Australia – SQUEEZED by rising costs of imported kosher goods and a low Australian dollar, kosher retailers are being forced to cut back on shipments and hike prices on goods hitting shop shelves.
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Ron Saltoon, director of kosher importer R Solomon & Company, which distributes to kosher outlets in Sydney and Melbourne, told The AJN that the price of kosher goods from Israel and the United States -– including matzah, grape juice and chocolate -– has spiked 10 to 12 per cent in the past six months because of rising raw material costs.
Coupled with a weakened Australian dollar trading nearly 30 per cent lower than last year, Saltoon said he has been forced to slash imports by 30 per cent.
Meanwhile, consumers are getting hit with a heftier price tag.
“Last year, we were bringing in goods at 90 cents to the US dollar, and now we’re bringing in at 65 cents to the US dollar,” he said.
“If it costs us more money, then unfortunately we have to forward that to the consumer.”
Steve Edelmuth of Sydney’s Passion8 Catering said they’ve also had to increase prices across the board by about five per cent in the past 12 months because of escalating import costs.
And with a recession looming, he fears the additional costs involved in a kosher function could force people to find cheaper alternatives.
“It’s too early to tell, but the prediction is that there will be a dip in sales,” he said.
“Passion8 is doing everything possible to combat this situation and encourages people to have kosher functions by introducing special fixed packages and trying to meet budgets wherever possible.”
Pesach Retreats president Jack Stein, who is organising an April retreat in Jamberoo, NSW, said he’s also felt the crunch, forcing him to hike the price of this year’s retreat by nine per cent.
The result: a slow registration turnout.
“Last year, I didn’t spend any money on advertising. We were booked out. This year, we’ve got room left,” he said. “It’s quiet all around”.
But not all kosher retailers are feeling the pinch -– yet.
Kosher butchers in Melbourne and Sydney said prices for kosher meats have remained fixed over the past year.
“We haven’t adjusted prices since last February,” said Melbourne’s Solomon Kosher Butcher general manager Eric Silver.
“But prices have been creeping up on red meat [because of the drought]. There will probably be a review in the next couple of months.
“At the moment we’re not under huge pressure, but we’ve got our eye on things.”
Silver said that so far there had been no dip in sales.
“But it doesn’t mean I’m not expecting it. If history is any guide [when there was the last recession in 1992], it took time but we did see people adjust their buying,” he said.
Tom Rev -– owner of Sydney’s Eilat at Hadassa Kosher Butchery -– did, however, say he has already noticed customers being more cautious.
“[Purchases] of the expensive cuts are slowing down a little bit. Chicken is on the increase,” he said.
Still, he remains confident that his kosher clientele will remain loyal through the hard times.
“Eating kosher is a commitment. And if you’re committed, you’re committed. People somehow manage,” he said.
Mother-of-three Larissa Cohen from Bondi, who keeps kosher, can testify to that sentiment.
“We all moan and complain about the prices, but I don’t know anyone who has stopped keeping kosher on account of the cost,” she said.
“I would not consider not going kosher, but we will eat less meat and have switched to local brands where available.”
Of course yidden don’t stop eating kosher – but as for my family, we have all but stopped eating meat and chicken altogether. Very rarely I will purchase some ground beef (on sale). Chicken, we have occasionally. We don’t really miss it much either.
The price of beef, lamb and chicken should fluctuate with the local market. I ma certain the drought will make a big impact on beef and lamb. The real killer is on the imports. Sad times, it is starting to look like the 1930’s.
(Reply to #5 ) you are a motzey shem ra and you should ask forgivenes from the Rubashkins
I don’t understand there is no shortage of grapes,wheat, cattle, etc, why don’t they produce it there? Is this to complacated for Aussies?
#1 here. A few people asked what we eat. Here’s what we’ve been eating:
(1) Homemade pizza. I make an amazing pizza if I do say so myself, and my fresh dough tastes much better than a pizza store’s. Although cheese can be expensive, it stretches a lot further than meat proteins. (Nobody eats just 2-3 ounces of chicken, whereas 2-3 ounces of shredded cheese is a lot of cheese.) When I find cheese on sale, I stock up (it freezes well). We also shred it ourselves because the blocks tend to be cheaper (unless the bags are on sale), and then freeze it so it won’t spoil. I often make make the sauce myself, too. It’s cheaper and tastes better.
(2) Vegetarian pot pie. I layer dough on the bottom and the top, and I make the filling with a thickened mixture of vegetables (canned or frozen), mushrooms, and beans. It’s a big hit in my house.
(3) Pasta with or without cheese. I often make my own sauce as well – fresh always tastes better. One box of pasta easily feeds my family, so at about a dollar per box this is a great money saver.
(4) Various recipes for canned tuna and/or salmon. I have a bunch! For many recipes, 2-3 cans (at a dollar each in Costco or on sale) feeds my whole family, so it’s cheaper than chicken. ($2 – $3 of chicken would not feed a family – it would leave them wanting more.)
(5) Lots of fruits and vegetables. Frozen is often a better deal, and surprisingly it usually contains more nutrients than fresh, since it is frozen soon after picking as opposed to sitting on trucks and store shelves. (Frozen stir fry veggies + pasta = veggie lo mien. Also good is veggie and rice stir-fry.) Frozen fruit = smoothies, but fresh apples are very cheap and kids love them.
(6) Beans, barley, and legumes. We make a lot of hearty soups which are sooo easy to make, so delicious, so healthy – and so economical. My kids love to come home from school or cheder to a steaming bowl of soup. One bag of legumes or barley costs about 69 cents and makes enough to give my whole family several bowls of soup each. (Several quarts.)
(7) Eggs. Lots of egg recipes from the usual breakfast type (scrambled, fried, boiled), to the unusual breakfast type (stratas), to dinner style (souffles).
(8) Peanut Butter. My kids love it, so this is mostly for them for lunch sandwiches (peanut butter and jelly) or bedtime snack. (Peanut butter on a spoon or with bananas is the favorite bedtime snack for the kids.)
(9) Rice and beans, of course, as was mentioned above.
Any leftovers from a meal which are not enough for the family for a meal, go into my husband’s lunch for work.
Truthfully, unlike other cuts of meat or chicken, chicken bottoms are not thaaat expensive, so we do have that sometimes, but not more than once a week. The rest of the time we eat as above, and we enjoy it. (And it’s healthier.) Chicken franks ($1.89 for a 1 pound pack of Aaron’s) make an exciting treat for the kids for dinner, but not too often as it isn’t so healthy anyway.
Well, that’s about it. :o)
At a time that we acknowledge the ongoing financial declining situation in the entire world and we have surly noticed that it has affected many Jews businesses, in a way that they are barely surviving, we therefore should keep in mind that the Torah obligates us to help our fellow Jews to our utmost. Consequently, we should reexamine some of our Yeshivos’ policies. Many Yeshivos require parents the purchase of vouchers into the thousands of dollars (sorry, Chesed Dollars) which encourage our support of non-Jewish businesses i.e. Path Mark ,Shop Rite etc. Yet, we all know how our local Jewish businesses are ALL suffering especially grocery stores. Therefore as a true Chesed we have to remember to help out our own first. The Torah mandates that we support our brothers first help him survive even if he is a little more expensive. Tzedaka must begin at home.
Poor kosher importer ,please explain
When the Australian dollars surged between March and August of last year did you just forget to drop the price? Or did you pocket the savings?
Kudos to Number 12. It’s great to see someone offering practical solutions rather than just complaining (like I do).
I keep a kosher home by the book and bear with the premium cost of kosher food. Lately I have become deeply concerned with the cost of locally produced kosher meat. Having lived overseas in multiple countries, I understand there is an acceptable premium on kosher meat all over the world. This premium here in Melbourne goes way beyond any acceptable standards. Recently I have began to look at the cost of non kosher meat in relation to its kosher counterpart. Premiums are on average two or three times the cost of non kosher meat. I feel part of this problem is the lack of competition in the kosher meat industry.
As the Beth Din has created a monopoly in this industry they also have an obligation to monitor this lack of competition is not abused. It seems to me the suppliers have taken control in this market place and the Beth Din are negating their responsibility. If this price abuse is not controlled the consumer market will undoubtably deminish. I call on the Beth Din to take some action on the price abuse.