Cucumber prices high despite imports

cucumber produce
cucumber produce

Wholesale market cucumber prices were NIS 7.5 per kilo yesterday as prices of vegetable soared due to the dry November weather.

So far, opening the market for customs-free imports has not lowered the prices of cucumbers and zucchinis. Yesterday, cucumbers were sold at NIS 7.5 per kilo, similar to prices a week ago. Zucchini prices also soared to NIS 7.5 per kilo. Another vegetable with a particularly high price is cauliflower, priced at NIS 7 per kilo.

A few days ago, the Ministry of Agriculture opened the market for custom-free imports in order to reduce prices; however, imports from Jordan and Turkey have not lowered prices. A retailer told "Globes" that cucumber prices in Jordan are high and import costs from Turkey are also substantial. A source in the Ministry of Agriculture told "Globes" that in the near future, a butternut squash shortage is expected until April, and an eggplant shortage is expected, starting in two weeks and until January. The absence of rain in November has affected corps and has had an across-the-board effect on the overall supply of fruits and vegetables, with some fruits ripening early, instead of the gradual ripening farmers had expected. Then, the cold weather also damaged crops.

During the eggplant season, Moshav Ganei Yohanan near Bilu Junction provides 80% of Israel's eggplant consumption, says Yaakov Noiman, a local eggplant grower. But most crops have been affected by the frost. Noiman says, "We had a -1° frost and the fields were damaged. The frostbite caused leaves to dry." On the other hand, due to premature ripening, the prices of bananas and citrus fruits on the wholesale market dropped. The prices of cucumber, a common ingredient in the Israeli kitchen, affect the price perception of retailers, leading some of them to now sell cucumbers at loss prices, particularly in high-competition areas. This loss is usually compensated by higher prices on other consumption products. In the open market, the prices for consumers are particularly high.

According to an analysis made by the PriceZ website for "Globes", the gap in cucumber prices among different stores of the same chain is dramatic and could reach hundreds of percent. In competition hubs such as Modiin, Beit Shemesh and Afula, prices are lower. The Shufersal Ltd. (TASE:SAE) chain sells a kilo of cucumbers for only NIS 1 in its Shufersal Deal store in Modiin, while selling them in Shufersal Sheli for NIS 7.9 per kilo. The Victory chain sells cucumbers in its Check Post, Akko and Afula stores for NIS 0.9 per kilo, and for NIS 5.9 in other stores. Yeinot Bittan sells cucumbers for NIS 3.8 per kilo in Beit Shemesh and for NIS 9.9 in Rishon Lezion. The Yohananof chain sells a kilo of cucumbers for NIS 3.9 in Rehovot and for NIS 9.9 in the City Mall store in Ashdod. The only exception is Tiv Taam, which chose not to sell cucumber at loss prices and sells it to consumers in most stores for NIS 9.9 per kilo, reflecting a 32% gross profit.

As for zucchinis, fewer retail chains sell them at loss prices; even in this case, and despite the particularly high prices, Tiv Taam sells the vegetable with an exceptionally high gross profit. In most of the chain's stores, including Holon, Jaffa and Modiin branches, zucchinis are currently sold for NIS 14.9 per kilo, more than double the price at which they are bought by the chain. Even in stores where zucchinis are sold at lower prices - NIS 12.9 per kilo, this is still a high price reflecting an exceptionally high profit. In Shufersal, zucchini prices range from NIS 5.9 at the Olga Junction store in Hadera to NIS 9.9 per kilo at the Ashkelon store. In Rami Levy Chain Stores Hashikma Marketing 2006 Ltd.'s (TASE:RMLI), prices range between NIS 6.8 per kilo, NIS 7.7 per kilo in Jerusalem and NIS 9.7 per kilo in Rosh Haayin. Yohananof and Yeinot Bittan sell zucchinis in most stores for NIS 9.9 per kilo.

Published by Globes [online], Israel business news - www.globes-online.com - on December 6, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

cucumber produce
cucumber produce
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