Gov’t ministries backtrack on plan to end egg quotas
The Finance Ministry and the Agriculture Ministry have retreated from their plan to abolish production quotas for eggs and are close to signing an agreement with the farmers that will include this item, people familiar with the matter told Globes.
At a meeting that lasted throughout Saturday night, the sides reached several understandings in principle.
The understandings reached so far are that central planning will remain in the poultry industry, including production quotas.
“We have been through enough battles and therefore want the protection of an agreement valid for at least 15 years, and the Finance Ministry is still being vague on this point,” said Amit Sofer, the head of the Marom Hagalil Regional Council. “This is a critical issue for the peace of mind and economic security of the farmers, because it is inconceivable that we will invest millions in upgrading poultry sheds without such security.”
The farmers said they would agree to a reduction in the price of eggs in exchange for grants covering 60 percent to 70% of the cost of upgrading their poultry sheds. Poultry farmers currently receive NIS 0.49 per egg. They are prepared to accept a gradual reduction in the price amounting to a NIS 0.06 spread over eight years. While the Agriculture Ministry agrees to this, the Finance Ministry is demanding a NIS 0.10 reduction over the same period.
Retailers will also absorb a cut in their sales margin on eggs. The intention is to bring about a reduction of NIS 0.14 per egg in the price to the consumer (including VAT). This represents a 13.4% cut in the current retail price.
Another point that is expected to be included in a final agreement is extension of the validity of the Galilee Law, which is due to expire in 2017. The law provides subsidies for poultry sheds in the Galilee to strengthen settlement in the region, particularly along the border with Lebanon. The farmers want the law extended for at least 15 years. Some 13.2% of the price paid to a farmer for eggs originates in the subsidy under the Galilee Law.