New milk products to help Dutch Lady achieve its growth and RM1 billion revenue target within three years.

Dutch Lady unlikely to raise prices

By Zurinna Raja Adam
Published: 2010/11/04


DUTCH Lady Milk Industries Bhd (3026) does not expect to raise prices of its products, at least until June next year, although the price of skimmed milk powder, the main dairy raw material, continues to rise.

As at yesterday, the average whole milk powder price was at US$3,345 (RM10,336) a tonne, while that of skimmed milk powder was at US$3,021 (RM9,335) a tonne. In the fourth quarter of 2009, its price stood at an average of US$2,100 (RM6,489) a tonne.

Managing director Bas van den Berg said Dutch Lady will cut cost by improving on its assortments and factory efficiency.
“We have no concrete plan to increase prices of our products. Being a global company, we try to keep the prices down as long as possible,” he said in Kuala Lumpur.

Dutch Lady’s parent is the FrieslandCampina group, with sales of some e9 billion (RM39 billion). Due to its sheer size and buying power, it is able to leverage and cope better with price fluctuations.



Friesland-Campina is the dairy cooperative owned by 16,000 farmers across Belgium, Germany and the Netherlands.
Yesterday, Dutch Lady launched its latest UHT dairy products made specifically for children of various ages.
The products are Dutch Lady Kid, produced for children aged between one and six years old, and Dutch Lady School milk, formulated with Omega 3 and Omega 6 for children aged six to 12 years old.

Omega 3 and 6, along with vitamin B3 and B6, in Dutch Lady School milk, can help enhance brain development.

“The two products are designed to meet the rapid growth in children’s nutritional needs,” said van der Berg.

Declining to comment on sales contribution target for the new milk products, he said they will help Dutch Lady achieve its growth and RM1 billion revenue target within three years.

The infant and child nutrition represents 60 per cent of Dutch Lady’s sales, liquid milk (30 per cent) andCompleta condensed milk and juice under the Joy brand (10 per cent).

In the financial year ended December 31 2009, Dutch Lady posted RM691.85 million in revenue and RM60.4 million in net profit.


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Comment: A great company.