Israel: Tomato prices rise rapidly
Hothouse tomatoes were selling for NIS 8.8 a kilo at Tel Aviv's Carmel Market Sunday, NIS 7.99 a kilo at Mega Ba'ir outlets in the city, and NIS 6.99 at Super-Sol Sheli stores in Tel Aviv.
Rami Levi, owner of the discount supermarket chain Rami Levi Shivuk Hashikma, said on Sunday he was drastically reducing his orders for fresh tomatoes in response to the price crunch, even if it meant creating a shortage in his stores.
"Today I ordered 10 pallets of tomatoes, compared to 100 pallets on a normal day," Levi said. "I expect there to be a tomato shortage in the branches during the day, but I'd rather people not buy at this price. If I don't order a large amount the demand will drop, in the hope that prices will drop accordingly."
Levi said the retail chains should charge customers about 20% above the wholesale price - around NIS 9 per kilogram.
The situation is being blamed on normal, seasonal cycles.
"Indeed, we saw an increase in the price of tomatoes prior to Independence Day," said Zvi Alon, the general manager of the Plants Production and Marketing Board. "The main reason is that we are in between production seasons. There are areas that have already given out their winter harvest and are now being readied for the next season's planting. There are also fields that haven't been harvested yet because the fruit is still unripe."
Alon said the average wholesale price for tomatoes in 2011 was NIS 3.16 per kilogram, but that it rose to nearly NIS 6 per kilogram in November and December.
"We can expect lower tomato prices only in another three to four weeks," Alon said. "In the meantime, the prices will be higher."
However, Alon accepts that, this time last year, prices were nowhere near as high as this. The corresponding price in 2011 was NIS 1.5 per kg. He suggests this may be due to a reduction in the area under cultivation.
Source: www.haaretz.com