Israel Slashes Milk Tariff to Avert Shortage
Sourse: dairynews.today
Israel will temporarily cut its 40% milk import tariff for six months to prevent a shortage during holidays, stirring local debate.
In a notable step for Israel's agribusiness sector, Finance Minister Bezalel Smotrich has signed an order to waive the 40% customs duty on imported milk until February 28, 2026. This action aims to preempt a milk shortage and curb consumer prices, particularly as the Jewish High Holidays approach. Facing unique seasonal challenges, Israel's dairy industry predicts a production halt over nine working days, leaving six million liters of milk unprocessed. This expected gap, combined with a holiday-driven demand spike, risks substantial supply shortfalls.
While the Agriculture Ministry endorses this temporary tariff lift, fearing harm to domestic dairy farms, critics like Dagan Yarel of the Israeli Cattle Breeders’ Association argue it endangers local producers, notably in border areas. Israel's strategic tariff modulation to stabilize dairy markets reflects a delicate balance between safeguarding local producers and ensuring staple affordability. Recently, the Finance Ministry has resorted to similar methods to enhance supply and competition. Yet, these measures' long-term efficacy, especially in luring new market entrants, remains debatable. Israel's sensitivity to milk pricing issues, as highlighted by the 2011 cottage cheese protest, underscores the issue's political gravity. As an international case, this move exemplifies governmental intervention in addressing market vulnerabilities triggered by predictable supply chain shortfalls.
While the Agriculture Ministry endorses this temporary tariff lift, fearing harm to domestic dairy farms, critics like Dagan Yarel of the Israeli Cattle Breeders’ Association argue it endangers local producers, notably in border areas. Israel's strategic tariff modulation to stabilize dairy markets reflects a delicate balance between safeguarding local producers and ensuring staple affordability. Recently, the Finance Ministry has resorted to similar methods to enhance supply and competition. Yet, these measures' long-term efficacy, especially in luring new market entrants, remains debatable. Israel's sensitivity to milk pricing issues, as highlighted by the 2011 cottage cheese protest, underscores the issue's political gravity. As an international case, this move exemplifies governmental intervention in addressing market vulnerabilities triggered by predictable supply chain shortfalls.
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