Finance Minister Bezalel Smotrich announced Wednesday that he will sign an order next week granting a customs exemption for the import of raw milk, aiming to address the shortage of milk in food chains and grocery stores, particularly ahead of the upcoming holiday season.
According to a statement from the Finance Ministry, the exemption will be granted for six months — until February 28, 2026 — and will enable a continuous supply of milk during the fall holiday period, while also strengthening competition in the dairy market. Currently, there is a fixed customs duty of up to 40% on drinking milk (0%-6% fat), and the exemption is expected to remove a major barrier to imports.
Smotrich stated: “This is another milestone in our ongoing battle against the high cost of living. We are removing barriers and taxes to increase competition — this will ensure there is enough milk at a fair price. The exemption will increase the supply of the most basic product in the Israeli home and strengthen competition. When competition increases, there is more supply and prices fall — that’s how the economy works.”
In response, Dagan Yarel, Director-General of the Milk Producers Association, said: “We regret this decision, which is disconnected from reality and lacks logic and national responsibility. It has no connection with the food security of the State of Israel’s citizens or the challenges of war and revival. We proposed alternatives for the holiday period to prevent the specific shortage of milk due to kashrut (pertaining to the laws of kosher food) conditions, but these were not even examined.”
“Instead, the State chose to reward a handful of supermarket chains and importers who dominate the food market, as well as to Polish dairy farmers — a country where, at this very moment, disturbing signs read: ‘Israel is murdering’ and Jews are being attacked by anti-Semites at the Auschwitz concentration camp. And at whose expense? The dairy farmers of the Gaza envelope, the northern border, and everywhere — who since the terrible massacre have been protecting the milk security of Israel with their own bodies. At this time, it would be wise for the government offices in Jerusalem to understand: Without Israeli milk and local production, there is no food security in Israel.”