Israelis almost double pineapple consumption after imports eased

Fruit stall in Israel credit: Shutterstock

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Since customs duties were cancelled and imports from Costa Rica were permitted, prices have plummeted, and sales have correspondingly soared.

The price of pineapples in Israel, which was extremely high even in comparison with prices even in European countries where pineapples are not grown at all, has plummeted in the past year, following the cancellation of customs duties on imports from Costa Rica, according to figures from Storenext and from the Israel Tax Authority. From a price of NIS 37.68 per unit in the last quarter of 2021, the price has fallen to a current NIS 18.49. Consumption has correspondingly shot up, with many more Israelis enjoying the tropical fruit than in the past. The figures show that when regulatory restrictions on imports are removed, prices can fall, sometimes without significant damage to local production.

In March 2022, as part of the "zero duty" program, the NIS 4.32 per kilogram duty on pineapples was cancelled. More importantly, in April that year, the Ministry of Agriculture signed an agreement with Costa Rica allowing pineapples from that country to be brought into Israel. Protectionist regulation covering produce is especially tough in Israel, blocking imports, and the State Comptroller commented on this in the report on concentration in the food sector in 2021.

Although the Ministry of Agriculture took only a very small step, opening the market to pineapple imports from just one more country, the price fell by almost 50%. Even supermarket chains that are not the cheapest, such as Shufersal, currently sell pineapples for about NS 20 each. In the past year, pineapple has become much more affordable for Israeli consumers, and the low price and increased imports have led to a dramatic increase in consumption. In 2021, 1.1 million pineapples were sold in Israel. In 2022, that rose to 1.4 million, and in 2023 the number of pineapples sold was 1.9 million. The current quarter is expected to see a new peak.

Imports (in kilograms) have risen by 60% since 2022, while total sales (in units) have risen by 70%, which means that the harm to local pineapple production has probably been minimal, while the selling price has fallen substantially.

Published by Globes, Israel business news - en.globes.co.il - on June 2, 2024.