Tnuva: Increase in the price of non-supervised milk products and milk substitutes by 4.7%

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by Ifi Reporter Category:Government Nov 22, 2022

The Tnuva company announced the increase in the price of non-supervised milk products and milk substitutes by 4.7% on average and up to 4.9% at the maximum. The price increase will take effect next week, starting November 22. Tnuva announced this to all points of sale: among others containers, marketing chains and the institutional market (restaurants, cafes, hotels and offices).
Will become more expensive: all salty cheeses such as Piraeus, yellow cheeses on the shelf including Emek, Gilboa and Gush Halav, butter, special cheeses such as Promez, dairy delicacies such as Carlo, Buddy and Yolo, milk drinks and some yogurts under the Tnuva and Yofla brands. Among the milk substitute products whose prices for retailers and the institutional market will be updated: some soy drinks, oat drinks, tofu products, cheese substitutes, yogurt substitutes and delicacies.
Tnuva is raising prices after Terra Dairy, whose non-supervised products are currently not being sold in Shufersal due to their higher prices. It thus takes advantage of the interim period between the changes of power. There is no government and there is no fear of boycotting consumers and networks it seems. Tnuva is the largest food company in Israel and the dairy that dominates the shelves of dairy products. It is considered a monopoly in dairy products whose prices are controlled by the state and have recently become more expensive. It is also the largest company in the field of milk substitutes and cottage cheese, which does not increase in price.
The increase in price is due to "the sharp increase in the price of raw milk which has increased since 2019 by approximately 49 shekels per liter, which means an increase of approximately NIS 400 million in costs for yield... This is a proportional increase, especially in light of the significant increase in inputs, primarily the price of raw milk, which has increased by 24% since then The year 2019". That is, the company claims that the increase in price is directly due to the increase in the price of raw milk, but the company does not lower prices when raw milk is discounted
It seems that Tanuva is trying not to make unsupervised basic products more expensive. The company said that several products will not become more expensive, among others: low-lactose milk 2% fat 1 liter, lactose-free milk 3% fat 1 liter, Tnuva yogurt jug 4% fat 3 liters, natural Tnuva yogurt 3% fat 200 grams, Tnuva yogurt free Lactose 3% 200 g, Tnuva yogurt 5% 200 g, Tnuva yogurt 0% 200 g, Tnuva yogurt package 3% fat 8*150g, Tnuva yogurt package 1.5% fat 8*150 g, Tnuva white yogurt package in Dec 3% 8* 150, a case of Tnuva yogurt 1.5% 150 g, Tnuva ALTERNATIVE soy drink (light blue) 1 liter, Cottage Tnuva Cup 250 g 5% vat, Cottage Tnuva Cup 250 g 9% vat, Cottage with olives 5% 250 g, cottage with dill garlic 5% 250 g, cottage 1% fat 250 g, cottage 3% fat 250 g Mehdrin, cottage 5% fat 250 g Mehdrin, cottage 9% fat 250 g Mehdrin, cottage Small 5% fat 100 grams of Hadrin and Cottage Small 9% fat 100 grams of Hadrin.
It was also reported that: "Tnuva has not raised the prices of the non-supervised products since 2018, even though since 2019 the price of raw milk has risen by about 49 shekels per liter, which means an addition of about NIS 400 million to Tnuva's direct costs. In addition, in the last two years, An increase in many inputs in Israel and in the world: energy, water, property taxes, the prices of goods including the prices of soybeans which increased by 46%, and the prices of oats which increased by 43%, packaging materials and more.
"The price of raw milk, which is a central component of the production cost of dairy products (about 50% of the production cost), is set once a quarter by the state and as of October 1 stands at a record price of about NIS 2,465 per liter, after the last three years its price has risen by In light of the increase in the price of raw milk, and the significant increase in the prices of other inputs, the joint price committee of the Ministry of Finance and the Ministry of Agriculture recommended as early as March 2022 to update the prices of controlled dairy products at a rate of 6.49%, when as part of the agreement signed in June 2022 and with the agreement of the dairy industry, an increase The price of the controlled milk products last September at a rate of only 4.9%.
Will the chains refuse to raise prices? Shufercell has already announced that "we do not approve Tnuva's new price list as we did not approve the other suppliers". It can be assumed that the chain will enter into negotiations with Tnuva in the coming week. Shufersal strongly promotes Willy Food's imported products in the milk sector. The company has relaunched the yogurts it imports in containers similar to those common in Israel and at a low price.
Tnuva will mainly be expensive luxury goods and not basic. On the one hand, this is responsible on her part, on the other hand, it makes it easier for the chains to remove the products that have become more expensive from the branches. This would be a radical step because consumers do often look for Tnuva products by default when they reach the milk shelf and its substitutes. In addition, Tnuva may not supply other products to the chains as a large food supplier and the owner of Dedanet, Sunfrost, Tirat Zvi, Mama Chicken, Adom Adom, Tnuva Eggs, Tnuva Fish and Olivia.

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