Dairy products
Dairy productsiStock

Rami Levy, owner of one of Israel's supermarket chains, is not happy with the rise in the price of dairy products - despite the fact that it is just about half of the expected rise.

"Prices will not rise today in our chain," Levy told Israel Hayom, adding that he will examine his supermarket chain's next steps. "We will conduct an internal examination regarding the continuation of the price of dairy. In my opinion, we will do something about the dairy."

The rise is expected to take effect on Tuesday, with many in the food industry criticizing both the price hike and the way it came to be.

Another businessman told Israel Hayom, "The Finance Ministry could have not reduced the taxes on disposables and on sweet drinks, and used that money to pay for the rise in the price of dairy, or even to reduce it, by using the taxes from the disposables and drinks. It's obvious to everyone that every household can make do without disposable dishes, but not without dairy products."

He added that, "The rise in the price of price-controlled dairy products will likely raise the price of non-price-controlled dairy products later on, since all of the price-controlled products are made from milk. It's logical that [the price of] these products will also rise, it's just that no one knows when or by how much, but in my estimation it will happen."

A senior source in the industry told Israel Hayom, "The State must analyze the desired price. If it finds that the desired price for is justified, then it should subsidize it by 30%, and demand that the large dairy farms reduce the price by 30%. There is no reason in the world that the price aimed for should be dozens of percent higher than in European countries."

"If the price is justified, then [the State] should subsidize the farmers, as is done in may countries in the world," the source added, insisting that in such a case, "The State must lower the quotas and open the market in a freer fashion."