“There will be no meat shortage before Independence Day, except possibly for steaks, where there is a NIS 40-50 per kg. difference between fresh and frozen meat. Reports about plans to raise prices are in the interest of Israeli meat producers, but will probably not occur,” Haim Leshem, who is in charge of meat procurement at Super-Sol Ltd. (TASE:SAE; OTCBB:SSLTF) told “Globes”. Leshem was responding to Argentina’s decision suspend beef exports for six months. Argentina supplies most of Israel’s frozen beef.
Super-Sol has a 38% share of Israel’s food market, although most meat sales are by independent butchers, especially for fresh meat. Therefore, Super-Sol’s actions will also affect other retailers’ ability to raise meat prices.
Leshem believes that Israeli producers of processed meat products (made by injecting water into frozen meat imported from South America) will try to raise prices. He said, however, that Super-Sol would not raise meat prices ahead of Passover and until Independence Day in May, and would even initiate discount campaigns.
Super-Sol’s share of imported frozen meat is 3,700-4,000 tons a year. Leshem said the supermarket chain would initiate discount campaigns on March 21 to encourage consumption ahead of Passover, because, “We bought Passover products in which no shortage is expected.”
Published by Globes [online], Israel business news - www.globes.co.il - on March 14, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006