Mengniu Unlikely to Raise Prices This Year

Mengniu Dairy in 2010 did not perform as well as expected because it was faced with the pressure of rising price of raw materials. The executives of the leading milk producer said that the price of raw milk had gone back to its reasonable level this year and an adjustment in its product mix will likely offset the pressure from the rising costs. In addition, the group will make further efforts to increase its sales to $50 billion and will enter overseas markets in five years.

The price of raw milk went up by 15%-20% and, considering the usual profit margins and the current situation of the industrial chain, related government organs will give more room for price rise to dairy industry this year. However, he thought that consumers will not experience price rise as the cost of raw milk is down and is not likely to rise again.