More Baby Formula Firms Annouce Plan for Price Cuts

　　More foreign dairy firms have announced plans to cut their baby formula prices in China. It comes after Chinese authorities launched investigations² over alleged³ price-fixing of a handful of manufacturers.

 

　　Despite the promised price cuts, customers remain cautious about what to add to their shopping lists. CRI's Zhang Shuangfeng has more.

 

　　U.S based Abbott Laboratories have announced plans to cut prices of their infant-formula brands by between 4-percent and 12-percent.

 

　　The announcement comes after Nestle, Danone and Friso released statements saying they would cut the prices of their baby formula.

 

　　China's National Development and Reform Commission started an investigation¹ last week for possible price fixing among international formula makers⁴.

 

　　So far, only MeadJohnson Nutrition has not issued any price cuts.

 

　　Ms Fu is a public relations officer at the company.

 

　　"The investigation is ongoing⁵, and we have submitted related information to the National Development and Reform Commission. We will cooperate with the probe. And since we are a listed company, I can't comment on whether the company will lower the price in the future. So far, we haven't received any notice to adjust our product prices."

 

　　Despite the promise of lower prices, customers remain cautious about whether they really can pay less for what they need.

 

　　"I read it in the newspaper that there will be a price cut. So I come here to check out. But I don't find the formula I need any cheaper."

 

　　"I heard the news, but I haven't checked out the price yet. Sometimes I bought the formula via online shops, it could be cheaper. My boy is now drinking Friso products, and a 900g formula costs about 199 yuan. I hope there will be at least 20-yuan's cut."

 

　　Chinese demand for foreign milk formula has risen over the year, with foreign companies accounting⁶ for half of the top 10-sellers.

 

　　It is reported the gross margin⁷ of some high-end formula can exceed 60-percent.

 

　　Song Liang is a dairy industry researcher with the Distribution Productivity Promotion⁸ Center of China Commerce.

 

　　"In the domestic market, consumers tend to believe that the more expensive the formula is, the safer it will be. It is a lucrative⁹ industry. There are a huge number of players out there and the competition is fierce. As a result, big firms have invested a large sum in product promotions¹⁰. But the increase in costs does not justify¹¹ the companies' practices of overpricing. And the current investigation will serve as a warning for the big players."

 

　　However, Song says that the price drop will only be temporary, as there is a huge demand among consumers who take food safety as their priority.

 

　　Song is not alone in believing so.

 

　　"I haven't heard about the price cut. I bought all the baby formula directly from overseas. Yes, I didn't buy any formula from supermarkets here, because of the concerns for food safety."

 

　　Back in 2008, melamine, a type of industrial chemical was detected in domestically produced milk powder, hampering¹² consumer's confidence in domestic products.

 

　　For CRI, I'm Zhang Shuangfeng.

1 investigation   

n.调查，调查研究

参考例句：

• In an investigation,a new fact became known, which told against him.在调查中新发现了一件对他不利的事实。
• He drew the conclusion by building on his own investigation.他根据自己的调查研究作出结论。

2 investigations   

（正式的）调查( investigation的名词复数 )； 侦查； 科学研究； 学术研究

参考例句：

• His investigations were intensive and thorough but revealed nothing. 他进行了深入彻底的调查，但没有发现什么。
• He often sent them out to make investigations. 他常常派他们出去作调查。

3 alleged   

a.被指控的，嫌疑的

参考例句：

• It was alleged that he had taken bribes while in office. 他被指称在任时收受贿赂。
• alleged irregularities in the election campaign 被指称竞选运动中的不正当行为

4 makers   

n.制造者，制造商（maker的复数形式）

参考例句：

• The makers of the product assured us that there had been no sacrifice of quality. 这一产品的制造商向我们保证说他们没有牺牲质量。
• The makers are about to launch out a new product. 制造商们马上要生产一种新产品。 来自《简明英汉词典》

5 ongoing   

adj.进行中的，前进的

参考例句：

• The problem is ongoing.这个问题尚未解决。
• The issues raised in the report relate directly to Age Concern's ongoing work in this area.报告中提出的问题与“关心老人”组织在这方面正在做的工作有直接的关系。

6 accounting   

n.会计，会计学，借贷对照表

参考例句：

• A job fell vacant in the accounting department.财会部出现了一个空缺。
• There's an accounting error in this entry.这笔账目里有差错。

7 margin   

n.页边空白；差额；余地，余裕；边，边缘

参考例句：

• We allowed a margin of 20 minutes in catching the train.我们有20分钟的余地赶火车。
• The village is situated at the margin of a forest.村子位于森林的边缘。

8 promotion   

n.提升，晋级；促销，宣传

参考例句：

• The teacher conferred with the principal about Dick's promotion.教师与校长商谈了迪克的升级问题。
• The clerk was given a promotion and an increase in salary.那个职员升了级，加了薪。

9 lucrative   

adj.赚钱的，可获利的

参考例句：

• He decided to turn his hobby into a lucrative sideline.他决定把自己的爱好变成赚钱的副业。
• It was not a lucrative profession.那是一个没有多少油水的职业。

10 promotions   

促进( promotion的名词复数 )； 提升； 推广； 宣传

参考例句：

• All services or promotions must have an appeal and wide application. 所有服务或促销工作都必须具有吸引力和广泛的适用性。
• He promptly directed the highest promotions and decorations for General MacArthur. 他授予麦克阿瑟将军以最高的官阶和勋奖。

11 justify   

vt.证明…正当(或有理)，为…辩护

参考例句：

• He tried to justify his absence with lame excuses.他想用站不住脚的借口为自己的缺席辩解。
• Can you justify your rude behavior to me?你能向我证明你的粗野行为是有道理的吗？

12 hampering   

妨碍，束缚，限制( hamper的现在分词 )

参考例句：

• So fraud on cows and development aid is seriously hampering growth. 因此在牛问题上和发展补助上的诈骗严重阻碍了发展。
• Short-termism, carbon-trading, disputing the science-are hampering the implementation of direct economically-led objectives. 短效主义，出售二氧化碳，进行科学辩论，这些都不利于实现以经济为主导的直接目标。