Malaysia’s Dutch Lady Milk Industries does not plan to hike the price payable for its products despite the considerable increase in its raw material prices.
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Managing director Ian Martin Gearing said internal cost efficiencies would be initiated to streamline operations rather than passing on the burden of the higher prices to consumers. RM15m (US$3.9m) has been earmarked to improve internal efficiencies. This includes upgrading production facilities. Nevertheless, the raw material price increases might negatively impact group profits.
Gearing was speaking at the launch yesterday [Wednesday] of the new formula of Dutch Lady 123 and Dutch Lady 456 milk in Petaling Jaya.
He added that the group remained confident of long-term growth as the market demand for its products, which include infant formula, milk powder and condensed milk is riding high and still growing fast.
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