Today, the Israeli Minister of Finance, Bezalel Smotrich, announced the abolition of customs duties on imported milk, which currently stands at 40%, for a period of three months, until after the holidays. “Citizens of Israel, I have made a historic decision, and in a moment I will sign an order to cancel duties on imported milk for three months until the holidays,” he said.
Smotrich added that the measure was taken “with great caution and the required responsibility to eliminate the shortage of milk on the shelves that the Israelis have been suffering from in recent weeks. This is the most correct step to end the shortage. In recent years we have been exposed to a shortage of milk on the shelves, which is the best-selling product in Israel. This is An unacceptable situation in the summer when the children are on vacation and before the Tishrei holiday.
While there have been claims for years that it is technically impossible to import liquid milk due to its short shelf life, the Ministry of Finance has spoken with importers and professionals who say this is indeed possible. Due to the shortage, there are importers willing to import milk even with customs duties and their reduction makes it possible to bring in the required quantities at an affordable price.
The Israeli dairy industry is managed through central planning by the Dairy Council and the Ministry of Agriculture, which allocate government production quotas to each dairy farm, which must not be exceeded. Dairy farmers also receive minimum prices while consumers are protected at the maximum price, making the industry unusual relative to other industries in Israel, and in relation to the dairy industry in most of the West.
At the same time, Smotrich reiterated the government’s commitment to Israeli agriculture. He said, “Israeli agriculture and Israeli farmers are very important to me. They achieved Zionism, and without Zionism Israel would not survive. They wake up every morning and do their best to protect the land and maintain food security.”
He added, “Only in the last budget I decided to give billions to capital investments and innovation in agriculture over the coming years. I decided this because I believe in Israeli agriculture, I believe in Israeli farmers and I believe in the great value they bring to Zionism, society, food security and the Israeli economy.”
The Israeli Dairy Council does not welcome the move, and said, “A few days ago, the Dairy Council informed the Minister of Finance and the Minister of Agriculture that the Golan Heights dairy increases milk production under supervision, until it responds to every demand in the Israeli market. Unfortunately, the government chose to act unilaterally, Instead of subsidizing local production in the Golan Heights, it opted for dairies in Poland.In the short run, the public may pay shekels less, but in the long run, we will be captive to the whims of importers and the price will go up as it happened with butter, when the real price is a serious harm to the Zionist project of first degree “.
Published by Globes, Israel business news – en.globes.co.il – on July 14, 2023.
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