The food company says that controls on the prices of white cheese and cream will have a "material adverse effect" on its business.
Mivtach Shamir, which control food company Tnuva, notified the Tel Aviv Stock exchange today that it intended to "take steps" to reduce the impact of white soft cheese and whipping cream being placed under government price controls.
Tnuva reports that the measure announced yesterday by Minister of Finance Yair Lapid and Minister of Agriculture Yair Shamir could have a material adverse effect on its business. The company says that, at this stage, it cannot quantify the precise effect of the changes, nor estimate how far the steps it is taking to reduce the effect will succeed. Among these steps is reported to be a reduction in the discounts Tnuva allows to supermarket chains on other products.
According to Tnuva's price list, the recommended retail price of a 250 gram container of 5% fat white cheese is NIS 6.54. Once the product becomes subject to price controls, its price will be NIS 5.23. The recommended retail price of a 250 milliliter container of 38% fat long-life cream is currently NIS 8.23. The price is expected to fall to NIS 6.6.
Published by Globes [online], Israel business news - www.globes-online.com - on December 31, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013
Ilanit Hayut and Lilach Weissman