Dairy market opens for imports - Israel Business, Ynetnews
 
ynetnews
web


   Israel News

Israel News
World News
Israel Opinion
Jewish
Israel Business
Israel Culture
Israel Travel
Reform

Opening up dairy market to wider competition Photo: Shutterstock
Opening up dairy market to wider competition Photo: Shutterstock
 
Prime Minister Benjamin Netanyahu Photo: Gil Yohanan
Prime Minister Benjamin Netanyahu Photo: Gil Yohanan
 
 

Dairy market opens for imports

PM Netanyahu adopts Kedmi Committee's recommendations: Dairies to be obligated to report earnings, exemptions from binding contracts with produce distributors to be annulled, target price to be forthwith slashed by 5-6 agorot

Tal Litman, Calcalist
Published: 07.28.11, 14:00 / Israel Business

Prime Minister Benjamin Netanyahu on Wednesday adopted the recommendations of the sub-committee for the dairy market reform aiming to slash dairy prices by dozens of percentage points.

 

The recommendations adopted include opening the dairy market to competition in a graduated scheme, auditing feed mills, obligating dairies to report earnings, and annulling exemptions from binding contracts with produce distributers.  

 

Monthly Index
Milk prices up 3.2% in June / Amnon Atad, Calcalist
Consumer price index records 0.4% increase, with inflation rate totaling 4.2% - exceeding upper limit of the target range set by government by 1.2%
Full story

Additionally, food chains will be obligated to mark products, retail-supplier relationships will be examined, unused quotas will be opened up to competition, small dairies will be able to expand and the target price will be slashed by 5-6 agorot.

 

The sub-committee for the review of the dairy market under Ministry of Industry, Trade and Labor Director-General Sharon Kedmi was appointed by Industry Minister Shalom Simhon and Finance Minister Yuval Steinitz at the request of Prime Minister Netanyahu.

 

The committee examined the entire dairy market value chain with the aim of cutting prices for dairy consumers while maintaining equitable profitability throughout the value chain.

 

The dairy market will be gradually opened up to competition and quotas will increase with tax rates fixed at 20%. In 2016 the market will be opened to imports, sans quotas.

 

As regard the dairies sector, the committee determined that dairies will be obligated to report their earnings and production quotas will be set on the basis of 2011 quotas for a five-year period, beginning 2012. After three years, the government will be able to finalize quotas and unused allotments will be opened to competitive production not on the basis of the target price.

 

Furthermore, it was determined that small dairies will be allowed to expand during the arrangement period to a 700,000 liter quota.

 

The Antitrust Law will be amended to annul exemptions granted to produce distributors from binding agreements. The annulment will bring an end to produce distribution arrangements.

 

Retail chains will be obligated to report profitability each quarter, on the basis of which the government will determine whether to implement full supervision over products. Retailer-distributor relationships will be inspected and larger suppliers will be banned from importing end products.

 

 

commentcomment   PrintPrint  Send to friendSend to friend   
Tag with Del.icio.us Bookmark to del.icio.us



 
2 Talkbacks for this article    See all talkbacks
Please wait for the talkbacks to load

 

RSS RSS | About | Contact Us | Privacy Policy | Terms of use | Advertise with us | Site Map

Site developed by  YIT Advanced Technology Solutions

 
פיקוד העורף התרעה במרחב:
    למציאת מרחב ההתגוננות האישי שלכם »
    פיקוד העורף מזכיר: יש לחכות 10 דקות במרחב המוגן לפני שיוצאים החוצה
    רשימת יישובים במרחב