The Ministry of Economy, in a precedent-setting move, requires the 15 giant companies in the food market to disclose their financial statements, detail production costs and disclose their profit figures within 21 days. This is the first time that the Ministry of Economy has made any real reference to the heavy wave of price increases sweeping the economy. The effectiveness of this step is questionable, but it is still an important step that shows companies that they are under the eyes of the Ministry of Economy.
A short time ago, the Price Supervisor at the Ministry of Economy and Industry sent demand letters to some of the largest manufacturers and importers in the economy, demanding comprehensive data on their production costs, including a demand to present financial statements and pricing.
This is the first time that the Ministry of Economy has addressed the wave of price increases in any real way. Osem products on the shelves,
Dr. Jonathan Bezalel, the Ministry's price supervisor, sent the letters under his authority pursuant to Chapter VII of the Law and sections 6 and 31 of the Control of Prices of Goods and Services Law, 1996-21, under which importers and manufacturers are required to provide full details of documents that will disclose, among other things, their production costs and profits within <> days.
The companies that received the letter and will be required to disclose their reports and data within 21 days: Diplomat, Unilever, Osem, Shastowicz, Sugat, Hogla Kimberly, Central Beverage Company, Strauss, Willy Food, Sano, Jafora Tabori, Vysotsky Tea, Neto Trade, Abbott and Guri.
"We clearly see that manufacturers and importers are taking advantage of the high concentration." Minister of Economy Barkat, photo: Oren Ben Hakon
Economy Minister Nir Barkat: "We will fight an all-out war against monopolies and cartels that unjustly oppress the public. The giant companies have become accustomed to treating the Israeli public like a cash cow. My instruction is to use all the tools at our disposal, however serious, to combat the deep failures in the food market in Israel. We clearly see that manufacturers and importers are taking advantage of the high concentration and lack of competition in the markets to raise prices. We will not hesitate to employ mechanisms of this kind to combat entities that ignore the public and raise prices crudely. At a time when the citizens of Israel are groaning, the monopolies are raising prices in a shocking disconnection, and this is at a time when the prices of inputs and sea freight are constantly declining. The celebration is over."
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