Simhon with the protesters
Photo: Ahiya Raved
Dairy farmers: Reform spells industry's end
Ten dairy farmers stage impromptu protest over impeding reform in milk market near Trade and Labor minister's home
Ten dairy farmers staged a small protest rally Friday near Industry, Trade and Labor Minister Shalom Simhon's home in Moshav Even Menachem in northern Israel.
The farmers protested Simhon's support of the government's dairy market reform, which is likely to cut their profit margin.
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Game Changer
Tal Litman, Calcalist
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
Last week, the cabinet decided to open the Israeli dairy market to imports, following recommendations to that effect by the sub-committee for the dairy market.
The move is meant to slash dairy prices in Israel, which gained 3.2% in June alone.
Attempting to give the minister a package of several dairy products, "So he can have Israeli dairy products the last time" – the 10 were stopped by the Simhon's security detail. He was not home at the time.
Simhon met with the farmers on Friday afternoon and heard their complaints: Dairy farmers believe that the suggested reform will spell the end of small dairy farms and threaten the entire industry.
In May, the government voted in favor of a bill setting target-prices for mile and dairy products for the next eight years. The dairy farmers allege that the reform will render the bill – which was two years in the making – null and void.
Simhon, on his part, stated that the social unrest mandated the reform: "Do you really think that in the current social climate people are willing to pay such prices for Israeli milk? Something happened here over the last few months. The public is no longer willing to pay."
The minister urged the dairy farmers to wait for the government to ratify the reform, after which deliberations on the actual changes will begin.
"Once the government reaches a decision, they'll meet with you and discuss the new target-price," he said, adding that if the parties fail to reach an agreement the matter price will be set via legislation.
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