Fishing Brunch 2019

Machine Translated by Google
Fish in the net - Gan Shmuel, Shmuel Rothbard, KNT competition
The fishing industry in Israel - changes over time and a summary of 2019
Dr. Ziv Bar Nahum
The Division for Research, Economics
and Strategy ZivB@moag.gov.
December 2020 Ministry of Agriculture and Rural Development - Division for Research, Economics and Strate
The structure of the review
ÿ General background on the fishing industry in

Israel: ÿ The development of sources of supply of edible fish in Israel
ÿ Quantity and composition of pond fish in Israel 2019
ÿ Quantity and composition of fish imports 2019
ÿ Examining the impact of the customs policy reform on local production

of fish
ÿ The reform of the customs policy on fish
ÿ Examining the impact of the reform on the local production of tilapias

ÿ Case study: imported frozen tilapia fillet versus domestically produced tilapia fish
ÿ Examining the impact of the reform on the local production of carp and borer
(appendices)
Change in fish supply sources

In the last decade, a change in the mix of fish supply sources (in terms of whole fish) - a decrease in the share of local production, an
increase in the share of imports of frozen tilapia fillets, the share of imports of whole fresh fish and the share of imports of fresh fillets
3
2009 2019
Aquaculture
1%
Aquaculture
Filet import spawn spawn Fish ponds
2%
frozen tilapia 2% Fish ponds 1% 7% Fisherman
11% 14%
1%
Filet import Import fresh fish
frozen tilapia and chilled

Fisherman
28% 8%
2%
Import fresh fish
and chilled
4% Filet import
fresh
13%
Filet import
fresh
0%
Import frozen fish

5%
Import frozen fish
Import 16%
frozen fillet
(without tilapia) Import
50% frozen fillet
(without tilapia)
In whole fish terms 35%
Fish supply: 2009 130 thousand tons Fish supply: 2019 194 thousand tons
Note: The data in thousands of tons in terms of whole fish (without canned fish), the fillet data - translated into whole fish terms (multiplying the amount of fillet by 2.5).
Sources: LMS (fish for food produced in Israel), the Foreign Trade Division of the Ministry of Agriculture (for import data), the processing of the Economics and Strategy Research Division.
The sources of supply of edible fish in Israel

In 2019, a continued decrease in the supply of fish from ponds compared to an increase in the import of frozen
and fresh fillets. In 2002, the local production share of the total supply was about 30% compared to only about 9% in 2019
200 194
Total fish supply
180 175
164 spawn
54
160 154
142 51 Frozen tilapia filet import

138
140 134 41
130
127
44 Import frozen fillet (without
121 120 29
117 29
120 114 114 15 tilapia)
18 29
4 12 12
thousands
99 99 10 18 Import frozen fish

, 97 67
100 93
0 2
60 64 Import fresh fillet
80 55 65 55 60 55
60 62 59
51 44 48 58 52 60
47
10 Import fresh and chilled fish
60
In 14 10
13 26 Fisherman
24 16 14
40 23 18 13 15
18 21 17 21 20 17 15 13
8 9 13
1 1 1 1 8 14 16 18
14
2
6 14 16 Aquaculture
3 3
20 3 3 2 32 51 1 1 2 3 3 3 3 3 34
19 19 21 21 21 19 18 18 18 18 17 19 17 17 16 15 14 13 Fish ponds
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
The supply mix (in terms of whole fish) 2017-2019

An increasing trend in the import of fresh and frozen fillets alongside a decreasing trend in the import of frozen whole fish. Aquaculture is on
the rise
Quantitative change thousands of tons % change between 2018 2019 2018 2017
Between 2018 and 2019 for 2019 thousands of tons thousands of tons thousands of tons source of supply
-0.8 -6% 13.4 14.2 15.3 Fish ponds
0.7 27% 3.5 2.8 2.7 Aquaculture

native
0.0 0% 1.0 1.0 1.0 Fisherman
2.5 18% 16.3 13.7 17.7 Import fresh and chilled fish
10.1 71% 25.8 15.0 10.0 Import fresh fillet
-0.2 -2% 9.8 10.1 13.6 Import frozen fish
Import frozen will

2.9 5% 67.4 64.5 60.3 fillet (without tilapia)
Frozen tilapia filet

2.8 5% 54.0 51.2 40.6 import
-0.2 -6% 2.4 2.6 2.7 spawn
18.5 11% 163.8 175.1 193.6 Total
Per capita supply of edible fish in Israel, in kg per capita

An increase in supply per capita from imports compared to a decrease in supply per capita from local production - the total supply per capita from all sources is on
the rise
+37%
19.8
20 supply per person
18
16
14.4
14
, soul
the
"K"
for
C
12 +71%
17.8 Supply per capita from imports
10
10.4
8
whole
terms
fish
In
4
-50%
2 4.1 Supply per capita from local production
2.0
0
2002-2004 2017-2019
Note: Fish supply per capita per year is calculated according to the total fish supply per year (not including canned fish) divided by the population.
Sources: LMS (edible fish produced in Israel), the Foreign Trade Division of the Ministry of Agriculture (for import data), processing by the Division for Economic and Strategic Research.
Population data - LMS.
Local production - pond fish

Locally produced pond fish - quantities and price per breeder

A general downward trend in the quantities of locally produced fish. An increase of about 15% in the price per tower in 2019 compared
to 2018
30 18
15.4 15.2 14.9 16
14.3 14.4 14.3
25 13.6 13.9 13.7 13.6
13.1 12.7 12.9 14
19.2 18.6
20 18.4 17.9 18.1 12
17.6 17.3 16.8 16.7
15.5 15.3 10
"
14.2
H
15 13.4
8
Price
Sh
thousands
\
Quantity
tons
of
in
10 6
4
5
2
0 0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Quantity in thousands of tons Price NIS/kg
• The price increase during the years 2018-2019 is mainly explained by a significant decrease in production quantities as a result of
a reform of the customs policy on imported fish (which can be a substitute product for local fish) that began in the
summer of 2016, which included a 50% reduction in the amount of customs duty. • Also, the
decrease in production quantities led to a significant decrease in the amount marketed to the industry which is priced
Cheaper than the one marketed to the local market, so the weighted average price increased.
Source: LMS, processing of the division for research, economy and strategy.
The composition of the quantities of pond fish in Israel - 2019

Tilapia, carp and mullet make up about 85% of the total quantities
Fish pond data in Israel - 2019

Quality fish other fish
(Bermondi, 5% 13.4 Production quantity (thousands of tons)
Labarak, Moser)
5% 199,274 Redemption (thousands of NIS)
14.9 Average price per tower

Bass Carp
6% 26% (NIS/kg)
mullet
15%
tilapia
43%
Note and
source: *The composition of the fish basket shown in this chart refers to about 90% of the farms active in the industry in 2019. "Other fish" mainly include: amur, black carp, swordfish. The data is taken
from the work of Diabat-Shachavri and Bennett, "Summary of a professional economic survey in Madaga 2019" - Ministry of Agriculture and Rural Developmen
10
Import fish
Composition of quantities of fish imports by product category - 2019

Frozen fish fillet is the leading category followed by fresh fish fillet
11
import price import price Amount Amount category

Import thousands of tons, in whole fish terms + customs - (CIF) in thousands of tons, in thousands of tons product
crabs, (NIS/kg)* ÿ/kg* In whole
shellfish fish terms
and
invertebrates 22.4 19.0 121.4 48.6 Frozen fish
Frozen
1% fillet
whole fish
6% Fish fillet 45.0 44.6 25.8 10.3 Fish fillet
fresh
whole fish
fresh fresh 15%
9% 31.6 27.9 16.3 16.3 whole fish

fresh
14.8 14.6 9.8 9.8 Frozen whole

fish
38.3 30.8 2.4 2.4 crabs,

shellfish
and
Frozen fish
invertebrates
fillet
sixty nine%
26.4 23.5 175.7 87.4 Total
*
The import price and duty are per kg of product. The duty is the amount of duty actually paid per kg of product (weighted average of the import quantities).
Source: Foreign Trade Division of the Ministry of Agriculture. Processing: Division for Research, Economics and Strategy.
Composition of quantities of imported frozen fish fillets by type of fish - 2019

Frozen tilapia and salmon fillets together make up about 71% of the total imports of frozen fish fillets
12
countries import price Quantity Fillet type

Other frozen
main - (CIF) in thousands of tons The frozen fish
fish fillets
Frozen hake 10% source ÿ/kg
fillet
China 9.7 21.6 tilapia
5%
norway, 37.3 13.1 salmon

Frozen tuna
Chile,
fillet Poland,
6%
Denmark
Frozen tilapia Argentina, 12.7 2.2 hake (cod)

fillet Dr.P
44%
Uganda, 17.7 3.1 the princess of the nile
Tanzania
Frozen
Vietnam 21.2 2.9 tuna
salmon fillet
27%
Vietnam 9.8 0.8 catfish
14.5 4.9 other fish

Frozen Nile Frozen catfish
Princess Fillet fillet 19.0 48.6 Total
6% 2%
Composition of quantities of fresh fish fillet imports by type of fish - 2019

Fresh salmon fillets make up about 93% of the total imports of fresh fish fillets
13
Fish fillet
other fresh
4%
Fresh Nile
countries import price Amount Fillet type
Princess Fillet
3% main - (CIF) in the thousands The fresh fish
source ÿ/kg tone
Norway, 45.2 9.6 salmon

Chile
Uganda 24.6 0.3 the
princess of the nile
44.4 0.4 fish

others
Salmon fillet
fresh
44.6 10.3 Total
93%
• In 2019, a significant increase in the import of fresh salmon fillets.

• The import price of fresh salmon fillets is about 20% higher than the import price of frozen salmon fillets
• The import price of fresh Nile Princess fillet is higher than the import price of frozen Nile Princess fillet
about .40%
Composition of quantities of whole frozen fish imports by type of fish -

2019
Salmon, sardines and mackerels make up about 71% of the total import quantities of whole frozen fish
14
Other frozen Main countries import price Amount the type of fish
fish of origin - (CIF) in thousands of tons the frozen

6% ÿ/kg
Hake
9% Norway, 22.8 3.8 salmon
Chile, USA
Norway, 7.3 3.3 Sardines,

England mackerels
salmon
38% Argentina 6.2 0.8 hake (cod)
USA, Canada 8.3 1.0 carp
China 5.5 0.1 tilapia
Vietnam 8.3 0.1 catfish
Norway 24.3 0.1 halibut

Sardines
carp tilapia Vietnam, 37.3 0.1 tuna
Mackerels
33% 10% 1% catfish Spain
1%
tuna halibut 21.1 0.6 other fish
1% 1%
14.6 9.8 Total
The composition of quantities of whole fresh fish imports according to the type of fish -
2019
Fresh whole salmon constitutes about 47% of the total import quantities of whole fresh fish
15
countries import price Amount The type of fresh fish

Decker, Palmada,
Mulit main - (CIF) in thousands of tons
3% source ÿ/kg
fresh fish
others Norway, 33.2 7.7 salmon
10% Chile, Canada
Turkey, 19.7 3.3 Dennis
Cyprus
Dennis
Turkey, 22.3 2.8 to shine
salmon
20%
47% Cyprus
Sri Lanka 55.7 0.5 tuna
41.9 0.5 Decker, Palmada,

Senegal, Mulit
Egypt, Holland,
to shine Gambia
17%
16.7 1.6 other fish
tuna 27.9 16.3 Total

3%
• The import price of whole fresh salmon is higher than the import price of whole frozen salmon by about 46%
• The import price of whole fresh tuna fish is higher than the import price of whole frozen tuna fish by about 49%
• Dennis and bream make up about 20% and 17% of the total import quantities of whole fresh fish, respectively.
Main findings - the development of local production and imports
16
ÿ The total supply of fish per capita in Israel is on the rise, but the share of supply from local
production is on the decline and currently accounts for only 9%. Even in absolute terms, the
amount of domestic production is on a downwa
ÿ Tilapia, carp and mullet make up about 85% of the total local production quantities (tilapia alone
43%). The share of other fish has been on the rise in recent years.
ÿ Frozen tilapia fillets make up about 44% of the total imports of frozen fish fillets
(Frozen salmon fillet about 27%).
ÿ In 2019, a significant increase in the import of fresh salmon fillets - accounts for about 93% of the
import quantities of fresh fish fillets and accounts for about 12.5% of the total supply of fish (in
terms of whole fish). For comparison, the amount of local production of the fish ponds in Israel is about
Only 6.9% of the total supply of fish. ÿ
Salmon, bream and bream make up about 84% of the total import quantities of whole fresh fish
(whole fresh salmon about 47%).
17
Examining the impact of the customs policy

reform on the domestic production of fish
Reform of the customs policy on fish

The reduction in customs duty led to an increase in import volumes
18
The main points of the reform in the customs policy on fish:

Import amount of frozen tilapia fillets and the amount of the general duty
• Summer 2016 - a 50% reduction in the amount of the general customs duty to
25.0 16
14 7.5 NIS/kg (tilapia, mullet and carp).

20.0
12 • An additional reduction of 12.66% in January of each
10
15.0 From the years 2017-2020 (provided that the revenue of the industry decreases
thousands
8
tons
the local in the established intervals) - the reduction so far has not
"S
"K
\h
c
of
10.0
6
It was carried out in light of damage to the revenue of local farmers.
4
5.0
Main points of a support agreement for loss of income:
2
0.0 0 • Following the reduction in customs duties, a tripartite agreement was signed between
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Frozen tilapia fillet import quantity
The amount of general customs
The Ministries of Agriculture, Finance and the breeders whose goal is to compensate
Source: The Department for Foreign Trade in the Ministry of Agriculture, Processing: The Division for Research, Economics and Strategy. for the loss of income.
• Support agreement for 7 years (2016-2023) of 30 million
NIS per year - NIS 25 million as direct support and NIS 5 million
for R&D and advertising. In addition, 77 million NIS to support investments
required as part of an environmental reform in the fishing industry.
• In 2023 - re-examination of the terms of the agreement.

Examining the impact of the customs policy reform

on the domestic production of tilapias
19
tilapia
Link to Appendix A -
Analysis of the impact of the reform
on the domestic production of carp
Link to Appendix B
Analysis of the impact of the reform
on the domestic production of borers
Bjørn Christian Torrissen, CC BY-SA 3.0, via Wikimedia Commons

Amounts of fresh tilapia from local production, revenue and price per grower
As of 2016, there is a continuous downward trend in the quantities of marketed tilapia. There was an increase in
the price per tower and revenue in 2018-2019 after the decrease in 2016-2017*
20
200 16
180
14
160 12.1
12
10.7 10.9
140 10.6
9.5 10
120 9.1 Redemption in millions of NIS
8.4
8.1 7.9
,
7.8
100 7.3 8 Quantity in thousands of tons
H "Millions
Sh
of
6.5
thousands
6.0
tons
of
80
6 Price per tower without support NIS/kg
5.1
60
4
40 86.5 85.3 83.6
66.9 61.3
54.6 57.2 2
20
0 0
2013 2014 2015 2016 2017 2018 2019

*Note: the direct support that is given to all the fish farmers who were affected by the reduction of the duty (tilap, mullet and carp), is not taken into account in the calculation of the price per
farmer. Source: Fish Breeders Organization. Processing: Division for Research, Economics and Strategy.
Amounts of fresh tilapia from local production, revenue and price per grower -
Including an assessment account for direct support to growers*
21
200 16
14.6
180
14
160
11.6
12
140 10.8 12.1
10.4
10.7 10.9 10
Redemption + support millions of NIS
10.6
120 9.1 Direct support millions of NIS
8.4
,
8.1 7.9 9.5
7.8 Redemption in millions of NIS
100 8
"Millions
7.3
H Sh
of
86.5 85.3 83.6 Quantity in thousands of tons

6.5
79.1 6.0
ÿ\
80 74.1 Price per tower without support NIS/kg
67.5 70.1 6
12.2
12.8 Price per tower including support NIS/kg
12.8 12.9
60
5.1 4
40 86.5 85.3 83.6
66.9 61.3
54.6 57.2 2
20
0 0
2013 2014 2015 2016 2017 2018 2019

*Note: The direct support for the tilapia farmers was calculated according to the total direct support granted to all the fish farmers affected by the tariff reduction (tilap, mullet and carp)
times the share of tilapia in the total marketed quantities (of tilapia, mullet and carp). Source: Fish Breeders Organization. Processing: Division for Research, Economics and Strategy.
Summary of the impact of the reform on the domestic production of tilapias
22
Total direct Redemption redemption Average price for Average price per Quantity
support + support (millions a total tower tower without (thousands
(millions of NIS) direct (NIS support support of tons)
(millions of NIS) (NIS/kg) (NIS/kg)
Before the reform (2015-2013 average)
0 85.1 85.1 10.7 10.7 7.9
After the reform (2019-2017 average)
12.9 70.6 57.7 12.2 10.0 5.9
% change (after the reform vs. before the reform)
- -17.1% -32.2% 13.6% -7.0% -26.0%

Main findings - the effect of the reform on the local

production of tilapias
23
supports: No
ÿ The incomes of the tilapia growers in the years after the reform (average 2017-2019) are
about 32% lower than the incomes in the years before the reform (average 2013-2015).
ÿ The decrease in income is mainly the result of a sharp decrease of 26% in production quantities
In the years after the reform alongside a slight decrease in the price per tower of
7% (a significant decrease in the first two years after the reform 2017-18 and a
significant price increase in 2019).
supports: Includesrevenues
ÿ Even with the addition of the subsidies, the tilapia growers' income after the reform (2017-19) is
about 17% lower than the income in the years before the reform (2013-15).
ÿ A combination of the direct support and a significant price increase in 2019 increased the
The average revenue per kg of tilapia fish to a higher level than before the reform (an increase
of about 14% in 2017-19 compared to 2013-15).
*
It should be emphasized that these findings refer only to the change in growers' income and not to the change
in growers' profits as a result of the reform (or to the change in production costs that applies in the same link to Appendix
C: Summary table of the impact of the reform period),
24
Case study: imported frozen tilapia fillet versus

domestically produced tilapia fish
Import of frozen tilapia fillets - quantity, import prices and consumer prices
As of 2016, the import cost (import price + average customs duty paid) and the price to the consumer have
decreased significantly
25
Amount imported in thousands of tons Import price Import price + average customs duty consumer price
38.7
30 37.1 40
32.9 33.3 35
25
30.0
28.0 27.9 30
26.7 26.6
25.4 24.8
20
25
Sh
H.
K.
21.7
15 18.5 20
17.0 17.4 17.2
cfilet
Thousands
fillets
tons
of
14.4
12.8 13.5
12.5 15
10 11.0
9.5 9.9 9.7
10
5
5
11.5 4.8 11.3 11.5 17.4 16.2 20.5 21.6
0 0
2012 2013 2014 2015 2016 2017 2018 2019
*The price for the consumer is based on sales data in the marketing networks (source: Storenext).
*
Import price + average customs duty = import cost. The full duty on frozen tilapia fillets until the middle of 2016 was NIS 15 per kg, after which there was a 50% reduction in the full duty amount to
NIS 7.5 per kg. The customs duty in the diagram describes the average duty weighted by the import quantities. Years in which the customs duty is lower than the full duty are years in which there was importation at a reduced duty (for
example, as part of exempt quotas).
*Between the years 2012-2013 "seasoned" tilapia was imported to Israel under a different customs code which was exempt from customs duty. It should be noted that this product was not substantially different from the usual frozen
tilapia. The duty exemption for this product has been discontinued. Over the years, a duty-free quota of 500 tons was distributed. In 2016, a duty-free quota was opened for the import of 3500 tons of tilapia fillets.
*The strengthening of the shekel against the Chinese yuan between 2015-2017 may explain part of the price drop in these years.
Sales data in the marketing chains - quantities and prices of

frozen tilapia fillets
Stability in quantities and prices during 2018-2019
26
12 11.4 40.0
11.1 11.3
37.1 35.0
9.8
10
30.0
8.3
30.0
8
28.0 27.9
26.6 25.0
6 20.0
millions
Sales
Sh
of
in
"
H
thousands
Sales
tons
of
in
15.0
4
10.0
2
5.0
0 0.0
2015 2016 2017 2018 2019
Sales in thousands of tons Average price per kilo
Source: Stornext. Processing: Division for Research, Economics and Strategy.

Price drops of frozen tilapia fillets in the marketing chains during the holidays Price drops as a result of
promotions before and during the Israeli holidays - Passover (March-April) and Rosh Hashanah (September)
27
45
40
35
30
ÿ\
New Year
25 Passover Rosh Hashanah Passover
Passover
Passover
20
15
10
1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7
2015 2016 2017 2018 2019 2020
Source: Stornext. Processing: Division for Research, Economics and Strategy

Value chain assessment for frozen tilapia fish fillet

As of 2016, the import cost (import price + average customs duty paid) has decreased significantly, a reduction that
was reflected in lower prices for the consumer during that period
28
45
40 38.7
37.1
35 32.9 33.3 5.62

5.39
30
30 4.78 4.84 28.0 27.9
6.4
6.9 26.6 consumer price
4.36
3.1 4.07 4.06
25 3.87
6.4 7.2 VAT 17%
/
20 6.5 6.7
5.7
12.3 Importer + retailer margin
15 8.9 11.9
12.3 7.5
7.5
7.5 7.5
Average customs duty
10
5 Import price
12.8 13.5 14.4 12.5 11.0 9.5 9.9 9.7

0
2012 2013 2014 2015 2016 2017 2018 2019
Notes and sources:

1. Average import prices, source: Foreign Trade Division at the Ministry of Agriculture.
2. The full duty until the middle of 2016 was NIS 15 per kg, after which there was a 50% reduction in the amount of the full duty to NIS 7.5 per kg. The duty in the diagram describes the average duty weighted by the import quantities.
Years in which the duty in the chart is lower than the full duty are years in which there was import at a reduced duty (for example, within the framework of exempt quotas).
3. The VAT percentage has changed over the years between 18%-17%. For this processing, the figure of 17% was taken due to the entry into force of the VAT in the middle of a calendar year. 4.
Consumer prices, source: Stornext. 5. The value, in
the importer + retailer segment is calculated as the difference between the price without VAT and the import cost (import price + customs duty).
6. For the frozen fillet fish packed in vacuum, a shelf life of 9 months. This processing does not take into account inventory from the previous year, or inventory transfer to the next year (for the sake of simplifying the presentation, we
assumed that all imports in a certain year were consumed in that year).
7. Processing: Division for Economic and Strategy Research, Ministry of Agriculture and Rural Development.
Absolute importer and retailer margin, import cost and consumer

prices - before and after the customs policy reform
29
40
35
30.3
30
5.7
25 23.5
Consumer price
20 without VAT
/
6.3
15
Importer + retailer margin
10
5 Import cost (import price

+ customs duty)
24.6 17.2
0
2012-2015 2017-2019
• The import cost decreased by - NIS 7.4/kg on average.

• The price to the consumer without VAT decreased by 6.8 NIS/kg on average.
• Absolute importer + retailer margin increased by NIS 0.6/kg on average.*
*It should be noted that in 2013 the marketing margin was unusually low compared to other years. Without this year, the importer + retailer margin
even decreased slightly after the reform.
Sales data in the marketing chains - quantities and prices of fresh tilapia* from local production in 2019, a significant price
increase alongside stability in quantitative sales, the marketing margin (the absolute difference between the consumer price
in the marketing chains and the price to the breeder) is on the rise
30
3.5 40
35.4
36.4
3.0 35
, consumer
price
27.3 30
2.5 29.0
23.3 23.6 29.6 25

2.0
20.1 20
1.5 14.6
15
thousands
Sales
tons
of
in
11.6
10.8 10.4
1.0
10
millions
tower
sales
Price
and
NIS
0.5
per
of
in
"
5
H
1.7 1.5 0.9 1.0
0.0 0
2016 2017 2018 2019
Sales in millions of NIS Sales in thousands of tons - in whole fish terms
Weighted average consumer price (NIS/kg) Price per tower (NIS/kg) including support
*Note: The quantitative sales in the chart include the quantities of whole fresh tilapia fish and also fresh tilapia fillet data sold in the marketing chains (fillet data were converted to whole fish terms). The amounts of fresh
tilapia fillets - in whole fish terms were 0.137 0.357 0.237, and 0.416 thousand tons between the years 2016, 2017, 2018 and 2019 respectively. The financial sales figures in the chart include the total financial sales of
fresh whole tilapia and fresh tilapia fillets in the marketing chains.
The consumer price refers to a weighted price (in quantities) of whole fresh tilapia fish and fresh filleted tilapia fish. The price for the tower includes the support in NIS/kg.
Sources: Storenext (monetary and quantitative sales and price to the consumer in the marketing chains), fish breeders organization (the price per breeder). Processing: Division for Research, Economics and Strategy.
Development of fresh tilapia fish prices*

The price of fresh tilapia has been on the rise since the end of 2018
31
50
45
40
35
30
25
ÿ
\
20
15
10
0
1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7
2016 2017 2018 2019 2020
Average price - the marketing networks Average price - per square meter
*Note: The chart reflects data on fresh tilapia fish sold as a whole fish (without fillet data) in specialized fish stores and marketing chains (source: LMS) and only in marketing chains
(source: Storenext).
Main findings - frozen tilapia from imports versus

fresh tilapia from local production
32
Imported frozen tilapia fillet:
ÿ In the years 2017-2019, the level of consumer prices decreased by about 30% compared to the price level in the years
2012-2015, this is thanks to a 50% reduction in the amount of the general customs duty.
Fresh tilapia from local production:
ÿ In the years 2017-2019, the amount of production was reduced by about 26% compared to the period 2012-
2015
ÿ In 2019, the price per tower increased by about 27% compared to the price in 2018
ÿ The consumer price of fresh tilapia in the marketing chains also increased by a similar rate of about 30% between
2018 to 2019 (this alongside stability in quantitative sales).
ÿ The absolute marketing margin, the gap between the price to the consumer (in the marketing networks) and the
price to the grower, is on the rise.
33
Appendices
Appendix A: Examining the impact of the customs policy reform on the
domestic production of carp

34
carp
Back to the original slide
Fabio Poggi, CC BY 3.0, via Wikimedia Commons

Amounts of fresh carp from local production, revenue and price per breeder
A continuous downward trend in the quantities of carp marketed, an increase in the price per breeder and revenue in 2018-2019*
35
120 16
14
100 13.3 13.3
12.1 12
80 10.9
10.4
10.0 10
Redemption in millions of NIS
,
60 8.2 8 Quantity in thousands of tons
H"Millions
Sh
of
56.4 56.9 Price per tower without support NIS/kg
thousands
53.8
tons
of
6
40 43.0
5.2 32.8 39.2
35.3 4
4.3 4.4
4.1 4.0
20 3.5
3.0 2
0 0
2013 2014 2015 2016 2017 2018 2019

Amounts of fresh carp from local production, revenue and price per grower -
36
120 15.8 16
14
100
13.3 12.0 12.1 13.3
12
12.1
80 10.2
10.9 Redemption + support millions of NIS
10
10.4
Direct support millions of NIS
10.0
,
60 56.4 56.9 8
53.8
"Millions
8.2
Sh
of
Quantity in thousands of tons

H
56.9 49.8
56.4
thousands
53.8 46.6
tons
of
42.9 Price per tower without support NIS/kg
6.9 40.7 6
40 43.0 7.6
7.9
5.2 39.2
35.3 4
4.3 4.4 32.8
4.1 4.0
20 3.5
3.0
2
0 0
2013 2014 2015 2016 2017 2018 2019

*Note: The direct support for carp farmers was calculated according to the total direct support granted to all fish farmers affected by the reduction of the tariff (tilap, mullet and carp) times the share
of carp in the total marketed quantities (of tilapia, mullet and carp). Source: Fish Breeders Organization. Processing: Division for Research, Economics and Strategy.
The impact of the reform on the domestic production of carp
37
supports: No
ÿ The incomes of the carp breeders in the years after the reform (2019-2017 average) are low
About 36% of the income in the years before the reform (2015-2013 average).
ÿ The decrease in income is the result of a combined decrease in production quantities (a decrease of 25%)
and in the price per tower (a 13% decrease) in the years after the reform.
supports: Includes
ÿ Even with the addition of the subsidies, the income of the carp breeders after the reform (2017-19) is about
22% lower than the income in the years before the reform (2013-15).
ÿ A combination of the direct support and a significant price increase in 2019 increased revenue
The average per kg of carp fish to a higher level than before the reform.
*
It should be emphasized that these findings refer only to the change in growers' incomes and not to the change in
growers' profits as a result of the reform (or the change in production costs that took place during that period), which
may have been affected by the decrease in production quantities.
Appendix B: Examining the impact of the customs policy reform

on the local production of augers
38
mullet
Roberto Pillon, CC BY 3.0, via Wikimedia Commons: Source

Amounts of locally produced fresh borscht, revenue and price per grower
A decrease in the marketed quantity of borers in 2019, along with a decrease in the price per grower in 2019*
39
80
20
70
18.3 18.2
60 17.6
16.9 16.9 16.8
16.4
15
50
,
40 Quantity in thousands of tons
41.8
"Millions
40.6
Sh
40.2
H of
10
Price per tower without support NIS/kg
thousands
36.6
tons
of
35.3
30 32.7
31.0
20
5
2.2 2.3 2.5

2.2 2.1 1.9
10 1.8
0 0
2013 2014 2015 2016 2017 2018 2019

Amounts of locally produced fresh borscht, revenue and price per grower -
40
80
19.9
18.9 19.0 19.0 20
70
18.3 18.2
60 17.6
16.9 16.9 16.8
16.4
15
Redemption + support millions of NIS
50
Direct support millions of NIS
41.8
,
40.2 40.6 40.8
39.7 Redemption in millions of NIS
40
41.8
"Millions
35.6 4.3 35.7

Sh
of
40.2 40.6 4.5

H
Quantity in thousands of tons

10
thousands
3.0 36.6
tons
4.7
of
35.3 Price per tower without support NIS/kg
30 32.7
20
5
2.2 2.3 2.5

2.2 2.1 1.9
10 1.8
0 0
2013 2014 2015 2016 2017 2018 2019

*Note: The direct support for mullet breeders was calculated according to the total direct support granted to all fish breeders affected by the reduction of the tariff (tilap, mullet and carp) times the
share of mullet in the total marketed quantities (of tilapia, mullet and carp). Source: Fish Breeders Organization. Processing: Division for Research, Economics and Strategy.
The impact of the reform on the domestic production of borers
41
supports: No
ÿ The revenues of the Boer growers in the years after the reform (2017-2019 average) are about 16% lower than the
revenues in the years before the reform (2013-2015 average).
ÿ The decrease in income is mainly the result of a decrease in production quantities (a decrease of 12%) along with a slight
decrease in the price per tower (a decrease of about 5%) in the years after the reform.
supports: Includes
ÿ With the addition of the subsidies, the Boer breeders' income after the reform (2017-19) is about 5% lower than the
income in the years before the reform (2013-15). However, in the years 2018-2019
There is a downward trend in revenue from the mullet farms, unlike the tilapia and carp farms.
ÿ The average revenue per kg of mullet fish without the support remains at a level similar to that before the reform
(a slight decrease of 5%). Therefore, the additional support increased the average revenue per kg of mullet fish to a
higher level than before the reform (an increase of about 8%).
*
It should be emphasized that these findings refer only to the change in growers' incomes and not to the change in
growers' profits as a result of the reform (or the change in production costs that took place during that period), which
may have been affected by the decrease in production quantitie
Appendix C: Summary of the impact of the reform on the local

production of fish
42
Total direct Redemption + direct redemption Average price Average price Quantity
support support (millions of NIS) per tower for a tower (thousands
(millions of NIS) (millions of NIS) including support (NIS/kg)

without support (NIS/kg) of tons)
Before the reform (2015-2013 average)
0 85.1 85.1 10.7 10.7 7.9 tilapia
0 55.7 55.7 12.1 12.1 4.6 carp
0 40.8 40.8 17.6 17.6 2.3 mullet
After the reform (2019-2017 average)
12.9 70.6 57.7 12.2 10.0 5.9 tilapia
7.6 43.4 35.8 12.7 10.5 3.5 carp
4.5 38.8 34.3 18.9 16.7 2.0 mullet
% change (after the reform vs. before the reform)

- -17.1% -32.2% 13.6% -7.0% -26.0% tilapia
- -22.1% -35.8% 4.9% -13.4% -24.5% carp
- -5.1% -16.1% 7.7% -4.9% -12.0% mullet

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Fishing Brunch 2019

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Machine Translated by Google

Fish in the net - Gan Shmuel, Shmuel Rothbard, KNT competition

The Division for Research, Economics

and Strategy ZivB@moag.gov.

The structure of the review

ÿ General background on the fishing industry in

ÿ Examining the impact of the customs policy reform on local production

ÿ Examining the impact of the reform on the local production of tilapias

Change in fish supply sources

frozen tilapia and chilled

Import fresh fish

Import frozen fish

The sources of supply of edible fish in Israel

142 51 Frozen tilapia filet import

99 99 10 18 Import frozen fish

The supply mix (in terms of whole fish) 2017-2019

-0.8 -6% 13.4 14.2 15.3 Fish ponds

0.7 27% 3.5 2.8 2.7 Aquaculture

10.1 71% 25.8 15.0 10.0 Import fresh fillet

-0.2 -2% 9.8 10.1 13.6 Import frozen fish

Import frozen will

Frozen tilapia filet

-0.2 -6% 2.4 2.6 2.7 spawn

18.5 11% 163.8 175.1 193.6 Total

Per capita supply of edible fish in Israel, in kg per capita

Local production - pond fish

Locally produced pond fish - quantities and price per breeder

Quantity in thousands of tons Price NIS/kg

The composition of the quantities of pond fish in Israel - 2019

Fish pond data in Israel - 2019

14.9 Average price per tower

Composition of quantities of fish imports by product category - 2019

import price import price Amount Amount category

9% 31.6 27.9 16.3 16.3 whole fish

14.8 14.6 9.8 9.8 Frozen whole

38.3 30.8 2.4 2.4 crabs,

Composition of quantities of imported frozen fish fillets by type of fish - 2019

countries import price Quantity Fillet type

norway, 37.3 13.1 salmon

Frozen tilapia Argentina, 12.7 2.2 hake (cod)

14.5 4.9 other fish

Composition of quantities of fresh fish fillet imports by type of fish - 2019

source ÿ/kg tone

Norway, 45.2 9.6 salmon

Uganda 24.6 0.3 the

princess of the nile

44.4 0.4 fish

• In 2019, a significant increase in the import of fresh salmon fillets.

Composition of quantities of whole frozen fish imports by type of fish -

fish of origin - (CIF) in thousands of tons the frozen

Norway, 7.3 3.3 Sardines,

USA, Canada 8.3 1.0 carp

China 5.5 0.1 tilapia

Vietnam 8.3 0.1 catfish

Norway 24.3 0.1 halibut

countries import price Amount The type of fresh fish

Turkey, 19.7 3.3 Dennis

Sri Lanka 55.7 0.5 tuna

41.9 0.5 Decker, Palmada,

tuna 27.9 16.3 Total

Main findings - the development of local production and imports

Examining the impact of the customs policy

Reform of the customs policy on fish

The main points of the reform in the customs policy on fish: