The Israel dairy industry

Michal KrausC.E.O. Israel Dairy Board

September 2017

The I.D.B. is a non profit organization:-

Israel Dairy Board

National Service for Udder Health and Milk Quality

Government Ministry of Agriculture

Ministry of Finance

Ministry of Health

Ministry of Economy

Farmers:Cattle Breeders Ass

Sheep and Goats

Ass Agricultural Org.

Dairies:Tnuva

Strauss

Tara

Gad

Boutique dairies

ConsumersOrganizations

The Dairy Sector in Israel - by Michal Kraus

Industry structure – active bodies

The Dairy Sector in Israel - by Michal Kraus

Israel – Dairy sector

• Regulated by law

• Quota regime & mandatory milk price

• Cow milk Production – 1.560 Billion Litters.

• Production value Ex-farm 800 million euro.

• Total Value in terms of consumer price 2.5 billion euro include 17% V.A.T.

• Self-sufficiency 85%.

• Market share of the 3 biggest processors: 92%

The Dairy Sector in Israel - by Michal Kraus

National Dairy Herd• 135,000 Israeli Holstein cows

• Local breeds – genetically improved

• 800 dairy farms,

• 100% artificial Insemination

• Zero Grazing

• The National Herd Book - 85% of the cows

• Well-adapted to the local environment

– Long & hot summer

– Local diseases

• Yield 11,970 Kg per cow per year (3.75% Fat 3.45% Protein)

The Dairy Sector in Israel - by Michal Kraus

Cooprativesector, 58%

family sector, 41%

1%, בתי ספר

Milk production by sectors

The Dairy Sector in Israel - by Michal Kraus

The Dairy Sector in Israel - by Michal Kraus7

1,211 597

218

166

1,445

776

400

600

800

1,000

1,200

1,400

1,600

1998199920002001200220032004200520062007200820092010201120122013201420152016

Collective Farms

Family Farms

Total

Number of dairy farms by sectors

300

400

500

600

700

800

900

1,000

1,100

1,200

1,300

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

מספר רפתות

ייצור ממוצע לרפת

לוקרמתווה

(רפתות140נסגרו כ)

הרפורמה בענף החלב

(רפתות350כ נסגרו)

התפתחות מספר הרפתות וגודל ממוצע

family farms(ל"א)לרפת

0

50

100

150

200

250

-

1,000

2,000

3,000

4,000

5,000

6,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

ייצור ממוצע לרפת מספר רפתות

הרפורמה בענף החלב

רפתותאיחוד

ל"א-מספר רפתות וייצור ממוצע לרפת

Co-oprative farms

Milk production per farm by sectors(Ton)

The Dairy Sector in Israel - by Michal Kraus10

388

988

2,953

5,100

779

1,868

-

1,000

2,000

3,000

4,000

5,000

6,000

1998199920002001200220032004200520062007200820092010201120122013201420152016

Family Farms

Collective Farms

All

Challenges for the future

• Keeping the dairy sector as an agriculture leading sector in Israel & in the world – how?

• Family farms – how big, advantage to scale,

• Population distribution & preserving farmland

• Creating certainty for long-term industry along

• Reducing the consumer price

12 The Dairy Sector in Israel - by Michal Kraus

• Providing an option to export and industry growth

• Raising up the consumption per person (from 178 lt. to 200 lt. in 5 years) – how?

• Finding way to reduce the costs of feedings.

• Price reduction for dairy industry

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Challenges for the future

The Dairy Sector in Israel - by Michal Kraus

The Secrets of Success

• National policy

• Cooperation – farmers, dairies, government

• High level of professional services

• Shared database

• Education and Innovation

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The Dairy Sector in Israel - by Michal Kraus