Israel slashes 40% milk tariff to avert shortage

ISRAEL – Finance Minister Bezalel Smotrich has signed an order to waive the 40% customs duty on imported milk until February 28, 2026, aiming to preempt a milk shortage and curb consumer prices, particularly as the Jewish High Holidays approach.

The High Holidays — Rosh Hashanah, Yom Kippur, Sukkot and Shemini Atzeret-Simchat Torah — starting next month will fall or begin in the middle of the week, shutting production down for a total of nine working days, according to the Agriculture Ministry.

As a result, about six million litres of raw milk will not be processed, the ministry estimated. This drop in production, along with the increased demand, are expected to exacerbate milk shortages for consumers.

Over the past two years, the Finance Ministry has repeatedly lifted the customs tax on imported milk in an attempt to increase supply, encourage competition, and help lower prices for Israelis, who are struggling with a high cost of living during the challenging war period.

Israel regulates the prices of several key locally produced dairy products, including milk, soft white cheese, and basic bread, which are more expensive than in European countries.

“This is another milestone in our ongoing fight against the cost of living,” Smotrich stated. “We are removing barriers and tariffs to increase competition — this way we will ensure that there is enough milk at a fair price.”

Israeli Cattle Breeders’ Association (ICBA) director Dagan Yarel denounced Smotrich’s decision, “It has nothing to do with food security for Israelis or the challenges during the war period. We proposed alternatives for the holiday period to avert a local milk shortage due to kashrut restrictions, such as letting non-Jews work at the dairies during the holidays, but these were not even accepted.”

The move to lift the tariff comes after Agriculture Minister Avi Dichter urged Smotrich to sign a temporary order to cancel the customs duty on imported milk from September 28 for seven weeks to meet peak demand and avert shortages during the upcoming Jewish holiday season.

“The temporary and controlled opening of the market to imports is intended to provide a solution to the expected local shortage, ensure continuity in the supply of milk to the public, and prevent harm to consumers, without harming the local industry in the long-term,” the ministry said.

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