Tnuva hikes food prices after January NIS 200 m. dividend issue

Israeli food giant Tnuva announced Wednesday that it would increase the prices of its dairy products, Sunfrost, Mama Of, and Tirat Tzvi products as well as prices on its price-controlled dairy.

The rise in price of price-controlled dairy was announced last month, and follows an Israeli government system for updating these prices.

Prices on non-price controlled Tnuva dairy will increase an average of 3.5%, Sunfrost products will go up an average of 4.5%, Maadanot products will increase by an average of 4.2%, Mama Of will go up an average of 9.8%, and Tirat Zvi product prices will increase on average 9.6%.

Tnuva said the increase in prices follows increases in material costs. “Tnuva has been absorbing the increase in the cost of production materials, including raw materials, since the beginning of the war,” the company said. In spite of the significant increase in prices, the company has done all it can to update prices proportionally,” they added.

Tnuva gave NIS 200 million in dividends to shareholders based on 2023’s profits, Calcalist reported in January.

The company’s 2023 profits increased to NIS 7.8 billion from NIS 7.2b. in 2022, they reported.

Tnuva's significant share in Israeli market

The dividend that was issued following 2023’s profit also came after a Tnuva product price increase that came six months before it, in which the company raised prices of its Mama Of and Olivia products by around 9%, said Calcalist.

Tnuva holds a significant share of the Israeli dairy market, as well as the food market in general. Tnuva controls around 50% of the milk market, and has a significant hold in the frozen food, meat, and sausage markets, according to Lobby 99. The company is controlled by Chinese state company Bright Food.