Prices of formula milk fell 4.8% between May and November last year

SINGAPORE – Greater consumer awareness and the introduction of new brands of formula milk have led to the average prices of formula milk falling 4.8 per cent between May and November last year. Total sales of infant formula milk was also down by some 17 per cent.

Giving an update on the work done by Government’s formula milk taskforce on Thursday (Feb 8), Dr Koh Poh Koon, cited retail data from Nielsen to show that his taskforce has achieved its objectives.

Dr Koh, who is Senior Minister of State for National Development, Trade and Industry, chairs the taskforce which was set up in May last year to address the rising prices of milk in Singapore. His six-member team concentrated their efforts on three areas: adjusting guidelines and regulations for the advertising, labelling and import of formula milk to encourage greater price competition; stepping up public education efforts; and encouraging hospitals to provide more support for breastfeeding.

Since May last year, six new brands of formula milk, with 25 products, have been introduced. He added that there are now five affordable brand options costing less than S$35 for infants aged below 12 months, up from two in May last year.

He also pointed to increased consumer awareness, which had translated to tangible shifts in their purchasing patterns of formula milk.

More mothers intend to switch from formula milk to whole cow’s milk when their child turns one, according to surveys conducted by the Health Promotion Board between July and September last year. The ratio has risen from 43 per cent to 62 per cent.

Mothers were also more aware that all formula milk in Singapore provides sufficient nutrition, rising to 74 per cent of respondents, from 65 per cent.

Dr Koh also spelled out efforts to work with private hospitals to achieve the Baby Friendly Hospital Initiative (BFHI) certification, which promotes breastfeeding. Last month, Raffles Hospital was the first private hospital to come on board the initiative, committing to achieving its BFHI certification by 2019.

To help curb excessive marketing of formula milk and encourage greater price competition – rather than competing on health and nutrition claims – the authorities said the Food Regulations will be amended.

These new amendments will include a prohibition of health claims that state or imply that a food or its ingredients can lead to health outcomes; nutrition claims; statements that claim a product is nutritionally complete; texts and images that idealise the use of infant formula, for instance.

This is to ensure that parents will not face “heightened anxiety” due to “excessive labelling”, said Dr Koh.

Citing how companies may list iron and calcium in their labelling for formula milk, Dr Koh explained: “Iron and calcium is ubiquitous to all brands. If it is not something that is unique to a particular formulation, we will forbid highlighting this upfront as it creates the impression that this particular formula milk contains this (ingredient), when all other products have it.”

While going to the extent of having plain packaging would be “extreme”, he said that such measures would prevent “egregious claims that hype up the product and make parents anxious and part with their hard earned money on something that is just as nutritionally adequate”.

Dr Koh said he hoped that with the available options, it will lead to greater market competition and for brands to “compete on prices, rather than on advertising”.

Asked about contradictory data in the Consumer Price Index (CPI) released by the Department of Statistics which showed that the average price of a 900g tin of infant milk powder went up by 59 cents to S$56.65 last year, Dr Koh’s response was that there was a difference in the methodology done.

The CPI data “looks at the whole basket of goods and is weighted by market share”, he explained. The new products, especially the cheaper market formula, do not occupy the majority market share at the moment and would, therefore, not be included in the calculation.

Even though the results have been encouraging, Dr Koh said these are still “early days”, and the taskforce would continue to monitor the market and see how it would respond to the measures undertaken.

“We don’t want to be aggressive in (pushing for changes), as behavioural change will take time,” he said.

Supermarket giant NTUC FairPrice, which introduced two new formula milk brands – Australia’s Own and its own housebrand FairPrice Gold – last year, said in a press release on Thursday that a number of its customers have indeed switched to the cheaper brands.

 As of December last year, it has observed an 8.5 per cent decline in sale of higher-priced brands of formula milk in proportion of its total formula milk sales. Sales of mid- and low-priced formula milk have also increased in proportion by 6.2 per cent and 2.2 per cent respectively.

The average price of formula milk had declined by 2.6 per to S$47.12, from S$48.37, added FairPrice. Its spokesman said more than half the customers who bought its two new formula milk brands had switched over from higher-priced brands.

One parent who made the switch to a cheaper formula has halved her spending. After changing to a cheaper formula for her 14-month daughter in December, teacher Chelsia Chan, 31, said she now spends about S$30 per tin, down from S$50 to S$60 previously.

Adding that she does not think more expensive brands equate to better quality, she said: “Every child needs different type of milk, and every brand has its own supporters … As long as your child drinks it and is happy with it, that’s okay.”

Despite the education blitz and cheaper options, some parents are adamantly sticking to the more pricey options.

A mother who would only give her name as Ms Lynn said she is still “worried about the source of the milk powder” and “does not have the confidence” to switch to cheaper brands for her sons, aged two and four.

She spends about S$80 per tin, and still opts for formula milk instead of fresh milk as she is worried her children may not have enough vitamins in their daily meal intake.

“Compared to other older, more established brands, these brands are new in the market, so they need some time to build up their reputation … (If something goes wrong), they might just close down their company and pull out of Singapore … That's what worries most mothers", she said.