Bennett to lower some dairy import taxes 80%

Bennett: “We are continuing to open up the economy and bring down prices.”

February 26, 2014 21:59
1 minute read.
Naftali Bennett

Economy Minister Naftali Bennett at Conference of Presidents Mission in Jerusalem, February 17, 2013. (photo credit: COURTESY JEWISH FEDERATIONS OF NORTH AMERICA)


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


Economy Minister Naftali Bennett on Wednesday announced he plans to lower import taxes on a basket of dairy products including butter and yogurt by 80 percent.

“We are continuing to open up the economy and bring down prices,” Bennett said.

Be the first to know - Join our Facebook page.

Currently, customs on some dairy imports stands at over 100%, he said.

The reduced tariffs will have quotas, which Bennett says will help small companies increase their share in the import market and increase competition.

“I expect the reduction in customs will be passed on to consumers,” he said.

The full list of reduced quotas, which will apply to retail-packaged butter, concentrated and non-concentrated milk and cream, buttermilk and yogurt, will be published in the coming days.

The policies are based on the Locker Guidelines, issued by the government’s committee on dairy reforms headed by Harel Locker, director-general of the Prime Minister’s Office.


The dairy market in Israel is a complex mix of protectionism and regulation. The government regulates the price of dairy products and outlines quotas for small dairy farms, which typically sell their product to one of three large manufacturers: Tnuva, Strauss and Tara.

Tnuva controls some 70% of the market and is considered a legal monopoly by the Israel Antitrust Authority, which has regulatory power to prevent it from price gouging.

Although Israeli agricultural technology has made its cows the most efficient dairy producers in the world, the combination of high tariffs, quotas, price regulation and Israel’s geographical isolation from other dairy producers has led to a situation in which prices are higher than in most OECD countries.

Dairy is a controversial issue for the public. In 2011, skyrocketing cottage cheese prices set off a wave of boycotts that helped build momentum for the summer protests over the cost of living.

On Tuesday, the Knesset Economic Affairs committee voiced opposition to the possible sale of Tnuva to China’s state-owned Bright Food Group Co., arguing that the fate of Israel’s dairy industry should not be in foreign hands.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection