Israeli Tomato Prices Surge by 11.04% YoY Due to Shortages and Geopolitical Challenges

Israel's tomato prices have risen by 11.04% YoY, largely due to a shortage caused by weather, agricultural uncertainties, and geopolitical events. The situation has prompted a shift in government priorities to support domestically grown produce to alleviate market strain.
Tomato prices in Israel experienced a significant year-on-year (YoY) increase of 11.04%, increasing from USD 2.71/kg in Dec-22 to USD 3.01/kg in Dec-23. The growth has shown consistency from Jul-23 to Sep-23, resembling the pattern observed in 2022 but surpassing the levels seen last year. Reviewing the weekly tomato prices in Israel, in W49, the price reached USD 3.24/kg, reflecting a 12.5% increase from W48, where the price was also USD 2.88/kg. The recent surge in tomato prices in Israel can be traced back to fluctuations in the preceding period. Before the shortage, the market experienced a tumultuous period marked by various factors such as weather challenges, agricultural uncertainties, and the impact of geopolitical events like the war. These conditions led to a significant decline of 30 to 50% in tomato plantings, setting the stage for a reduced supply. Consequently, the country now faces a tomato shortage, contributing to a sharp price increase. This issue has prompted the head of an Israeli retail chain to advocate for a shift in government priorities, urging a focus on supporting domestically grown fruits and vegetables to alleviate the strain on the market and reduce dependence on imported produce. The situation highlights the delicate balance between domestic and imported sources in meeting the nation's vegetable needs. In 2022, Israel experienced a notable decline in tomato exports, recording a total of USD 94 thousand, positioning it as the world's 91st largest exporter of tomatoes. The decrease was substantial, marking an 87% YoY decline in value, amounting to a reduction of USD 670 thousand. In 2022, Hong Kong emerged as the primary destination for Israel's tomato exports, with a 98.59% export share, totaling USD 70 thousand in value.