August 8, 2007

Israel's dairy products hike by 3.8 percent

Dairy products prices in Israel will increase due to high costs of grain used for animal feed.

Under price supervision, prices of milk and other dairy products is seen to hike by 3.8 percent, according to the joint committee of the Agriculture and Finance Ministries.

Supervised products include 1 percent and 3 percent fat milk in carton or bag, sour milk, sweet and sour cream, butter, yoghurts and hard chesses.

Over the last 18 months, the prices of wheat have gone up by 75 percent and corn by 55 percent.  According to the Israel Dairy Board, the grains' price hike was due to surging demand in China, climate changes, a drop in surplus grains supply in developed countries, and increase in maritime freight costs.