Chicken imports spark dispute between Israeli farmers and Baladi Group

ISRAEL – Poultry producers in Israel are voicing strong opposition to a plan by Baladi Group to bring in frozen chicken from Brazil, saying the move could damage domestic farming and undermine employment in border regions hit by conflict.

Baladi Group, which operates near Kiryat Malachi, deals in food imports, manufacturing, and distribution, with meat and frozen products at the core of its business.

Earlier this year, the company notified the Tel Aviv Stock Exchange of a five-year agreement with a Brazilian facility to produce and distribute kosher chicken, pledging an investment of US$6.25 million (₪21 million) in adjustments for the project.

In a statement given to The Times of Israel, Baladi said it was acting with social and economic responsibility and aimed to provide affordable kosher chicken of reliable quality, while arguing that fair competition would benefit consumers.

The Association of Poultry Farmers, however, has launched a radio campaign against the plan, warning of severe consequences for the local sector.

According to Moti Elkabetz, secretary of the Poultry Breeders Association, the deal could collapse Israel’s chicken market and create reliance on Brazil, which has recently seen strained diplomatic relations with Israel.

Although beef imports are common due to supply shortfalls, Elkabetz stressed that Israel produces an excess of chicken, raising about 260 million broilers annually in an industry worth around US$2.9 billion (₪10 billion).

The country also records the highest per capita chicken consumption globally, at 58.2 kilograms per person each year.

Elkabetz argued that retail chains, not farmers, are driving high prices, noting that while farmers receive around US$1.78 (₪6) per kilogram, supermarkets charge about US$5.50 (₪20), keeping large profits while the government collects value-added tax.

He explained that freezing surplus poultry is the industry’s main method for stabilizing prices, with about 30 percent of local chicken meat frozen for institutional use or during periods when slaughterhouses face labor shortages.

Imported frozen chicken, he said, would undermine this system and fail to reduce living costs.

He further warned that Baladi may selectively import only high-demand parts like thighs, leaving local farmers unable to compete with full carcass production.

Elkabetz pointed out that Israel has 600 major chicken farms, mostly located along the Lebanese and Gaza borders, and several kosher slaughterhouses in the same areas, all providing jobs for roughly 6,000 people in related services.

The Agriculture Ministry has publicly supported farmers, stating that chicken production is vital to national food security and employment in peripheral areas.

By contrast, the Finance Ministry has backed expanding imports as part of its broader strategy to lower consumer costs, though it acknowledged that changes from regulators and the Chief Rabbinate are required.

The Rabbinate has so far withheld kosher approval for the Brazilian facility, saying there is no necessity to import chicken.

In July, Baladi petitioned the High Court, demanding the Rabbinate either apply existing rules for foreign poultry slaughter or release new guidelines.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.