The dairy industry is an industry regulated and supervised by law. The Dairy Farming Planning Law stipulates, through a transitional provision, that by the end of December 2025, the target price, the price of raw milk paid to the farmer by the dairies, will be regulated by regulations to be jointly enacted by the Minister of Agriculture and FOOD SECURITY and the Minister of Finance, with the approval of the Knesset’s Economics Committee.
A situation where the regulations are not enacted or not extended in a timely manner (in the immediate term, before their expiration at the end of December 2025), the dairy industry could fall into regulatory chaos that would create uncertainty for all players – from farmers to consumers. The lack of a regulated mechanism for setting the target price could lead to sharp fluctuations in the price of raw milk, which will be determined by the dairies, thereby leading to uncontrolled increases in the prices of dairy products for the public. Extending the validity of the regulations is a crucial step that prevents upheaval in a regulated market and maintains price stability until the full staff work is completed and a permanent mechanism is established.
Against this backdrop, in recent months, in order to advance the new regulations and the establishment of the mechanism for setting the target price, the Ministry of Agriculture and Food Security initiated professional dialogue with the Ministry of Finance, which has not yet matured into agreements. Therefore, despite the provisions of the law, it is not possible to complete the enactment of the regulations in a way that would allow the target price to be set by a mechanism other than that stipulated in the existing law.
In order to prevent chaos in a regulated market that would lead to price increases for consumers, in order to allow for coordinated, orderly, and professional dialogue between the ministries, with genuine public participation on the matter, as required in such proceedings, the Minister of Agriculture and Food Security, MK Avi Dichter, is promoting a government bill stipulating that the target price regulations will remain in effect until the aforementioned regulations come into force. In light of the timeline, the government is expected to discuss shortening the legislative period on Sunday (November 30, 2025), in order to advance the discussion of the bill in the Knesset, to ensure the enactment of the law before the end of the current year (December 31, 2025).
It should be noted that since 2012, the target price regulations have served as an effective and efficient basis for setting the target price, proving themselves as a tool that balances the interests of consumers, producers, and dairies. This is a mechanism that is updated quarterly according to the market situation, and creates stability and certainty for the dairy industry and the end consumer, the citizen.