Israel Expands Duty-Free Cheese Imports to Combat Cottage Cheese Shortage

Amid a noticeable shortage of cottage cheese and other dairy products across many Israeli supermarkets, the Ministry of Economy and Industry has announced a new initiative to increase cheese imports duty-free until the end of 2026. This move aims to expand the supply of imported cheeses at lower prices and make them available at more retail outlets nationwide, including convenience stores and minimarkets.

The ministry has allocated an additional quota of 3,000 tons of cheese exempt from customs duties, supplementing an earlier quota distributed earlier this year. Since the start of the year, over 3,100 tons have been imported out of a total quota of 5,503 tons. Retail chains participating in the program are required to sell cheese at a capped price of no more than 4 shekels per 100 grams, while smaller stores can sell at up to 4.5 shekels per 100 grams.

Importers awarded the quota will also be allowed to bring in premium cheeses duty-free up to 45% of their allocated quota, broadening the variety available to consumers. Applications for the import quota are open until July 26, after which successful importers will be selected.

This initiative follows previous unsuccessful attempts by Finance Minister Bezalel Smotrich to reform the dairy market by encouraging imports, particularly of cheeses. The Ministry of Economy expects that increasing the import quota will not only improve availability and affordability but also intensify competition with local cheese producers.