Finance Minister Bezalel Smotrich Threatens to Remove Dairy Tariffs Amid Supply Crisis
Bezalel Smotrich, the Finance Minister of Israel, has issued a stark warning via social media, indicating that he may sign a decree to temporarily eliminate tariffs in the dairy market. This declaration arises in response to the recent decision by dairy farmers to cease milk deliveries to processing plants, which he claims creates a deliberate shortage and threatens the continuous supply of milk in Israel.
Farmers Resume Milk Deliveries After Intervention
Following intervention from the Minister of Agriculture, Avi Dichter, the farmers have decided to resume milk deliveries starting tomorrow. The farmers stated that this decision came after Dichter urged them to end their shutdown. Despite the resolution, Smotrich remains poised to move forward with tariff cancellations on drinking milk, a step originally slated for 2027 as part of dairy reform legislation currently pending in the arrangement law.
A Unilateral Move
Historically, tariffs in the dairy sector were removed as part of industry agreements. However, Smotrich has signaled his intention to activate his authority in this area unilaterally, without a consensus from the farmers. His recent campaign, under the slogan “It Could Be Cheap Here,” prioritizes significant reforms in the dairy sector.
Consumer Reaction and Market Restrictions
In light of today’s suspension from the farmers, dairy processors-capable of storing raw milk for about 24 hours-continued production as usual. However, anticipating consumer behavior driven by fears of a shortage, several retail chains limited milk purchases. Carrefour restricted purchases to two liters, while Yohanoff set a limit of four liters. Other chains, including Rami Levy, Shufersal, and Osher Ad, did not impose any purchase limitations.
Conclusion
As this situation develops, it raises questions about the balance between farmers’ rights, consumer needs, and government intervention in the dairy market. The ongoing tensions illustrate the complexity of managing agricultural supply chains amidst rising concerns over food prstarts and market accessibility.
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