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Monday, June 04, 2012

But you knew this: Food in Israel 20% more expensive than anywhere else in the OECD

Until we came on aliya (immigrated to Israel), we never had to worry about how much we spent on food. And even now, 21 years later, we spend way too much. The only thing that surprises me about food in Israel costing 20% more than in the rest of the OECD is that it's not more than that. Much more.
The committee says that the reasons for high consumer prices and food are "concentration in the supply and retail segments, problematic supplier-retailer ties, and a lack of transparency about prices for consumer products."
I could have told you that without a commission.
According to the Committee, "In 2005, prices in Israel were 10-20% less than in OECD countries, and in 2008 and 2010, they were 10-20% higher."

The comparison carried out for the committee examined prices of food in 22 categories. It found that, in 2010, Israel had the highest concentration in eleven categories, and was ranked second in five additional categories.


The Kedmi Committee recommends increasing regulation of supplier-retailer relations, increasing supervision of mergers and acquisitions in the industry (it advises the Antitrust Authority to review whether dominant suppliers which acquired small food companies reduced competition in the industry), encouraging private labels, reducing quotas and non-quota barriers, supporting small and mid-sized businesses in the food industry, supervision of food prices, fostering retail competition, encouraging new types of food retailers, promoting local foods markets, and price transparency.
Competition is an amazing thing. Cell phone prices have come down.



At 6:05 PM, Blogger Thermblog said...

Remember for the future when starting a country: don't let the lefties have control. It's really hard to fix later.

At 8:18 PM, Blogger Soccer Dad said...

So I guess the out of touch elites will say, "Let them eat cell phones."

At 1:11 PM, Blogger Sasha said...

On the other hand, amazingly delicious fresh fruits and vegetables are much cheaper here in Israel than back in the Old Country. So if one wants to save money on the food bill, it pays to eat healthy!


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