consumption

Customs duties on meat are going down, so why should our steak cost the same?

The Ministry of Finance and the Ministry of Agriculture have announced the decision to abolish customs duties on imports of fresh and chilled beef, but will the reduction in customs also lead to a reduction in the price for consumers?

Just before we turn on the BBQ, we should know the facts

Dr. Hezi Gur Mizrahi

11/07/2022

Monday, 11 July 2022, 08:38 Updated: 09:08

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"Denver Steak."

Those who expect a reduction in premium shares may be disappointed (Photo: ShutterStock)

Customs duties on meat are going down.

Apparently this was supposed to be in the consumer line for almost every home in Israel.

But it seems that some data needs to be refined.

Customs duties on meat stand at 12% and since 2016 the Ministry of Economy has launched tenders for duty-free imports and at the same time approved importing a significant quantity with no customs at all.

In other words: imports of duty-free meat into Israel are already being made today, so it is doubtful whether the prices will be affected as a result of the alleged reform, if at all.

For the growing retail chains and the leading meat companies in the market, the process is not new because most of the meat in question is intended for the consumer market in the chains.

As part of the process designed to benefit the consumer in purchasing duty-free meat, an agreement was reached according to which the price of minced meat will be subsidized, controlled and each chain that is part of the arrangement will allocate 25% of the product to minced meat.

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Served on behalf of Shahal

Roast fresh beef shoulder.

How much will a kilo cost us in the marketing chains? (Photo: None)

Minced meat accounts for close to 40% of total consumer sales, so we should not expect a reduction in the cuts of entrecote or fillet in the near future, especially as we are at the peak of this year's barbecue season.

The regulation of a uniform price for imported chilled meat products, sold as a minced product, is a good news for consumers, but we still see in the Shufersal chain, for example, that the minced price is NIS 28 per kilogram and is stable in recent months. The good

news is that we will continue to sell minced meat at a discounted price.

The rest of the cuts will not show gaps in our favor, so if an entrecote is found at a discounted price, the reason is quality, as fresh meat has many variables that affect price and quality.

Simulated fillet, the price per kilogram in the various chains (Photo: Walla! System, no)

The pace in the supermarket will move behind the scenes

In 2021, about 182 tons of imported beef will be anchored in Israel.

Only 14% of all produce is chilled beef and 46% of all meat is imported frozen meat.

25% of the meat is imported from live calves that undergo a process of local fattening and slaughter, here in Israel.

Fresh meat products have risen in price compared to the same period last year by more than 20% and the rise since the beginning of the year stands at an average of 6% per consumer, while the only reduction we expect is in ground beef products.

Kg of entrecote, the price in the various retail chains (Photo: Walla !, no)

The fresh poultry market has changed some of its consumption and sales patterns, so that in most retail chains we will no longer have a small talk with the butcher but with the refrigerator that presents us with fresh chunks packed with weight, price, slaughter date and validity sticker.

The product is simply placed in the cart like any item.

Even in fresh beef products, the European market has already switched to packaged beef chunks as a routine procedure.

The Israeli market has also already launched packaged portions for sale in vacuum packaging, and we expect the packaged beef market to capture within the next two years, a share of about 50% of all fresh beef sales.

Muscle-arm, price per kilogram in the marketing chains (Photo: Walla !, no)

The gaps we found between 4 fresh meat products are common in the marketing chains

• For

we pay NIS 169 per kg in the market warehouse chain and in the Bitan wine chain we pay NIS 108 per kg - a difference of 56%

•

For

NIS per kilogram - a difference of 93%

• On

.

per kg in the Shufersal Deal chain

and we will pay NIS 52.50 per kg in the Yohananoff chain - a difference of 40

%

- A gap of 35%

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Tags

• meat

• Beef

• chicken

• Customs