Chicken prices jumped 30% in five years; state blocks cheap imports
The Ministry of Agriculture has reversed its decision to allow Baladi to import chicken from Brazil just six months after approval. This is a major financial blow to the company and leaves consumers facing persistently high prices, which have risen by 30% over the last five years.
Just six months after granting food company Baladi approval to import chicken from Brazil, the Ministry of Agriculture has backtracked and frozen the move. As revealed in Globes, the incoming director of the Veterinary Services, Dr. Sergio Dolev, issued an official letter reversing his predecessor's decision, citing a lack of sufficient oversight regarding koshering procedures at the Brazilian plant.
For Baladi, controlled by Erez Dahabani, this is a significant financial blow. The company had relied on Brazilian imports as a key growth engine, projected to increase annual revenues by 10–15%—approximately 400 million shekels.
For the Israeli consumer, this is also a setback: in a market with a 20 billion shekel turnover dominated by powerful breeders, this move was expected to cool down chicken prices, which have jumped by about 30% in recent years.
Market Context
Data from the Ministry of Agriculture shows Israel is a global leader in chicken consumption, with 2024 per capita consumption at approximately 49 kg. About 590 breeders operate locally, with over half a million tons of chicken sold annually.
The Israeli chicken market operates on an integration model where large slaughterhouses control the production and marketing chain. Opening the market to lower-priced imports was perceived as a threat to this model, leading to industry pressure on the Veterinary Services to withdraw the approval.
For context, a kilo of chicken thighs (pargiyot) in Israel costs around 70 shekels, often three times the global price. A Knesset Research and Information Center study shows that over the last five years, the consumer price index for chicken products rose by 30%, compared to 20% for beef and 18% for fish.
Legal and Regulatory Battles
After Baladi petitioned against delays, the Veterinary Services granted approval on June 15, shortly before the hearing. The following day, then-director Dr. Tamir Goshen resigned. Simultaneously, Baladi is challenging the Chief Rabbinate in the High Court of Justice over procedures for kosher slaughter abroad, with a decision expected on November 18.
Baladi argues that producing in a country with cheaper raw materials would shorten the cost chain and lower consumer prices. Meanwhile, the State Comptroller is investigating the circumstances surrounding the initial approval.
Dr. Dolev also raised concerns regarding animal welfare during slaughter, echoing reasons cited by several European nations for canceling Brazilian chicken imports.
Stock Impact
Since its IPO two years ago, Baladi’s stock has suffered from various negative reports, with a recent 16% drop following the news of the import cancellation. The company had invested 21 million shekels in a dedicated plant in Carapo, Brazil, which is approved for export to other markets, including Japan.
However, the EU is also tightening regulations; starting September 3, 2026, it plans to restrict imports of most animal products from Brazil due to concerns over antimicrobial substances.
The Ministry of Agriculture stated: "At this stage, the Brazilian plant has been removed from the list of approved facilities. We will continue working to expand import sources but will not compromise on food safety or animal welfare."
