Agriculture, Finance Ministries' Pricing Commission gives go-ahead for dairies to increase prices of subsidized milk products by up to 7%; raise due to increasing costs in raw milk production
Over the past few week, many of the large dairies, such as Tnuva, Strauss and Tara, have already raised the prices of their unsubsidized milk products, such as cream cheese and hard cheese, and have asked the Agriculture Ministry to raise the prices of subsidized milk products as well.
The dairies' request came after the dairy-farmers announced they will be rising the price of raw milk, which is the form sold to dairies.
This is the second time since the beginning of 2007 that the dairies have raised milk prices – milk prices have already gone up by some 7% in August.
Subsidized milk products are expected to increase similarly now: the price of 3% milk will rise 7%, 1% milk will increase by 6%, the price of sour and whipping creams will go up by 4.4% and butter prices will increase by 8%.
"The prices of animal feed around the world are going up, so it's getting more expensive to produce raw milk in diary-farms and subsequently more expensive to create milk products in dairies," Itzik Ben David, assistant director-general of economics and production in the Agriculture Ministry, told Ynet.
The expected rise in subsidized milk prices is part of an ongoing increase in the prices of many basic grocery products: the past few months have seen an increase in sugar, flour, pasta and detergent prices, and the prices of electricity and subsidized bread.
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