Prime Minister Benjamin Netanyahu today adopted the conclusions of the Kedmi Committee on the dairy market, which includes a range of measures to increase competitiveness including opening the market to imports, increasing transparency of the dairy conglomerates and chains activities, and streamlining the dairy sector.
Netanyahu's decision comes after meetings this afternoon with Minister of Finance Yuval Steinitz, Minister of Industry, Trade and Labor Shalom Simhon and Minister of Agriculture Orit Noked to discuss the Kedmi Committee's recommendations.
The main recommendation is that the dairy market will gradually be opened to imports, over a five year period, starting in 2012. Other recommendations that have been accepted, include compelling the dairies to report their profits, and cancelling arrangements restricting marketing of dairy products.
Supervision of the retail chains will also be increased. The chains will also be obliged to report on profits and mark products, and will be prohibited from importing finished dairy products although they will be allowed to import hard cheeses.
A decision was taken on the most contentious issue for the ministries of finance, industry, trade and labor, and agriculture regarding reducing target prices. It has been decided that these will be reduced by NIS 0.05-0.06. The method of calculating target prices will also be changed to reduce the current lack of balance.
Published by Globes, Israel business news - www.globes-online.com - on July 27, 2011
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