Tnuva announces price hikes on majority of unregulated dairy products

Major Israeli food manufacturer Tnuva announced on Monday that it would be hiking the prices on hundreds of its products, a move that a major supermarket chain immediately announced it would not comply with.

The planned hike will come into effect next Wednesday, November 22, and is expected to impact nearly all of the company’s dairy products that have prices that are not government-regulated.

These could include dairy products such as many kinds of cheese, butter and milk products, as well as some non-dairy substitutes like soy- and oat-based beverages and tofu.

Overall, the prices of the affected products were expected to rise by around 4.7 percent.

Some exceptions to the price rise include unregulated basic food items such as certain yogurts, lactose-free milk and cottage cheese — which was at the epicenter of the 2011 Israeli consumer boycott over the rising cost of living.

In a statement issued by Tnuva, the company explained the increases as being due to the “sharp rise of [the cost of] raw milk” which has increased by 24 percent since 2019 and has added NIS 400 million in expenses to the company.

An undated picture of Tnuva cottage cheese in a Jerusalem supermarket. (Nati Shohat/Flash90)

The company added that it had not raised the prices of unregulated products since 2018.

However, it is worth noting that Tnuva didn’t lower the price of its dairy products, even when the price of raw milk dropped, such as in 2014.

According to the Calcalist financial website, Tnuva’s expected net profit for 2022 will be around NIS 300 million (approximately $87 million), a decrease of more than 30% compared to 2021.

Tnuva’s announcement comes as the company is still dealing with public backlash over several incidents of animal parts being found in its frozen vegetable products in recent months.

Responding to Tnuva’s announcement, Israel’s largest supermarket chain Shufersal said it would oppose the planned price hike by those taking products off its shelves.

“We don’t approve Tnuva’s new price list, in the same way that we haven’t approved similar attempts by other providers,” Shufersal said in a statement.

Shufersal has previously boycotted dairy products manufactured by other major producers like Tara, the second largest dairy processor after Tnuva, and Gad Dairies, both of which announced price hikes a few months ago.

Other manufacturers and importers have faced consumer boycotts for raising prices.

Food manufacturer giant Strauss Group has not announced plans to increase the prices of its dairy products as of yet.

Illustrative: People outside a Shufersal supermarket in Safed on April 6, 2020. (David Cohen/Flash90)

In August, the Israeli Dairy Board approved raising the price of price-regulated dairy products like milk, cheese and butter by 4.95%.

According to a survey published last week by the Israel Democracy Institute, 44% of Israeli respondents said the rising cost of living was a main factor influencing their decision on whom to vote for.

Likud leader Benjamin Netanyahu, whose political bloc won a large majority in the November 1 election, has focused much of his election campaign on the rising cost of living.

Israeli politics told straight

I joined The Times of Israel after many years covering US and Israeli politics for Hebrew news outlets.

I believe responsible for coverage of Israeli politicians means presenting a 360 degree view of their words and deeds – not only conveying what occurs, but also what that means in the broader context of Israeli society and the region.

That’s hard to do because you can rarely take politicians at face value – you must go the extra mile to present full context and try to overcome your own biases.

I’m proud of our work that tells the story of Israeli politics straight and comprehensively. I believe Israel is stronger and more democratic when professional women do that tough job well.

Your support for our work by joining The Times of Israel Community helps ensure we can continue to do so.

Thank you,
Tal Schneider, Political Correspondent

Join Our Community Join Our Community Already a member? Sign in to stop seeing this

You’re a dedicated reader

That’s why we started the Times of Israel ten years ago – to provide discerning readers like you with must-read coverage of Israel and the Jewish world.

So now we have a request. Unlike other news outlets, we haven’t put up a paywall. But as the journalism we do is costly, we invite readers for whom The Times of Israel has become important to help support our work by joining The Times of Israel Community.

For as little as $6 a month you can help support our quality journalism while enjoying The Times of Israel AD-FREEas well as accessing exclusive content available only to Times of Israel Community members.

Thank you,
David Horovitz, Founding Editor of The Times of Israel

Join Our Community Join Our Community Already a member? Sign in to stop seeing this

Leave a Comment