Israel's dairy farmers announced on Monday that they will stop supplying milk to dairies beginning Tuesday morning in protest of a dairy industry reform led by Finance Minister Bezalel Smotrich.
According to the farmers, the reform is "destructive" and can critically harm local manufacturers and undermine the future of the Israeli dairy industry.
Earlier on Monday, during the farm conference organized by the Binyamin Region, Farm Alliance, and Arutz Sheva, Minister Smotrich was asked about the possibility of the farmers halting production.
The Minister criticized the move, saying: "If they stop milk production, they would play into my hands since they would explain to the citizens of Israel what happens when an industry is managed in such a communist, centralized manner where whoever wants can flip the switch."
According to Smotrich, "Once it's the electric company employees, after that it's the ports, and now it's the growers. This won't happen. The citizens of Israel will not be hostages of any monopoly or any pressure group."
Last month, the Ministerial Committee for Legislation unanimously approved the dairy reform. The Finance Ministry estimates that the move will save the public between one and two billion shekels a year.
According to the ministry, the dramatic move is meant to open the dairy market to competition, lower prices, and remove the central planning regime that controlled the industry for decades.
The new law includes the abolition of the production quota regime, a shift to an open market, and the elimination of all tariffs on dairy products. According to the text, a safety net for producers will be implemented to ensure the continued regular supply of fresh milk to consumers at affordable prices.
In addition, the reform will include regulation of protected milk procurement through a new mechanism to be set in law, alongside a gradual quota buyback program.