Israel Tries to Trim Local Dairy Prices With Duty Cuts on Powdered Milk, Cheeses

Aug. 9, 2011, 4:00 AM UTC

JERUSALEM—Israeli Minister of Finance Yuval Steinitz Aug. 3 signed a directive reducing customs duties on hard cheeses and powdered milk imported into Israel.

The move to encourage dairy imports is the first concrete step in a controversial plan to lower dairy prices, after a cottage cheese boycott in June sparked a broader wave of social unrest still sweeping Israel. “Exposing dairy to imports will stimulate competition and lower consumer prices,” Steinitz said in a statement.

Locally produced cheese accounts for about 20 percent of the Israeli dairy market, and almost no hard cheese is currently imported, the ministry said.

The ...

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