The government is removing regulatory barriers on ground meat – a move expected to save consumers about 1.5 billion shekels per year
A joint reform by the Deregulation Authority in the Prime Minister’s Office, the Ministry of Health, and the Ministry of Agriculture and Food Security will remove regulatory barriers, create coordination between the ministries, and adopt regulation adapted to the State of Israel based on the US and Europe
The Prime Minister’s Office announced today an agreement between the Ministry of Health, the Ministry of Agriculture and Food Security, and the Deregulation Authority to advance a comprehensive reform in the regulation of ground meat. The reform is intended 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 700 million to 1.8 billion shekels 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 restrict the marketing of packaged ground meat, which increases costs for chains and consumers and reduces competition. Contrary to popular belief, 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 for a transition to controlled grinding in factories, an expansion of the supply of packaged ground meat in retail chains, and a reduction in operating costs, while fully adhering to food safety and public health requirements.
Beyond savings in bureaucracy and improved health standards, the reform has a tremendous economic and environmental advantage; it is expected to prevent the destruction of sound meat worth about 2.2 million shekels per year. This is thanks to transferring the responsibility for determining shelf life to the manufacturer itself. Meat discarded in the trash can lead to bacteria leaching into the soil and groundwater contamination. Extending shelf life and preventing meat disposal will significantly reduce these risks.
The formulation and agreement on the reform 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 Food Security, the Veterinary Unit in the Food Regulation System 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 Yoav Bris: “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 in a central component of the shopping basket; it will improve service to the citizen by removing unnecessary regulatory barriers, based on accepted global standards; and it will promote a more competitive economy. The reform also aligns with the Deregulation Authority’s overarching goal of improving government regulation, and it is the result of diligent 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 Food Security Oren Lavi: “The reform in ground meat corrects a regulatory distortion that has arisen 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, an organized 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 reduction of up to about 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 found in butcher shops.”
– Attached is a link to the full report:
https://www.gov.il/he/pages/examinationreport170226