A decision to place government pricing control over a number of dairy items will result in a price reduction, approximately 20%. The new regulation will affect 5% white cheese and sweet cream with 38% fat. In addition, the price of milk, including 1% fat milk in both cartons and plastic bags will be reduced by 1.1%. The new regulation will begin on January 1, 2014.

In line with the new regulation the following prices will take effect on January 1st.

1. 5% white cheese (250 grams) will cost 5.11 NIS instead of 6.5 NIS

2. Sweet cream (250 grams) will sell for 6.67 NIS instead of 8.30 NIS

An independent auditor hired by the government assessed the situation, the pricing of dairy items sold by Tnuva. He explained the profit margin of these two items was extreme in relation to the profit of items under government control.

Finance Minister Yair Lapid added that he feels price controlling by the government is not a long range solution, adding he will continue doing everything in his power to bring prices to an affordable level for consumers.

(YWN – Israel Desk, Jerusalem)