Dairy Costs in Israel 40% More Than OECD Average, Study Finds

Source says soon-to-be published OECD report shows that food prices in Israel are significantly above the average for member countries; clothing prices are more reasonable.

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Dairy products in Israel cost 40% more than the average for countries in the Organization for Economic Co-operation and Development, found an as-yet unpublished OECD study on cost of living.

The study is based on 2012 data and adjusted for purchasing power parity and GDP per capita, said sources.

The data shows that food prices in Israel are 20-30% above the average, said a source. Non-alcoholic beverages cost 40% more, and dairy products cost more than 40% more, even though the target price for milk is an identical 30 euro cents per liter, said the source, referring to the price dairies pay for raw milk.

According to the source, a decade ago the price of milk in Israel was below the OECD average, but today it is more expensive due to markups along the suppy chain.

In contrast, the data is expected to show that clothing in Israel is not more costly than average.

Tightened government control of dairy product prices could affect the profits of Tnuva and Strauss.Credit: Ofer Vaknin
According to OECD, Israelis are among the most satisfied people in the West. Credit: David Bachar
A shopper inspecting dairy products in an Israeli supermarket. Credit: Olivier Fitoussi

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