A special report from the Israeli Ministry of Agriculture examines changes in import volumes of fresh fruits and vegetables before and after the agricultural reform and the main price indices for these products.

After the considerable tariff reduction, vegetable import volumes increased significantly. At the same time, consumer price index averages for those products were examined and appear to show a greater increase than the average rate of increase in the consumer price index.

According to the Director General of the Ministry of Agriculture, Oren Lavi: "We are witnesses, both in this review and in many other cases, that the protection of Israeli farmers is a reality obligation. The reduction of import tariffs, Without protective measures to protect farmers, it generated unfair competition that caused serious damage to Israeli farmers. At the same time, the measure, supposedly designed to alleviate the cost of living, hit the pocketbook of the Israeli consumer. Today more than ever we must protect Israeli farmers who guard the borders through farmer support, investments in agriculture and R&D budgets, and thus we will listen to the overwhelming majority of Israeli citizens, who prefer to eat fresh produce. healthy Israelis are above imported ones, and we will not clip their wings. Israeli food security is established."

Opening the fruit and vegetable market to import competition is a controversial issue that is on the agenda of farmers and consumers in Israel. As part of the agricultural reform that came into force in March 2022, two rounds of tariff reductions were carried out on a long list of various agricultural products, especially fresh and expensive fruits for local consumption and industry, out of six planned rounds. . Along with tariff reductions, farmers, as part of the reform, were to receive direct support similar to the practice in other Western countries that consider it important to protect their local agricultural production and maintain food security. Subsidies would allow them to compete fairly against imports, and this along with other benefits that the government promotes through local agriculture, such as area maintenance, protecting soil from erosion and more. These supports were not received. In light of an understanding, the third push of the tariff reduction planned for January 2024 was blocked by the Minister of Agriculture, Avi Dichter.

The Foreign Trade Division of the Ministry examined changes in import volumes and changes in prices of fruits and vegetables and a number of key products in these categories. Tariff reductions as part of the reform were carried out in March 2022 and January 2023. In addition, since 2022 was a year of layoffs, in which the import of vegetables increased, the changes between the years 2021 were examined. and 2023.

The agricultural reform had two main objectives: to reduce the cost of living and to promote local agriculture. However, the study shows that despite the reduction of tariffs and the increase in quantities of imported vegetables, no downward trend was observed in the relevant price indices. 

In addition, it is emphasized that increasing imports is not a magic solution to lower prices and the position of professionals from the Ministry of Agriculture is strengthened, that direct support is necessary to maintain the resilience of local agriculture, and lower tariffs that do not en If followed closely, they could cause industries to collapse, as happened with Israeli garlic. 

After two tariff reductions, of 100% for some fresh vegetables and 25-35% for others, it can be seen that the import of vegetables to Israel will increase by 43% from 2021 to 2023. During this period, the average price of vegetables fresh rose by 13.1%, compared to an increase of about 8.8% in the average consumer price index. 

Analysis of the three main products, the volume of their imports constitutes approximately 63% of total vegetable imports in 2021 and 2023 (2022 was a shemitah year, in which residents of the land of Israel must completely renounce cultivating their fields), shows an increase in the quantities imported in 2023, relative to 2021, and also in the averages of the relevant price indices, beyond the increase in the same period in the average increase in the consumer price index. 

Fresh vegetable import volumes and price indices in 2021-2023