Fish Import Tariff Cuts Fail to Lower Consumer Prices, Data Shows
Translated & summarized from Davar by baba
Despite the elimination of import tariffs on sea bream, consumer prices for the fish in Israel have risen by 39% since the reform began, with the combined margin for importers and retailers increasing by 15%. The reform, intended to lower prices, has instead led to the state forgoing an estimated 41 million shekels in potential revenue from 2023-2024. Experts argue that tariff reduction alone is insufficient for lowering prices, advocating for increased domestic production and market competition to ensure consumer savings.
The story in 5 lines · by baba
- Sea bream prices rose 39% for consumers despite import tariff cuts aimed at lowering costs.
- Importers' and retailers' combined margin increased by 15% during the tariff reduction period.
- The state lost an estimated 41 million shekels in potential customs revenue from sea bream imports.
- Experts state tariff reduction is ineffective for lowering consumer prices without market competition.
- Investment in domestic fish production is proposed as an alternative to tariff cuts.
A review of data from the Central Bureau of Statistics, processed by the Ministry of Agriculture, reveals that a tariff reduction on fresh fish imports, intended to lower consumer prices, has instead led to price increases. Specifically, the price of sea bream (denis) for consumers has risen by 39% despite a gradual reduction of import duties, which are set to be fully abolished by January 2025. Concurrently, the combined margin for importers and retailers has grown by 15%. The fish import reform, initiated by former Finance Minister Avigdor Lieberman and finalized in September 2022, aimed to boost competition by progressively lowering tariffs on staple and quality fish like sea bream and sea bass. This initiative proceeded despite reservations from agricultural professionals, who warned it might not translate into significant consumer savings. An analysis of fish prices in the years following the reform's implementation raises questions about its effectiveness, particularly for quality fish such as sea bream. Between the 2020-2021 average and the 2023-2024 average, the consumer price of sea bream increased by approximately 13%. The combined margin for importers and retailers widened from 32.3 shekels per kilogram to 37.1 shekels, an increase of about 4.8 shekels or 15%. While this margin includes operational costs, the price to the consumer has risen by roughly 7.8 shekels per kilogram by 2024. Monthly price data indicates that sea bream prices ranged from 59-66 shekels per kilogram in 2023, exceeded 70 shekels in some months of 2024, and reached approximately 74-84 shekels per kilogram in early 2025 after the tariff was fully removed. Prices continued to climb in early 2026, reaching about 86-87 shekels per kilogram in some months, despite the import price remaining stable.
Chen Flor, CEO of the Fish Breeders Association in Israel, stated that the data proves tariff reduction is not the correct tool for lowering consumer prices, citing the consistent rise in sea bream prices even after tariffs were eliminated. He also pointed to significant regulatory leniencies granted to importers, including reduced quality checks and extended shelf life for fish sold as fresh, which have not been reflected in consumer prices. The state has also forgone potential revenue, losing an estimated 41 million shekels in customs duties on sea bream imports in 2023-2024 alone, while consumer prices increased. The article suggests that instead of solely reducing tariffs, the state could have invested these funds in supporting domestic fish production, potentially through grants for advanced closed-system aquaculture (RAS). Such an investment could have leveraged approximately 82 million shekels and increased domestic sea bream supply by 17%-35%. While the Ministry of Agriculture has provided some support for aquaculture, a long-term policy is needed, including investment in research, infrastructure, streamlined licensing, and encouraging new producers to enhance competition and food security. Relying heavily on imports leaves the market vulnerable to global price fluctuations and supply chain disruptions, whereas a robust domestic production base offers a stable supply and strengthens competition.