The Ministry of Economy publishes lists of winners of duty-free quotas for fresh beef for 2022. Winners: Shufersal, Net Melinda, Merav Kol and Baladi – undertook to market fresh minced meat at a consumer price of NIS 28-30 per kg (compared to NIS 29-31 last year) .
According to the method used in Israel, there are heavy import caps designed, among other things, to protect local meat producers. However, to lower prices for the weaker consumers, the Ministry of Economy is issuing tenders for imports of freshly ground beef. Importers who win the tender are exempt from customs duties on a limited amount (quota) of imports. In return, they undertake to sell this quantity at as low a price as possible. However, in the past some manufacturers have used their power as exclusive or almost exclusive marketers to raise the price – despite fines from the state that such action entails.
In the 2022 fresh minced meat tender, Shufersal (4,250 tons, NIS 28 per kg), Net Melinda (5,000 tons, NIS 29 per kg), Merav Kol (3,000 tons, NIS 29 per kg) and Baladi (1,500 tons) won NIS 30 per kg). The Quotas Committee will publish in the coming weeks the balance of the duty-free quota amounting to 3,370 tonnes which will be distributed to importers in an additional competitive procedure.
Danny Tal, Chairman of the Quotas Committee at the Ministry of Economy and Industry, stated that “despite the tens of percent increase in beef prices in the international market over the past year, the competitive procedure allows Israeli consumers to access minced meat, which is used as a basic raw material in Israeli cuisine. Compared to last year. “According to Tal,” the exempt quotas are a tool in the hands of the Ministry of Economy and Industry and the Quotas Committee, to reduce the price of meat to the final consumer and make it accessible at an equal price for every pocket. “
In contrast, Elad Malka, director general of the public lobby “Our Interest”, criticizes the system: “In the State of Israel, the government should not manage the volume and price of imports for the residents. Past experience shows that import quotas are less competitive and sometimes do not even lower the price to the consumer. On the other hand, the complete abolition of customs duties and the full opening of imports are measures that encourage more competition and lower the price for consumers quickly as well. “
The meat in the quotas is expected to arrive in Israel at the beginning of the year, and the winners of the quotas undertake to market fresh, high-quality minced meat in which the fat content is less than 14% throughout the year in an accessible and available way on the shelves. In addition, winners are required to post the price of freshly ground meat on the weekly printed or advertised weekly promotions page on their websites. The list of points of sale will be published on the website of the Ministry of Economy and Industry.