Gov't opens meat and dairy markets to imports

The government focused on products worth 17% of average Israeli family expenditure.

The government today opened the meat market and 20% of the dairy market to imports. A joint statement by the Ministry of Finance, Ministry of the Economy, and the Ministry of Agriculture says that the decision is intended to increase competition in the market in an effort to cut prices. Similar measures in the past have shown that savings from reduced import duties were not passed on to consumers. The latest decision begs the question whether this time consumers will benefit, or importers will be fattened.

Ministry of Finance director general Yael Andorn headed the team that made the decision. Minister of Finance Yair Lapid, Minister of the Economy Naftali Bennett, and Minister of Agriculture Yair Shamir approved the decision, and it will be submitted to the cabinet for approval in a few weeks.

The main measures include eliminating the import duty on veal and opening the duty-free fresh meat market to imports. In addition, import quotas on duty-free hard cheeses, yoghurt, and cream will be reduced by thousands of tons a year, amounting to 20% of Israeli dairy consumption.

The Andorn Committee focused on meat and dairy products, which account for over 17% of expenditures by the average Israeli family, or NIS 2,251 a month. The committee said that these markets were characterized by higher prices compared with corresponding foreign markets, because of market failure, import barriers, regulatory requirements, such as kosher rules, and the lack of competition in links in the production chain in Israel.

Published by Globes [online], Israel business news - www.globes-online.com - on April 23, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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