The Ministry of Industry, Trade and Labor has cut the price of the price controlled breads by 2.7%. The ministry cited the drop in the price of wheat and crude oil on global commodities markets. The price cut will come into effect when Minister of Industry, Trade and Labor Eli Yishai and Minister of Finance Ronnie Bar-On sign the order.
The Ministry of Industry said its calculation of the cost of producing the standard white bread loaf found that the price justified a cut of 7.42%. However, bakeries lose 4.59% on each loaf. The ministry's price cut is the differential.
The price of a 750-gram standard white bread loaf will now cost NIS 4.64, down from NIS 4.75. The cost a 500-gram challah will fall to NIS 5.07 from NIS 5.20.
Israel Bakeries Association chairman Yohanan Aharonson said in response, "The drop in the price of raw materials offsets past losses. There is no room for a price cut, and we will petition the courts."
Published by Globes [online], Israel business news - www.globes-online.com - on November 18, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008