Shufersal pulls some dairy products from shelves in spat over Tnuva price hikes

Israel’s largest supermarket chain, Shufersal, announces the removal of some dairy products from its shelves in response to a decision by local food manufacturer Tnuva to raise prices ahead of the Shavuot holiday.

Shufersal says it will pull Piraeus cheese products and Yoplait fruit yogurt, for which there are substitutes from other manufacturers. The move comes after Tnuva refused to accept the supermarket chain’s request to postpone planned price hikes of four other dairy products until after the Shavuot holiday in late May, during which many consume dairy-heavy meals.

Tnuva has informed food retailers that starting Sunday, the price of butter will increase by 4.8 percent due to the cost of fat. In addition, the prices of unregulated long-life milk and two white cheeses will be raised by about 1%.

“Tnuva unilaterally decides to raise prices of dairy products before the holiday and in the midst of a complex security period, despite our request to postpone the move — Shufersal can’t approve this,” Shufersal says in a statement. “As a result of our decision, Tnuva has chosen to stop supplying the products that are subject to price increases.”

“We regret the situation and apologize for the inconvenience, but believe that we must act out of national responsibility and concern for the consumer,” Shufersal says.

Tnuva declines to comment on commercial relationships with its customers.

While Tnuva decides to raise prices from this month, rival foodmaker Strauss announces that price increases will take effect after the Shavuot holiday on June 1. The wave of price hikes comes as the price of state-controlled dairy products increased by an average of 1.05% on May 1, as part of a periodic update.