Products similar to those placed under price control, such as 3% soft white cheese, will likely be lowered.
Despite protesting that the Ministry of Finance's decision to introduce price controls on 5% soft white cheese and 28% whipping cream will substantially worsen their financial results, Tnuva Food Industries Ltd. is considering lowering the prices of other dairy products, sources inform "Globes."
Tnuva is mulling lowering prices of products similar to those being placed under price control. This includes for example 3% soft white cheese, which unlike 5% soft white cheese has not been placed under price control. After price controls are introduced 5% soft white cheese will go down in price by 20% to NIS 5.11 for a 250 gram container from the current NIS 6.50. 3% soft white cheese is currently a similar price to 5% and if the price is not lowered, it is feared that consumers will completely abandon the product for 5% soft white cheese.
A final decision has not been taken but if prices are lowered on products similar to those placed under price control, it will unlikely be by the full 20%.
Published by Globes [online], Israel business news - www.globes-online.com - on December 31, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013
Ilanit Hayut and Lilach Weissman