China's Bright Dairy to raise milk prices

SHANGHAI, March 28 (Reuters) - Bright Dairy & Food Co (600597.SS: Quote, Profile, Research, Stock Buzz), China's third-largest dairy producer, said on Friday it had obtained approval from the National Development and Reform Commission to raise milk prices.

The company, which competes with bigger rivals Mengniu Dairy (2319.HK: Quote, Profile, Research, Stock Buzz) and Yili Co (600887.SS: Quote, Profile, Research, Stock Buzz), said it expected to raise prices of fresh milk and UHT milk, which is partially sterilised and has a longer shelf life, by 14 percent in certain regions. It did not elaborate.

The commission, China's economic planning agency, said in January that all major producers or processors of daily necessities, including milk, flour, rice, noodles and cooking oil, needed approval from the central government to raise prices, in an effort to curb inflation.

This week marked the first time that the commission had given approval for a price rise under this order, the official Shanghai Securities News said.

The commission also said on its Web site that it gave permission for Shijiazhuang Sanlu Group, based in the northern province of Hebei, to raise milk prices. (Reporting by Rujun Shen; Editing by Andrew Torchia and Edmund Klamann)