Shufersal aims to shake up dairy market with cheaper self-branded milk products

The products will be priced lower than the current going rate and will bring down dairy prices for all Israelis, Shufersal CEO Itzik Abercohen says.

May 3, 2015 23:20
1 minute read.
'Shufersal' supermarket

'Shufersal' supermarket. (photo credit: REUTERS)


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analysis from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


Supermarket chain Shufersal intends to compete in Israel’s exceptionally concentrated dairy market, introducing products in four categories: fresh milk, chocolate milk, yellow cheese and whipping cream.

The company is already planning an expansion into fortified milk, lactose-free milk, Gouda, mozzarella and cream cheese. The milk and cream products are to be manufactured at the Golan Heights Dairies, while some of the cheeses will be imported from Netherlands-based Campina (Gouda), Italy- based Zanetti (Parmesan) and Austria-based Berglandmilch (Edem).

The products will be priced lower than the current going rate and will bring down dairy prices for all Israelis, Shufersal CEO Itzik Abercohen said.

“We consider the entry of the private brand for dairy products a strategic tool for reducing the cost of living in Israel,” he said.

The prices Shufersal presented Sunday were 10 percent to 25% lower than the government- mandated supervised prices for the various products.

Israel’s dairy market is notoriously concentrated, with just three companies accounting for the vast majority of market share. In the NIS 7.5 billion milk market, for example, Tnuva controls 55%, while competitors Strauss takes in a quarter and Tara another 15%. Shufersal hopes to control 20% to 25% of the market by year-end.

Even though Israeli cows are the most productive milk producers in the world, the lack of competition keeps local prices high: 40% to 50% higher than the OECD, according to a Shufersal executive.

But there are other problems in the market. The government controls a convoluted system of quotas and guaranteed prices to the more than 1,000 small dairies that work in consortium to supply the big companies. While European cows feed on abundant grass, their Israeli counterparts eat expensive grain due to climate differences.

Steps have been taken in recent years to lower barriers to importing dairy products, for which some import duties had been as high as 125%.

Dairy prices hold a particularly important place in the political psyche. The massive cost-of-living street protest of 2011 were preceded by outrage over the price of cottage cheese. The cost of the staple, which had been removed from price supervision in 2008, rose 45% in three years.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

Cables and computers are seen inside a data centre at an office in the heart of the financial distri
June 18, 2019
Israel to assist developing countries improve cyber resilience


Cookie Settings