Bright Dairy to raise products prices this month

Bright Dairy & Food Co., Ltd<600597>, one of the leading players in China's dairy industry, said it has won green light from government authorities to raise prices of part of its dairy products in eastern and southern China.

The move to start form April will involve fresh milk and room-temperature milk in the target areas, the company said. Based on the figures in its annual report last Tuesday, the price increase will bring extra earnings of more than RMB 100 million for the company, analysts said.

In spite of the price rise, the company will still face great challenge from rising cost of raw materials, analysts with CICC said, predicting that crude milk price may rise more than 30% this year.

Its smaller rival Sanlu Group received the approval at the same time but the date and place for the price hike have not been decided.