Chicken Prices Soar in Israel Amid Bureaucratic Stalling
Israeli consumers face rising chicken prices as the Chief Rabbinate delays import approvals. Despite efforts by the meat company Baladi and Supreme Court intervention, the process remains stalled.
The Rabbinate is stalling, the state veterinarian has resigned, and chicken prices are soaring. The Rabbinate is delaying the approval of chicken imports from abroad, while local growers fight to keep the market closed. Consequently, Israelis are forced to pay high prices for local chicken, with no alternatives for one of the most significant products in the shopping basket.
Price Hikes and Market Data
The high weight of chicken in the Israeli diet is reflected in Ministry of Agriculture data, showing annual per capita consumption of about 49 kg in 2024, compared to the global average of 21.8 kg. According to a Calcalist check on the Pricez website, prices at Shufersal Deal have jumped significantly since 2020: whole chicken breast is up 42.2% to 39.4 NIS per kg, sliced breast is up 25% to 39.9 NIS, and chicken legs have risen by 42% to 27.7 NIS per kg.
Growers blame retailers for the high costs. Ministry data illustrates that between 2015 and 2020, wholesale prices fell by 24%, but consumer prices dropped by only 4%, reflecting a 20% mediation gap. By 2024, consumer prices were roughly 30% higher than in 2015, while wholesale prices had returned nearly to their starting point.
Legal Battles and Rabbinate Obstruction
Baladi, controlled by Erez Dahabani (77.34%), aims to lower prices by importing frozen chicken from Brazil. A year ago, the company petitioned the Supreme Court against the Chief Rabbinate for refusing to set clear kashrut procedures for imports. During a hearing last week, the Rabbinate requested a four-month extension to present recommendations, despite judicial frustration.
"Months have already passed since the last hearing. We talked about solving it within 45 days; there is a constitutional rights issue here. You acknowledge the infringement of freedom of occupation — so solve the matter," stated Judge Yael Willner.
Resignations and Administrative Challenges
In September 2024, Baladi signed an agreement with a Brazilian supplier, investing 21 million NIS to upgrade the factory for kosher production. Although the factory was approved by veterinary services, Ministry of Agriculture CEO Oren Lavi opposed it. Last month, Tamir Goshen, the director of veterinary services who supported the approval, resigned amid reported disagreements with Lavi.
Meanwhile, local growers have filed an administrative petition to cancel the Brazilian import approval, demanding the government protect local production first. The Ministry of Agriculture responded that the permits were issued following professional requirements and that there are no grounds for court intervention.
