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Vinamilk asked to give farmers a better deal
Vinamilk, the largest domestic diary in the country, has been asked to improve its milk testing and pricing systems to help farmers who have accused it of unfair treatment.
The farmers, on the other hand, should pay more attention to feeding their cows, the Ho Chi Minh City People’s Committee said on September 15 after reviewing a dispute between the two parties.
Vietnam Dairy Products Joint Stock Company (Vinamilk) had made unreasonable price deductions for various qualities of milk, the farmers complained.
For instance, the price of standard milk (grade A) is VND700/kilogram higher than that of grade B milk, while the difference is VND250/kilogram between grade B and C, C and D.
The way Vinamilk tests the milk is also inexact, the farmers claimed. For instance, at the Vinamilk trading center in Hoc Mon District, the blue methylene testing tube was not pasteurized after use so the results obtained were not correct.
Nguyen Van Tuoi, deputy head of the socio-economic department of HCM City Farmers Association, who has 120 cows, objected that Vinamilk took milk samples every day, but analyzed only one sample to price milk for the whole week.
Another charge levied against Vinamilk was that its purchase prices changed weekly while those of the foreign-owned Dutch Lady were stable and much higher for milk from cows bred under similar conditions.
Dutch Lady’s purchase prices have changed from VND7, 430 to VND7,560/kilogram for various qualities, while Vinamilk’s stood at VND5,650 to VND7,130/kilogram.
In addition, farmers noted that Vinamilk had not continuously supported them with subsidies for breeding facilities.
However, Vinamilk refuted the complaints saying it had increased its purchase prices by VND500/kilogram since early April.
In order to enhance quality and ensure the hygiene of fresh milk, Vinamilk said it made payments according to the quality that was tested strictly. The company said the varied rates were based on norms laid down by the company, and were not unreasonable.
The company said one reason for the lower quality of local fresh milk was that framers were not taking care of the cows as well as they did earlier because input prices had increased. Mastitis in dairy cows has been also one of main causes affecting the quality of fresh milk.
City People’s Committee vice chairman Nguyen Trung Tin advised all parties concerned to think of feasible solutions to stabilize the price of supplies, increase fresh milk prices and limit the price-cuts.
VNN
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