Ministry of Industry and Information Technology: Milk powder mergers and acquisitions will not result in high milk prices

July 31st, with the advancement of mergers and reorganization, some people worried that the concentration of milk powder industry will increase, will exacerbate the monopoly of the industry, resulting in the advent of high prices of milk powder products. In response, Gao Fu, deputy inspector of the Consumer Products Industry Department of the Ministry of Industry and Information Technology, said in a recent reading of the Work Plan to Promote the Merger and Reorganization of Infant and Infant Formula Milk Powder Enterprises that the era of high prices for milk powder should not occur. According to his analysis, one of the main influencing factors is the market and one is competition. Competition is actually a process of optimizing factors of production and therefore will not lead to the result of such a monopoly. "If there is a deviation, I think that as the government can intervene, we now have a relatively sound legal system for anti-monopoly."

It is frankly stated that whether or not there will be high prices for milk powder after mergers and acquisitions of enterprises is a matter of common concern and concern in society. “I think when it comes to industry monopolies, first of all, we say that monopoly refers to the elimination of corporate production operations and hinders effective market competition. As a result, the market share of a certain company or a certain brand and the price of a product have formed a market. Monopoly impedes fair competition in the market.” Gao believes that as regards the monopoly, it is dual in its objectivity and market economy. One is that it can break the monopoly, because there is competition; the other can also create monopoly, because if the competition is disorderly, the rules of the market are not omnipotent. For the government, the attitude toward monopoly is very clear. It is to improve the relevant laws, supervise the monopoly behavior according to law, and give administrative intervention to the results of monopoly. The purpose is to promote fair and orderly competition and create a good atmosphere and environment for market competition. “So I think that in this regard, we all actively pay attention to the occurrence of such behaviors and phenomena and we can actively reflect them. All sectors of society work together to promote fair competition.”

Will it bring high prices for infant formula products? Gao Wei said: "should not be." According to his analysis, one of the main influencing factors is the market and one is competition. Competition is actually a process of optimizing factors of production and therefore will not lead to the result of such a monopoly. "If there is a deviation, I think that as the government can intervene, we now have a relatively sound legal system for anti-monopoly."