Milk and cream market in Israel

Earlier Report Observations

From 2018 to 2023, the Israeli market for non-concentrated, unsweetened milk and cream saw moderate fluctuations in production volume. The market operated under a strict regulatory framework governed by the Dairy Farm Planning Law, with annual production quotas set by the minister based on expected consumption. In 2018, a comprehensive plan was announced to gradually abolish these production quotas and tariffs by 2025, aiming to enhance efficiency and reduce prices. Production remained relatively stable at approximately 1.8 million t, indicating the system's initial focus on maintaining consistent supply within the controlled environment, despite high consumer prices for dairy.

The market saw a slight recovery and stabilization of production from 2020 onward, following the initiation of a multi-year efficiency plan that included a scheduled reduction of the government's target price for milk. This period was also marked by recurring shortages of regulated, price-controlled dairy products in retail stores, a situation partly attributed to dairy processors like Tnuva reducing output of low-margin controlled milk in favor of more profitable 'special' milk varieties. These shifts within the product mix and supply chain logistics contributed to the market's overall stable volume, which hovered around 1.85 million t through 2023, even as public protests by dairy farmers against market liberalization reforms emerged.

Production milk and cream in Israel

In kind, 2017-2020, K t

Top producers of milk and cream, 2017-2020

World map of production of milk and cream, 2017-2020

In 2020, Israel produced 1 812 thousand tons of milk and cream, marking a 1.6% increase compared to the previous year. Over the period from 2017 to 2020, production grew by 3.4%, which translates to an average annual growth rate of 1.1%. The highest production level was recorded in 2018 at 1 841 thousand tons, with the largest annual increase of 5.1% occurring that same year. In contrast, 2019 saw the most significant decline, with production dropping by 3.1%.

Annual dynamics of production in Israel in kind, 2017-2020, K t

Exports milk and cream from Israel

Exports in kind, t

The market experienced notable fluctuations during this period. Import levels varied significantly, with a 23-fold difference between the peak in 2019 and the low point in 2017. In 2020, Israel's milk and cream exports totaled 4.5 tons, representing a sharp decline of 89.5% from the previous year. The highest export volume was recorded in 2019 at 43.2 tons, which also saw the largest increase of 549.1%.

Annual dynamics of product's exports from Israel in kind, 2017-2020, t

From 2017 to 2020, Singapore remained the primary destination for Israel's milk and cream exports in kind, accounting for 75.6% of total shipments. The remaining share was distributed among various smaller markets.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Israel in kind, 2017-2020

Exports in value, K $ US

Market behavior was characterized by volatility during these years. Exports reached their lowest point in 2017 and peaked in 2019, with a 12.5-fold difference between these two years. In 2020, Israel's milk and cream exports amounted to 3.0 thousand US dollars, which is 88.0% less than the previous year. The highest value was recorded in 2019 at 25.0 thousand US dollars, while the largest increase of 350.0% occurred in 2018.

Annual dynamics of product's exports from Israel in value, 2017-2020, K $ US

Between 2017 and 2020, Singapore, Mexico, and Thailand were the leading buyers of Israeli milk and cream in value terms. Singapore accounted for 61.5% of exports, Mexico for 15.4%, and Thailand for 7.7%. Together, these three markets represented 84.6% of total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Israel in value, 2017-2020

Imports milk and cream to Israel

Imports in kind, t

The market showed signs of volatility over the observed period. Import levels fluctuated widely, with a 19-fold difference between the high in 2020 and the low in 2018. In 2020, Israel's milk and cream imports reached 387.4 tons, reflecting a substantial increase of 411.2% compared to 2019. The lowest import volume was recorded in 2018 at 20.5 tons, which also experienced the largest decline of 77.6%.

Annual dynamics of product's imports to Israel in kind, 2017-2020, t

From 2017 to 2020, Israel's imports in kind were heavily concentrated on Belgium and Spain, which together accounted for 85.5% of total flows. Other trading partners made up the remaining share.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Israel in kind, 2017-2020

Imports in value, K $ US

Market behavior was marked by volatility during these years. Imports reached their lowest point in 2018 and peaked in 2020, with a 14.5-fold difference between these years. In 2020, the value of Israel's milk and cream imports totaled 826.0 thousand US dollars, representing a rise of 383.0% over the previous year. The minimum value was recorded in 2018 at 57.0 thousand US dollars, which also saw the largest decline of 68.0%.

Annual dynamics of product's imports to Israel in value, 2017-2020, K $ US

Between 2017 and 2020, Belgium and Spain dominated Israel's milk and cream imports in value terms. Belgium accounted for 62.9% of total imports, while Spain represented 28.7%. Together, these two countries formed 91.6% of total import value, with other partners accounting for the remainder.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Israel in value, 2017-2020