Foreign dairy firms have announced that they will be cutting their baby formula prices in China. This announcement comes after Chinese authorities started investigations over alleged price-fixing of a handful of manufacturers. However, despite the price cuts, customers are careful regarding what they are buying for their toddlers.
Abbott Laboratories from the US have announced their plans to decrease prices of their infant-formula brands, between 4 percent and 12 percent. Earlier, other companies like Danone, Nestle and Friso have released statements saying that they would cut prices of their baby formula. The National Development and Reform Commission in China has started investigations last week for the possibility of price-fixing among formula makers.
Amidst all companies, only MeadJohnson Nutrition has not announced a price cut. Ms Fu, public relations officer at the company said, “The investigation is ongoing, and we have submitted related information to the National Development and Reform Commission. We will cooperate with the probe.” The officer went on to say that since they are a listed company, he is not sure whether the company would reduce its prices in the future.
Despite decreased prices, customers are still cautious if they can really pay less for what they need.