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Farmers protest?
The Competition Authority claims: There are no brokerage gaps
Exclusive: The Competition Authority supports the agricultural reform and believes that it will lead to lower prices for fruits and vegetables to the consumer.
The Authority also believes that the farmers' claims that the cost of living is the fault of the retailers are unfounded.
According to the authority, lowering the purchase price will lead to a reduction in the price to the consumer
Tags
agriculture
reform
Avigdor Lieberman
competition
Sonia Gorodisky
Thursday, 29 July 2021, 08:33 Updated: 09:00
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The agricultural lobby managed to burn the area. Since the solemn announcement of the measures to lower the cost of living in the field of agricultural products, farmers' organizations have protested extensively, from running the lobby in the Knesset to blocking intersections across the country, as happened this morning.
But while farmers are threatening to paralyze the country, the finance minister and agriculture minister are getting professional backing. A position paper obtained by Walla! Money states that
"the Competition Authority supports the proposed course, in which barriers to the import of agricultural products into Israel will be removed, whether through the removal of other regulatory barriers.
The Competition Authority believes that the removal of import barriers And that this contribution is expected to be passed on to the consumer and lead to a decrease in retail prices to improve the quality and variety of vegetables and fruits that he purchases. "
Although this is a competition authority, this firm position is not self-evident.
The chairwoman of the authority, Dr. Michal Halperin, is ending her term today (Thursday) and the discourse around agricultural reform is only getting hotter, with the agricultural lobby working hard in an attempt to influence public opinion through interviews and articles in the media.
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To the full article
Demonstration of farmers at Kabri Junction.
According to the Competition Authority, their claims about the mediation gaps are incorrect (Photo: Eli Ashkenazi)
Rising prices, not the fault of retailers
One of the farmers 'claims is that the government is taking care of them, the weak link in the chain, instead of fighting the alleged tycoons, the owners of the retail chains - who are to blame for the brokerage gaps, but the authority explains why there is no factual basis for the farmers' claims. "In the rise in prices of fruits and vegetables.
As of 2018, fruit and vegetable prices have risen at an unusual rate, higher than the general rise in prices in the economy. Despite this, in these years no increase in the profit rate of the marketing chains on these products has been observed.
"The increase in fruit and vegetable prices in these years is not due to an increase in the profit rate by retailers or wholesalers," the competition authority believes, noting that "the average difference between the purchase price and the sale price of vegetables and fruits at selected chains decreased slightly in 2018 compared to 2017."
Dr. Michal Halperin, CEO of the Competition Authority.
Concludes its role with a clear statement on the reform of agriculture (Photo: Creative Commons, Tomer Jacobson)
A reduction in the purchase price actually reaches the pockets of consumers
The Authority's investigation also revealed that in the vast majority of cases the decline in the purchase price of retail chains was passed on to the final consumer:
"An examination of the buying and selling price of the top 20 best-selling retail chains shows that Of an increase, and vice versa, a decrease in the purchase price has resulted in a decrease in consumer prices. "
This conclusion completely refutes the farmers' main argument that lowering the prices of fruits and vegetables through imports will not "roll over" to the consumer, but will only increase the profits of the marketing chains.
For example, according to Arava farmers who demonstrated last Saturday, the reform "The farmer is last in the profit chain, and those who cut coop at the expense of the consumer are the marketing chains, with exaggerated brokerage gaps! The government is unable to control tycoons "A government and a populist, false move to win public sympathy declare that imports will lower prices, supporting farmers in Turkey, Gaza and Poland instead of farmers in their country."
The Competition Authority concludes that "in view of the increase in the prices of agricultural produce, special importance is attached at this time to opening up the economy to imports, whether by lowering tariffs or removing other barriers to imports, in particular plant protection barriers."
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