Nestle milk powder prices in China have risen 4 times, but have contracted

The phrase "all for children" makes Mr. Shen, who lives in Beijing's downtown area, very helpless.

Mr. Shen and his wife are typical couples of the post-80s in China. They hope that they can provide a healthy and safe environment for their unborn babies. Therefore, they have done a lot of work in every aspect of the baby's clothing, food, housing, etc. However, just recently, Mr. Shen discovered that the price of Nestlé Super En's milk powder, which the baby had been eating, had not only risen a lot in the past, but also seemed to have shrunk in weight.

4 month price increase close to 50%

Entrusted by the consumer Mr. Shen, the reporter visited major supermarkets and shopping malls in Beijing, and also learned about the sales of milk powder on some large electronic consumer websites. Through interviews with reporters, it was discovered that the price increase of Nestlé's superenergized powdered milk is not a recent act. In May of this year, Nestlé’s company “increased the price of some of Nestlé’s dairy products for the sake of its long-term healthy development”. The price of milk powder, however, the average increase of milk powder is not what 5% Nestle said, at present, the original price of 250 yuan Nestle Super Neng 2 paragraph 900 grams of baby milk powder, the price rose to 280 yuan, an increase of 12 %.

During the investigation of some large-scale supermarkets, the reporter also found that the price of this milk powder has risen to 309 yuan in some supermarkets, including Carrefour supermarket even rose to 328 yuan, an increase of more than 30%.

Not only that, in the Shang Chaochao market, the reporter also noticed that 900g of packaged milk powder had already disappeared in the past. Instead, 800g of new packaging was replaced. In this way, according to the price change of 100 grams, Nestlé Super Energy 2 milk powder rose from 27.78 yuan to 41 yuan, or close to 47.6%.

When asked about the difference between the new packaged milk powder and the previous one, the super-commercial staff explained to the reporter that the new package has only a slight adjustment in the formula. For example, the original calcium citrate is replaced with calcium carbonate and its trace elements. The amount per 100 grams is also very finely adjusted, and the milk powder increases in fineness and sweetness. So of course the price is not the same as before.

The reporter then registered several professional e-shopping websites abroad. It was also found that Nestle’s paragraph 1 infant formula was sold at US$25 in the United States at 4×12.6 ounces, equivalent to RMB 11 per 100 grams, even though imported milk powder was taken into account. At the price of tariffs, Nestlé’s sales price in mainland China has almost reached four times that of foreign countries.

Of course, it's not just the Nestlé family that has this price difference. This reporter learned that the current sales situation is better in the United States, a segment of the Netherlands, the price in the Netherlands is about 10 euros, equivalent to more than 80 yuan, corresponding to the Chinese market, the United States Su Jiaer, the price will be more than 200 yuan in renminbi. In the German official website of Teffen milk powder, the price of the 2 segment of Tefufen organic infant formula milk powder is only 9.95 euros, which is only 80.6 yuan converted into the yuan price according to the current exchange rate, which is 1/4 of the mainland sales price.

“It is better than not knowing that the price of foreign milk powder in mainland China is the highest in the world.” Mr. Shen said with emotion.

In the interview, Mr. Shen also calculated an account for the reporter. “By using the baby’s consumption of at least 3 cans of milk powder per month, the current price of 330 cans of milk powder will cost 1,000 yuan per month for a single milk powder. The year is 11,800 yuan, which is a lot more than in the past."

The price is high and the price is high. In fact, Chinese consumers have always had a subconscious mind that they don’t have a good deal of money. Is it true that these foreign brands of milk powder are “originally imported” as they themselves are proposing, or have “a sound immune protection barrier?” , reduce the risk of allergies, "such as efficacy? On this issue, Wang Dingmian said that in infant formula, manufacturers will add some ingredients that have certain effects, but the proportion of these ingredients is not high, and the effect on infants and young children is not as advertised by businesses. It is so big that 70% of the efficacy that is currently being promoted by manufacturers has no experimental or clinical basis.

Or the name will be rising raw material prices continue <br> <br> In fact, foreign brands of milk prices have focused not new. According to statistics, the foreign brand had a total of four price adjustments within three years. Reporters have repeatedly reported on this issue, including milk powders such as Nestle, Mead Johnson, Abbott, Dumex, Wyeth, Meiji, and Meso. The price increase rate is about 10%. In particular, since 2008, after several rounds of price increases, the prices of some foreign brands of milk powder have risen by about 50%.

Then, why are there so many differences between domestic and foreign prices for products with very few major components? Is it because of transport or tariffs that have increased the burden on Chinese parents? On this issue, a reporter from China Enterprise News China Food Report made a special interview with Wang Dingmian, a senior expert in China's dairy industry. Wang Dingmian said that the added cost of imported small cans of finished milk powder is mainly the customs import tariffs and inspection fees, which account for about 28% to 30% of the original selling price. In addition, if the long-term backlog of milk powder is not removed at the port, there may be a slight stoppage charge. Even with shipping and other expenses, a can of 850-900 grams of imported finished milk powder costs only 80-90 yuan more than the ocean. It seems that the core of the problem is not really because of the increased costs of tariffs and transportation.

So, has this huge price difference in foreign brands of milk powder constituted a sense of price discrimination? Dr. Feng Chaoqun of China Science and Technology Industry Investment Management Co., Ltd. frankly stated: “The foreign brands’ milk powder is a recognized fact in the industry. Whether it is compared with its origin or the surrounding countries or regions, the domestic brand of milk powder sold in China can be used. The world’s most expensive.”

In stark contrast to this, from April to May in the collective price increase of foreign brands of milk powder, the price of raw milk in EU member states was below 30 euro cents/liter (approximately 2.34 yuan/kg), of which Belgian raw milk prices From last year's 34 Euro cents to 26 Euro cents in November, Germany fell from 36.9 Euro cents/liter to 29.8 Euro cents, France from 33.13 Euro cents/up to 28.50 Euro cents/liter, and US raw milk prices also Declined by 23%. According to the global milk price announced by the IF CN International Pasture Federation, the global raw milk price was 27.6 euros/100 kg in May, which was reduced to approximately 2.21 yuan/kg according to the exchange rate, which was 1.4 euros lower than the 29 euro/100 kg in April. 5%. Taking infant powdered milk powder as the main raw material, "big custard powder," for example, the price per ton before the press deadline was 27,500 yuan, equivalent to only 2.75 yuan per 100g. The cost of raw meal in infant formula is only 50%-60% of finished product cost. If this kind of raw material powder is used to produce infant formula milk powder, in general, the cost per kilogram of raw material powder is 80-85 yuan, and the cost for accessories such as labor is 80-85 yuan, and the price for consumers to buy is also added. Dealers and various propaganda and other expenses, Wang Dingmian once made a statistics, similar to the cost of about 26 or more. In the interview process, Zhang Wen, who has been engaged in international milk powder trade for many years, told reporters that compared with the first quarter of this year, the international raw material powder has recently risen by about 10%. Therefore, the reporter is concerned that some foreign milk powder brands will soon rise under the guise of rising prices of raw materials.