Wuhan Bright Milk Price Up 18%

In the second half of this year, Bright Dairy, which was caught in multiple quality doors, recently raised its price in Wuhan, involving a variety of fresh milk and yoghurt products.

Some products Wuhan price increase Recently, some media reports said that a variety of fresh milk and yogurt products produced in Wuhan's local light dairy industry have increased prices, of which 460ml of Yoko milk rose from 6.6 yuan to 7.8 yuan, 460ml of bright Fresh milk house milk rose from 5.8 yuan to 6.6 yuan. Based on this calculation, Guangming’s retail price increases by as much as 18%.

Yesterday, Gong Yuqi, head of Guangming Dairy’s public relations department confirmed the price increase and explained that the price of milk in Wuhan continued to rise. The recent increase was about 10%. The company tried to optimize the supply chain to absorb the cost, but also for some product prices. Adjustments were made, with an average range of 5%-7%. Gong Yuqi also stated that there is no change in the current market price in Beijing.

Other milk prices have not yet raised prices Yesterday, companies such as Yili, Mengniu and Sanyuan told reporters that there is no plan to raise prices. However, these companies also said that they are currently facing the pressure of rising raw material prices.

Mengniu said that the recent feed prices and other reasons led to rising dairy farming costs, to ease the pressure on dairy farmers, Mengniu Dairy, according to market conditions, increase the purchase price of raw milk, but in terms of product prices, the current Mengniu company has no price increase plan.

Erie’s reply to the reporter also stated that the current prices of major raw materials continue to rise, but “My company has no product price adjustment plan recently.” Sanyuan Dairy also said that it faces pressure from rising milk prices, but there is currently no plan to increase prices.

Experts say raising prices or testing the market's well-known dairy industry expert Wang Dingmian said: “At present, the price of raw milk in Wuhan has indeed increased, but if the price of milk increases, the retail price will increase substantially. This cannot be justified.” According to official data, the current purchase price of raw milk nationwide is basically the same as the same period of last year. The price per kilogram was about 3.1 Yuan in the same period last year, and it is currently 3.2 Yuan. Although the company's labor, sales and other costs have indeed increased, but from the current bright Wuhan retail price increase rate is clearly significantly higher than the cost of rising.

“There may be other motives for Bright Wuhan's price increase.” Wang Dingmian analysis believes that Guangming has been exposed to quality problems six times in the second half of this year, and these will inevitably affect its sales. The use of Wuhan to raise prices may be a tentative exploration of the market. In order to expand the price increase to other regions.

However, Wang Dingmian also said that at the beginning of this year, the dairy giants have raised their prices once, and now companies can fully absorb the rise in raw material costs through product structure adjustments; other upcoming New Year's Day and Spring Festival is the company's promotional season, and the entire industry has significantly increased prices. The possibility is not great.