Baby milk manufacturers cut prices in China

China Featured - July 10th, 2013
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A nationwide probe into prices of baby formula in China has led more companies to slash prices of their products.

At least four foreign firms said they would cut prices of baby formula following an investigation launched by China’s National Development and Reform Commission.

Although the government has yet to confirm any price-fixing probe.

Abbott Laboratories would lower prices by between 4 to 12%, the US healthcare firm said in a statement on Monday.

Dutch firm Royal FrieslandCampina, which produces the Friso brand, said it cut China prices by 5% from Monday.

Japanese dairy producer Meiji also followed suit and said it would reduce prices.

A similar move by domestic formula manufacturer, Zhejiang Beingmate Technology Industry and Trade, follows steps by France’s Danone and Swiss food giant Nestle earlier this month. They cut prices for baby milk by as much as 20%.

The probe comes in the face of huge demand for foreign baby formula products in China after a 2008 scandal involving locally-produced milk which was tainted with melamine, reports AFP.