Bezalel Smotrich on Dairy Reform
TL;DR
Bezalel Smotrich strongly advocates for sweeping dairy reform to abolish tariffs and break up industry monopolies to lower consumer prices.
Key Points
He stated that if farmers stop producing milk during the dispute, he will unilaterally remove all tariffs and open the market to competition by his authority as finance minister.
The Finance Ministry estimates the dairy reform, which includes abolishing quotas and tariffs, will save the public between one and two billion shekels annually as of February 2026.
Smotrich branded the industry's reaction to the reform as "communist" when farmers threatened a supply halt, arguing the move is necessary for consumer welfare against monopolies.
Summary
Finance Minister Bezalel Smotrich champions a comprehensive dairy reform initiative intended to lower the high cost of living for Israeli citizens by dismantling the centralized coordination mechanism that has long governed the dairy sector. His core position involves slashing milk production quotas, reducing the per-liter price, and crucially, abolishing protective tariffs up to 40% to allow the Israeli market to be flooded with cheaper dairy imports. He asserts that the current structure, dominated by three major companies controlling 85% of the market, allows them to charge exorbitant prices, and he is determined to force competition onto these giants.
The proposed changes are included within the 2026 state budget's Amendments Bill, creating a tight legislative window for passage. While the Finance Ministry acknowledges the reform will harm hundreds of local dairy farms, potentially closing about 70% of them, the Minister has promised a compensation package and statutory protection for the affected dairies. Furthermore, he stated that should farmers halt milk supply in protest, he would unilaterally remove all tariffs, viewing such an action as proof of the industry's "communist" and anti-consumer nature, asserting citizens will not be held hostage by pressure groups.
Frequently Asked Questions
Bezalel Smotrich is a strong advocate for the sweeping dairy reform, viewing it as a necessary step to combat monopolies and lower the high cost of living. He plans to achieve this by opening the market to imports and eliminating protective tariffs on dairy products.
The Finance Minister acknowledges that the reform will negatively impact hundreds of local dairy farms, but he has pledged that those affected will receive a compensation package. He also stated the state will partner with them in new investments.
Smotrich responded forcefully to threats of a milk supply halt by saying such actions play into his hands, proving that the industry operates in a "communist, centralized manner." He vowed the citizens would not be held hostage by pressure groups.
Sources5
Farmers threaten to stop supplying milk in protest at dairy ...
Israeli dairy farmers protest Smotrich's reform at Knesset
Dairy farmers threaten to halt milk supply over controversial ...
To protest reforms: Dairy farmers to stop supplying milk
* This is not an exhaustive list of sources.