According to the Ministry of Agriculture, the cost of buying produce in Israel is dropping. This is based on information pertaining to prices in produce stores and supermarkets around the country.

The increase in cost from wholesale to retail for different items averaged 111.8% in July of 2010. Some examples of prices in July 2011 include tomatoes (151.9%), carrots (122.7%), and peppers (121.2%). Surprisingly, Meir Yifrach, who represents the farmers, states prices this July dropped overall, by about 30%, attributing this to the ongoing protests from the ‘social justice’ movement. He feels that retail chains are slowly coming to the understanding that there is a limit and the consumer simply will not tolerate the prices that were customary in the past.

In a related matter, a new law has been passed which takes effect in nine months, compelling retailers to rate produce and price accordingly, a system that exists in many countries but is new here in Israel. Lawmakers believe this will also result in more affordable produce for the average shopper, who is willing to settle for a mid-range item or less.

In another area of food we address the growing cereal market, one that was unheard of in Israel years ago. There are many cereals to select from, including local and imports, most being quite expensive compared to N. America. One popular cereal, Kellogg’s Special K, sells for NIS 26, while the same size box in the UK sells for 2 pounds sterling (NIS 11.60) and for $4.49 (NIS 16) in the United States.

The Israeli importer responded to the report: As a leading producer of cereal worldwide, Kellogg’s maintains a very high standard regarding the ingredients used. Importing foods into Israel is a complicated and expensive proposition for a number of reasons, including the need to translate packaging for the local marketplace. Kashrus supervision adds additional costs. This results in a price increase of 20%-30% for Kellogg’s products in Israel.

On the other hand, unlike in Europe and the N. America, cereals in Israel are often sold at a sale price here and one can generally find Special K for NIS 21.

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(YWN – Israel Desk, Jerusalem)