Israel Launches New Tender to Lower Yellow Cheese Prices
Translated & summarized from Walla by baba
Israel's Ministry of Economy is holding a new tender for duty-free yellow cheese imports to lower consumer prices. Winning importers must sell over 4,000 tons at low prices, while also receiving a bonus to import more cheese without price restrictions. This initiative aims to increase competition and reduce the cost of yellow cheese in Israel, following previous successful tenders that offered significant savings.
The story in 5 lines · by baba
- Israel's Ministry of Economy launched a new tender for duty-free yellow cheese imports.
- Importers must sell over 4,000 tons at low prices to win the tender.
- Winners receive a bonus to import additional cheese without price restrictions.
- Previous tenders resulted in imported cheese selling for significantly less than local brands.
- The ministry will monitor prices to ensure savings reach consumers.
Israel's Ministry of Economy has announced a new tender for the duty-free import of yellow cheese, aiming to drive down prices for consumers. Importers who win the bid will be required to sell a significant portion of their imported cheese at a lower, predetermined price. This initiative follows previous successful tenders that led to imported yellow cheese being sold at prices considerably lower than leading Israeli brands.
Under the tender for 2027, importers can bring 5,900 tons of hard and semi-hard yellow cheese into Israel without paying customs duties. Approximately 4,070 tons of this amount will be allocated to bidders offering the lowest prices to consumers, to be sold in delicatessens and on store shelves. Winning bidders must commit to these attractive prices.
In addition to the subsidized cheese, importers will receive a bonus: the ability to import an additional 1,830 tons of yellow cheese duty-free, with no price restrictions. For every 100 tons sold at the subsidized rate, importers gain the right to import 45 extra tons and set their own prices. This bonus incentive has been increased over time, reaching 45% in recent tenders, to encourage participation despite rising global import costs.
The Ministry of Economy believes this large volume of subsidized cheese will foster competition and pressure down prices across the market. Previous tenders have seen imported yellow cheese sold for NIS 29 to NIS 35 per kilogram, significantly less than major brands like "Emek" and "Noam." A recent tender in August aimed to expand low-price sales to smaller grocery stores, with winners Global Retail (Carrefour Israel) and Euro Dairies committing to prices up to NIS 4 per 100 grams in chain stores.
Despite these efforts, a challenge remains: major brands continue to sell at high prices, and consumers accustomed to them may not see the savings unless they actively seek out the imported alternatives. The Ministry of Economy plans to conduct regular checks to ensure importers adhere to the agreed-upon prices for the subsidized portion, though the bonus cheese will not be subject to price controls.
