Israel Opens Sheep Milk Market to Competition, Aims to Lower Cheese Prices

Israel's Ministries of Agriculture and Finance have agreed on a new plan to support the sheep milk industry, transitioning from import tariffs and production quotas to an open and competitive market. This shift includes direct financial aid to farmers, aiming to significantly reduce the price of sheep milk cheeses for consumers while ensuring the stability and growth of local production.

The initiative is expected to save consumers approximately 60 million shekels annually through reduced prices. Between 2027 and 2030, the ministries will provide about 100 million shekels in direct support to sheep farmers as a safety net during the transition. Starting in 2031, an annual ongoing subsidy of over 20 million shekels will be provided for long-term economic certainty.

Tariffs will be abolished only after direct financial support reaches farmers' accounts. For the first four years, existing farmers will receive guaranteed compensation for past quotas and direct payments for their produce. The plan also allows for up to a 20% increase in support for farms in peripheral areas to strengthen agriculture and production distribution nationwide.

A transitional mechanism will be in place for the initial years to manage the number of farmers, ensuring a gradual and controlled shift to the new model. The plan also emphasizes strengthening research and development, improving milk quality, and increasing farm productivity and efficiency.

Agriculture Ministry Director-General Oren Lavie stated the new framework balances market openness with unwavering support for Israeli agriculture and food security, ensuring a sustainable local industry. Budget Director at the Finance Ministry, Moran Ferunzafer, added that the plan combats the high cost of living by removing barriers and lowering consumer prices while providing farmers with direct support and economic certainty.