The price of foreign milk powder stays the same and overriding tariffs have overwhelming advantages

A can of imported Wyeth "Qi Fu" paragraph 1 milk powder (900 grams), the price is still 428 yuan. Yesterday, the reporter found that the price of imported powdered milk did not appear to be loosened due to the reduction of tariffs in the price of a maternal and child supplies area in a large shopping mall in Hong Kong Middle Road, Qingdao.

Starting from January 1 this year, China has implemented a low import tariff rate for more than 730 commodities, including "foreign milk powder," in which infant formula and food tariffs have fallen by more than half, and New Zealand infant formula and yogurt have been implemented. Zero tariff. After the new tariff was implemented, the price of milk powder did not loosen. The manufacturer’s explanation was to digest the previous inventory. Now that tariffs have fallen more than a month, there is still no price cut on the market. In an interview with reporters, there were manufacturers who disclosed price hikes.

Market does not show signs of price cuts

From January 1 this year, China will implement new tariff standards for 730 imported products, including imported baby formula and baby food, with an average reduction of 4.4%. According to the free trade agreement between China and New Zealand, New Zealand imported milk powder will implement zero tariff this year.

It is understood that Oceania, the island nation of New Zealand, is a world-renowned exporter of dairy products. Its export value ranks first in the world and it is also the largest source of imported dairy products in China. According to the bilateral free trade agreement between the two countries, since 2009, the tariffs on dairy products imported from China have been reduced year by year. By this year, the import tariffs for infant formula and yogurt in the country will drop to zero.

After the news was released in advance, many parents in the island city had expectations for the price reduction of foreign milk powder. However, over the past month or so, the price of the newly-listed "foreign milk powder" has not been loosened after a one-month buffer period for inventories.

Yesterday, the reporter visited the supermarkets of Shimading Jiashi, Liqun, RT-Mart and other supermarkets and found that the price of imported infant milk powder was still between 200-300 yuan per can or even higher. Especially the ultra-high-end milk powder series introduced by some foreign milk powders, the 900 g canned price is mostly over 350 yuan. "By thinking that after the tariff reduction, you can buy a cheaper formula. Now it seems that there is no change at all. It is really disappointing." Ms. Yang said that her child was just over 1 year old and she consumed at least two cans of milk powder per month (900 grams). Packing), monthly sales of about 700 yuan.

Some supermarket salespersons visited by reporters have indicated that they have not received a notification of price cuts. "Imported milk powder is not very expensive, it should not be reduced." A supermarket salesperson told reporters.

Manufacturers did not cut prices

Why is the price of foreign milk powder still not falling? Yesterday, the reporter contacted some manufacturers. The tariff cuts, New Zealand imported products benefit the most, but the New Zealand brand has not moved. “We have not adjusted the price, and we have not planned to adjust prices in the near term. It is not easy to say how much the tariff reduction can reduce costs!” Yesterday, the reporter called Ke Rui Kang and obtained such a reply.

Afterwards, the reporter dialed the phone of Mr. Yuan of Dumex Shandong sales manager. He told reporters that Dumex milk powder was imported into China and then shipped in containers. Tariff cuts have little effect, so prices will not be reduced. On the contrary, the company has plans to increase prices. “In the four major brands (Dumex, Mead Johnson, Wyeth, and Abbott), we haven’t adjusted our prices for 10 years. We plan to adjust this year to cope with rising costs.” He did not disclose the specific price category and extent.

“The four major brands have been ploughing for years and the price system is stable. The fine tuning of tariffs is hardly reflected in the terminal.” Mr. Sun, a British assistant food brand dealer, said that Wyeth and Abbott have both increased their prices last year. There is also a cry for price increases.

Industry milk powder has an "overwhelming" advantage

In the interview, the reporter saw the diametrically opposite phenomenon. The reporter saw at the supermarket that the foreign milk powder had not only reduced its price but also had few promotional activities. On the contrary, domestic milk powder promotional activities were relatively numerous. "The domestic milk powder is not only cheap but also has more preferential activities. This milk powder buys a large bucket, and also delivers a small bucket..." A buyer in the supermarket is promoting domestic milk powder. She told reporters that domestic milk powder is mainly based on low-cost advantages. However, the reporter saw very few consumers visiting domestically produced milk powder.

“In the Qingdao market, the advantages of foreign milk powder are overwhelming! Therefore, the prices are relatively strong.” According to the person in charge of e-commerce for infants and children's products at Supermarket, the high price of “foreign milk powder” still attracts many customers due to its consumption. The confidence of domestic milk powder has not fully recovered. "The imported milk powder does have a better reputation and consumers trust it," said the person in charge.

Survey data shows that before the melamine incident in 2008, the market share of domestic brands of milk powder was more than 60%. In 2011, the market share of foreign milk powder was already over 50%. “In Qingdao, the advantages of foreign milk powder are even greater!” said Mr. Sun. Qingdao’s citizens have a strong spending power. “It’s very much a foreign brand.” Domestic brands can’t be eaten in the Qingdao market.

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