After opening the market to imports of fresh meat from Poland without customs duties, the Ministry of Agriculture is announcing that it will grant tens of millions of shekels to new players and small players in the meat market in Israel in order to bolster competition in the sector. The initiative was started by the Ministry of the Economy and Industry Investment Promotion Center, which published a new track designed to encourage the entry of players into the meat products market with the aim of operating a slaughtering, separating into sections, packaging, and marketing system for meat.
According to the Ministry of the Economy and Industry, companies complying with the regulations will be granted aid amounting to 30% of the total approved plan, up to a ceiling of NIS 15 million, for the purpose of constructing, moving, or expanding a system including a kosher slaughterhouse and a separation and packing plant for kosher fresh beef.
The process of producing fresh beef for marketing to consumers consists of four main segments: supplying cattle, fattening them, slaughtering them, and marketing. Today, there are few slaughterhouses capable of supplying meat separated into parts in vacuum packages for supermarkets, butcher shops, and plants for producing meat products, and consumer prices are high. The two main players are Dabbah and Tnuva Food Industries Ltd. through Adom Adom.
The new track is designed for players whose sales turnover in beef is at most NIS 15 million a year, and other players in the food market whose business turnover is at most NIS 300 million a year. A clear preference in allocation will be given to the shortest timetables undertaken by the bidders for construction and providing kosher fresh beef to consumers.
Investment Promotion Center director Nahum Itzkovich said, "The assistance for establishing and expanding the new slaughter houses and meat separation plants will bolster competition in the sector, currently controlled by two producers accounting for 80% of the market. This is good news for consumers, which could lead to cheaper prices and substantial savings for households."
Published by Globes [online], Israel business news - www.globes-online.com - on August 23, 2016
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