Parents Rejoice as Price of Formula Plummets

The Ministry of Economy and Industry announced that it sold more than 650,000 units of government-owned infant formula to two major grocery chains nationwide. Beginning January 14, 13 varieties of Materna Stage 1 and Stage 2 formula will be sold for NIS 34.90 to NIS 37 per package, far below prevailing market prices.

A mother feeds her two week old baby with milk substitute. February 28, 2011. Illustration. (Nati Shohat/Flash90)

Infant formula prices are about to drop sharply after the government moved to liquidate part of its national emergency stockpile, selling hundreds of thousands of cans of Materna baby formula to major retail chains at controlled prices.

The Ministry of Economy and Industry announced that, following a change in how Israel manages its emergency food reserves, it sold more than 650,000 units of government-owned infant formula to Rami Levy Marketing Hashikma, its Good Pharm subsidiary, and the Mahsanei Hashuk. Beginning January 14, 13 varieties of Materna Stage 1 and Stage 2 formula will be sold for NIS 34.90 to NIS 37 per package, far below prevailing market prices.

Under the tender, Rami Levy and Good Pharm will sell roughly 400,000 packages at prices not exceeding NIS 34.90, while Mahsanei Hashuk will sell about 250,000 packages at prices capped at NIS 37. The products include dairy, mehadrin, comfort, plant-based, Gold and Extra Care varieties in 400-gram and 700-gram packages. All products carry a minimum remaining shelf life of nine months.

Until now, the same products typically sold for NIS 55–60, even during promotions, with premium lines priced significantly higher. The current move represents discounts of more than 25% off typical sale prices and, in some cases, over 50% compared to standard shelf prices.

The sale comes as part of a broader shift in how Israel manages its emergency reserves. Instead of owning and warehousing large quantities of baby formula outright, the state is transitioning to a leasing model, rotating inventory more frequently to avoid spoilage. Because infant formula has a relatively short shelf life, the ministry opted to release the stock to consumers before expiration rather than destroy it.

Officials stressed that the sale does not compromise Israel’s emergency preparedness. According to the ministry, emergency reserves will continue to be maintained under the new system, and all products released for sale meet full safety and quality standards.

Economy and Industry Minister Nir Barkat described the move as immediate relief for families facing high living costs, calling infant formula “a basic product every parent must buy.” Retail analysts expect the discounted Materna stock to put pressure on competitors as well, potentially triggering broader price reductions across the infant formula market in the coming weeks.