According to the report of the 21st Century Business Herald on August 3rd, this newspaper was exclusively informed that the National Development and Reform Commission has agreed to the application for price increase of edible oil companies. According to sources close to the Development and Reform Commission's Price Division, the National Development and Reform Commission has agreed to apply for price increases from brands such as Arowana Kerry and Jinlong Fish will soon raise prices. “Agricultural products such as Golden Arowana and Yihai Kerry’s hibiscus flower brands will all increase prices, and the average price increase will be around 5%.”

The relevant person in charge of COFCO Fumenmen said that he heard that the price of Jinlongyu had risen, and that Yihai Kerry’s price increase notification should have already been sent to dealers. “The COFCO Fortune Gate is also discussing the price increase and will not avoid the increase. price".

Before the price increase for Jinlongyu was approved, COFCO Fortune Gate also submitted a price increase application to the National Development and Reform Commission. At this time, Yihai Kerry’s price hikes have been set, and Fulinmen will follow suit. The National Development and Reform Commission approved the price increase of Golden Dragon Fish, which means that the implementation of the oil price limit order for more than 9 months has finally come to an end. Whether this round of price rises has spilled over to industries such as flour that had previously been limited, it is attracting attention.

Arowana Price Determination

The pressure on the company’s cost pressures was too high. It was finally agreed by the NDRC that the National Development and Reform Commission approved the Jinlongyu price increase application on August 1. On August 2, the related person in charge of Yihai Kerry stated, “I can't answer whether the price increase has been approved. The rise in edible oil prices is a matter that affects the entire industry, not only the Yihai Kerry family.”

On July 10th, Luhua Peanut Oil increased its price by 5%. But soon afterwards, Lu Hua withdrew the price increase letter. When Luhua Group issued a price increase notice, Jinlongyu and Fulinmen applied for a price increase to the National Development and Reform Commission. At that time, Luhua Group’s price rise triggered a public opinion question, and the NDRC did not state its position.

At this time, the Development and Reform Commission agreed that Yihai Kerry’s price increase means that the company’s cost pressure is too high and it has finally received approval from the NDRC. This also means that Yihai Kerry’s brands including Golden Dragon Fish and Orchid Flower will increase prices in the near future. The relevant person in charge of COFCO Fumenmen told the reporter, “I have heard (Arowana) price increases, which is the two days. The Yihai Kerry price increase notification should have been issued to the dealers.”

Yihai Kerry is the largest soybean crushing company and small packaged edible oil producer in China. According to data from China Textile Group, Yihai Kerry crushes soybean production capacity of 52,000 tons per day, which accounts for 26% of the domestic soybean crushing market share. In the small packaged edible oil market, Yihai Kerry sold 3.4 million tons of edible oil in 2010, accounting for 59% of the domestic market share. Among them, a goldfish brand accounts for 40% of the domestic market. The increase in price of edible oil bosses has been approved, which means that the big brands such as COFCO Fortune, Jiusan Group, and Huifu Group will follow the price increase, setting off a new wave of price increases.

Before, informed sources disclosed that at the time of Luhua Group's price increase, Golden Dragon Fish and COFCO Fortune Gate also applied for price increases to the National Development and Reform Commission. At that time, the Development and Reform Commission did not indicate its position. Fortuneous people said, “Now internal evaluation of this matter will not avoid the price increase. We are not the same as other companies, as a central enterprise, to consider price issues related to the people.”

End of limit order

"The number of chips that can be used is getting less and less, and eventually agrees that companies will increase prices."

The increase in price of Golden Arowana was approved, which means that the National Development and Reform Commission’s limit order on edible oil was attributed to the “end”.

Since the second half of 2010, the price of oil and fats has steadily increased. In order to curb the rise in edible oil prices and boost inflation, the National Development and Reform Commission convened Yihai Kerry, COFCO, China Textile Group, Jiusan Group and Huifu Group in November of that year. The five major small packaged edible oil companies discussed and asked the companies not to increase their prices.

At the same time, in order to ease the pressure on business costs, the state targeted five companies, including Yihai Kerry and COFCO, to sell 2 million tons of state-owned soybeans and 400,000 tons of State Reserve soybean oil. Among them, Yihai Kerry has nearly 250,000 tons of soybean oil, but due to the country's limited supply, it can only be used for one month.

However, during the price limit period, large enterprises can obtain a certain number of oils and fats that are targeted for auction by the state, and the price is cheaper than the market price. Since small companies do not assume the responsibility of price limits, they are also unable to participate in targeted auctions. Small companies that process 100 tons of soybeans daily are facing difficulties. This path of non-market elimination has also suffered from some corporate criticism.

Due to the small packaged edible oil National Development and Reform Commission's limit price of 9400 yuan per ton, and starting from the limit order, when the domestic market level soybean oil price was more than 10,000 yuan, so that the company started working on a loss. COFCO Fumenmen said that the price of soybean oil at the current level is at 1,030 yuan per ton, and processing costs will be 630 yuan per ton. The Yihai Kerry side said that this year, in order to limit the sales company losses of 800 million -900 million yuan. If the country can provide directional auctions, this can also ease the cost pressures of companies.

According to Chen Lina, an oil analyst at AEG Oil in the East, the country has already targeted more than 5 million tons of soybeans, and the state reserve has only 2 million tons. These countries will not use them when they have no alternative but to last. Therefore, people from the business community have analyzed that although inflationary pressures still exist, there are fewer and fewer chips that can be used by the relevant departments. In the end, they can only go along the path of agreeing to a price increase by enterprises. The National Development and Reform Commission issued a signal to ease the price control. The flour processing and daily chemical washing industries may also be affected.