Even as tomato prices continue to soar, the cost of cucumbers and zucchini has dropped. The wholesale price of cucumber fell to NIS 3.7 per kilo - a 70% drop from last week’s record of NIS 11 per kilo.
The wholesale price of zucchini dropped 45% to NIS 6.5-7 per kilo from last week’s record cost of NIS 12-12.5, but it still remains relatively high considering it must be sold to the consumer at NIS 8 per kilo.
Meanwhile the wholesale price of a kilo of red pepper stood at NIS 11-11.5 on Wednesday, an NIS 0.50 drop from last week. Despite the pepper’s high cost, the Ministry of Agriculture did not announce any step to help lower the consumer’s cost.
The pepper saga has continued for months - wholesale prices reached NIS 8-8.5 per kilo over two months ago. In the last two weeks, prices continued to soar; given the decrease in farmland allocated to peppers, there is no expectation of any relief in the near future.
Market sources believe the price of peppers will continue to rise through the winter.
“Supermarket chains are bleeding”
However, the drop in cucumber prices that began on Tuesday may only be partially felt by the consumer. Furthermore, prices vary among the different branches of the same supermarket chain.
In the Tiberias branch of Shufersal, cucumber cost NIS 7.9 per kilo on Wednesday, while the chain’s Eilat branch sold them for NIS 5.9 per kilo.
The supermarket chains have been frustrated by the criticism from the public over the produce prices. According to one retailer, “the cucumber price fell yesterday, but it was difficult to lower the cost to the consumer, because most of the stock sold in the store was bought the previous day for a higher price. Today there is no reason to sell the cucumber for NIS 5.9 per kilo.
“On the other hand, people need to understand the supermarket chains have been bleeding over the cucumbers and the tomatoes in the past two weeks. We’ve been buying them for NIS 10-11 per kilo of cucumbers and selling them for NIS 7-10 per kilo.
“The chains are still taking a loss on the tomatoes, and that’s why some of them are choosing to sell the cucumber at a higher price - by NIS 2 - to make up for the loss from the tomatoes. The media keeps placing the spotlight on the chains but we are not to blame. In the last few weeks the produce sections have been substantially hurting the chains finances.”
According to that retailer, some of the chains have purposely purchased smaller amounts of produce to minimize the fallout from selling them at a loss. “In some of the stores, you see advertising for good prices on produce, but they have no stock.”
Published by Globes [online], Israel business news - www.globes-online.com - on October 1, 2015
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