Milk market in Israel

Earlier Report Observations

Between 2018 and 2023, Israel's milk market volume showed moderate growth, rising from 1.69 million tons to 1.70 million tons. After a slight dip in 2019, production recovered in 2020 despite the global pandemic, as the continued operation of the three major processors—Tnuva, Tara, and Strauss—which controlled 92% of the market, ensured supply stability.

Market expansion in 2021 and 2022 was supported by investments in processing technology through partnerships with global equipment suppliers, enhancing plant efficiency. In 2022, a government-approved 4.9% price reduction for controlled dairy products helped maintain consumer demand. Throughout the period, the share of plant-based milk alternatives grew significantly, rising from 31% to 46% of the market between 2018 and 2024, reflecting shifting consumer preferences.

The market stabilized in 2023 amid regulatory discussions about lifting import duties on dairy products. Food-tech innovation advanced with the development of cellular-based 'New Milk' through a joint venture between Gad and Remilk, representing a potential long-term shift in production methods.

Production milk in Israel

In kind, 2017-2020, K t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

In 2020, Israel produced 1 654 K t of milk, representing a 1.4% increase from the previous year. Over the period from 2017 to 2020, production grew by 3.2%, which translates to an average annual rate of 1.0%. The highest production level was recorded in 2018 at 1 684 K t. In 2019, production saw its largest decline of 3.1%, while the largest increase occurred in 2018 with a 5.1% rise.

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

Exports milk from Israel

Exports in kind, t

The export market for milk in Israel showed significant volatility during these years. Exports peaked in 2018 at 822 t and reached their lowest point in 2020 at 5 t, resulting in a 182-fold difference between these two years. In 2020, milk exports from Israel totaled 5 t, which was a 90.2% decrease compared to 2019. The largest decline was recorded in 2019 at 94.4%, while the largest increase occurred in 2018 with a 1 590.5% surge.

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

From 2017 to 2020, the primary destinations for Israel's milk exports in kind were Singapore, accounting for 41.4% of exports, the Netherlands with 25.8%, and the United States at 20.5%. Together, these three countries represented 87.7% of total export flows.

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

The value of milk exports from Israel exhibited considerable volatility over this period. Exports reached their highest point in 2018 at 2 143 K $ US and fell to their lowest in 2020 at 3 K $ US, creating a 714-fold gap. In 2020, milk export revenues amounted to 3 K $ US, marking a 92.3% decline from the previous year. The largest decrease was recorded in 2019 at 98.2%, while the largest increase occurred in 2018 with a 2 204.3% rise.

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

During 2017–2020, the United States was the leading buyer of Israeli milk in value terms, comprising 35.4% of exports, followed by Singapore at 27.7% and the Netherlands at 18.7%. Collectively, these three markets accounted for 81.7% 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 to Israel

Imports in kind, t

After two consecutive years of growth, milk imports into Israel declined in 2020. Imports totaled 7 600 t that year, reflecting a 32.6% decrease compared to 2019. Over the 2017–2020 period, imports fell by 5%, equivalent to an average annual decline of 1.7%. The highest import volume was recorded in 2019 at 11 273 t, while the largest increase occurred in 2018 with a 33.6% rise.

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

Between 2017 and 2020, Germany was the largest source of milk imports into Israel in kind, contributing 43.8% of total imports, followed by Ukraine at 16.6% and the United States at 9.7%. These three countries together accounted for 70.1% of import flows.

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

Israel's milk import value increased for the second consecutive year in 2020, reaching 36 493 K $ US, which represented a substantial 21.6% year-over-year growth. From 2017 to 2020, import value rose by 21.6%, with a compound annual growth rate of 6.7%. The lowest value was recorded in 2018 at 27 226 K $ US, which also saw the largest decline of 9.3% that year.

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

From 2017 to 2020, Germany led as the primary source of milk imports into Israel in value terms, accounting for 45.6% of imports, followed by Ukraine at 14.5% and the Netherlands at 9.3%. Together, these three countries made up 69.4% of total import value.

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

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