Israel’s dairy farmers announced on Monday that they will stop supplying milk to dairies beginning this morning, stepping up their protest against a dairy industry reform promoted by Finance Minister Bezalel Smotrich.

The farmers argue that the reform is “destructive,” warning that it could cause severe damage to local producers and jeopardize the long-term stability of Israel’s dairy sector.

The issue was addressed earlier Monday at a farm conference organized by the Binyamin Region, the Farm Alliance, and Arutz Sheva, where Smotrich was questioned about the possibility that farmers would suspend milk production.

Smotrich sharply criticized the move, saying it would only strengthen the case for reform. “If they stop milk production, they would play into my hands since they would explain to the citizens of Israel what happens when an industry is managed in such a communist, centralized manner where whoever wants can flip the switch.”

He went on to compare the farmers’ threat to actions taken by other sectors in the past. “Once it’s the electric company employees, after that it’s the ports, and now it’s the growers. This won’t happen. The citizens of Israel will not be hostages of any monopoly or any pressure group.”

The standoff comes after the Ministerial Committee for Legislation unanimously approved the dairy reform last month. According to estimates from the Finance Ministry, the changes are expected to save the public between one and two billion shekels annually.

The ministry said the reform is intended to open the dairy market to competition, reduce consumer prices, and dismantle the centralized planning system that has governed the industry for decades.

The legislation calls for the cancellation of the production quota system, a transition to an open market, and the removal of all tariffs on dairy products. It also includes a safety net for producers aimed at ensuring a consistent supply of fresh milk to consumers at affordable prices.

In addition, the reform establishes a new legal mechanism to regulate protected milk procurement, alongside a gradual program to buy back existing quotas as the market shifts to the new framework.

{Matzav.com}