Subscribe to Print Edition | Mon., November 26, 2007 Kislev 16, 5768 | | Israel Time: 04:42 (EST+7) web haaretz.com   Back to Homepage Rosner's Domain Diplomacy Defense Jewish World Opinion National Print Edition Advertising Books Arts & Leisure Business Real Estate Easy Start Travel Week's End Anglo File

A challah bakery production line. (Nir Kafri) del.icio.us Digg It!  new Last update - 11:47 08/07/2007 Bakeries to halt production of price-controlled bread over costs hike By Ora Koren and Zvi Zrahiya, Haaretz Correspondent Bakeries will halt Sunday morning the production of price-controlled bread, due to the rise in global flour prices and government's refusal to raise the cost of bread accordingly, Israel Radio reported. Nearly 800 bakery workers have been taken off production lines due to last week's flour crisis, according to the representative of the country's bakeries, who is holding talks with the government. The bakeries have threatened to halt the production of any bread type subject to price control unless they receive appropriate compensation. Bakery owners maintain that the price price-controlled bread must increase by 12.5 percent. Advertisement The bread types involved are white, dark and regular challah. The bakeries' representative, Yohanan Aharonson, maintains that a 30.7 percent rise in the price would cover the bakeries' costs. He said that since 2004 bread has been produced at a loss, which has been covered by the relatively high price of bread not subject to price controls. Aharonson said he will recommend to the government today to set up a joint committee of treasury, Industry and Trade Ministry and bakery officials to agree on a new mechanism that will enable repayment of the government debt to the bakeries. The cabinet will discuss on Sunday a proposal by Industry and Trade Minister Eli Yishai that would compensate the poor yet allow bakeries to raise the price of price-controlled bread. However, at this stage Yishai believes the bakeries are entitled to only a 3.9 percent price rise. Knesset Economic Affairs Committee head Gilad Erdan will hold an urgent meeting to discuss the shortage of bread subject to price controls. Erdan attacked Prime Minister Ehud Olmert, Labor Party leader Ehud Barak and Yishai over their anti-welfare policies. Bookmark to del.icio.us Virtual diplomacy Peres Center to distribute computer game simulating the peace process. Size does matter A giant Israeli flag at Masada breaks world record for largest in world.   1.   Let them eat cake: 08:27  |  Yosef 08/07/07   2.   Bakeries to Halt production of price controlled bread 09:12  |  Louis 14th 08/07/07   3.   Off with his Head 09:52  |  VoiceOfReason 08/07/07   4.   it will rise more and more 10:13  |  nergal 08/07/07   5.   Cheap demagoguery (part 1) 10:26  |  Yonatan 08/07/07   6.   Cheap demagoguery (part 2) 10:30  |  Yonatan 08/07/07   7.   Louis XIV, you forgot your history as well 10:32  |  Louis XVI and Marie 08/07/07   8.   bread riots - to # 2 10:49  |  Gilbert 08/07/07   9.   Down with the elitist Government 10:59  |  Daniel 08/07/07   10.   shortages 11:28  |  Michael 08/07/07   11.   Who will make the bread? 18:56  |  thelonee cabbage 08/07/07   12.   bread 04:18  |  colin 26/11/07

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