Export Bottlenecks and Stronger Shekel Push Down Produce Prices in Israel

Prices for some agricultural produce are falling in markets and supermarket chains as the shekel strengthens and export difficulties mount. According to recent Agriculture Ministry data, fresh vegetable prices have declined over the past year, with an even sharper drop in the wholesale market.

The farming sector says exports have been badly hurt by the security situation and the suspension of flights. The Fruit Growers Organization says exports of herbs, citrus and avocados have been hit significantly, costing farmers tens of millions of shekels in losses. The result at home is that produce that would normally have been sent abroad may remain in Israel, increasing supply for consumers.

Fruit is a more complicated picture, partly because of middlemen’s margins and damage to orchards in the north. Ynet reported that staples such as tomatoes, cucumbers, carrots, zucchini and white cabbage, which until recently sold at high prices, have been cut in major retail chains to bargain levels of 1.9 to 2.9 shekels per kilogram.

The article also notes that despite a crop virus that destroyed about 10% of growing areas at the start of the season, Pink Lady apples, which were recently sold for up to 17.9 shekels per kilogram, are now priced at 9.9 shekels.