Breaking Update
Milk reform: Millions for lone farmer
Israel's milk reform offers millions in compensation to dairy farmers selling quotas as part of a billion-shekel redemption program, providing economic support.
As part of the reform’s implementation, dairy farms that choose to sell their milk quotas, within the framework of the quota redemption program advancing as part of the milk industry reform, will receive compensation of millions of shekels. Thus, dairy farm owners who are interested will be able to receive capital not only from the sale of cows and farm equipment, but also for the quotas.
The program is designed to allow dairy farmers flexibility and choice in light of the structural changes in the industry, while providing significant economic support to those who choose to exit the industry, alongside strengthening efficient farms and increasing competition in the milk market for the benefit of the public.
Quota Redemption Program – Significant Compensation for Dairy Farmers:
The state will advance a quota redemption program with a total scope of over one billion shekels. Within the framework of the program, the state will purchase the milk quotas of dairy farmers who choose to sell them and exit the industry.
The Highlight of the Move:
Every dairy farm that sells its milk quotas will receive financial compensation in the amount of millions of shekels, depending on the size of the farm and the scope of the quota. In addition, assistance will be provided in converting the farms for alternative uses, including agricultural tourism, industry, or commerce.
Safety Net for Efficient Farms – Stable and Adjusted Protection Price:
Alongside the redemption program, an “protection price” will be maintained for efficient farms that choose to continue operating, a fixed mechanism that provides long-term certainty regarding quantity and price. The protection price will be competitive and will reflect the production costs of efficient farms, with the aim of ensuring economic stability and continued sustainable operation in the industry.
Program to Strengthen Dairy Farms – Investment in Upgrading and Expansion:
As part of the reform’s implementation, the state will invest in upgrading and expanding existing dairy farms, and will provide significant assistance to dairy farmers interested in improving production capacity, in the scope of hundreds of millions of shekels.
A More Competitive, Stable, and Efficient Milk Market:
The overall move is expected to reduce dependence on large dairies, improve competitiveness in the milk industry, and strengthen local production. In the medium and long term, the reform is expected to contribute to lowering the cost of living for consumers, improving the availability of dairy products, and ensuring stable supply capacity both in routine and in emergency situations.
