Dairy farmers threaten to halt milk supply over controversial reform: 'They are destroying our industry'

Dairy reform promoted by the Minister of Finance and contained in the budget's Arrangements Law is supposed to end dependence on local producers and open the market to imports from abroad; Dairy farmers claim it will cause small dairies to close; 'This reform is pushing us to the edge' 

As Finance Minister Bezalel Smotrich pushes forward with his sweeping dairy reform—aimed at liberalizing imports and increasing competition—Israel’s local dairy farmers are warning of severe consequences. Facing what they call an existential threat, they’ve announced a dramatic escalation: starting Tuesday, they will stop supplying milk from farms to distributors, effectively cutting off a critical link in the national supply chain.
Tali Medina, a 54-year-old dairy farm manager from Kibbutz Urim, explained the move in an interview with Ynet: “Until now, any milk shortage in stores was never our fault. My cow produces milk every day—she doesn’t stop for holidays. If there's a shortage now, it’s because we’ve been pushed to a level of frustration and anger that’s unbearable. We're not people of war, but this reform is pushing us to the edge.”
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מחסור בחלב
מחסור בחלב
The store shelves for milk are already bare
(Photo: Meirav Crystal)
Medina criticized the reform, saying it unfairly targets small-scale producers. “Smotrich is cutting off the weakest link in the chain. That won’t create more milk on shelves—it’ll lead to much worse shortages. Instead of fixing the problem, he’s punishing us. I don’t understand it,” she said.
She also warned of the risks of relying on imports from countries like Turkey and Spain. “If there’s a regional conflict, they can simply stop exporting to us,” she explained.
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רפת קיבוץ חולית
רפת קיבוץ חולית
The cow barn at Kibbutz Holit
When asked whether the supply halt could backfire in the eyes of the public, Medina said: “I’d love a better idea, but this is our only leverage. We’ll keep milking, but we’ll stop marketing. That’s how we show what could happen the day after this reform passes—when supply depends not on us, but on foreign importers.”
Her demand is clear: “Smotrich must remove this destructive clause from the Economic Arrangements Law. I’ve read his proposal many times—it’s not good. It will destroy our industry. If you cut all my profit, why should I even get up in the morning?"
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