The crisis was caused when Israel's largest agricultural cooperative, Tara, decided to cease production of butter, which, combined with the inability of the second largest producer, Tnuva, to meet market demands, led to shortages and a subsequent rise in prices.In some cases, a 100 gram package that typically sells for NIS 3 more than doubled to NIS 10.
The Ministry of Agriculture's decision was made as a result of significant increases in butter imported from different countries. The new plan may also mean that business owners who choose to import butter may have to sell it at the controlled price, set at NIS 3.94 per 100 grams.