Controlled dairy product prices to rise 4.9%

The directors of the Israel Dairy Board has approved the agreement for a 4.9% increase in prices of price-controlled dairy products reached between the Ministry of Agriculture, the Ministry of Finance, and dairy industry representatives. The approval comes after two months of intense negotiations between the Israel Dairy Board and the ministries, which were delayed by the dissolution of the Knesset and its legal consequences.

The decision follows a request by Tara Dairy to the joint prices committee of the Ministry of Agriculture and the Ministry of Finance for a 9.2% price increase. The committee held a public hearing at which the positions of the dairy farmers and dairy product makers were heard, and a decision was eventually made to raise prices by 6.5%. Since then, because of the rise in input costs, chiefly of corn, the price of which has shot up because of the war in Ukraine, there has been talk of a rise of 14%, but the Israel Dairy Board has now approved a rise of 4.9%.

Controlled dairy prices will be frozen until May 2023, when the price will be updated through an automatic mechanism. The agreement also removes quotas on Mozzarella, Haloumi, Gamid and Gorgonzola cheeses and exposes them fully to competition.

Published by Globes, Israel business news – en.globes.co.il – on August 22, 2022.

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