The unrest is a direct response to a radical reform package spearheaded by Finance Minister Bezalel Smotrich. The proposed overhaul seeks to dismantle the traditional foundations of the Israeli dairy industry by removing production quotas and scrapping price protections that have long insulated local producers. Most controversially, the plan aims to eliminate all import tariffs on dairy products, opening the domestic market to unrestricted international competition to lower consumer costs.

From the producers’ perspective, the government’s attempt to boost competition is a death knell for the agrarian community. ICBA Chairman Israel Bloch has slammed the Finance Ministry for failing to evaluate the plan’s consequences, warning that the current proposal “destroys the whole milk sector.” Farmers argue that the combination of high production costs, strict internal regulations, and the market dominance of large dairies makes it impossible to compete with global imports under these new terms.

The economic stakes are staggering, with industry leaders warning that up to 400 local dairy farms could be forced into permanent closure if the protections are removed. While the government views the reform as a necessary tool to break monopolies and reduce the cost of living, smaller producers fear they will be the first casualties of a deregulated environment. This resistance highlights a fundamental clash between maintaining national food production and achieving retail affordability through imports.