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Why foreign milk powder so expensive in China?

By Zhou Rui, Yao Yujie, and Luo Zhengguang (People's Daily)

15:19, May 28, 2012

Edited and translated by People's Daily Online

Giant price gap between Chinese and foreign milk powder has recently sparked heated debate on the Internet. Many consumers analyzed the price differences of the same foreign milk powder sold in Chinese and other countries and regions and pointed out that using the money spent on one can of milk powder in China, people can buy three or four cans of the same milk powder in some other places including Netherlands and England.

A netizen from Chongqing compared the prices of foreign milk powder in China and other countries and found that the price differences are so big. For example, Friso Care for infants less than six months only prices at 10 euro (about 80 yuan) in Netherlands, the country of origin, while it sells over 200 yuan in China.

The prices of foreign milk powder in Chinese mainland are not only higher than that of the country of origin, such as Netherlands and New Zealand, but also higher than that of Hong Kong. The difference in prices of the same milk powder reaches up to nearly two times.

The price of Wyeth SMA for infants less than six months is about nine pounds per 900 grams, approximately equivalent to 90 yuan on the website of a leading supermarket in England but it prices at about 250 yuan on the Website www.taobao.com, though the packaging is different.

The costs are not too high plus freight and tariff

The insiders told the reporter that foreign milk powder did not doubled in its actual cost. The main reason behind the high price is that it has developed into a deformed market, in which the price is not set based on the cost.

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Email|Print|Comments(Editor:李昆仑、马茜)

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Observer at 2012-05-29203.177.74.*
Protectionism of milk powder producers and better quality of milk powder are two reasons for higher prices for foreign milk powder. With foreign milk powder there is no fear of poisoning like there is with Chinese products. That is what my Chinese friends in Shenzhen tell me.
  

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