Companies

Foreign baby formula producers promise no price hikes

(China.org.cn)
Updated: 2011-05-10 13:04

Three of six foreign baby formula companies in China interviewed by the China's chief economic policymaking body said they do not have plans to raise prices, acquiescing to government efforts to control inflation.

The National Development and Reform Commission (NDRC) interviewed six foreign baby formula companies in China incuding Nestle and Ausnutria to learn about quatities, prices and production of baby fomulas of these companies, China Business News reported.

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Three of them confirmed meeting with the NDRC to discuss price changes.

The interview is believed to be a routine of the NDRC, according to an insider from one of the six companies.

Each company was interviewed separately.

"We have confirmed that we don't have plans to raise prices," said another insider from one of the foreign firms interviewed. "We know that the Chinese government is striving to stabilize commodity prices."

NDRC announced last Friday that Unilever China would face a fine of 2 million yuan ($303,000) for statements of planned price hikes that increased the public's inflationary expectations and triggered panic buying, China Daily reported.

The interviews were aimed at understanding the cost pressures on foreign baby formula enterprises in China, the NDRC said.

The six companies interviewed control 40.1 percent of China's baby formula market, according to statistics from Euromonitor, a market research and analysis agency.

Most of them said that they would not increase prices in the near future, and baby fomula prices in 2011 will be relatively stable.