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Israeli Supermarkets Ration Dairy as Farmers Halt Milk Deliveries

The finance minister says the overhaul will cut prices by up to two billion shekels a year, replacing quotas with open competition.

Overview

  • Dairy farmers stopped supplying milk to dairies Tuesday morning to protest Finance Minister Bezalel Smotrich’s industry reform.
  • Retailers reported localized shortages and set purchase limits, with Rami Levi citing shortfalls in the north and Machsanei Hashuk and Carrefour capping buys at two items.
  • Industry sources said several production lines were idled last week, creating an estimated 20% shortfall that has fed consumer stockpiling.
  • The reform, approved by the Ministerial Committee for Legislation last month, is projected by the Finance Ministry to save the public 1–2 billion shekels annually.
  • Key measures include abolishing production quotas, removing tariffs, shifting to an open market, adding a producer safety net, and phasing in a quota buyback, while Smotrich warned he would scrap all dairy tariffs if supplies stay halted.