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(photo credit: riel Jerozolimski/The Jerusalem Post)
As the prices of regulated breads are set to rise by 12.5 percent from Wednesday, economists predict bakery owners will see their their annual revenues increase by some NIS 70 million to NIS 75m.
Industry, Trade and Labor Minister Eli Yishai announced on Tuesday that price-controlled breads will be back on supermarket shelves beginning Wednesday, albeit at a higher price, putting an end to the bread crisis after three weeks of shortage. On Sunday, the government backed down to the demands of bakery owners and agreed to raise the price of subsidized breads by 12.5%. As such, the prices of regulated breads will go up by between 50 and 70 agorot from Wednesday.
Economists at Dun & Bradstreet Israel estimated Tuesday that the increase of price-controlled breads will boost annual revenues of the major bakery owners by up to NIS 75m. Angel Bakery, one of the three leading bakery owners with 35% market share, is expected to increase its annual revenues by between NIS 20m. and NIS 25m., according to the business research firm.
At the same time, Yishai announced that weaker population groups will be eligible for retroactive compensation in the form of a monthly allowance from the beginning of 2008.
On January 1, benefit seeker and National Insurance Institute payments will be adjusted as a measure of changes in the consumer price index for the bottom 20th percentile, Yishai said.
A newly established committee, including representatives of the National Insurance Institute and the Welfare Ministry, has been ordered to prepare the required adjustments to the current legislation to compensate weaker population groups within 45 days.