Breaking Update
Gov’t cuts red tape on ground beef, saving consumers billions
Israeli government cuts ground beef red tape, saving consumers NIS 700 million to NIS 1.8 billion annually by increasing competition and reducing costs.
The Prime Minister’s Office announced today (Wednesday) an agreement between the Ministry of Health, the Ministry of Agriculture and Rural Development, and the Deregulation Authority on promoting a comprehensive reform in the regulation of ground meat. The reform aims to remove unnecessary regulatory barriers, create coordination and harmony between the regulations of the two ministries by adopting principles from European regulation, and increase competition in the meat products market in Israel, while safeguarding public health.
The reform focuses on changing the regulatory framework applicable to ground meat, but is expected to actually affect the prices of all meat products sold in retail chains. The economic impact of the reform will be reflected in a decrease in meat prices for consumers by up to 15%, and in the amount of NIS 700 million to NIS 1.8 billion per year, as a result of increased competition and reduced excess regulatory costs. The price reduction is expected to be reflected in both ground meat prices and in the prices of meat cuts.
A key part of the reform concerns the removal of regulatory restrictions that until today prevented industrial grinding of meat in factories and the marketing of fresh, pre-packaged ground meat to consumers. Today, regulatory requirements mandate grinding at points of sale and limit the marketing of packaged ground meat, which increases costs for chains and consumers and reduces competition. Contrary to popular belief, ground meat ground in a factory is no less safe than meat ground in a butcher shop, and is sometimes even safer due to advanced quality control systems. The reform allows a transition to controlled grinding in factories, expanding the supply of packaged ground meat in retail chains, and reducing operating costs, while fully adhering to food safety and public health requirements.
In addition to saving on bureaucracy and improving health standards, the reform has a tremendous economic and environmental advantage; it is expected to prevent the destruction of edible meat worth approximately NIS 2.2 million per year. This is thanks to transferring the responsibility for determining shelf life to the manufacturer itself. Meat thrown in the trash can lead to bacteria seeping into the soil and contaminating groundwater. Extending shelf life and preventing meat disposal will significantly reduce these risks.
The formulation of the reform and the agreement on it were reached as part of a joint staff work by the three bodies together: the Department for Supervision of Animal Products in the Ministry of Agriculture and Rural Development, the Veterinary Unit in the Food Regulation Division at the Ministry of Health, and the Deregulation Authority in the Prime Minister’s Office. The staff work examined existing barriers, regulatory duplications, and gaps compared to accepted standards in Europe, and laid a professional foundation for an agreed-upon reform between the ministries.
Director of the Deregulation Authority Yoel Bress: “The reform in meat marketing brings a real good news. The reform aligns with the Prime Minister’s policy: it will reduce the cost of living on a central component of the shopping basket; it will improve service to the citizen by removing unnecessary regulatory barriers, based on accepted international standards; and it will promote a more competitive economy. The reform also aligns with the overarching goal of the Deregulation Authority to improve government regulation, and it is the result of intensive and coordinated professional work with government ministries.”
Director-General of the Ministry of Health Moshe Bar Siman Tov: “The reform to remove regulatory barriers in the ground meat sector is an important step in easing regulation, while fully maintaining public health and food safety. In cooperation with the Ministry of Agriculture and the Deregulation Authority, we have adopted principles and regulatory coordination as is customary in global regulation – which allows for controlled grinding in factories and an expanded supply of packaged ground meat, with veterinary supervision and strict cold chain standards.”
Director-General of the Ministry of Agriculture and Rural Development Oren Lavi: “The reform in ground meat corrects a regulatory distortion that has occurred over the years and brings smart, balanced regulation based on international standards. Until today, it was not possible in Israel to market chilled ground meat from factories, as is customary in Europe and the United States. The implication was a lack of sufficient competition and higher costs that were passed on to the consumer price.
The reform creates for the first time a regulated marketing channel for chilled ground meat from factories, removes regulatory barriers, and reduces production costs. The move we are leading is expected to lead to a direct price reduction of up to approximately 15% in the price of ground meat for the consumer. In addition, the reform allows for the marketing of a higher quality and safer product to the consumer, as factories operate under a comprehensive, controlled, and regulated food safety system at a level not always present in butcher shops.”
– Attached is a link to the full report:
https://www.gov.il/he/pages/examinationreport170226
