The date is over: What happened to the industry that was the pride of Israeli agriculture?

The date industry, one of the most successful in Israeli agriculture among recent women, is on the verge of a crisis: the corona has delayed the opening of new markets, the Turks have raised tariffs and at least according to growers, the Ministry of Agriculture is not helping enough.

How did the sweet fruit become so bitter?

Ilana Stotland

03/05/2022

Tuesday, 03 May 2022, 12:53 Updated: Saturday, 07 May 2022, 10:27

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Dekel Shefel Tzameret: A few days before Independence Day, an emergency conference of date growers was held in the Jordan Valley in order to fight for their independence in the face of the recent crisis in the industry.

For years, the Israeli date has been considered one of the stars of Israeli agricultural exports, so much so that Israel has become the largest exporter of Majhol varieties in the world.

But in the last two years, the growers claim, the Israeli date palm industry is in a crisis whose end is not in sight.

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Amnon Greenberg, Chairman of the Palm Table at the Plants Council (Photo: Avishai Greenberg)

Excess of crops

"Until three years ago, this industry was considered very profitable, perhaps one of the most profitable in the fruit industry, thanks to the succulent Majhul variety that we learned how to grow, care for and preserve for long periods," says

. The pepper crisis that occurred 8-9 years ago, most pepper growers have moved to grow dates, mostly the Majhool variety.

From the moment a date tree is planted until it bears fruit, 5 to 7 years pass.

Even then we realized that the amount of fruit will increase and as a result new marketing channels need to be found.

Until more or less three years ago, we were able to market everything we created, we opened markets not only in Israel, but also abroad, and the prices were reasonable. "

"Several things happened. First of all, already two years ago surplus fruit began to form following the crop of young plantings. As mentioned, it was clear to us that our job is, among other things, to help and find new markets to export this produce, also because The development of markets costs a lot of money and the state needs to help growers develop these markets.

The state has indeed assisted in marketing campaigns we have done in the past. "For the large amounts of dates that have accumulated. For example, a year ago we had a surplus of about 4,000 tons of dates. The current year is not over yet so it is still difficult to estimate surpluses, but what I can say is that the amount of fruit expected in 2022 will be much larger than 2021."

In addition, Greenberg describes, "About two years ago, the corona began. Most Israeli exports are to Europe and most of our marketing there is done in open markets. Because of the corona, these markets were closed, so much of our ability to increase overseas marketing was impaired.

As mentioned, we managed to increase the marketing a bit in spite of everything, but if it were not for Corona, a large part of our problems would be solved.

" Reaching a crop of about 50,000 tons per year, when the crop is grown in the Arava, Beit She'an Valley and Jordan Valley, from the Red Sea in the south to the Sea of ​​Galilee in the north and the Yavneel Valley and along the Syrian-African rift.

According to data from the Ministry of Agriculture and Rural Development, in 2019 the value of date production in Israel was about NIS 1 billion, with about NIS 650 million of them exports and the balance in the local market.

"In 2019 we exported about 26.5 thousand tons of dates, in 2020 we exported 28 tons, and in 2021 - 32 thousand tons. If it were not for the corona, we could have marketed more and solved the problem of surpluses," says Greenberg.

"Now, for example, there is also a war in Ukraine that is radiating all over the world. I do not yet have a full analysis, but we feel that it also has an impact on the markets."

"The weakening of the currencies - the euro and the dollar against the shekel - cannot be ignored - something that has hurt all exporters, including date exporters. Exports are what holds our industry together, because prices in the domestic industry do not hold the creature. When everything I counted together, then we are in crisis."

Gal Twig, Director of Business Development of the Date Industry at the Plants Council (Photo: Private)

Turkish March

Wait, take a breath, that's not all.

Turkey, for example, says Greenberg, "was a destination where we used to export a very large amount of dates. Customs duties in Turkey were 15%. Recently, the Turks raised customs duties to the Israeli Majhool to 25%, while the majestic Mahjul in the Palestinian Authority was exempted from customs duties. Height of 3,000 tons.

The Majhool from the Egyptian Egypt in general was exempted from customs duties without restriction. This causes a total unprofitability to export to Turkey. What is annoying is that as part of the reform led by the Ministry of Finance and Agriculture "While the Turks are raising customs duties for us. It is really absurd. Fortunately, at least for now, in terms of dates, they have not yet opened the market for imports, but we are afraid that in the future this industry will also be opened for imports."

"We came to the Ministry of Agriculture professionals about six months ago and analyzed the circumstances of the crisis. We said that if the government supports the opening of new markets, it will help us get out of the crisis. We have come to the conclusion that the US is the preferred destination for opening markets.

There are dozens of national networks, most of which do not have Majhool.

Although Jahul is also grown in the United States, a quarter of what is grown in the country. In Israel, the average annual consumption of dates per person is about 3 kg.

In the US it's a few dozen grams. The majority there do not know what dates are and do not know what is

. So according to our analysis we can enter the networks in the US.

.

"About two or three months ago, we asked the Ministry of Agriculture for NIS 40 million for two years to open marketing in the United States and other areas in Europe that we have not reached to date. We see this as the only way we can get out of the crisis."

In August-September, Greenberg says, the next meeting will take place, "and if we do not succeed in promoting the new markets, we will be left with surplus fruit and it will be a collapse of the industry and settlement. We are still waiting for an answer about the money. "Our cry. Settlement in the Jordan Valley and the Arava is based today on the Majhool. This money we are asking for can save the industry from collapsing. We believe that the American market has the potential to absorb all the fruit we produce. In the US it is

an

endless market."

What is missing, as they say, is the money to implement it.

Between Japan and Ireland

"Our program is divided into three parts: sales promotion and market development; investment in automation; and investment in development and research to save inputs and improve productivity," says

.

"The first thing is the development of new countries. The

investment in opening a new country that does not have dates and does not know what a Majhol date is can easily be NIS 10-5 million a year. This includes introducing the population to the product, its taste, its health benefits. "Advertising, building digital assets, investing in a nutritionist whose language will explain the nutritional benefits, sharing all kinds of chefs who will prepare recipes."

"Japan, for example, sells less dates. It is a very difficult market, but a market of 160 million inhabitants with a very high socio-economic level. In Ireland, too, the socio-economic situation is high.

Back to the US. There for example, says Twig, “we are in almost no marketing network, but are mostly in markets.

The chains create stability, with reasonable prices on which to build the foundation.

Whereas in Europe, to which most of our exports are directed, sales need to be made in order to increase consumption, whether it is by social media activity, developing snacks with dates and more.

We export 32,000 tons of jahul a year to over 50 countries in the world, while in Israel, the tiny country, it consumes about 20,000 tons a year.

That is, the potential abroad is enormous.

As mentioned, investment in mechanization and development and research are also part of the plan.

"Today the Ministry of Agriculture is giving grants of up to 30% on the purchase of mechanization to farmers who meet the criteria. We want the palm industry because of the crisis to give 50% support," says Twig.

"While the investment in development and research is intended to save inputs and improve productivity.

For example, mechanized picking instead of manual, dilution in mechanization and not manually, examination of methods for saving irrigation and more.

Currently only a small portion of our entire program is being implemented.

We mainly deal with the promotion of dates and the entry into marketing chains.

All this is done at a very low volume.

We are waiting for the money. "

The Majhul kings to excess crop.

Gadid Tamarim in Israel (Photo: Idit Elbaz)

Response from the Ministry of Agriculture

The Ministry of Agriculture and Rural Development responded: "The Ministry of Agriculture and Rural Development considers it crucial to promote Israeli agricultural exports and find new markets for local growers, and has worked over the years to promote Israeli date exports, whose profitability has been hurt in recent years

. Specialization for the promotion of the date industry, including about a quarter of the amount of support transferred in the last decade to promote the export of agricultural products from Israel, was transferred to the date growers. In order to promote an immediate solution to the issue, the Minister of Agriculture and Rural Development, Oded

Forer

, contacted the Ministry of Defense to purchase the local produce of the date growers, but the growers did not accept the outline. Proposed.

"At the same time as part of the agriculture reform led

, the ministry is working to strengthen local agriculture and increase its competitiveness on an unprecedented scale, among other things by massive investment in technological development to improve and streamline productivity, and by formulating a plan to expand and strengthen agricultural exports.

" Various aspects of promoting the export of Israeli domestic produce, including increasing the volume of agricultural exports in existing destination countries; marketing and sales promotion activities in new destination countries; assisting export organizations and encouraging exporters to cooperate to increase bargaining power and competition with competing countries; "In the target countries for agricultural produce from Israel, when their main role is determined to promote agricultural exports; and special assistance to certain production industries, including the date industry, in a focused and results-based program in the target countries."

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• Of money

Tags

• Plants Council

• Dates

• Tamar

• Ministry of Agriculture