Jerusalem, 5 March, 2026 (TPS-IL) — To prevent fluctuations and increases in dairy product prices, the Ministry of Agriculture and Food Security is working through an abbreviated legislative process to extend the validity of the mechanism for setting the target price for raw milk, which expires at the end of the year, in order to prevent regulatory chaos and ensure certainty and stability in the price of raw milk.

The dairy industry is a regulated and supervised industry by law. The Dairy Farm Planning Law stipulates through a transitional provision that by the end of December 2025, the target price, the price of raw milk paid to their dairy farms by the dairies, will be regulated by regulations to be established jointly by the Minister of Agriculture and FOOD SECURITY and the Minister of Finance, with the approval of the Knesset’s Economics Committee.

In a situation where the regulations are not established or are not extended on time (in the immediate term, before they expire at the end of December 2025), the dairy industry may be plunged into regulatory chaos that will create uncertainty for all players – from dairy farmers to consumers. The lack of a regulated mechanism for determining the target price may lead to sharp shifts in the price of raw milk, which will be determined by the dairies, and thus lead to uncontrolled increases in the prices of dairy products for the public. Extending the validity of the regulations is an essential step that prevents upheaval in a regulated market, and maintains price stability until the full work of the headquarters is completed and a permanent mechanism is established.

Gil Tanenbaum

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