Tnuva Food Industries Ltd. today announced that it is raising prices, a day after Strauss Group Ltd. (TASE:STRS) announced that it was raising prices for dairy products by up to 4.8%. In contrast to Strauss which raised the price for cottage cheese, Tnuva decided play it safe and is not raising the price of the product that symbolized last year's social protest.
Tnuva is raising prices of products by up to 4.8%; the average price hike is 3.5%. The price hike for dairy products is due to the hike in the target price for raw milk. It should be noted that although the government has raised the target price of raw milk, it has not yet updated prices for price-controlled dairy items.
The price hikes include the following products: white cheeses - 2.5%; milk beverages - 4.8%; enriched milk - 3%; yogurts - 4.8%; puddings - 3.5%; packaged yellow cheeses - 4.8%; and salty cheeses - 4.8%.
Tnuva is also raising prices for products of subsidiaries Snowfrost (frozen vegetables), Maadanit (prepared foods), Mama Off (chicken), Olivia (spreads), and Adom Adom (meat). The average price hike for the products is 4.6%: 4% for Maadanit and Snowfrost, and 5% for Adom Adom, Mama Off, and Olivia.
Tnuva said, "The price hike is due to the rise in prices for inputs and raw materials (wheat, poultry, oil, etc.), and higher production costs, including electricity, water, fuel, and arnona (local property tax) over the past year."
This is the first time that Tnuva is raising prices since the social protest broke out in the summer of 2011, when the cottage cheese protest set off a wave of protests after "Globes" published a series of articles about the cost of food and consumer products in Israel.
Published by Globes [online], Israel business news - www.globes-online.com - on October 25, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012