Following the publication in "Israel Today", according to which Tara opposes a rise in the price of dairy products under supervision, the company's CEO Tal Vazna announced tonight (Tuesday) that the rise in prices can only be prevented provided that the price of raw milk is frozen.
Recall that in November Tara sought to raise the price of regulated milk by 9.2% following the rise in the price of raw milk.
"It seems that the emerging plan, with its various versions, will not lead to a solution that will prevent the price of dairy products in Israel from rising in price. As is well known, the price of raw milk in Israel is among the highest in the world. "
This is the main input in the cost of production.
Any other solution is to postpone the end and roll over the problem for the coming quarter and those that will follow," writes Vazna in a letter sent to Dairy Council CEO Itzik Schneider.
"If the increase in the price of raw milk is not frozen, Tara will call for the removal of all barriers in the dairy industry, including the opening of the entire market to full imports and the lowering of tariffs, for the benefit of the consumer," warns the CEO.
Let's explain: the price of raw milk is the price of milk sold by dairy farms (Tnuva, Strauss and Terra), and it is updated once a quarter according to the dairy farmers' expenses.
In contrast, the prices of milk in the supermarket are under the supervision of the state and are updated in accordance with the recommendation of the Prices Committee, which requires the approval of the ministers.
Following Terra Laker's request for regulated dairy prices, the Prices Committee was to recommend an increase in the price of regulated products by about 5%, but public pressure caused the Minister of Finance to act to prevent the increase in prices.
Sources in the dairy industry and the Ministry of Finance said that Tara was not ready for the agreement reached by the state with the dairy farmers and the other two dairies, according to which supervised dairy products will not become more expensive and the dairies together with the state will absorb the price increase.
Now, Tara is ready to compromise on the terms of the price of raw milk will be frozen.
It should be noted that the price of raw milk is actually expected to increase in the coming quarter due to the increase in the price of raw materials for dairy farmers - the food mixture for cows is imported in part from Ukraine.
The Dairy Council said: "We are in the midst of negotiations, with the aim of preventing the rise in the prices of regulated dairy products. We are having a dialogue in the closed rooms and not in the media."
Target stated in response: "Terra sees Israeli dairy farmers as a national and strategic asset.
Terra calls on all partners in the dairy market, including the Ministries of Finance and Agriculture, to give their share so that the price of raw milk does not increase, including support and assistance to dairy farmers, all for the Israeli consumer."
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