May 2, 2023

Israeli dairy prices rise 9.28%, government spreads 16% increase over three years

Prices of government-regulated dairy products in Israel will increase by 9.28% this week, following a decision by the country's Finance Ministry to spread a planned 16% increase over three years, JNS reported.

Bezalel Smotrich, Israeli Finance Minister, said the price of basic milk and cheese products will increase by 9.28%, with an additional 3.1% increase each May through 2026.

Dairy companies will be compensated for the delayed price increases.

Smotrich praised the agreement and blamed the price increase on the previous government's "irresponsible behaviour."

Smotrich said the ministry is embarking on a comprehensive reform of the dairy industry, adding that the Finance Ministry's professionals will examine the entire production chain.

He said this aimed ataimed at liberating the economy from excessive centralisation and anachronistic planning, and moving it towards an open and competitive market.

-      JNS