The Vietnam Trade Office in Israel said that on July 13, 2023, the Israeli Ministry of Finance signed an order to abolish the 40% import tax rate on dairy products for a three-month period, ending on December 31, 2020. 09/10/2023 after the end of the traditional holiday.

This is a historic decision and this measure was taken with due care and responsibility to address the shortage of milk on supermarket chain shelves as well as in retail stores that the people of Israel have been facing in recent weeks.

Milk is the best-selling product in Israel, so it is unacceptable that there is a shortage of milk in the summer, when children are on summer vacation and before the traditional holidays.

The import tax reduction also aims to open the market, increase supply and increase competition to help lower the selling price of this item to consumers.

In addition, the Israeli government will plan to further modify the Israeli import system to make it compatible with European management methods and standards while reducing bureaucratic procedures for goods. Imported goods are monitored and enforced by the Department of Economy and Industry together with the Department of Economy and Industry Office of the Prime Minister.

The latest milk shortage comes as the price of state-regulated dairy products rose by more than 9% in May 2023, when the Treasury Secretary reached a last-minute deal with producers. Israel’s dairy products are spread at an expected 16% increase over a number of years.

An audit by Israel’s state regulator showed that the price of raw milk in Israel is about 24% higher than the European Union average. Furthermore, the price difference between a liter of regular milk for Israeli consumers and the average price in OECD countries is a staggering 77%.

Over the next three months, Israel will study the market impact of removing the import tax, both in terms of volume and price. The Israeli Ministry of Finance will conduct an intensive dialogue with all stakeholders involved in the dairy industry to examine what adjustments need to be made to ensure a regular supply and optimal prices for the raw material milk and dairy products.

According to the Vietnam Trade Office in Israel, dairy product shortages have been frequent in recent years, leading to a surge in dairy product prices as domestic supply has been unable to meet rapidly increasing consumer demand. and Israel has to continually adjust its management policy by increasing import quotas or reducing import taxes on that item at different times.

“Due to consumption habits and habits, dairy products are in high demand among the people of Israel. Along with the implementation of this import tax reduction, this is a good opportunity for producers. Dairy products of all kinds from Vietnam promote export to Israel market in the coming period,” said the Vietnam Trade Office in Israel.

According to statistics, by the end of 2021, Vietnam will have more than 200 milk producers. Vietnam’s milk market is dominated by “big players” such as Vinamilk, Nestle Vietnam, Nutifood, Frieslandcampina and TH Group.

It is estimated that Vietnam’s cow herd will increase from 330,000 in 2019 to 700,000 in 2030. Vietnam’s fresh milk production will reach 1.2 billion liters in 2021 and increase to 2 billion liters in 2030.

Vietnam’s milk exports are increasing rapidly. Vietnam’s milk export value exceeds US$300 million. Vietnamese dairy products are exported to more than 40 countries. The biggest export markets are Iraq, Cambodia, Hong Kong…

Vinamilk is the largest exporter of dairy products to 57 countries and territories and is increasingly asserting the brand and reputation of Vietnamese milk in the international market.

According to the Ministry of Industry and Trade, in order to make the most of the opportunities and benefits of dairy exports, improving competitiveness and creating high-quality products that meet the strict standards of the world market are key factors that pave the way for companies to penetrate foreign markets .