This should impact the US glatt kosher market, as well, although much less so than in Israel.
Meat prices expected to rise
Price hike may reach 40% in near future due to shortage of beef in South American countries
Yehudit Yahav • Ynet
The prices of beef in Israel are expected to see a sharp rise of up to 40% in the near future, due to the shortage of beef in South American countries.
Most of the frozen meat imported to Israel originates in Argentina and other South American countries, which have significantly reduced beef cattle breeding in the past year.
"The farmers in these countries have began growing soybeans and corn in order to meet the demand for biodiesels, leading to a drop in the supply of beef, which will push prices up," explains Haim Dayan, director of the Beef Cattle Breeders' Association in Israel.
The owner of a large meat factory, which imports frozen meat from Argentina, said earlier this week that the prices have already begun going up: "A ton of frozen meat which the importers paid $3,400 for several weeks ago, spiked recently to $5,000. There will be no escape from raising the consumer as well," he said.
The supermarkets, meanwhile, appear unmoved by the importers' warning. However, restaurant and fast food chain owners fear they will have to absorb the price hike.
Ofer Petersburg contributed to this report