Domestic milk powder brands are now rising pattern

Raw milk prices have continued to rise since the beginning of this year, making the prices of relevant dairy companies expected to be frequent. Yesterday, the relevant person in charge of Yili shares said that in the previous period, the prices of individual milk powder were adjusted. There is no new price increase plan. However, there are dairy analysts revealed that at present, some brands of Yili milk powder has begun to raise prices, the domestic prices of several major brands soon.

According to data from the Ministry of Agriculture, the average price of 10 northern provinces and territories in April was 3.43 yuan/kg, up by 0.3% from the previous month and up by 4.9% year-on-year. The price at the end of February was 5.2% higher than that at the beginning of the year.

Hu Chunxia, ​​an analyst with Guotai Junan Food and Beverage Industry, also stated that the raw milk price was up to around 10% year-on-year in May this year, slightly exceeding the expected 6% to 7%, and the raw milk price is expected to remain high this year and is expected to affect costs. 3% to 5%. “The price of raw milk has been rising steadily in recent years. The main reasons for this are the relatively rapid increase in demand and the shortage of supply due to the slower supply of raw milk, and the increase in labor costs.” said Hu Chunxia, Milk prices may also have a steady upward trend. The period of price fluctuations from 4 to 5 years of raw milk in the early stages has been completely broken. Raw milk prices are expected to increase by 3% to 5% a year. However, due to the drought in New Zealand, which is one of the major milk powder exporting countries, raw milk production has been affected. The price of imported milk powder this year has risen by more than 60%, driving domestic raw materials. Milk prices rose more than expected, especially since the second quarter, prices have accelerated.

Although Yili shares did not disclose the specific circumstances of price increases, but UBS Securities analyst Zhao Lin also said yesterday, milk powder business, Yili shares since the mercury incident last year to take the initiative to upgrade the structure, in April adult milk powder and gold infants and young children Milk price increases of 10% to 15% will increase the company's overall average price.

Faced with the surge in raw materials prices that have already come across the industry, Song Liang, a researcher at the China Merchants Distribution Industry Promotion Center, predicts that domestic companies will generally increase their prices this year. "The major domestic companies, the bright raw milk prices rose the most, Yili rose by more than 5%." Song Liang said.