Israel Expands Duty-Free Yellow Cheese Imports to Neighborhood Stores at Half Price

The Israeli Ministry of Economy and Industry has finalized new duty-free import quotas for yellow cheese totaling 880 tons, which will be sold at approximately 540 retail points nationwide, including neighborhood convenience stores. This initiative aims to offer yellow cheese at consumer prices between 4 and 4.5 shekels per 100 grams, roughly half the current supermarket price. The quota was awarded to Global Retail, operator of Carrefour Israel, and Euro Dairies, both committing to cap prices at 4 shekels per 100 grams in Carrefour stores and 4.5 shekels in other retail outlets.

The cheese will be available until the end of the year at 140 Carrefour branches and about 400 additional points of sale, including small local stores and minimarkets that agreed to the maximum price. This marks a significant shift from previous allocations that favored large supermarket chains, now extending access to smaller retailers where competition is weaker and logistics costs are higher, resulting in higher consumer prices.

Earlier this year, a competitive process allocated quotas for yellow cheese imports priced between 3 and 3.5 shekels per 100 grams to Euro Dairies, Rami Levy, Neto Melinda, and Osher Ad, focusing on a limited number of chains. The current move broadens competition beyond major chains to increase consumer access to affordable yellow cheese. Additionally, winners received a 45% bonus quota for importing other hard cheeses duty-free, expected to further stimulate competition and lower prices in that category.

Danny Tal, chairman of the quota committee at the Ministry, emphasized that for the first time, quality yellow cheese will be available at reduced prices in small retail outlets, addressing supply concentration, limited competition, and high logistics costs in these venues. He expressed hope that this step will enhance competition and drive prices down.