Zoglovac factory in Shlomi.
According to the CEO, the price increase should have been double, but the company decided to absorb half of it (Photo: PR, Zoglovac)
The outgoing government has stopped functioning - and the new government is signaling with a wink to every possible factor in the food sector that it is better to raise prices now, before it happens on its watch.
In between, the Israeli consumer stands stunned by the wave of price increases that seems to be of no interest to any of the decision makers.
The rising "star" of the cost of living is the Zoglovac factory in Nahariya, which published today: "Following the increase in the prices of chicken and turkey by the Farmers Union by more than 30%, Zoglovac was forced to update its prices by 9.8%."
Vala has learned that the increase in price will only take effect in about two weeks, at the beginning of January 2023, and will not include the group's Minister replacement products, "Wonder".
Zoglovac's peppered pastrami - in about two weeks it will be more expensive (photo: PR, Zoglovac)
The CEO claims that the high price of chicken and turkey brought the company to losses
In Zoglovac they report that this is a moderate increase and point out that the real rate of inflation was supposed to be about 20%.
In other words: we still got out cheap.
According to
Ran Akerman, CEO of Zoglovac
: "For 12 years, we did everything in our power not to raise the prices of our products, through countless efficiency measures, but finally the increases in the prices of raw materials and inputs overwhelmed us.
Our main raw material, chicken and turkey, became more expensive from the first quarter of 2021 by more than 30%.
Over the past 12 years, most of our raw materials, packaging materials and inputs (property tax, electricity and water) have become more expensive at double-digit rates.
The price increase of this magnitude brings us to losses.
The realistic price update that is required of us, in order to deal with the wave of price increases, is at a rate of 20%, but we decided to update the prices at the minimum possible rate of 9.8%.
We will continue to absorb a large part of the price increases, in the hope that we will also see decreases in some of the raw materials in the coming period."
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Cost of living
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