dairy farmers are struggling nationwide.

Nguyen Dang Vang, vice chairman of the National Assembly’s Science, Technology and Environment Committee, told Thanh Nien that dairy firms only pay local farmers around VND7,000 per liter of milk.

At this price, farmers suffer losses and find it too difficult to expand production, he said, noting that the country’s dairy cow population only grew 4.9 percent in recent years.

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Global fertiliser prices on the rise

Fertiliser prices have increased following the appreciation of the US dollar against the Vietnamese dong as well as higher prices on the global market

Fertiliser prices have increased following the appreciation of the US dollar against the Vietnamese dong as well as higher prices on the global market, spurred by high demand in many countries like India.

Le Quoc Phong, director of Binh Dien Fertiliser Company, said there were limited supplies and a shortage of reserves on the global market.

Vietnam had had to import a large volume of fertiliser every year to satisfy local demand since its local production met only one-third of consumption, Phong said.

A kilo of DAP fertiliser has risen to VND11,200 ($0.57), compared to VND11,000 earlier this month and VND10,600 in August.

Similarly, the price of a kilo of urea fertiliser increased from VND6,200 ($0.3) in August to 6,250 VND in earlier this month to VND6,350 currently.

China is currently the biggest supplier of fertilisers to Vietnam, accounting for nearly 45 percent of the country's total imports, followed by Russia, the Republic of Korea and the Philippines.

In April, Chinese authorities raised the fertiliser export tariff from 35 percent to 135 percent.

The Vietnamese Government recently issued a circular calling for an increase of the fertiliser import duty from 5 percent to 6.5 percent. This pushed up prices of fertilisers, experts have said.

Most farmers are worried about the higher prices, which will add to their production costs.

More than 318,600ha under the autumn-winter rice crop in the Mekong Delta region are in the growing stage, which are in dire need of fertilisers.

To stabilise the fertiliser market and help farmers feel more secure about production, experts have urged the Government to adopt new policies.

Local fertiliser producers should restructure their distribution network and regularly check selling prices to prevent agents from raising prices freely.

Currently, the Government did not have incentive policies for enterprises to import fertiliser to keep in reserve. Fertiliser prices, thus, depended on the fluctuation on the world market, Phong said.

Fertiliser reserves were like a double-edged sword, he added. They worked well when prices increased, but when they dropped, businesses had to sell at market prices and losses were unavoidable.

The Government, he said, should create measures to ensure security for businesses and others who participate in price-stabilisation programmes. Soft loans and support when prices drop should be included, he said.

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Global fertiliser prices on the rise

Fertiliser prices have increased following the appreciation of the US
dollar against the Vietnamese dong as well as higher prices on the
global market, spurred by high demand in many countries like India.

Le Quoc Phong, director of Binh Dien Fertiliser Company, said there were
limited supplies and a shortage of reserves on the global market.

Vietnam had had to import a large volume of fertiliser every year to
satisfy local demand since its local production met only one-third of
consumption, Phong said.

A kilo of DAP fertiliser
has risen to 11,200 VND (0.57 USD), compared to 11,000 VND earlier this
month and 10,600 VND in August.

Similarly, the price
of a kilo of urea fertiliser increased from 6,200 VND (0.3 USD) in
August to 6,250 VND in earlier this month to 6,350 VND currently.

China is currently the biggest supplier of fertilisers to Vietnam,
accounting for nearly 45 percent of the country's total imports,
followed by Russia, the Republic of Korea and the Philippines.

In April, Chinese authorities raised the fertiliser export tariff from 35 percent to 135 percent.

The Vietnamese Government recently issued a circular calling for an
increase of the fertiliser import duty from 5 percent to 6.5 percent.
This pushed up prices of fertilisers, experts have said.

Most farmers are worried about the higher prices, which will add to their production costs.

More than 318,600ha under the autumn-winter rice crop in the Mekong
Delta region are in the growing stage, which are in dire need of
fertilisers.

To stabilise the fertiliser market and
help farmers feel more secure about production, experts have urged the
Government to adopt new policies.

Local fertiliser
producers should restructure their distribution network and regularly
check selling prices to prevent agents from raising prices freely.

Currently, the Government did not have incentive policies for
enterprises to import fertiliser to keep in reserve. Fertiliser prices,
thus, depended on the fluctuation on the world market, Phong said.

Fertiliser reserves were like a double-edged sword, he added. They
worked well when prices increased, but when they dropped, businesses had
to sell at market prices and losses were unavoidable.

The Government, he said, should create measures to ensure security for
businesses and others who participate in price-stabilisation
programmes. Soft loans and support when prices drop should be included,
he said./.

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Global fertiliser prices rise

HCM CITY — Fertiliser prices have increased following the appreciation of the US dollar against the Vietnamese dong as well as higher prices on the global market, spurred by high demand in many countries like India.

Le Quoc Phong, director of Binh Dien Fertiliser Company, said there were limited supplies and a shortage of reserves on the global market.

Viet Nam had had to import a large volume of fertiliser every year to satisfy local demand since its local production met only one-third of consumption, Phong said.

A kilo of DAP fertiliser has risen to VND11,200 (US$0.57), compared to VND11,000 earlier this month and VND10,600 in August.

Similarly, the price of a kilo of urea fertiliser increased from VND6,200 ($0.3) in August to VND6,250 in earlier this month to VND6,350 currently.

China is currently the biggest supplier of fertilisers to Viet Nam, accounting for nearly 45 per cent of the country's total imports, followed by Russia, South Korea and the Philippines.

In April, Chinese authorities raised the fertiliser export tariff from 35 per cent to 135 per cent.

The Vietnamese Government recently issued a circular calling for an increase of the fertiliser import duty from 5 per cent to 6.5 per cent. This pushed up prices of fertilisers, experts have said.

Most farmers are worried about the higher prices, which will add to their production costs.

More than 318,600ha under the autumn-winter rice crop in the Mekong Delta region are in the growing stage, which are in dire need of fertilisers.

To stabilise the fertiliser market and help farmers feel more secure about production, experts have urged the Government to adopt new policies.

Local fertiliser producers should restructure their distribution network and regularly check selling prices to prevent agents from raising prices freely.

Currently, the Government did not have incentive policies for enterprises to import fertiliser to keep in reserve. Fertiliser prices, thus, depended on the fluctuation on the world market, Phong said.

Fertiliser reserves were like a double-edged sword, he added. They worked well when prices increased, but when they dropped, businesses had to sell at market prices and losses were unavoidable.

The Government, he said, should create measures to ensure security for businesses and others who participate in price-stabilisation programmes. Soft loans and support when prices drop should be included, he said. — VNS

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