Heads of Israeli food and retail chains says they expect Israeli food prices to rise sharply in the coming weeks following soaring prices in the world's commodity markets.

Over the past year, the price of coffee has risen by 54%, sugar prices are at a seven month high, wheat prices are surging and cotton is at a 15 year high.

However, Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. (TASE:RMLI) CEO Rami Levi told "Globes" that the strength of the shekel against the dollar is moderating price rises. He said, "There will be no choice but to put up the prices of food because of the rise in the price of raw materials. But in places where raw materials are bought with dollars, we can moderate the rise in production inputs and we must hope that the importers will not ride the wave and put up prices where there is no need. But if you need to there is no need. But oil and wheat prices have gone up lately and it is difficult to see a situation where there won't be some sort of price rises."

Gad Dairy CEO Ezra Cohen said, "We are talking about a catastrophe. Meanwhile, we are still absorbing rises but the price of raw materials is still going up and eventually we will not to raise prices. The problem is that we don't know where the world is going on this. Stock exchanges are very stable."

Strauss Group Ltd. (TASE:STRS) president and CEO and chairman of the food association of the Manufacturers' Association Gadi Lesin said, "I expect more rises in the price of raw materials in the coming months and following that there will be price rises for the consumer. But it is impossible to say at the moment how much those rises will be. Every week there are raw materials that rise and raw materials that fall. Because there are very many speculators not connected to the food industry influencing the price, while they have no connection to consumer demand for products."

Published by Globes, Israel business news - www.globes-online.com - on September 27, 2010

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