Israel Sells Emergency Baby Formula Stockpiles at 50% Discount 

The Ministry of Economy and Industry, through its Emergency Administration, has issued a tender for the sale of government stockpiles of infant formula as part of a broader initiative to upgrade and streamline management of national emergency reserves.

Unique Tender Structure

In an unusual approach, the winning bids were determined not only by the price offered to purchase the formula from the government, but also by the maximum price bidders committed to charge consumers.

This dual-pricing mechanism aims to achieve two goals: reducing public expenditure on maintaining government stockpiles while providing Israeli consumers access to essential products at significantly below-market prices.

Winners and Pricing

Two companies won portions of the tender based on the quantities they requested:

Rami Levy Hashikma Marketing Chain: Purchasing approximately 400,000 units of baby formula to be sold to consumers at no more than 34.90 shekels per package.

H.N. Beverages Ltd: Purchasing 250,000 units of baby formula to be sold to consumers at no more than 37 shekels per package.

These prices represent discounts of tens of percentage points compared to prevailing market rates, offering immediate relief from cost-of-living pressures for parents of infants.

The Ministry of Economy emphasizes that all products sold through the tender meet strict safety and quality standards and have a minimum shelf life of nine months.

Official Statements

Economy and Industry Minister Nir Barkat stated: "We are bringing good news to Israeli citizens today. The Ministry of Economy and Industry, under my leadership, continues to seize every opportunity to fight the cost of living. We decided to sell emergency stockpiles in a way that serves the desire to lower the cost of living while maintaining full preparedness of the economy for emergencies. This is a basic product that every parent must buy, so we required the concessionaires to sell the formula at discounts of tens of percent."

Ministry Director-General Moti Gamish added: "The price of a baby formula package for consumers will stand at less than 50% of its current price; emergency infant food stockpiles will not be harmed and will continue to be managed responsibly."

The Ministry of Economy and Industry stressed that "the sale of stockpiles does not harm the state's preparedness for emergencies" and that it will continue working to strengthen the resilience of the Israeli economy, responsibly manage national emergency reserves, and take steps that combine food security with economic efficiency.

The initiative comes as Israeli families continue to grapple with high living costs, making baby formula, a non-negotiable expense for parents, a key target for government cost-relief efforts.