Food processing area will be lowered from 15% to 9% on November 1 and the amount of food processing filters will be reduced by 3%.
The price of food processed in the area will also be reduced from 6 to 4 times the retail price of the same product.
Food processing filters and food processors will also receive a 1% increase in price, according to the Ministry of Industry and Consumer Affairs.
The prices of these items will increase by 1.5% for each 10% increase of processing filters.
The Food Processing Area, which includes the main processing facilities of food companies, processors, processing equipment and the supply chain, has been the main source of income for the industry for years.
The food processing industry in Israel has lost around 50% of its annual revenue in recent years.
In addition to the reduction in the prices of food products, the ministry will also raise the minimum wage from 7.50 to 8.50 per cent.
The increase is meant to compensate for the reduction of wages due to the closure of the agricultural sector.
According to the ministry, the increase will be made to help companies compete in a global market.
The ministry expects the increase to help the country to attract investment and increase the production capacity of food processors, which is expected to create thousands of jobs.
The minimum wage increase will apply to all sectors of the food processing and processing equipment industries, including processors, processors’ equipment, food processing equipment, and food processing processing filters, according the ministry.
The food processing industries are responsible for the production and distribution of more than 85% of the Israeli food consumed, according a Ministry of Agriculture report published in May.