According to an OECD (Organization for Economic Cooperation and Development) report, prices for food in Israel are 11% higher on the average than other OECD member nations. The reasons given are the guaranteed price for crops given to farmers by the government in addition to the state subsidizing the cost of irrigating crops.

The OECD report includes 47 countries which yield 80% of the world’s produce – OECD nations and other countries like China.

The report states that government involvement in the process is what keeps prices high in Israel. The government pricing to protect farmers against imports and the water subsidies are passed to the consumer. The government support for farmers is not seen in the form of direct payment, which has dropped from 20% to 11% in the past two decades. The government assistance is given in the form of reductions in taxes and customs fees.

The report makes special mention on the high taxes levied on dairy products, eggs, and meat, which in some cases prevents imports, hence no competition.

(YWN – Israel Desk, Jerusalem)