Sources inform “Globes” that kibbutzim Revivim and Nir Eliyahu have signed a new contract to supply milk to Yotvata , after Tnuva refused to improve its contract terms with the two kibbutzim.
The Revivim dairy supplied milk to Tnuva for decades. After Revivim and Nir Eliyahu merged their dairies to form a partnership in 2001, they consolidated their position as one of Israel's largest dairies, producing over 6 million liters of milk a year.
Dairy general manager Eran Erez told "Globes" that the partnership had found a better business opportunity and therefore signed the contract with Yotvata. "We're not angry or disappointed with Tnuva. On the contrary," he said, adding that Yotvata needed more milk, because it had been growing steadily since its merger with Strauss.
Erez said the partnership was negotiating to bring in the Kibbutz Kfar Aza dairy as a third partner, in order to increase milk production to over 10 million liters a year.
Tnuva CEO Arik Raichman said in response, "Tnuva works on equal terms with all dairies, and does not discriminate between them. They decided to switch to Yotvata, which apparently offered them better terms."
A Yotvata spokesman said, "Due to the more than 10% growth in Yotvata's sales of dairy products, Yotvata contacted Revivim to become another source of milk. Deliveries will begin in January."
Yotvata is owned in equal shares by Kibbutz Yotvata and Strauss.
Published by Globes [online] - www.globes.co.il - on December 24, 2003