VietNamNet Bridge – Food companies still keep diffident when
preparing for the year-end production and Tet sale season. Anticipating the low
demand, they do not intend increase the output.
Saigon Food has just kicked off
the year-end production season after thorough consideration of the market
conditions and expected purchasing power.
Le Thi Thanh Lam, Deputy General
Director of Saigon Food, said since the demand has been very week, the company
does not intend to make big amounts of goods for Tet sale, revealing that the
production scale would be the same as the last year’s.
“Consumers still have been
fastening their belt. We still obtained the 15 percent growth rate, but this
has been attributed to the increase in the number of retail points and the
launching of new products,” Lam said. “We dare not set up overly big production
plan for the 2013 Tet, or products would be unsold.”
In principle, the demand for
goods would be higher on Tet holiday, but consumers would prioritize to spend
money on the most essential goods, which means that the demand for frozen food
would not increase sharply.
“What worries us most is the
abundance of goods, not the shortage,” said Truong Chi Thien, Director of Vinh
Thanh Dat Company, adding that the volume of goods to be prepared for Tet sale
would not be higher than that of the last year.
Bidrico, a drink manufacturer,
and Huynh Gia Huynh De both have also confirmed that the business plan scale
would be the same as the last year’s.
Vissan, which has made heavy
investment in the distribution network and restructured its operation, has set
up the modest growth rate of 10 percent in comparison with the last Tet. The
food supplier plans to sell 1010 billion dong worth of products on Tet days.
Saigon Co-op, the biggest
retailer in HCM City, has joined the Tet price stabilization program initiated
by the HCM City authorities. It plans to store the volume of goods worth 3350
billion dong for Tet sale, Pham Ton Company 814.5 billion dong, the Saigon Food
Technology 231 billion dong and Ba Huan Company 165.2 billion dong.
Though the volume of goods to be
stored for Tet sale under the program is double the assigned plan, big enough
to control 50 percent of the market, the enterprises all said that the goods
have been prepared for the price stabilization program, while the general
output of enterprises does not increase.
Chau Nhat Trung, Director of
Huynh Gia Huynh De, said that the low demand, plus the new consumers’ habit of
not storing too much food for Tet parties both have made businesses think that
there would be no sharp demand increase on Tet days.
Thien agrees, saying that the
company has to offer preferences and launch a lot of sales promotion programs
to attract buyers. Therefore, he believes that the goods short supply and the
price increases would not occur.
Vissan has also confirmed that it
has to slash the pork and beef prices. Meanwhile, Saigon Food has failed to
raise the sale prices.
In fact, Saigon Food attempted to
raise the sale prices by 10 percent, but supermarkets have refused the price
increase, saying that the prices should be kept stable to stimulate the demand.
Meanwhile, Lam said, the input costs have increased so dramatically, from the
labor cost to seafood materials, from petroleum prices to electricity.
Doanh Nhan
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