The price of fresh ground beef at Shufersal has surged by 17%, highlighting a broader trend of rising meat prices across the market. As of this Sunday, the cost of fresh, chilled ground beef at Shufersal has jumped from NIS 28 per kilogram in 2022 to NIS 69.90 per kilogram—a more than twofold increase.
Since 2022, the Israeli government has removed customs duties on ground meat, intending to lower consumer prices through increased competition and open market imports. However, this policy has not yielded the expected results. Instead of reducing costs, the price of ground beef has steadily risen.
Between 2018 and 2022, the Ministry of Economy's quota committee distributed duty-free import quotas for fresh beef. Importers were required to sell at least 25% of their imported meat as ground beef at a consumer price of NIS 28-32 per kilogram. This mechanism kept prices low, but it was dismantled in 2022 when the customs duty was abolished. Despite promises of lower prices, the cost of ground beef has only escalated since.
Shufersal's Price Increase
Shufersal, Israel's largest supermarket chain, was previously bound by a controlled price of NIS 28 per kilogram for ground beef. During this period, the chain introduced a "premium" version of ground beef priced at NIS 49.90 per kilogram. With the removal of price controls, Shufersal has gradually increased the price, first to NIS 59.90 and now to NIS 69.90 per kilogram.
Shufersal is not alone in this trend. Other supermarket chains, including Victory, Carrefour, Super Barkat, and Market Warehouses, have also raised prices by 9-12%. For instance, Victory increased the price of ground beef from NIS 49.90 to NIS 54.90 per kilogram, with a similar rise in premium ground beef prices.
Some Chains Hold Steady Amid Increases
Not all chains have followed suit. Rami Levy, another major supermarket chain, has maintained its prices, offering ground beef at rates ranging from NIS 39.90 to NIS 69.90 per kilogram. Similarly, chains like Half Free and Biohannoff have kept prices stable but adjusted their promotions, offering less profitable deals to consumers.
The ongoing increase in ground beef prices across Israel's supermarket chains suggests that the removal of customs duties has not delivered the promised relief to consumers. Instead, prices have continued to rise, leaving shoppers to bear the brunt of the market's dynamics.
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