Milk powder market in Israel

Earlier Report Observations

Between 2018 and 2019, the Israeli milk powder market volume grew from 15 134 t to 16 279 t. This expansion coincided with a broader easing of state price controls on certain food sectors, including dairy products, which may have supported market activity. The trend reversed sharply in 2020 when the market contracted to 12 276 t, primarily due to the global COVID-19 pandemic. The health crisis caused severe international supply chain disruptions, significantly hampering imports, which are the main component of market volume.

Post-2020, the market recovered rapidly, reaching 16 084 t in 2021 as pandemic-related restrictions eased. Growth continued in the following years, with volumes rising to 16 970 t in 2022 and 19 176 t in 2023. This period saw the complete elimination of import duties on butter—a policy aimed at boosting competition in the dairy sector—which coincided with increased import volumes of milk powder. Simultaneously, the Russia-Ukraine war triggered new global supply chain disturbances and raised raw material costs, putting upward pressure on production expenses. Major market players remained active; for instance, regulated dairy product prices were raised in 2022 following a request by the company Tara.

Throughout the period, domestic production of milk powder remained stable at around 5 500 t annually. Consequently, the overall market size fluctuations were largely driven by changes in import volumes, which responded to both external shocks and shifts in the regulatory landscape, including adjustments to milk pricing mechanisms and ongoing price supervision for key dairy items.

Production milk powder in Israel

In kind, 2017-2020, t

Top producers of milk powder, 2017-2020

World map of production of milk powder, 2017-2020

In 2020, Israel produced 5 544 tons of milk powder, marking a 4.3% increase compared to the previous year. Over the period from 2017 to 2020, production grew by 5.7%, which translates to an average annual growth rate of 1.9%. The largest decline occurred in 2019, with a drop of 3.1%, while the most significant increase was recorded in 2018 at 4.6%.

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

Exports milk powder from Israel

Exports in kind, t

The export market for milk powder from Israel showed an unstable trend during this period. Exports reached their lowest point in 2017 and peaked in 2018, with a staggering 5 850-fold difference between these years. In 2019, exports fell sharply to just 3 tons, a 99.6% decrease from 2018. The highest export volume was recorded in 2018 at 815 tons, which also saw the largest increase of 584 916.4%.

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

From 2017 to 2020, Singapore, the Netherlands, and the United States consistently led as the top destinations for Israel's milk powder exports in volume terms. Singapore accounted for 41.5% of exports, the Netherlands for 29.0%, and the United States for 22.8%, together making up 93.4% 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 export market in value terms was highly volatile over these years. The minimum value was recorded in 2017, while the maximum occurred in 2018, with a 2 134-fold variation between them. In 2019, exports dropped to 14 thousand US dollars, a 99.3% decline from the previous year. The peak value was in 2018 at 2 134 thousand US dollars, which also experienced the largest increase of 213 300.0%.

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

Between 2017 and 2020, the United States, Singapore, and the Netherlands were the key markets for Israel's milk powder exports in value terms, collectively representing 85.5% 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 powder to Israel

Imports in kind, t

After rising for two consecutive years, milk powder imports into Israel declined. In 2020, imports totaled 6 733 tons, a 38.6% decrease from the previous year. Over the 2017-2020 period, imports fell by 11.1%, with a compound annual growth rate of -3.8%. The highest import volume was in 2019 at 10 968 tons, while the largest increase occurred in 2018 at 38.2%.

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

From 2017 to 2020, Germany, Ukraine, and the United States were the primary sources for milk powder imports into Israel in volume terms. Germany contributed 46.1% of imports, Ukraine 16.2%, and the United States 10.2%, together accounting for 72.5% of total 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

Milk powder imports into Israel in value terms increased for the second year in a row. In 2020, imports reached 34 782 thousand US dollars, up 18.2% from the prior year. Between 2017 and 2020, imports grew by 18.7%, with an average annual rate of 5.9%. The lowest value was in 2018 at 26 755 thousand US dollars, which also saw the largest decline of 8.7%.

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

During 2017-2020, Germany, Ukraine, and the Netherlands were the main destinations for milk powder imports into Israel in value terms. Germany accounted for 46.9% of imports, Ukraine for 14.2%, and the Netherlands for 9.5%, collectively making up 70.6% of total import flows.

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

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