The Agriculture and Food Security Ministry and the Finance Ministry have formulated a new outline for direct support of the sheep milk sector. The move marks a transition from a model based on protective tariffs and production quotas to a model of an open and competitive market, alongside the transfer of direct financial support to growers.
As part of the joint policy to strengthen Israeli agriculture, establish local production, and lower the cost of living, the outline's goal is to enable a significant price reduction of sheep cheeses for consumers, alongside maintaining stability for growers, encouraging local production, and ensuring Israel's food security. Opening the market to competition and canceling customs duties are expected to result in a total savings of approximately NIS 60 million per year for the public.
support for farmers during transition
According to the outline, from 2027 to 2030, the ministries will grant approximately NIS 100 million in direct support to sheep farmers, as part of a safety net designed to allow the sector to adapt to the transition to an open and competitive market. Starting in 2031, permanent support of over NIS 20 million will be provided each year, which will provide farmers with long-term economic certainty and a basis for the sector's continued activity after the transition period. Instead of relying on trade barriers and production restrictions, the support will be given directly to farmers.
To ensure a safety net for existing growers, customs duties will be canceled only after the transfer of financial support to the growers' accounts. In the first four years, existing growers will benefit from guaranteed compensation for past quotas, alongside direct payment for produce. In addition, the outline includes an option to increase support by up to 20% for farms located in peripheral areas, with the aim of strengthening agriculture in these regions and maintaining the dispersion of agricultural production throughout the country. In order to maintain sector stability during the adaptation period, a transition mechanism will be operated in the first few years to limit the number of growers in the sector, aiming to allow a gradual and controlled transition to the new model.
strengthening local production and security
Part of the move will focus on strengthening research and development in the sector, improving milk quality, and increasing the productivity and efficiency of Israeli farms. The outline is intended to combine opening the market and lowering the cost of living with maintaining local production capacity, in order to ensure the continued existence of an independent, stable, and sustainable Israeli sheep sector.
Oren Lavi, director-general of the Agriculture and Food Security Ministry: "The new outline we reached in the sheep sector allows us to open the market to competition, alongside an uncompromising defense of Israeli agriculture and food security. Through direct support for growers, investment in research, and strengthening the goat and sheep farming sector in Israel, we are ensuring the continued existence of a local, independent, and sustainable agricultural sector, as part of strengthening Israel's ability to produce its own food."
Maharan Frozenfar, head of the Budgets Department at the Finance Ministry: "The fight against the cost of living and concern for the Israeli farmer do not contradict one another. The new outline allows us to open the market to competition, remove barriers, and lower prices for the consumer, while simultaneously granting growers direct support and economic certainty. Thus, the Israeli consumer will pay less, and the Israeli farmer will be able to continue producing and developing. This is the right combination of competition, lowering the cost of living, and strengthening local agriculture and food security. Many more great steps still await us in the ongoing pursuit to lower the cost of living for all citizens of Israel."