Israel's Ministry of the Economy is due to announce new customs duties of just 20% on a range of dairy products, including butter in wholesale packages, condensed and regular milk and cream, buttermilk, and yogurt.

Minister of the Economy Naftali Bennett said that "We are continuing to open up the economy and bring down prices."

Currently, customs duties / levies on some dairy imports stands at over 100%, he noted. The reduced customs rates will have quotas, which Bennett says will help the small companies increase their grip in the import market and increase competition. 

The new measure implements a government decision to reform the local dairy market. The Ministry of the Economy said in a press release that this measure follows other steps taken lately to increase competition in the market and lower the cost of living. A spokesman for the ministry noted that at the instructions of Minister of the Economy, the ministry's Quotas Committee updated the criteria for allocating duty exemptions on powdered milk and butter imports to encourage competition in the dairy market.