A new round of price hikes for dairy products is coming

It is reported that with the large-scale dairy products prices, a new round of domestic dairy industry prices began. In 2012, the price of raw milk in China maintained at a high level, about 3260-3350 yuan / ton, an increase of 3% year on year, and the pressure on the production costs of dairy enterprises increased significantly. At the same time, the Guangdong Provincial Dairy Association also publicly stated that the price increase for dairy products will be a foregone conclusion next year, or an increase of more than 8%.

In response, Chen Sanyou, executive vice president of the Guangdong Provincial Dairy Association, said that “due to the increase in feed costs, farmers have recently called for high prices, and dairy companies have also raised prices to the milk associations by 8%. However, based on my judgment, the increase may be more than 8%. Although price increases are inevitable, we will certainly require dairy companies to declare various reasons for price increases before stating the increase, so as to stabilize the prices of dairy products." Chen Sanyou said.

Chen Peiqiao, general manager of Guangming Dairy Co., Ltd. of Guangzhou, once stated that “there is no notice of price increase at present, but the increase in the price of raw milk does give us great trouble, and companies need to absorb the cost pressure in the later production”.

The price of the product is mainly affected by the production cost, and the price of raw milk is the main factor that determines the production cost. The cost of raw milk accounts for about 60% of the total production cost of dairy products.

Considering that it is at the end of the year, it is the peak season for dairy products. To improve its market competitiveness, it is unlikely that dairy enterprises will increase the sales price of the product market to ease the cost pressure.

In addition, due to the transmission of production cost pressures to market sales prices, which generally lag behind for 2-3 months, it is expected that the market price of dairy products will rise in the first quarter of next year.