dairy shelves 224 88.
(photo credit: Ariel Jerozolimski )
Consumers will pay some 6 percent more for regulated milk products starting today, the second hike since the beginning of the year. The rise is in response to the worldwide increase in animal-feed prices and the resulting rising costs to dairy producers.
"The prices of animal feed around the world are going up, so it's getting more expensive to produce raw milk in diary-farms and subsequently more expensive to create milk products in dairies," said Itzik Ben David, assistant director-general of economics and production in the Agriculture Ministry. "Since the last time prices of regulated milk products were raised, the global prices of animal feed went up by 15.5%."
The move on dairy products comes even as the country's leading bakeries have limited production of price-controlled bread as they demand the right to charge higher prices given the greater costs they are incurring due to sharp rise in wheat prices around the globe.
The Agriculture and Finance Ministry's joint pricing commission this week decided to approve an increase on the price-regulated milk products by an average of 5.98% at the dairies' request after the dairy-farmers announced that they would be raising the price of raw milk.
Under the new prices, a bag (as opposed to a carton or bottle) of 3% milk will cost NIS 4.75 - an increase of 7% over its current price.
Long-life milk will cost NIS 6.02, while the price of a container of Eshel yogurt will rise 4.8% to NIS 1.5. Sour cream will cost NIS 2.11 (an increase of 4.4%) and whipping cream will cost NIS 5.06. The price of a 100-gram stick of butter will jump 8% to NIS 3.06. Emek hard cheese will cost NIS 42.8 per kilo (an increase of 6%), while Gilboa hard cheese will cost NIS 40.45 per kilo.
This is the second time since the beginning of 2007 that the dairies have raised milk prices, which went up by some 7% in August.
Over the past few weeks, the majority of large dairies, such as Tnuva, Strauss and Tara, already raised the prices of their milk products, which are not under government regulation such as cream cheese and hard cheese.
"From the beginning of October the price of raw milk has gone up by 12% and, therefore, we decided already last to raise part of our non-regulated dairy products by an average of 7%," Tnuva told The Jerusalem Post.