NOTIFICATION

The following submission, dated 30 November 2021, is being circulated at the request of the delegation of Israel. The notification concerns domestic support commitments (Table DS:1 and the relevant supporting tables) for the Calendar Year 2020.

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Explanatory notes to Israel's Domestic Support notifications for the year 2020:

Background and Adjustments in Policy

Israel's total AMS for 2020, as in recent years, is derived from two product specific AMSs that exceed the de-Minimis level: milk and eggs. The cost of production of raw milk and table eggs in Israel's arid/semi-arid climate is mostly dependent on the international prices of feed, since about 90% of the feed is imported. Milk and egg production in Israel is considered among the most strategic food sectors for both food-security related concerns and as an essential source of income in remote rural communities.

Over the years, Israel has taken several policy steps to increase the efficiency of production in both sectors, putting large efforts on the dairy sector. In 2020 the administered price of milk continued to decrease as a result of this policy, but the administered price of eggs continued to increase due to increased external costs of production.

Negotiations to reform the egg sector reported in Israel's 2017 DS:1 notification (G/AG/N/ISR/66/CORR.1) are now renewed. 

Adjustments for Quality Differences

Quality adjustments as explained in G/AG/N/ISR/55 were performed. The fat and protein contents are listed in the official almanac of the Israeli Dairy Board and defined as "normative contents". The normative fat content in 2020 was 3.90% and the normative protein content was 3.44%. A total quality improvement of 16.49% was calculated using the following coefficients - protein: 54%, fat: 36%, water: 10.0%. The calculation for quality adjustments was done in consultation with the Israeli Dairy Board.