SIMILAC milk powder. JB vs SG

[Lala81]

http://www.channelnewsasia.com/news/singapore/more-formula-milk-options-to-be-made-available-amid-concern-over-8827050

 

The Singapore way. Offer NTUC milk.

 

More formula milk options to be made available amid concern over prices: Koh Poh Koon

 

 

All formula milk brands fulfil minimum nutritional requirements, said Senior Minister of State of Trade and Industry Koh Poh Koon in Parliament.
 

SINGAPORE: The Government is working to make more formula milk options available, said Senior Minister of State of Trade and Industry Koh Poh Koon in Parliament on Monday (May 8). 
 

The Agri-Food and Veterinary Authority of Singapore (AVA) is reviewing formula milk import regulations and, if there are any changes, they could be finalised by the end of the year, he said. The Government will simplify and streamline import requirements and remove unnecessary barriers to entry in order to provide more options, he added. 

He also said the Government will take steps to increase consumer awareness, encourage good practices in hospitals and further tighten restrictions on labelling and advertising. In addition, the Ministry of Health will work with industry players to make available more infant formula options in hospitals, he said. 

He said the Competition Commission of Singapore (CCS) recently completed a market study, examining the milk formula industry, and the nature of competition at each level of the supply chain. The results of the study will be published this week, he said.

Should there be any evidence of companies working together to increase prices, CCS will not hesitate to investigate, he added.

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He was responding to questions from Macpherson SMC Tin Pei Ling on why formula milk is more expensive here than in other comparable countries, and whether the Government will consider control measures to exert more pressure to keep prices fair. The MP for Pasir Ris-Punggol Sun Xueling asked how quickly import regulations will be changed.

Dr Koh said education is needed to allay parents' anxiety that they are shortchanging their children if they buy cheaper formula.

"We need to educate our consumers as well, that despite whatever pricing strategy they may have on the generic formula, or despite whatever claims there may be, all formula fulfil minimum nutritional requirements, and in fact are just as equally adequate," he said. 

He said that for a 900g tin, some milk powder is sold at around S$20 to S$30, while others brands can be priced at up to S$60.  

There should be no guilt on parents' part about getting a cheaper brand of milk, as long as their child can get used to the milk. "There's no real reason to pay up more for something that is just as good and much cheaper," he added.

He said that some products may cost more due to research and development expenditure, and some of these kinds of milk are for a restricted group, who may have allergies or medical conditions. 

"What we can do is to make sure we increase the choices that are available, the options that are available and where necessary, put in the necessary financial support," he said.

One retailer has sounded its support for the Government's decision to review import regulations on formula milk. NTUC FairPrice CEO Seah Kian Peng said in a press release on Monday that the organisation shares the concerns among parents today on the cost of infant milk powder.

"We agree that more public education and understanding on the benefits of infant milk formula will help parents make more informed choices, and a review of import requirements will help us to provide better value options for our customers.”

The organisation added that it provides more than 150 varieties of infant formula from different brands, formulations and pack sizes ranging from S$30 to slightly over S$100 per tin. 

Parenting portal Babyment.com has revealed prices of infant milk formula in Singapore increased by an average of about 27 per cent from December 2012 to March 2017. 

Source: CNA/ja
 

[Kangadrool]

Fairprice house brand?

 

They are into everything including services competing with RadX.

 

Last time, they also have a hand in car dealership - Pangeo brand (F&N cars).

 

http://www.channelnewsasia.com/news/singapore/more-formula-milk-options-to-be-made-available-amid-concern-over-8827050

 

The Singapore way. Offer NTUC milk.

 

Edited May 8, 2017 by Kangadrool

[Kusje]

The problem certainly isn't import regulations as a lot of the formula milk is actually manufactured in Singapore (no need to import!) and those parallel import milk powders are being sold in drug stores for a lower price.

 

Since parallel importing drug stores will have to comply with the import regulations (which supermarkets don't since they buy local goods from the manufacturer) and also incurs a similar rental and overheads as the supermarket.

 

So can some tell me what the difference in cost price is?

[Yewheng]

Fairprice house brand?

 

They are into everything including services competing with RadX.

 

Last time, they also have a hand in car dealership - Pangeo brand (F&N cars).

As long as can make profit and benefit everyone.. Why not? Haha

[Kusje]

 

https://www.ava.gov.sg/docs/default-source/default-document-library/food-regulations-2-feb-20161da0851875296bf09fdaff00009b1e7c

 

I looked into the current requirements for infant formula and while it is quite lengthy but looks reasonable (from a non-dietitian point of view).

 

My reckoning is that any reputable brand that is being sold in Malaysia now should meet the requirements here as well.

[Mustank]

Actually all pricing is control by brand owner.

 

For example, when i deal with brand owner from a distributor point of view.

Every year they would want

 

10mil from country A cos higher gdp

5 mil from country B cos lower gdp

 

Or

 

10mil from country A . If country A has lesser babies. Tough luck means price has to be higher to hit target

10mil from country B. Country B has more babies then lower prices cos easier to hit target.

 

 

If continuing 4 or 5 years dont hit target.

Then bye bye distributorship ððð

 

 

That why best is to be your own brand owner or own distribution rights to a few countries so that you can play around with the numbers

 

 

 

I damn chibai to spoil market luckily my market not here.

Here only showcase market ððð

 

 

 

 

Or before you get married and have kids . Date a gal with big download.jpg then screw the milk powder companiesððð

With a Wife like this

Man! I wont waste my piaks on those companies

[Rayleigh]

All the talkings and the options of milkssources have limited impact. The fundamental issue lies with the consumers law we have in Singapore. What do we have except the toothless CASE where one can easily anticipate their reply: "Consumers have full power to decide who to support". If they cant even manage petrol price and other essentials, what more can we expect from the parliament debate. I would strongly disagree if the Government intent to handout voucher to offset the ridiculously high price milk. Cos we are not solving the problem but feeding the company to push the price even higher. The classical case being the childcare centre. The end user is simply a conduit to pass any subsidies/rebate from government to service operators directly. We are so unlike the European and US where collective class suit from consumers can force companies to toe their line carefully. 

 

It is so unfortunate that we are pro company and not pro consumers. At the end of the day, we the consumer are one to suffer the most. 

Edited May 8, 2017 by Rayleigh

[Karoon]

My kids still rely on milk. I'm tempted to move to yishun and buy a cow

[Victor68]

all i know is the same milk power cost much less across the causeway.

 

i just hope Dr Koh can give a direct and simple answer what inflated this cost. once we know this answer, solving it would be easy right. dont go round the bushes please.

[Kangadrool]

Land-scarce Singapore has very little cows and goats. We do not have large reserve of cows to leverage against milk powder manufacturers' domination. So, they can price whatever they want as we can't possibly run to a cow farm to extract milk at our whimp and fancy. 

 

In other countries where land is vast, farms are large, their cows population is more than human population...

 

[Nzy]

Cuz many women in Singapore don't want to breastfeed. Overseas, those families that cannot afford formula will just breastfeed their kids. So they can't make formula milk too expensive or no one will buy.

My kids still rely on milk. I'm tempted to move to yishun and buy a cow

 

How old are your kids? 1 year old can drink fresh milk already.

[Voodooman]

Same international brands and almost same formulas used and sold at huge mark up in Singapore versus in Malaysia. Many were sold by the marketing, insisting those sold in SG are superior and will make your kids healthier and smarter, encouraging the business to up price year after year.

 

I don't blame Case, we are a competitive society and want the best for ourselves and our kids, even when some of us can't afford it. It goes from simple milk powder to many other things.... That is why life is so stressful in Singapore.

[Piyopico]

Everything being the same of course milk powder also more expensive here.

 

After we factor in all the costs of labour, marketing, storage, rental, higher profit margin etc

 

Is there anything here that is imported but cheaper than overseas?

 

Diapers and condoms also more expensive ah.

 

Even if the milk powder is manufactured here it doesn't mean it will be cheaper.

Coca cola also bottled here. Cheaper meh.

[Lala81]

Anyway I was looking at milk packet nutrition labels for my child.

There's trans fat in dairy products so I did some reading.

 

Anyway here are the Wikipedia link on trans fat and also another article on natural trans fat.

http://articles.latimes.com/2008/may/19/health/he-eat19

 

https://en.m.wikipedia.org/wiki/Trans_fat

[Voodooman]

Everything being the same of course milk powder also more expensive here.

 

After we factor in all the costs of labour, marketing, storage, rental, higher profit margin etc

 

Is there anything here that is imported but cheaper than overseas?

 

Diapers and condoms also more expensive ah.

 

Even if the milk powder is manufactured here it doesn't mean it will be cheaper.

Coca cola also bottled here. Cheaper meh.

Generally true due to higher business cost in SG but for a pure distribution business, which is what we are dealing with here, cost can be lower per tin of milk powder sold due to higher density of sales and greater economies of scale. For example, you only need 1 distribution centre to cover the whole of SG but in Malaysia or Australia, you need multiple points, so I don't agree everything has to be more expensive in Singapore, it depends.

Actually all pricing is control by brand owner.

 

For example, when i deal with brand owner from a distributor point of view.

Every year they would want

 

10mil from country A cos higher gdp

5 mil from country B cos lower gdp

 

Or

 

10mil from country A . If country A has lesser babies. Tough luck means price has to be higher to hit target

10mil from country B. Country B has more babies then lower prices cos easier to hit target.

 

 

If continuing 4 or 5 years dont hit target.

Then bye bye distributorship ððð

 

 

That why best is to be your own brand owner or own distribution rights to a few countries so that you can play around with the numbers

 

 

 

I damn chibai to spoil market luckily my market not here.

Here only showcase market ððð

 

 

 

 

Or before you get married and have kids . Date a gal with big download.jpg then screw the milk powder companiesððð

Do you think a retail giant like Amazon can dilute and weaken the pricing power of the brand owners?

[Ken138]

Believe its excessive profiteering....

if in usa, govt will ask manufacturers to show case how price is fix n show cause... :(

[Piyopico]

Generally true due to higher business cost in SG but for a pure distribution business, which is what we are dealing with here, cost can be lower per tin of milk powder sold due to higher density of sales and greater economies of scale. For example, you only need 1 distribution centre to cover the whole of SG but in Malaysia or Australia, you need multiple points, so I don't agree everything has to be more expensive in Singapore, it depends.

Do you think a retail giant like Amazon can dilute and weaken the pricing power of the brand owners?

Distribution costs in Singapore is very high.

 

Look at the number of retailers and 24/7 accessibility etc that pushes costs up.

 

COE costs. Delivery workers costs whether in terms of higher cpf or foreign levy etc. It goes on and on.

[Somewhat1975]

Just ask govt to initialize parallel import of Malaysia formula milk. If govt really want, they could also source the milk from other cheaper countries.

 

Atas elite can continue to consume "high quality" sg milk, peasant has an option to buy identical milk at 1/3 price. Win win situation here, problem solved