Israel to Subsidize Sheep and Goat Farmers, Lowering Cheese Prices

Israel's Ministry of Finance and Ministry of Agriculture and Rural Development have announced a new plan to support the sheep and goat farming sector, aiming to strengthen local agriculture, bolster domestic production, and reduce the cost of living. The plan involves direct financial support to farmers, transitioning away from protective tariffs and production quotas towards an open and competitive market.

Over the next four years, from 2027 to 2030, approximately NIS 100 million will be provided as direct support to sheep and goat farmers. This transitional support is intended to help the sector adapt to the shift to a more competitive market. Starting in 2031, a permanent annual support of over NIS 20 million will be allocated to ensure long-term economic stability for farmers and the continued operation of the Israeli sheep and goat industry.

This policy shift is expected to result in a significant reduction in the price of sheep and goat milk cheeses for consumers, with an estimated annual saving of around NIS 60 million for the public. The new model replaces trade barriers with direct financial aid, allowing farmers to receive support while the market opens up to increased competition.

Existing farmers will receive compensation for past quotas, and the cancellation of tariffs will only occur after financial support is disbursed. The plan also includes an additional support of up to 20% for farms located in peripheral areas, aiming to strengthen agriculture in these regions and promote distributed agricultural production. Measures will be implemented to manage the number of farmers during the transition period to maintain industry stability, alongside investments in research and development to improve milk quality and farm efficiency.

"The new plan allows us to open the market to competition while uncompromisingly preserving Israeli agriculture and food security," stated Oren Lavi, Director General of the Ministry of Agriculture. "Through direct support to farmers, investment in research, and strengthening the goat and sheep farming sector in Israel, we are ensuring the continued existence of a local, independent, and sustainable agricultural sector."

Mahran Frouzenberg, Head of the Budget Division at the Ministry of Finance, added, "The fight against the high cost of living and concern for the Israeli farmer are not contradictory. The new plan allows us to open the market to competition, remove barriers, and lower prices for the consumer, while simultaneously providing farmers with direct support and economic certainty. This is the right combination of competition, reducing the cost of living, and strengthening local agriculture and food security."