
The Government Will Temporarily Eliminate a 40% Import Duty for Six Months to Boost Supply Ahead of the Jewish High Holidays, Sparking Debate.
In a significant move for the country’s agribusiness sector, Israel’s Finance Minister Bezalel Smotrich has signed an order to temporarily eliminate the customs duty on imported milk. The decision will remove a tariff of up to 40% for six months, running until February 28, 2026. The government’s stated purpose is to prevent an anticipated milk shortage and to help lower prices for consumers, especially during the upcoming Jewish High Holidays.
The expected shortage is a result of unique seasonal factors. The article points out that the Jewish High Holidays, which include Rosh Hashanah, Yom Kippur, and Sukkot, will lead to a total of nine working days of production shutdown. This will cause an estimated six million liters of raw milk to go unprocessed. Coupled with an expected increase in consumer demand during the holiday season, this production gap is projected to create a significant supply deficit in the local market.
The decision has ignited a debate within the country’s dairy economics landscape. Dagan Yarel, director of the Israeli Cattle Breeders’ Association, strongly condemned the move, arguing that it will harm local dairy farmers. He raised particular concern for producers in border regions. Conversely, the Agriculture Ministry supports the tariff cut, viewing it as a temporary and controlled measure to ensure milk availability for the public without inflicting long-term damage on the domestic industry.
This is not the first time Israel has used such measures to manage dairy prices. The Finance Ministry has previously implemented similar policies to boost supply and competition, though their long-term effectiveness in attracting new players to the market remains uncertain. The sensitivity of milk prices in Israel is well-documented, with the article referencing the 2011 cottage cheese protest, a major public outcry that underscored the issue’s political weight.
For the international dairy community, Israel’s temporary tariff cut offers a compelling case study of a government’s direct intervention to stabilize a domestic market. The decision reflects the complex balance between protecting local producers and ensuring consumer access to affordable staples. It highlights how supply chain vulnerabilities, even if temporary and predictable, can necessitate decisive government action to prevent market disruptions.
Source: The Times of Israel, “Israel to slash 40% import tariff for six months in bid to fend off milk shortage”
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