K A S H R U T . C O M_©

Israel’s Butter Shortage Continues to Worsen

October 29, 2019 - from Yeshiva World:

"The butter shortage in Israel continues. Minister of Economy & Industry Eli Cohen is calling for deregulating the market, to remove government restrictions on butter to the retail consumers towards developing an open market to end the shortage."

"The matter of quota cancellation as well as quota allocations are issues that should be promoted in general, all the more so when speaking about the fact there is no local production."

"'Many are already shouting the solution to the butter shortage can easily be solved through a free market, which means a sweeping abolition of tariff rates and the abolition of the quota system on butter. There is a need to increase competition and diverse sources of production.'"

"YWN-Israel reported weeks ago that the shortage would be worsening, and today, locally produced butter is not to be found in grocery stores and supermarkets. Those who can find an acceptable hechsher and pay the premium price for imported butter sold in some stores are not feeling the shortage, but among the chareidi families the shortage has impacts the lives of many."

Israel: Butter Shortage May Soon Be Solved – But Not in Time for Pesach

April 5, 2019 - from Hamodia:

"After months of shortages, the Agriculture Ministry has opened two tenders for the import of butter. Competing for the opportunity to bring in some of the allocated 3,000 tons of butter will be the large supermarkets, including Rami Levi and Supersol, dairy concerns Tnuva, Strauss and Tara, and food companies Willi Food and Osem. Under the terms of the tender, importers will be able to bring in the butter without duty."

"With that, industry experts expected the imported butter to sell for more than the NIS 3.80 per 100 grams that Israeli-produced butter is supposed to sell for, under state price regulations. Under the terms of the tender, importers will have to bring in most of the butter by July 31, in order to ensure that there is enough butter on the market to alleviated shortages during the Yamim Nora’im."

"But even authorization for increased butter imports may not do the trick. There are spot shortages of butter in Europe as well, so it is not even clear that importers would be able to find enough product to cover the shortfall – so even before winning the tender, companies have been rushing to find suppliers and sign contracts with them."

"While the imports will not come in time to alleviate butter shortages for Pesach, they will be here in time for summer – and without them, industry experts told Yediot Achronot, the situation in the market would be “dire,” because butter production is much lower during the summer months, due to the higher temperatures."

"For months, supplies of butter have been spotty, with butter disappearing off the shelves from many stores. Already in 2017 there were limited supplies, and as 2018 progressed, supplies of locally-made butter all but disappeared; Tnuva’s salted and unsalted butter are nowhere to be found, consumer groups told Globes."

"It’s not clear why Israeli companies cannot supply the necessary butter. According to the groups, it is Tnuva that is at fault, as it is using its supply of milkfat for products that have a higher markup, instead of for price-controlled butter. Tnuva, in a statement, said that demand for butter has risen sharply in recent years, as more Israelis prefer to eschew margarine and eat more healthily."

Israel: Where Did All the Butter Go? Ministry Foresees Pesach Shortages

March 24, 2019 - from Hamodia:

• "With Purim now past, Israeli eyes are turning to Pesach – and this year, preparing cakes and cookies for Yom Tov could be a challenge for many people. For months, supplies of butter have been spotty, and as Pesach approaches, the Agriculture Ministry has warned that there is likely to be an even more severe shortage of the product. Also likely to be in short supply will be eggs, the Ministry said."

  "The Ministry hopes that increased imports of eggs will help alleviate the problem. In recent days, the Ministry authorized an increase in the number of eggs that can be imported duty-free, and that number now stands at 75 million. The Finance Ministry has signed off on that increase – but has not signed off on an increase in the amount of butter."

  "But even authorization for increased butter imports may not do the trick. There are spot shortages of butter in Europe as well, so it is not even clear that importers would be able to find enough of the product to cover the shortfall. Israeli importers say that increasing the amount of butter that can be imported without duty will not solve the problem; what’s needed is a complete opening of the butter market, to allow the import of as much butter as needed tax-free."

  "It’s not clear why Israeli companies cannot supply the necessary butter. Already in 2017 there were limited supplies, and as 2018 progressed, supplies of locally made butter all but disappeared; Tnuva’s salted and unsalted butter are nowhere to be found, consumer groups told Globes. According to the groups, it is Tnuva that is at fault, as it is using its supply of milkfat for products that have a higher markup, instead of price-controlled butter. Tnuva, in a statement, said that demand for butter has risen sharply in recent years, as more Israelis prefer to eschew margarine and eat more healthfully."

  "While the butter shortage has impacted consumers for months, the shortage on Pesach will be very difficult for many families of Ashkenazic custom, who do not use margarine products on Pesach because they are kitniyos-based."