国产奶粉遭遇信任危机

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In most supermarkets in Beijing, imported canned milk powder sold below 200 yuan is hard to find. In July of this year, two overseas milk powder companies, Wyeth, Similacrose their retail prices by 7 and 10 percent, But many parents still prefer imported products despite the financial burden.

"In the first 2 and 3 months of this year, the milk powder I bought was 180 yuan per can. But now it' about 200 yuan per can. We spend 60 yuan more every month than in the past. It's a pretty big burden for us."

"I've never chosen domestic brands."

A supermarket salesgirl says the prices of all imported products are rising.

"The price of imported milk rose during March and April this year. The price of a can rose by 10 yuan and the paper box package rose by 2 or 3 yuan. It's a common phenomenon for the imported milk powder, but the price didn't rise much."

However, constant price increases may bring more financial trouble to many families. Take Enfamil as an example, its retail price in 2004 is about 140 yuan, but the price has climbed to about 220 yuan now; 11 percent every year.

Compared to the imported milk powder's 40 to 50 percent gross profit rate, the domestic products can only reach 30 to 35. And some experts say their qualities are not that different.

Chen Lianfang, analyst at an agricultural product company says the cost of a can of 300 yuan imported milk powder may be no more than 100 yuan. The milk powder formula has little additional microelements. Chen Lianfang also says many consumers may have irrational consumption perspectives on buying imported milk powder.

"Many domestics are also promoting their products in the name of foreign-invested or joint venture enterprise. But actually they just registered a name overseas and manufacture in China. They are using false foreign names to cheat consumers."

According to statistics from China Dairy Industry Association, during January and September, the amount of imported milk powder was 15.7 times as much as China's milk powder export amount.

Zhang Lixiang is a professor in Agriculture and Rural Area Development Institute of Renmin University. She says this phenomenon may have a big impact on China's dairy industry.

"This is a big impact for our country's dairy industry. This may become a key condition for the foreign milk companies to control the discourse powder in China's market in the coming 3 to 5 years."

Zhang Lixiang believes Chinese consumers' solid demand for imported milk powder will remain due to the 2008 tainted milk scandal. And rebuilding the reputation of domestic milk will take time.

For China Drive, I am Li Dong.