Dairy Prices Rise 3.8%

US - Prices of milk and other dairy products under price supervision will rise by 3.8 percent on average. The joint price committee of the Finance and Agriculture ministries decided on the increase.
calendar icon 7 August 2007
clock icon 1 minute read

The main cause of the rise is the increase in world prices of grains used to prepare animal feed. Over the last year and a half, from January 2006 through June 2007, wheat prices have risen 75 percent and corn - 55 percent.

These increases have caused the price of raw milk sold by Israeli farmers to dairies to increase by 6.9 agorot per liter, a 4 percent rise.

The Milk Board and Cattle Growers Association have recently published figures explaining the rise in world grain prices: increased demand, mostly from China, which is expanding its dairy industry drastically; climatic troubles; lower strategic and commercial food reserves in industrialized countries; increased usage of corn for ethanol and non-agricultural purposes; and increased costs for sea transport of grains.

World dairy prices have risen in recent months. Butter prices are up 33 percent, cheddar cheese 35 percent and milk powder 150 percent.

Agriculture Minister Shalom Simhon has already signed the order increasing dairy prices, but Finance Minister Roni Bar-On has yet to sign.

Source: Ha'aretz

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