Buying Honey for the Holidays? This Move Could Lower Supermarket Prices

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Buying honey for the holidays? This move could lower supermarket prices

By Anat Siman Tov, 15 minutes ago

Ahead of the holidays, a new measure is getting underway that could affect prices in food chains. At the Ministry of Agriculture, preparations were advanced this year in an effort to increase supply for consumers. Whoever offers a lower price will receive a significant advantage.

As every year ahead of the Tishrei holidays, the Ministry of Agriculture and Food Security is working to increase the supply of honey on supermarket shelves by opening an import quota exempt from customs duty. This time, however, the move is being launched earlier than usual, in order to allow retailers and importers to prepare in advance and offer consumers honey at lower prices ahead of Rosh Hashanah.

As part of the plan, the ministry is publishing a competitive procedure for the import of 400 tons of honey without paying customs duty. The quota will be open to importers and retailers, and the main criterion for winning will be the consumer price, the lower the price the bidder commits to sell the honey for, the larger the import quota they will receive.

At the Ministry of Agriculture, they hope the move will help increase competition in the market, expand the supply of honey ahead of the holidays, and lower prices for the public, while preserving the local honey industry. Honey imported under the quota may come from countries that are members of the World Trade Organization (WTO), and it will be sold in packages of up to 1.5 kg. Clear shelf labeling will be placed in retail chains so consumers can identify the products participating in the promotion and compare prices easily.

According to the allocation plan, the bidder offering the lowest price to consumers will receive up to 80 tons, or 20% of the total quota. The rest of the quota will be divided among additional bidders according to the price they commit to offer consumers.

The ministry also notes that a similar mechanism was used last year, when 400 tons of honey were distributed duty-free. Among the winners were the retail chains Victory, Carrefour, Yohananof, Rami Levy and Osher Ad, along with an importer that supplied the product to Hazi Hinam. According to ministry data, the honey imported under last year’s process sold at an average price of 18.7 shekels per kilogram, with some products sold at significantly lower prices, starting at 8.90 shekels, depending on package size and various promotions.

Last year, the criterion for food chains was to sell 1 kg of honey for 19.90 shekels. Food chains tried to compete and sold honey for 17.90 shekels, such as Rami Levy Shivuk Hashikma, and some even sold 900 grams of honey for 11.90 shekels without even winning the tender, such as Netto Hasisachon.

In Israel, about 6,500 tons of honey are consumed every year, with demand surging ahead of Rosh Hashanah and during the winter months. Average consumption in Israel stands at about 700 grams of honey per person per year, less than half the average consumption in Europe, where consumption stands at about 1.5 kilograms per capita. At the Ministry of Agriculture, they estimate that opening the quota at this stage will allow retailers to prepare earlier for the holidays and offer the public a wider range of honey products at competitive prices.