Israel's biggest dairies to import butter to combat shortage

Butter Photo: Shlomi Yosef
Butter Photo: Shlomi Yosef

Tnuva, Strauss and Tara are expected to bid in the Ministry of Economy and Industry's excise exempt tender.

Israel's three biggest dairies, Strauss Group Ltd. (TASE:STRS), Tnuva Food Industries Ltd. and Tara will begin importing butter, sources inform "Globes." All three dairies are considering bidding for the excise exempt tender issued by the Ministry of Economy and Industry and are expected to submit official requests in the coming few days before the tender closes.

Tnuva and Tara are the country's biggest producers of butter but there has been a major shortage in recent months with almost no butter to be found on the shelves of Israel's stores. Tnuva and Strauss have stopped making butter because they claim the price fixed by the government does not make production worthwhile.

Strauss does not produce butter but in recent months has been importing butter of Danish brand Lurpak.

Because of the severe shortage of butter in the past three months, the Ministry of Economy and Industry has approved excise free importing of 1,437,500 kilos of table butter and 1,650 tons of butter for industry. The tender was officially opened on March 27 and tomorrow is the final day for bids to be submitted.

Published by Globes, Israel business news - en.globes.co.il - on April 2, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Butter Photo: Shlomi Yosef
Butter Photo: Shlomi Yosef
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