The Israeli Ministry of Agriculture has reported that despite the intended goal of reducing living costs, the reform has resulted in increased prices and a loss of market share for Israeli producers.
The reform, initiated by the previous government, aimed to reduce the cost of living through three main components: lowering tariffs on imported vegetables and fruits, agricultural research, and support measures for local farmers. An allocated budget of 2.6 billion shekels (EUR 0.7 billion) was earmarked for these initiatives.
While import tariffs were indeed reduced twice, the support measures for domestic agriculture were not fully implemented. Consequently, in 2023, vegetable imports surged by 43% compared to 2021, accompanied by a disproportionate increase in prices. On average, consumer prices rose by 8.8%, while vegetable prices soared by 13.1%.
Both consumers and farmers have been adversely affected by these developments. The increased imports have partly displaced domestic production, raising concerns among experts. Currently, vegetables and fruits are the only food group that Israel fully self-sustains and even exports a portion of. However, the country's dependence on food imports has been steadily increasing in recent decades.
Source: detaly.co.il