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Israel’s milk boom: Holiday surge meets long-term production growth

Last year, demand for dairy products rose 63% in the period leading up to Shavuot.

The dairy barn at Kibbutz Alumim in the northwestern Negev returns to activity on June 16, 2024, for the first time since Hamas's Oct. 7, 2023, attack. Photo by Gideon Markowicz/TPS.
The dairy barn at Kibbutz Alumim in the northwestern Negev returns to activity on June 16, 2024, for the first time since Hamas’s Oct. 7, 2023, attack. Photo by Gideon Markowicz/TPS.

Ahead of the Jewish holiday of Shavuot, Israel’s Ministry of Agriculture and Food Security published 2025 data showing continued gains in dairy-sector efficiency alongside evolving consumption trends.

Shavuot, which marks the giving of the Torah at Mount Sinai, begins at sundown on Thursday. A widespread custom is to consume dairy foods during the holiday period, typically drives a sharp seasonal rise in demand.

According to the ministry’s figures, average dairy consumption in Israel reached about 157 liters (41.5 U.S. gallons) per person in 2025, measured in milk-equivalent dairy products. At the same time, average milk yield per cow rose to approximately 12,600 liters (3,330 gallons) annually, or about 34.6 liters (9.15 gallons) per day. The average dairy farm produced roughly 2.7 million liters (713,000 gallons).

The ministry said the data reflects “continued strong productivity in the Israeli dairy sector under complex conditions,” attributing the gains to ongoing investment in technology, herd management and planning.

Seasonal demand ahead of Shavuot remains a significant driver of short-term consumption patterns. The ministry reported a 63% increase in dairy demand in the period leading up to the holiday.

The Ministry of Agriculture and Food Security also noted that the Knesset Economic Affairs Committee recently approved updated dairy industry planning regulations promoted by the ministry. Officials said the measures are intended to strengthen supply stability and reduce the risk of shortages, particularly during peak demand periods.

At the same time, the sector continues to face multiple pressures, including rising feed costs linked to Russia’s war in Ukraine, volatility in global dairy commodity markets, and domestic drought conditions affecting feed crops. Climate change is also increasing operational challenges, including higher cooling requirements and impacts on herd fertility.

Despite these constraints, long-term productivity trends remain positive. Average production per dairy farm has increased by 44% since 2016, rising from 1.873 million liters (495,000 gallons) to 2.694 million liters (712,000 gallons), indicating significant efficiency gains across the sector.

On the consumption side, demand for locally produced dairy products rose by 1.2% in 2025 compared to 2024. However, per capita consumption declined by around 0.6%, a divergence that likely reflects population growth and shifting product preferences within the market.

The ministry also highlighted the continued expansion of plant-based dairy alternatives. Between 2004 and 2025, per capita consumption of plant-based substitutes increased fivefold. In 2025, approximately 35.3 million liters (9.3 million gallons) of plant-based milk alternatives were sold in retail chains, led by oat, soy and almond beverages.

Retail dairy sales reached an estimated 11.4 billion shekels ($3.9 billion) in 2025, averaging about 216 million shekels ($74 million) per week. In the week leading up to Shavuot, sales rose sharply to 353 million shekels ($120.9 million), with the strongest increases recorded in cream, specialty cheeses and soft cheeses.

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