https://ift.tt/3FKNMUi
Food Prices in Israel Much Higher Than in EU, Here's Why
Food Prices in Israel Much Higher Than in EU, Here's Why
A recent state comptroller report revealed that food items in Israel were 51 percent more expensive than in the European Union. It also showed that the costs... 28.11.2021, Sputnik International
2021-11-28T05:35+0000
2021-11-28T05:35+0000
2021-11-28T05:35+0000
israel
food
price
eu
/html/head/meta[@name='og:title']/@content
/html/head/meta[@name='og:description']/@content
https://ift.tt/3xtzNiP
In mid-June, when Prime Minister Naftali Bennett took office, many in Israel were hopeful that the economic situation would soon improve, the prices of real estate would go down and so would the costs of basic products.In reality, however, Israelis still fork out a pretty penny when shopping. In May, a state comptroller report revealed that the prices on goods in Israel were 51 percent higher than those in the European Union, and it has also stressed that from 2012 to 2020, the costs went up by six percent.Bureaucracy and Regulations Hamper ProgressOmer Moav, professor of economics at Herzeliya's Richman University and the University of Warwick, says the reason for the soaring prices can be attributed to a number of factors, the main of which are "bureaucracy and strict regulations".All imports into Israel must obtain a number of permits before they reach the country. These approvals are necessary because Israel doesn't always follow the regulations of other nations; it has its own.When these products finally reach Israel, they need to go through strict supervision and inspections by customs authorities, a process that may take weeks. The longer the cargo remains in port, the higher the prices are.Food items that enter Israel also need to get the greenlight of the rabbinical court that gives a stamp of whether the product is kosher and thus can be consumed by observant Jews.The problem is that the rabbinical court stamp costs money, and this is something that's also reflected in the prices Israelis see while shopping.Monopolies Still RuleHowever, bureaucracy and regulations are far from being the only two reasons that push the prices up. Another major factor that contributed to the spike was the monopolies that still control the Israeli market.10 major Israeli companies control some 54 percent of the total food market. In some products, like cottage cheese, ketchup, and white cheese, they have no competition at all, and this means that they can play with the prices the way they want.https://ift.tt/3FQke7N started opening its economy in 1977, after the conservative Likud party that believed in a free market came to power for the first time.It was then that they removed the state regulations on foreign currency and allowed some imports into Israel. This was also when factories and companies were privatised, and the state's involvement was significantly reduced.Optimistic Future?Yet, Moav believes Israel can still "do better" to decrease the high food prices and provide its consumers with a better standard of living.To start off, Moav suggests reducing the customs fees. He calls on the government to ease bureaucratic procedures and to adhere to the standards of the EU or the US instead of coming up with Israel's own regulations.In a way, this is happening now. In October, the Knesset started working on passing a law that would allow thousands of food items into Israel. The food reform will also adjust the Israeli regulation to that of the EU and the US and will shorten the process of obtaining permits, something that's believed would lower the shelf prices on a variety of items.https://ift.tt/3cTpc7d of the problems that they will be facing is the reluctance of the major food companies to cooperate with the new sets of laws. Another one will be the fact that the current Israeli coalition is rather divided, which will make it difficult for it to pass reforms.Many in Israel still remember the social justice protests of 2011, when thousands took to the streets across the country, demanding the government take action and reduce the high cost of living.No government would want to see those events to repeat, and this is why there is room for optimism that the current Israeli coalition will find ways to make the shopping much cheaper.
israel
2021
News
en_EN
https://cdnn1.img.sputniknews.com/img/07e5/0b/1c/1091080047_67:0:2798:2048_1920x0_80_0_0_07a3eb53ae08b8240ade3a534cfeb2e6.jpg
israel, food, price, eu
Food Prices in Israel Much Higher Than in EU, Here's Why
A recent state comptroller report revealed that food items in Israel were 51 percent more expensive than in the European Union. It also showed that the costs went up with time, growing by six percent from 2012 to 2020.
In mid-June, when Prime Minister Naftali Bennett took office, many in Israel were hopeful that the economic situation would soon improve, the prices of real estate would go down and so would the costs of basic products.
In reality, however, Israelis still fork out a pretty penny when shopping. In May, a state comptroller report
revealedthat the prices on goods in Israel were 51 percent higher than those in the European Union, and it has also stressed that from 2012 to 2020, the costs went up by six percent.
Bureaucracy and Regulations Hamper Progress
Omer Moav, professor of economics at Herzeliya's Richman University and the University of Warwick, says the reason for the soaring prices can be attributed to a number of factors, the main of which are "bureaucracy and strict regulations".
All imports into Israel must obtain a number of permits before they reach the country. These
approvalsare necessary because Israel doesn't always follow the regulations of other nations; it has its own.
When these products finally reach Israel, they need to go through strict supervision and inspections by customs authorities, a process that may take weeks. The longer the cargo remains in port, the higher the prices are.
Food items that enter Israel also need to get the greenlight of the rabbinical court that gives a stamp of whether the product is kosher and thus can be consumed by observant Jews.
The problem is that the rabbinical court stamp costs money, and this is something that's also reflected in the prices Israelis see while shopping.
"These regulations can be difficult for a small importer that competes with a bigger one. Oftentimes, they don't have that much money and it can be more challenging for them to get the necessary permits", explains Moav.
Monopolies Still Rule
However, bureaucracy and regulations are far from being the only two reasons that push the prices up. Another major factor that contributed to the spike was the monopolies that still control the Israeli market.
10 major Israeli companies control some 54 percent of the total food market. In some products, like cottage cheese, ketchup, and white cheese, they have no competition at all, and this means that they can play with the prices the way they want.
"In 1948, when the state was established, what we had here was a socialistic and centralised government. Back then we had monopolies, factories were controlled by the state and its involvement in the economy was huge. Now things are much better", Moav says.
Israel started opening its economy in 1977, after the conservative Likud party that believed in a free market came to power for the first time.
It was then that they removed the state regulations on foreign currency and allowed some imports into Israel. This was also when factories and companies were privatised, and the state's involvement was significantly reduced.
Optimistic Future?
Yet, Moav believes Israel can still "do better" to decrease the high food prices and provide its consumers with a better standard of living.
"Of course, there’s no magical solution but there are things that we can still change", says the expert.
To start off, Moav suggests reducing the customs fees. He calls on the government to ease bureaucratic procedures and to adhere to the standards of the EU or the US instead of coming up with Israel's own regulations.
In a way, this is happening now. In October, the Knesset started working on passing a law that would allow thousands of food items into Israel. The food reform will also adjust the Israeli regulation to that of the EU and the US and will shorten the process of obtaining permits, something that's believed would lower the shelf prices on a variety of items.
"I am rather optimistic about what's happening now. Unlike [former Prime Minister] Benjamin Netanyahu, who was only talking, this government seems to be working. But it won't be easy for them to solve all the pressing issues".
One of the problems that they will be facing is the reluctance of the major food companies to cooperate with the new sets of laws. Another one will be the fact that the current Israeli coalition is rather divided, which will make it difficult for it to pass reforms.
Many in Israel still remember the social justice protests of 2011, when thousands took to the streets across the country, demanding the government take action and reduce the high cost of living.
No government would want to see those events to repeat, and this is why there is room for optimism that the current Israeli coalition will find ways to make the shopping much cheaper.
https://ift.tt/3FKNMUi
https://ift.tt/3FKNMUi
Food Prices in Israel Much Higher Than in EU, Here's Why
Food Prices in Israel Much Higher Than in EU, Here's Why
A recent state comptroller report revealed that food items in Israel were 51 percent more expensive than in the European Union. It also showed that the costs... 28.11.2021, Sputnik International
2021-11-28T05:35+0000
2021-11-28T05:35+0000
2021-11-28T05:35+0000
israel
food
price
eu
/html/head/meta[@name='og:title']/@content
/html/head/meta[@name='og:description']/@content
https://ift.tt/3xtzNiP
In mid-June, when Prime Minister Naftali Bennett took office, many in Israel were hopeful that the economic situation would soon improve, the prices of real estate would go down and so would the costs of basic products.In reality, however, Israelis still fork out a pretty penny when shopping. In May, a state comptroller report revealed that the prices on goods in Israel were 51 percent higher than those in the European Union, and it has also stressed that from 2012 to 2020, the costs went up by six percent.Bureaucracy and Regulations Hamper ProgressOmer Moav, professor of economics at Herzeliya's Richman University and the University of Warwick, says the reason for the soaring prices can be attributed to a number of factors, the main of which are "bureaucracy and strict regulations".All imports into Israel must obtain a number of permits before they reach the country. These approvals are necessary because Israel doesn't always follow the regulations of other nations; it has its own.When these products finally reach Israel, they need to go through strict supervision and inspections by customs authorities, a process that may take weeks. The longer the cargo remains in port, the higher the prices are.Food items that enter Israel also need to get the greenlight of the rabbinical court that gives a stamp of whether the product is kosher and thus can be consumed by observant Jews.The problem is that the rabbinical court stamp costs money, and this is something that's also reflected in the prices Israelis see while shopping.Monopolies Still RuleHowever, bureaucracy and regulations are far from being the only two reasons that push the prices up. Another major factor that contributed to the spike was the monopolies that still control the Israeli market.10 major Israeli companies control some 54 percent of the total food market. In some products, like cottage cheese, ketchup, and white cheese, they have no competition at all, and this means that they can play with the prices the way they want.https://ift.tt/3FQke7N started opening its economy in 1977, after the conservative Likud party that believed in a free market came to power for the first time.It was then that they removed the state regulations on foreign currency and allowed some imports into Israel. This was also when factories and companies were privatised, and the state's involvement was significantly reduced.Optimistic Future?Yet, Moav believes Israel can still "do better" to decrease the high food prices and provide its consumers with a better standard of living.To start off, Moav suggests reducing the customs fees. He calls on the government to ease bureaucratic procedures and to adhere to the standards of the EU or the US instead of coming up with Israel's own regulations.In a way, this is happening now. In October, the Knesset started working on passing a law that would allow thousands of food items into Israel. The food reform will also adjust the Israeli regulation to that of the EU and the US and will shorten the process of obtaining permits, something that's believed would lower the shelf prices on a variety of items.https://ift.tt/3cTpc7d of the problems that they will be facing is the reluctance of the major food companies to cooperate with the new sets of laws. Another one will be the fact that the current Israeli coalition is rather divided, which will make it difficult for it to pass reforms.Many in Israel still remember the social justice protests of 2011, when thousands took to the streets across the country, demanding the government take action and reduce the high cost of living.No government would want to see those events to repeat, and this is why there is room for optimism that the current Israeli coalition will find ways to make the shopping much cheaper.
israel
2021
News
en_EN
https://cdnn1.img.sputniknews.com/img/07e5/0b/1c/1091080047_67:0:2798:2048_1920x0_80_0_0_07a3eb53ae08b8240ade3a534cfeb2e6.jpgisrael, food, price, eu
Food Prices in Israel Much Higher Than in EU, Here's Why
A recent state comptroller report revealed that food items in Israel were 51 percent more expensive than in the European Union. It also showed that the costs went up with time, growing by six percent from 2012 to 2020.
In mid-June, when Prime Minister Naftali Bennett took office, many in Israel were hopeful that the economic situation would soon improve, the prices of real estate would go down and so would the costs of basic products.
In reality, however, Israelis still fork out a pretty penny when shopping. In May, a state comptroller report
revealedthat the prices on goods in Israel were 51 percent higher than those in the European Union, and it has also stressed that from 2012 to 2020, the costs went up by six percent.
Bureaucracy and Regulations Hamper Progress
Omer Moav, professor of economics at Herzeliya's Richman University and the University of Warwick, says the reason for the soaring prices can be attributed to a number of factors, the main of which are "bureaucracy and strict regulations".
All imports into Israel must obtain a number of permits before they reach the country. These
approvalsare necessary because Israel doesn't always follow the regulations of other nations; it has its own.
When these products finally reach Israel, they need to go through strict supervision and inspections by customs authorities, a process that may take weeks. The longer the cargo remains in port, the higher the prices are.
Food items that enter Israel also need to get the greenlight of the rabbinical court that gives a stamp of whether the product is kosher and thus can be consumed by observant Jews.
The problem is that the rabbinical court stamp costs money, and this is something that's also reflected in the prices Israelis see while shopping.
"These regulations can be difficult for a small importer that competes with a bigger one. Oftentimes, they don't have that much money and it can be more challenging for them to get the necessary permits", explains Moav.
Monopolies Still Rule
However, bureaucracy and regulations are far from being the only two reasons that push the prices up. Another major factor that contributed to the spike was the monopolies that still control the Israeli market.
10 major Israeli companies control some 54 percent of the total food market. In some products, like cottage cheese, ketchup, and white cheese, they have no competition at all, and this means that they can play with the prices the way they want.
"In 1948, when the state was established, what we had here was a socialistic and centralised government. Back then we had monopolies, factories were controlled by the state and its involvement in the economy was huge. Now things are much better", Moav says.
Israel started opening its economy in 1977, after the conservative Likud party that believed in a free market came to power for the first time.
It was then that they removed the state regulations on foreign currency and allowed some imports into Israel. This was also when factories and companies were privatised, and the state's involvement was significantly reduced.
Optimistic Future?
Yet, Moav believes Israel can still "do better" to decrease the high food prices and provide its consumers with a better standard of living.
"Of course, there’s no magical solution but there are things that we can still change", says the expert.
To start off, Moav suggests reducing the customs fees. He calls on the government to ease bureaucratic procedures and to adhere to the standards of the EU or the US instead of coming up with Israel's own regulations.
In a way, this is happening now. In October, the Knesset started working on passing a law that would allow thousands of food items into Israel. The food reform will also adjust the Israeli regulation to that of the EU and the US and will shorten the process of obtaining permits, something that's believed would lower the shelf prices on a variety of items.
"I am rather optimistic about what's happening now. Unlike [former Prime Minister] Benjamin Netanyahu, who was only talking, this government seems to be working. But it won't be easy for them to solve all the pressing issues".
One of the problems that they will be facing is the reluctance of the major food companies to cooperate with the new sets of laws. Another one will be the fact that the current Israeli coalition is rather divided, which will make it difficult for it to pass reforms.
Many in Israel still remember the social justice protests of 2011, when thousands took to the streets across the country, demanding the government take action and reduce the high cost of living.
No government would want to see those events to repeat, and this is why there is room for optimism that the current Israeli coalition will find ways to make the shopping much cheaper.
news
via Sputnik News - World News, Breaking News & Top Storie https://sputniknews.com
November 28, 2021 at 12:39AM