The damage to the sector

In Israel agriculture collateral victim of a year of war

The share of agricultural produce in GDP fell to 1%, down also the share of agricultural exports in the total, while the Palestinian and foreign labour force is in sharp decline

by Nello Del Gatto

Un agricoltore israeliano nel villaggio di Goren, nel Nord

4' min read

4' min read

Agriculture has always been an important sector in Israel. Not so much for the numbers it generates, but for its social significance. Most of the communities present at the foundation of the state, kibutzim and moshav, were, and still are, created on agricultural models and engaged in activities in that sector.

The outbreak of the war against Hamas in Gaza with the group's own massacre in the kibbutzim in the south, Hezbollah's attack since 8 October last year on northern Israel where many farms insist, forced to evacuate, have created quite a few problems for the sector.

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According to the World Bank, agricultural land in Israel amounted to 29.74% in 2021. More than 30% of its agricultural land is located in war zones: about 22% in the Takuma area (surrounding Gaza) and another 10% on the northern border, of which 7% in the Galilee and 3% in the Golan.

The share of agricultural products in GDP fell from 11% to 2.6% between 1950 and 2008, to around 1% last year, one of the worst since the state was founded, and the share of agricultural exports fell from 60% to less than 2% of the total. This, despite an absolute increase in annual exports from $20 million in 1950 to $1.2 billion in 2009 due to, among other things, the extensive introduction of innovative agricultural methods, modern irrigation and water treatment technologies, and export-oriented agriculture. The war caused a further loss of 150,000 tonnes of agricultural products in the first six months alone, worth about $178 million. Not to mention that the attack on farming communities in the south led to the killing of many workers in the sector, forcing others to return to their countries. The evacuation of communities in the north also forced many foreign workers in the sector to leave the country.

"There is a lot of tension here. All day long," Eyal Ovadia, a resident of Kibbutz Kabri in the north and chairman of a farmers' committee, told television, "there are attacks. Farmers in the north work under fire and risk their lives every day. But the farmers do not leave the plantations. It is scary here, but we will continue to protect our territories. The Thai workers, on the other hand, do not want to go into the fields. Agricultural areas are defined as open areas and there the rockets are not intercepted, they are dropped, so the danger is great. We want the army to keep attacking and by force, after a year, we are finally doing something'.

Since the war, there has been a decrease in the workforce (foreigners and Palestinians) of about 40% in the agricultural sector. Many crops have been saved by the mobilisation of hundreds of thousands of volunteers, from Israel and abroad, who have helped to recover more than 35 thousand tons of agricultural products worth about $42 million. The rescue efforts of the volunteers reduced the loss of food during this period from 25% to 22%.

According to data, the first six months of the war cost the economy an additional $265 million due to food losses. The lack of agricultural products caused a 14% increase in vegetable prices and an 8% increase in fruit prices. All these figures emerged from a study prepared for the Ministry of Agriculture by the consulting firm BDO. 'The report,' explains Chen Herzog, the company's chief economist and author of the study, 'highlights Israel's failure to address food security. This means damage to national resilience. Since the outbreak of the war, fruit and vegetable prices have risen by about 13 per cent, the food insecurity gap in Israel has increased by 8 per cent and the amount of food lost in the agricultural sector has increased by 13 per cent. The state did not adequately prepare itself to ensure the nutritional security of its residents during this emergency. Therefore, in order to return activities around the war zones, it is not enough to restore the situation to its original state, but a new economic reality must be created that allows for an increase in agricultural production, addressing labour force challenges and creating adequate incentives to support Israeli agriculture. The damage to agriculture and the loss of food are part of the economic price the entire economy pays because of the war, and the economy must be put back on the path to growth'.

Yaron Belhasan is CEO of the Fruit Growers Organisation. "The farmers have been working for a year in an unthinkable reality, in war and under fire. They know that the next day will be very difficult, because an abandoned plantation you cannot restore. These farmers are also reservists and guard the border. Now is the time to protect them, allow them to work and take care of Israel's food security'.


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