Ye Tan said that this is a simple market rule. The price of foreign milk powder has risen. It is not that the finished product has risen or profits have fallen, but that it is reaping credit premiums to test how much Chinese consumers are willing to pay for credit. Only credit foods have obtained a high premium, and Chinese companies are willing to pay for the cost to build a credit system. If the credit is worthless, the company will regard credit as the embarrassment. From this perspective, it is not necessarily a bad thing for foreign companies to raise domestic prices by stimulating domestic milk powder prices. .

The growth of foreign milk powder has been a big one, and local milk powder companies have lost ground. Because of the food safety concerns of infants and young children, the decisive factor for the price of milk powder is not cost, but brand and integrity. Reporter Lin Ruiquan/Photograph “We have no plans to increase prices.” A spokesman for Nestlé (China) Media said on May 18 in an interview with this reporter. Just 12 days ago, the National Development and Reform Commission convened a routine meeting of Nestlé, Mead Johnson, Ausnutria, Abbott, Dumex and Wyeth milk powder companies.

According to industry sources, the focus of the National Development and Reform Commission's regular meeting is to understand the price of milk powder to these foreign milk powder companies.

While saying that there is no price increase plan while the general price increases, this reporter visited the survey found that Abbott, Mead Johnson, Wyeth and other foreign brands of milk powder in the terminal market prices have risen to varying degrees.

"Children drink milk powder one or two thousand dollars a month. They recently bought milk powder and found that they have raised their prices. Milk powder has become a luxury product." Mr. Liu told this reporter.

"But the child has to drink again, do not know when the price of milk powder is a big deal when it is a head?" Mr. Liu shook his head and said. Although He Hao denies product prices, but according to our reporter's survey, Nestle milk powder prices have risen across the board since the beginning of this year.

One of the 1-3 years old 400 grams of boxed milk powder has risen from 64 yuan per box to 66.6 yuan; now the common golden “Nestle Gold Growth” milk powder on the market is made from old packaging and its face is changed; its 400g bag The installation of "Nestell Growth" also rose from 41 yuan per bag to 41 yuan.

The same is 400 grams of Nestle milk powder. Why is it so much money in boxes and bags? According to reports, it is mainly due to changes in ingredients. Our reporter compared a bit, Nestlé boxed 400 grams of 1-3 years old Nestle infant formula milk powder compared to the bag, the energy is low, the body's development of protein and DHA content conducive to brain development have increased. In its recommendation, it also specifically emphasized that "higher levels of DHA+ARA imported from Switzerland are protected against oxidation and benefit the development of young children's brain and vision." And packaging changes along with the ingredients.

However, there is no change in the ingredients and packaging of Nestlé's 400-gram bagged milk powder, and prices are rising.

On May 19, in an interview with this reporter, Yang Yun, the Mead Minister of Public Affairs, also said: "There is no plan to increase prices in the near future."

Yang Yun also said that in the past six months, Mead Johnson milk powder prices have not changed.

Abbott North China media spokesperson Zhang Xue told this reporter on the morning of May 19: “Abbott has not increased its price in the recent period. At least, the company has not received any formal price notifications. Whether dealers and retailers have increased their prices, the company did not Mandatory, but the company will give a suggested retail price."

Our reporter visited the survey found that Abbott, Mead Johnson, Wyeth and other foreign brands of milk powder in the terminal market prices have risen to varying degrees. On the website of Red Kids, Abbott, Wyeth, Nestle, and Dumex’s promotional advertisements are particularly prominent. The reporter called the website and was told that Nestle's 1-3 year old 400 grams of boxed milk powder had risen to 69 yuan per box. The price increase took place within the last week.

Experts said that "costs" do not fly, said Ding cotton, in fact, the profit of milk powder is very large, and some brand gross profit as high as 60%, in this case, even if there are raw materials, operating costs and other factors, also Not enough to lead to inevitable price increases. In an interview with this reporter, the spokespersons of the milk powder brands denied “price increases” while claiming that “raw materials, labor costs” have risen to varying degrees. The reasons for price increase are nothing more than factors such as product updates, packaging updates, or rising raw material costs.

Our reporter learned that Nestle has its own milk source base in mainland China, most of which are located in the dual cities of Harbin, Heilongjiang Province. Abbott’s products in the Chinese market are all manufactured in Singapore and its milk source is imported from New Zealand. Wyeth imported from New Zealand.

According to the British "Financial Times" report, Nestle recently explored the "milk farmers-factory" supply chain model in the Chinese dairy product market, trying to solve both quality and supply problems. If this is the case, the cost will only decrease and the price increase cannot be justified. Abbott is also trying the direct supply model.

Our reporter learned that on May 12, Abbott signed a direct supply agreement with Leyou pregnant baby. The agreement stipulates that the total amount of cooperation orders between the two sides will exceed 100 million yuan. Laughter pregnant baby child CEO Hu Chao told this reporter that the direct supply model eliminated many intermediate links, not only reducing circulation costs, but also in the channel, consumers can buy Abbott earlier than the previous agency model. Series of products.

The reporter found on Abbott’s official website that in February of this year, Abbott China announced that it launched a new Xikangbao premature infant formula innovation series for Chinese premature babies and low birth weight infants (LBW). The new formula has almost become a price increase for milk powder. The "unanimous" speech. According to industry experts, a barrel of milk powder generally rises by about RMB 10-30 after it is reloaded. However, the production of these new ingredients, their value, and their proportion in milk powder are difficult for ordinary people to understand. The rising cost has become a confused account.

The reporter called each milk powder brand company and asked for a price and cost composition table. Its media spokesperson refused to provide the company's trade secrets as the reason.

Earlier, Wyeth China’s public relations official said: “The Wyeth infant formula milk powder currently available in the Chinese market is mainly produced by Wyeth’s Singapore factory. With the increase in domestic demand, the Singapore factory’s production capacity can no longer meet the supply, so part of the production capacity will be transferred to Europe. And the Australian factory production, which resulted in rising production costs, transportation costs, labor costs and tariff increases, resulting in price adjustments."

Dairy expert Wang Dingmian said that this statement is not credible. In fact, the price of international milk powder has been falling. In China, even if the relevant tax and transportation cost factors, it is not enough to make frequent price increases to the current level.

Moreover, according to our reporter from the Customs, milk powder import tariffs are not rising, but are decreasing. At present, New Zealand milk powder enters the Chinese market and pays an average tariff of less than 10%.

The tariff cost factor says nothing.

Fonterra stated that in 2010, the global output of dairy products increased by 1.8%, which was lower than the 2% in 2009. This is also one of the factors that cause the price of milk powder to rise.

Wang Dingmian said that in fact, the profit of milk powder is very large, and some brand gross profit is as high as 60%. In this case, even if there are factors such as raw materials and operating costs, it is not enough to cause an inevitable price increase.

The local milk powder defeated Ye Tan more publicly, and said that the basic reason for the rising price of foreign milk powder is that domestic consumers are extremely scared of food safety. Consumers from mainland China to Hong Kong to scan for goods are the ultimate expression of this fear of milk powder.

According to the reporter’s understanding, in March this year, the General Administration of Customs conducted a mapping of the domestic domestic milk powder market. One of the survey reports showed that the foreign milk powder has monopolized the first-tier cities, and Mead Johnson, Nestle, Abbott, Wyeth, and other foreign brands have Occupy more than 80% of the domestic market for high-end infant formula milk powder.

The price of domestic milk sources is half cheaper than that of the international market. Both domestic dairy companies and domestic dairy companies have large raw material cost advantages. Their performance in terms of prices is even lower. Why is the competition just like foreign milk powder?

“The melamine incident has hit the domestic milk powder too much.” On May 18, in an interview with this reporter, Sun Jincai, director of the R&D center of Zhejiang Haitong Food Group Co., Ltd., said.

On September 12, 2008, Sanlu milk powder was found to contain melamine, and the intake of melamine was the culprit responsible for kidney stones in some babies. On September 16, CCTV News Network reported that melamine was detected in 22 491 batches of infant formula, and the Sanlu milk powder incident was officially upgraded to the “melamine incident” in the dairy industry.

Ma Ying, deputy director of the Dairy Industry Management Office of the Ministry of Agriculture, told this reporter that before the melamine incident in 2008, the market share of domestically produced milk powder reached 60%, and by 2010, imported milk powder had equal shares with domestically produced milk powder.

Domestic milk powder is mainly due to the fact that the cost of milk and labor occupies a large advantage and the price is much lower. At that time, industry experts even said in an interview with reporters: “There is no need to worry that the foreign brands of milk powder will pose a threat to domestic brands.”

Unexpectedly, the threat came in an instant. After the melamine incident, the domestic dairy product sales plummeted.

Today, when interviewed by this reporter, most of the interviewees said: “We would rather accept the high price of foreign milk powder and would not allow our children to drink domestically produced milk powder because they cannot afford this insurance.”

Some interviewees put it more bluntly: “The most important reason for the high price of foreign milk powder is safety. If you take the money and feel comfortable, you also think that it is worth it.” “The foreign milk powder is expensive in terms of integrity and quality.” “Supply and demand have determined the foreign milk powder. At a high price, the melamine incident caused the credibility of domestic brands to be lost."

Mr. Li, who was not well-to-do at home, said in an interview with this reporter: “My son has milk powder and he is not well-off. There is no way to increase the price of milk powder, but there are ways to spend money on himself and he cannot eat too much. He eats homemade food."

Sun Jincai said that after the melamine incident, the foreign milk powder's right to speak and pricing in the domestic market was further enhanced, and its frequency of price increase was gradually increasing.

In an interview with the reporter, Fonterra president Andrew Ferrier said that the high demand for Chinese dairy products has driven the rising price of dairy products. This reporter learned that in February this year, New Zealand's Fonterra raised the expected purchase price per kilogram of milk solids farmers by 0.6 NZD to reach a high of NZD 8 per kilogram of milk solids.

Economist Ye Tan believes that the fundamental reason for the rise in foreign milk powder is the market supply and demand and its quality.

Ye Tan even more publicly stated that the basic reason for the rise in the price of foreign milk powder is that domestic consumers are extremely scared of food safety. Consumers from mainland China to Hong Kong to scan for goods are the ultimate expression of this fear of milk powder.

Ye Tan said that this is a simple market rule. The price of foreign milk powder has risen. It is not that the finished product has risen or profits have fallen, but that it is reaping credit premiums to test how much Chinese consumers are willing to pay for credit. Only credit foods have obtained a high premium, and Chinese companies are willing to pay for the cost to build a credit system. If the credit is worthless, the company will regard credit as the embarrassment. From this perspective, it is not necessarily a bad thing for foreign companies to raise domestic prices by stimulating domestic milk powder prices. .

"When the Chinese people don't buy the brand premium of the foreign milk powder, they cannot talk about the behavior of price increases at any time," Ye Tan said.