couponing in the holy land

Frugal food shopping for the Anglo Israeli

Archive for the tag “Price controlled”

OECD report- State sponsorship of agriculture leads to higher prices for the consumer

The OECD (Organisation for Economic Co-operation and Development), of which Israel is a member, published its first report reviewing Israel’s agricultural policies.  OECD has previously evaluated Israel’s health care system, educational system , environmental performance and more.  They present an unbiased comparison of Israel in relation to other developed nations and provide sound recommendations for improvement and praise when deserving.

From the review:

“Israel’s agriculture is unique amongst developed countries in that land and water resources are nearly all state-owned and that agricultural production is dominated by co-operative communities. Since the late 1980s, agriculture in Israel has benefited from: a stable macroeconomic climate; policy reforms; high levels of investment in R&D; a developed education system; high-performing extension services; and accumulated farm management expertise.

Israel is a world leader in agricultural technology, particularly in farming in arid conditions. Israeli agriculture thus relies on an “induced”, rather than “natural”, comparative advantage, one built on knowledge and technological progress…Government support to Israeli farmers has fallen over recent years but a number of market distorting policies are still in place…While the level of agricultural support has been falling,…the share of the most distortive types of support have increased over the last two decades.   This mostly reflects continued high border protection for agricultural commodities pushing domestic prices above international levels and resulting in high market price support…More efficient water resource management also remains a critical challenge.”

You can read the full report on the OECD website.

Interestingly enough, the Ministry of Agriculture does not mention OECD’s criticism of market distorting in it’s press release, only OECD’s praise of Israel’s agricultural R&D.

This report shouldn’t come as a surprise to us; after all, we saw in Yisrael HaYom that even though milk is price controlled, it still costs significantly more than milk in the US or the UK.  We also learned about the Trachtenberg Report which is breaking the barrier to import which will subsequently lower prices.  Hopefully this review will convince our legislators the need for price reform in Israel.

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Price controlled products- Part 2

I received quite a few comments about my post regarding price controlled products in Israel– some places overcharge, is it price controlled or subsidized and more. I decided to do a little sleuthing for myself.

This is what I found in the milk section in a Mega BaIr:

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This is what I found in the bread section in a Shufersal Sheli:

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I even found a whole section on Mega BaInternet for price controlled products:

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So at least in the large chains, price controlled products are being sold at the correct price.

What I found quite ironic, though, was this piece I found in Yisrael HaYom- every day they take a different product and compare the price for that object in Israel, England and the US. Here is the price comparison for milk:

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So even with all of this hullabaloo we are still paying more than other Anglo countries!  Yisrael HaYom speculates that the high price is (a) because of the high sales tax and (b) because there are no private brands of milk, the competition between them driving the price down.

Regarding the comments about overcharging:
You can definitely bring the list of price controlled products to your store and tell the owner you will only pay what is listed. If that doesn’t work, you can complaint to Misrad Hacalcala. They respond quickly.

Click here to send an email or call 1800-20-11-80 or 02-6662080 or *2290 Sunday-Thursday between 9am-3pm.
 

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