The Price Control Committee was supposed to publish its recommendation to increase the price of regulated dairy products, but Terra Dairy refuses to absorb the increase – thus delaying an agreement between the state and dairies designed to prevent the price increase.
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The affair began three months ago: Terra contacted the Prices Committee with a request to increase the price of regulated dairy products by 9.2%.
The reason, she claims: prices have not been updated for more than two years, despite significant changes in raw material prices.
According to information received by Sonia Gorodisky from Israel Today, the committee was going to recommend raising product prices by 3.36%, but then Tnuva submitted a request for another hearing, and in the end, the committee is expected to recommend a 5% increase.
According to a report in Israel Today, as part of the summary, it was decided that the dairies and the state would absorb the increase in prices, and thus the prices of the regulated products would not rise – despite the committee’s recommendation.
But Sheetra, which is owned by the Central Soft Drinks Company, opposes – and the dairy says it is waiting for the committee’s recommendations to be published.
The Minister of Finance and his office are making great efforts to prevent the price of regulated dairy products from rising. Negotiations are currently underway with the dairies and dairymen, so the committee’s recommendation has not yet been published.
Sources involved in the negotiations told Israel Today: “The Treasury intends to move forward in this event even without a hitch, and that they will face the market and competition. If she wants to hurt consumers, she will do it. “
At this stage, it is not clear how it will be possible to proceed exclusively with ‘Terra’, with regard to regulated dairy products. For, if Terra refuses to absorb the rise in prices of products and raises their prices in accordance with the committee’s recommendation, while Tnuva and Strauss will not rise, then the whole meaning of price controls will be lost.
Another question that arises is why ‘Terra’, which from the beginning sought to increase the price of regulated dairy products, does not raise the prices of unregulated products, which it is allowed to raise – unless it intends to obtain from the state legitimacy to raise the prices of other products.
It should be noted that the increase in the price of regulated dairy products is expected to lead to an increase in the price of unregulated dairy products as well – which will significantly affect the shopping basket. These are a variety of basic dairy products such as milk in a carton or bag, yellow cheese and sour or sweet cream.
Tara responded: “It is awaiting the publication of the committee’s recommendations, after which it will formulate its position. Any publication of speculation or hypothesis is wrong and misleading. “