French fries prompt battle with McDonald`s
ISRAELI potato growers have dug in for a fight to the finish against McDonald's of Big Mac hamburger fame, which is due to open its first outlet in Israel outside Tel Aviv in autumn. McDonald's says it wants to import frozen fries because irrigation has made the wholesale prices of Israeli potatoes too costly.
The US fast-food company also blames the exorbitant pricing on a monopoly on frozen potato products enjoyed by Israeli firm Tapud and complains that neither local growers nor Tapud can meet McDonald's exacting potato standards. But Tapud managing director Aaron Niv retorts: "I'm sure we can meet McDonald's needs."
As for the high prices, Shai Hermesh, head of the Shaar Hanegev regional council, notes Israeli farmers must be protected against competition from lower-priced imports that benefit from relatively cheap water and large government subsidies.
Following the same line of thinking, Israeli agriculture minister Yaacov Tzur has persuaded a cabinet committee to ban imports of frozen fries. Tzur argues every country, including the US, protects its farmers.
Meanwhile, Hermesh sounds another warning note. "I don't believe," he says, "McDonald's will stop at potatoes. The next step will be powdered milk, which is also expensive here. The sky is the limit."