Saul Meridor Highlights Economic Gaps in Agriculture and Consumer Goods Pricing in Israel

Saul Meridor, a senior economic figure on the Yisrael party list led by Gadi Eisenkot and former head of Israel's Budget Department and CEO of the Energy Ministry, has recently drawn attention to economic disparities in Israel through two viral videos. In one, he questions a farmer from the Abdon moshav in the Galilee about the price of lychee fruit, revealing a significant gap between the farmer's price (10-12 shekels per kilo) and the retail price (34-35 shekels). Meridor points to this "intermediation gap" but does not specify who profits most from it.

Contrary to common belief that retailers capture the largest share, data from the Israeli Competition Authority shows that between 2018 and 2020, the agricultural sector (including growers and packing houses) received about 67-68% of the consumer price for fruits and vegetables, while retailers took 32-33%. Although retailers' operating profits on fruits and vegetables (6-7%) are higher than their overall profit margins (3-5%), a KPMG study comparing Israeli retailers to international peers found no unusual profitability in Israel's retail sector.

In a second video, Meridor highlights the price of Colgate Max Fresh toothpaste in Israel, noting it costs nearly 7 euros (23.90 shekels), compared to 2.5-5 euros (8.70-17.30 shekels) in countries like Spain, Greece, and Italy. However, price comparison website Prices shows that 23.90 shekels is the upper price limit, with many stores in Tel Aviv and the Dan region offering the toothpaste at prices closer to European levels, starting at 9.90 shekels.

Meridor has not responded to requests for comment. His videos, while eye-catching, aim to highlight deeper economic issues in Israel, including the distribution of profits in agriculture and consumer goods pricing. The discussion comes amid broader debates on economic policy and market regulation in Israel.