He said the growth of the local dairy industry was expected to reach between 6% and 7% this year, compared with last year’s 8% to 9%.
“However, we believe we will reach the RM1 billion target, driven by the strength of our brand and market position,” he told a press conference after the group’s annual general meeting today.
Colaco also said the group is always striving to not increase its products’ prices substantially and aimed to minimise the effects on consumers.
“In 2011, we took price increases selectively on our range of products and the total impact of this was somewhere close to 5%, broadly in line with inflation.
“This year, price increases will be less than 2%, but at the same time, the volatile economy has made it hard to predict the price of dairy raw materials as well as the currency movement,” he said.
Dutch Lady Malaysia, which operates mainly in two segments, powdered milk for children and liquid milk for families, holds a 19% market share in the local dairy market.
However, the group has captured a 22% market share in the powdered milk segment and 50% of the liquid milk segment.
“Our liquid milk business has been growing significantly and over the long term, the segment has the opportunity to grow 14 times.
“We have also planned to increase the production capacity of our liquid milk next year to cater to our growing consumer base in this segment,” he said.