The Ministry of Finance updated on Tuesday evening that Finance Minister Bezalel Smotrich is expected to sign, in the coming days, an order to cancel tariffs in the dairy market for an extended period, with the aim of enabling a regular supply of milk to the public.
The move was taken in direct response to the current shortage, which the ministry says is the result of a deliberate shortage created by actors in the dairy sector-as a protest against the reform being advanced by Smotrich.
A few hours after the Ministry of Finance’s announcement was published, dairy farmers announced an end to the strike and the resumption of milk supply to the dairies.
Earlier this morning, the dairy farmers’ protest escalated, as they closed the gates of the cowsheds and prevented trucks from collecting milk. This is an unusual step which, according to industry sources, is already causing a noticeable shortage in the market.
At the same time, supermarket chains are reporting signs of shortages and stockpiling: the “Rami Levy" chain reported shortages in the north, and at “Machsaney HaShuk" and “Carrefour," purchase limits of up to two units per customer were imposed. The restricted products include cartons of milk, cottage cheese, white cheese, and cream products.
According to estimates, the current shortage stems from the shutdown of production lines for soft dairy products over the past week, resulting in a deficit of about 20% of overall consumption.
Officials at the Ministry of Finance say the dramatic move to cancel tariffs is intended to address the steps taken by the dairy farmers, who chose to halt supply in protest against the reform, which includes, among other things, opening imports, reducing the target price paid to farmers, and increasing competition from imports from Europe.
Smotrich responded to the dairy farmers, saying: “True food security will only come with the dairy reform. I am determined to lead the dairy reform and prove to everyone that it can be cheap here."