milk - Haaretz - November 23 2010
Yotvata chocolate milk. Photo by Haaretz
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Haaretz
Danone yoghurt. Photo by Haaretz

The Strauss Group will be raising the prices on some of its dairy products, in the wake of similar moves by the rival dairy companies Tnuva and Tara, TheMarker has learned.

Strauss sent a new price list to the grocery store chains and supermarkets that goes into effect next month. Prices on the list are between 2% and 7.6% higher.

Gad Dairy is also planning to raise prices by 3% to 5% in mid-December.

"Our raw materials and inputs have become more expensive, and unfortunately we have to do this," said Gad CEO Ezra Cohen.

Bags of 3% milk will be selling for NIS 5.32, up from NIS 5.12, an increase of 4%. The price of fortified milk will be increasing 2%, and cottage cheese will be increasing 5.3%.

Dannon yogurt will become 2.3% more expensive, while cream and leben yogurt will be increasing by 4%.

Strauss is also increasing the price of other products, like coffee, honey and artificial sweetener. Coffee and hot chocolate mix will be 4% to 10% more expensive, artificial sweetener will be going up 9.6% and frozen mixed vegetables will be going up 19%.

Part of the reason for the price increases is milk shortages that struck Israel following the unusually hot sumer. In the heat, milk production by cows sufffered, farmers reported. One result was a shortage of butter, which was resolved only in part through imports.