Average prices of formula milk falling, survey shows

Housewife and mother of twin babies Indra Krishnasamy studying a new range of formula milk last June. Six new brands priced under $56.65 per 900g have been introduced since May last year.
Housewife and mother of twin babies Indra Krishnasamy studying a new range of formula milk last June. Six new brands priced under $56.65 per 900g have been introduced since May last year.ST PHOTO: KEVIN LIM

Govt task force's efforts to raise awareness and bring in more affordable options paying off

Efforts to address the rising prices of infant formula milk have yielded some early positive results, with surveys showing increased consumer awareness and an overall fall in average prices and demand for the breast milk substitute.

Senior Minister of State for Trade and Industry and National Development Koh Poh Koon shared this with the media in an update on the government task force's efforts yesterday.

Dr Koh heads the formula milk task force formed in May last year to tackle the issue of soaring prices here, which have more than doubled over the last decade to become among the highest in the world.

Between May and November last year, the average price of formula milk in Singapore fell 4.8 per cent according to retail data from Nielsen. Prices of formula milk for infants aged below six months fell by 13 per cent, while those for infants aged from six to 12 months fell by 9 per cent.

This stemmed from an increase in consumer awareness and the availability of more affordable formula options, Dr Koh said.

In the same period, total sales of formula milk fell by about 17 per cent. This indicates "hopefully that more mothers are breastfeeding", which is better for babies, he said.

The Straits Times reported last week that the average price of a 900g tin of infant milk powder ticked up 59 cents to $56.65 last year, according to figures released by the Department of Statistics.

Dr Koh told ST then that six new brands priced under $56.65 per 900g have been introduced since May, but none made it to the Consumer Price Index's weighted basket of goods as they were "relatively new and do not yet account for significant market share".

Nielsen's figures are drawn from sales at all major retailers in Singapore and reflect "what you see in terms of price difference", he explained yesterday.

It will take time for consumer behaviour to shift, and for the market to react accordingly, Dr Koh said. But "education efforts seem to be moving in the right direction, and people are now making more informed purchasing decisions".

Surveys conducted by the Health Promotion Board between July and September showed that more mothers are aware of infant nutrition, such as weaning, for example.

Moving forward, food-labelling regulations will be amended to prohibit health and certain nutrition claims by formula milk manufacturers as well as texts and images that idealise the use of infant formula.

The Agri-Food and Veterinary Authority had previously said it was gathering public feedback on this proposal, which is aimed at curbing excessive marketing and encouraging greater price competition.

Advertising that a product contains iron and calcium, or that calcium helps to build strong bones, for example, will be disallowed under the new rules.

"If it's not something that is unique to that particular formulation, we will forbid highlighting some of these upfront because it creates the impression that this particular tin of milk contains this and other products don't, when in actual fact many of these basic ingredients of formula milk are already (in the content list)," said Dr Koh.

The code of ethics is in the final stages of review and restrictions on the advertising, marketing and promotion of formula milk will be tightened, he said. While the task force has achieved its objectives, it will monitor the impact of measures introduced and take additional action if necessary, said Dr Koh.

SEE OPINION: How parents decide on baby milk purchases

A version of this article appeared in the print edition of The Straits Times on February 09, 2018, with the headline 'Average prices of formula milk falling, survey shows'. Print Edition | Subscribe