Israeli dairy products to be open to international competition

The decision on order to keep a check on rising prices
 
Israeli dairy products will be opened to international competition, in order to keep a check on rising prices in the market.
 
The Ministry of Finance and the Tax Authority plan to reduce customs duties on imports of dairy products. According to the plan duties would be lowered on soft cheeses, yogurt , powdered milk, butter and sour cream.
 
The reductions would be made in stages to allow local producers to adjust to the move. The ministry said, in a press release that "Reduction of tariffs will increase competition in the dairy field, increasing the variety of dairy products to consumers, and is likely to contribute to lower prices in the field." The customs tariff on these items is between 120% -160%.
 
The duty on fresh cheeses will fall to 20% by 2016; duty on butter and cheese spreads will fall to NIS 4.5 per kilogram by 2016; duty on pouring milk up to 10% fat will fall to 40% by 2016; duty on cream will fall to NIS 5.5 per kilogram by 2016; duty on milk powder will fall to NIS 6.5 per kilogram by 2016; and duty on yogurt will fall to 40% by 2016. Local experts noted however that the influx of Western brands into the Israeli dairy market is unlikely, despite government plans to reduce long-standing import duties on milk-based products.