Israel Launches Tender for Cheaper Imported Yellow Cheese
Translated & summarized from Ynet by baba
Israel's Ministry of Economy is holding a tender for 5,900 tons of duty-free imported yellow cheese by 2027 to lower consumer prices. Importers committing to the lowest prices will receive the majority of the quota, with a bonus quota for those offering the best deals. Previous tenders have led to significantly cheaper imported cheese compared to domestic brands, though availability has sometimes been an issue. The ministry aims to ensure these savings reach consumers through ongoing monitoring.
The story in 5 lines · by baba
- Israel's Economy Ministry seeks 5,900 tons of duty-free imported yellow cheese by 2027.
- Importers must commit to the lowest consumer prices to secure the majority of the quota.
- A bonus quota of 1,830 tons is offered to incentivize competitive pricing.
- Previous tenders have resulted in imported cheese prices significantly lower than domestic brands.
- The ministry will monitor markets to ensure price reductions benefit consumers.
Israel's Ministry of Economy has initiated a price control process for imported yellow cheese, announcing a tender for 5,900 tons of duty-free hard and semi-hard yellow cheese to be imported by 2027. The competitive process aims to lower consumer prices for this staple food.
Approximately 4,070 tons will be allocated to importers who commit to the lowest consumer price, both at deli counters and on supermarket shelves. The remaining quantity will be allocated as a bonus quota. Previous tenders have resulted in prices ranging from 2.90 to 3.40 shekels per 100 grams for imported yellow cheese, significantly lower than domestic brands like "Emek" cheese.
Last year, "Oshert Ad" was a major winner, selling kilogram packages of sliced yellow cheese for 30 shekels, with "Goldfrost" also being a significant importer, bringing cheese from Poland. However, sometimes the cheaper cheese ran out early, or importers chose to bring more expensive varieties, leading to the cheaper product being hidden or unavailable.
While these tenders have reduced the market share of domestic brands like "Emek," they still dominate the category, with prices remaining higher due to consumer habit or preference. "Emek" cheese at deli counters is state-regulated and still more expensive than the imported option.
The Ministry has increased the bonus quota for 2027 by approximately 31% to about 1,830 tons. This bonus quota, which is not subject to a maximum consumer price commitment, is granted to importers offering the lowest prices. For every 100 tons secured at a controlled price, importers receive an additional 45 tons as a bonus quota, allowing them to sell at a higher profit margin. This increase aims to incentivize importers to offer competitive prices despite rising international market costs, while ensuring the basic cheese remains affordable for consumers. The Ministry will conduct ongoing checks to ensure the price reduction is passed on to consumers.
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