
In an attempt to stop the reform in the dairy industry: Dairy farmers announced today (Monday) that they will stop supplying milk to dairies starting tomorrow morning - in protest of the reform being led by Finance Minister Bezalel Smotrich in the dairy industry.
According to them, this is a "destructive" reform, which could seriously harm local producers and undermine the future of the dairy industry in Israel.
The demonstration is being launched in parallel with the Knesset committee meeting, which is supposed to decide which committee the reform will be transferred to. Normally, the reform would have been discussed in the Economics Committee, but due to the opposition of the committee's chairman, David Bitan, to the reform, Minister Smotrich is working to move the discussion to another parliamentary framework.
During the farm conference of the Binyamin Council, the Farm Union and Channel 7, Minister Smotrich was asked about the possibility that dairy farmers would strike production - and he responded: "If they strike milk production, they will play into my hands, because they will explain to the citizens of Israel what happens when a farm is managed in such a centralized communist way, where whoever wants it presses the switch.".
He added: "It used to be the employees of an electric company, then the ports and now the towers. It won't be. The citizens of Israel will not be hostages of any monopoly, of any pressure group.".
Last month, the dairy reform was unanimously approved by the Ministerial Committee for Legislation.
The Ministry of Finance estimates that the move will save the public between 1-2 billion shekels a year. According to the Ministry of Finance, this is a dramatic move designed to open the milk market to competition, reduce prices, and remove the central planning regime that has prevailed in the industry for decades.
The new law includes the abolition of the production quota regime, a transition to an open market, and the lowering of all tariffs on dairy products. In addition, a safety net will be activated for producers that will ensure the continued regular supply of fresh milk to consumers - at affordable prices.
The reform will also include the regulation of protected milk procurement through a new mechanism that will be determined by law, alongside a quota redemption plan that will be implemented in a phased manner.