חוק תכנון משק החלב (תיקון מס' 4), התשפ"א-2021Law Planning of the Dairy Sector (Amendment No. 4), 2021 · automatic translation · suggest a correction

Official summary of the law (Knesset)

The Milk Industry Planning Law, 2011 (hereinafter – the Law), regulates the dairy sector as a planned sector, and among other things determines that the "target prices", the minimum prices that a dairy must pay a producer (cattle farmer) for quota milk, will be set according to principles to be determined in orders under the Supervision of Prices of Commodities and Services Law, 1996, which will apply in this matter with several changes. Until the enactment of the Law, the "target price" was determined according to production costs, and the method of calculating them was based on agreements reached over many years among the various parties in the sector. In order to maintain the stability of the sector, which could have been harmed by price changes without appropriate preparation, the Law includes a transitional provision under which the target price will be set according to the last target price published prior to the Law's commencement and will be updated according to the update mechanism established in regulations enacted by the Ministers of Finance and of Agriculture and Rural Development (hereinafter – the target price update regulations). This transitional provision expired on 6 July 2021. In accordance with the "Milk Summary" signed in January 2021 between the Ministries of Finance and Agriculture in coordination with the various parties in the dairy sector, it was determined in the Milk Industry Planning Law (Amendment No. 4), 2021, that the said transitional provision would remain in force until 31 December 2023. It was further determined that the Ministers of Finance and Agriculture are authorized to extend it, by order, with the approval of the Knesset Economic Affairs Committee, for one additional period of two years, until 31 December 2025. The ministers were also authorized to establish, within the target price update regulations, an update mechanism different from the one currently in place, in order to allow a reduction of the target price. The ministers were also authorized to set in regulations a one-time reduction in the quarterly target prices for the third and fourth quarters of 2021, in the amount of 2.8 agorot. This reduction reflects the price reduction that was supposed to take place had the agreements been anchored in legislation last January – when the "Milk Summary" was signed. Amendment No. 4 to the Law came into force on 1 July 2021, and from that date onward the "target price" will be updated according to the new update mechanism to be established in the target price update regulations, provided that those regulations are enacted by 30 September 2021.

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