Psychology pushes up imported milk powder price

Chinese consumer psychology has an obvious influence on the rising price of foreign imported milk powder, Guangzhou Daily reported Wednesday.

A survey conducted by a foreign formula manufacturer showed that 49 percent of the respondents of Chinese mothers believe that the high price correlates to high quality, the report said.

The price of a particular brand of imported milk powder was four times higher than that found on its official online store, according to the report.

"A German made organic infant milk powder that I usually buy from Jusco was 318 yuan ($50.3) for 600 grams," a lactating mother told Guangzhou Daily.

The released price of the organic infant milk powder on the official website of German Te Fufen milk is only €9.95, which is about 80.05 yuan. It is only a quarter of its retail price in the Chinese mainland.

Even though imported milk powder has to pay customs, it is far from reaching the point where prices continue to double, said the report.

Wang Dingmian, a milk industry expert, told the newspaper that, apart from warehouse costs, the increasing costs of importing the canister finished milk are mainly due to customs import duties and inspection fees, which account for roughly 28 to 30 percent of the original selling price. However, with the addition of import tariff and other fees, the cost of imported finished milk powder weighing 850 to 900 grams should only be 80 to 90 yuan more than its foreign manufacturer's price.