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Quota and Milk Supply in Israel

Milk production in Israel is carried out under a quota system, where the annual volume is divided into monthly quotas.

Economic incentives have been set to encourage dairy farmers level – up production throughout months, so that milk supply to the industry is more uniform throughout the year.

The base price for the milk to the producer is agreed upon between government, farmers and dairy industries. The price reflects the average cost of production plus an agreed return for the farmers labor and invested capital.

 

 

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