'Minister proposes freeze on price of cottage cheese'

Industry, Trade and Labor Ministry reportedly proposes deal where price caps won't be imposed in return for voluntary freeze.

By NADAV SHEMER
June 27, 2011 18:17
1 minute read.
cottage cheese

cottage cheese 311 R. (photo credit: Marc Israel Sellem)

 
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The government, dairy manufacturers and retailers are formulating a deal on cottage cheese, according to various media reports, under which the price of the popular product will be lowered for one year in exchange for the government not reimposing price controls.

Industry, Trade and Labor Ministry director-general Sharon Kedmi met with representatives of the dairy farmers, companies and retailers late Sunday. At the meeting, the ministry agreed not to reimpose price controls on cottage cheese, if the dairy companies and supermarkets cut the price of cottage cheese for one year, Globes reported, without naming a source.

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The cut is believed to be NIS 1-2 per tub. The average price of cottage cheese was NIS 8 per tub before the beginning two weeks ago of a massive consumer boycott campaign, which prompted the intervention of government officials and temporarily brought down the price of the product.

Both the ministry and the Manufacturers Association – who represented the dairy companies at the talks – remained silent Monday on what was discussed at the meeting. However, Manufacturers Association President Shraga Brosh told Globes that while “no specific price cut is being discussed,” the intention of all sides “is for the price to be lowered and for all the parties to give something.”

The parties are set to meet again next week, with the aim of reaching a deal by the end of that week.

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