Localities re-examine the price of dairy product license or increase

According to the Notice on Launching Project (Corporate) Auditing and Clearing Work in the Dairy Industry, issued by the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), the production licenses for dairy products manufacturing enterprises have been re-examined in various parts of the country.

Song Kungang, chairman of the China Dairy Industry Association, believes that this move will not only speed up the reshuffling of the dairy industry, but will also lead to a general rise in the price of dairy products.

Song Kungang explained that according to the lawful production license, some enterprises must reform and increase large-scale investment. In addition, all products must be inspected at the factory for batch approval, which will increase inspection fees. Finally, the price increase of the original subsidiary materials is now larger.

Song Kungang believes that the increase in these costs will eventually be passed on to consumers.

At present, domestic dairy products industry is fiercely competitive, and some companies worry that price adjustment will lose market share. In addition to the tricks of stealth price hikes, some companies are more profitable through the development of new products.

Song Kungang believes that companies do not dare to price up prices, but there are some tricks for companies to raise prices and increase the economic efficiency of enterprises, such as the development of new products, such as the old yogurt on the market.

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