A combination of sophisticated, applied science, rugged determination and government support have helped Israel's farmers to modernize and adapt to changing geopolitical, market and climatic conditions, giving them a strong base from which to proceed in the coming decades.
Israel's agriculture continues to thrive, and supplies most of the country's food needs, though profitability in export sectors has declined sharply in recent years. Among the numerous problems the crop-growing sectors have contended with since the State was founded, water scarcity remains the principal - and growing - threat. Nevertheless the ongoing introduction of new and recycled water sources, coupled with altered irrigation methods and more water-efficient crops, promises long-term security.
By the year 2020 Israel's population is expected to grow by about a third, to 8.5 million. This will cause huge increases in demand for agricultural produce and products; but urban use of land and water will also increase enormously. The amount of fresh water allocated for agriculture was reduced radically, by 50 percent (to 580 million cubic meters), in 2000. By 2020 it is unlikely to exceed this amount, and may well be considerably less. At the same time, the amount of suitable land available for farming (360,000 hectares) will also be some 18 percent less than at present.
Part of the higher demand - notably for field crops (such as cereals, oilseeds and sugar) and for milk products, fish and beef - will have to be met by increased imports. Nevertheless a substantial part of the additional requirements will have to come from increased domestic production. Sweeping changes - like a 33% increase in the labor force and a reduction in irrigated field crops, such as cotton - will be required to make water available for growing fruit and vegetables for the local market.
The above is based (with minor updates) on a study by the Ministry of Agriculture ("Agricultural Production Forecast for the years 1995-2020" (Hebrew), by E. Delayahu and E. Hadass, General Planning Department, Ministry of Agiculture), which forecasts that despite its handicaps Israel will be able, by 2020, to increase production of agricultural goods. This is certainly consistent with historic development. Except for brief, sporadic declines, agricultural output has grown almost uninterruptedly since 1948.
Today, agriculture represents a mere 2.4 percent of the Gross Domestic Product and four percent of exports, compared to 30.3 percent of exports during the 1960s - the heyday of the famous Jaffa orange. Nevertheless, despite the decline in its importance relative to other economic branches, agriculture has grown in absolute terms and played an important part in Israel's economy for over five decades.
Agricultural output in 2000 was worth about $3.3 billion, of which 20 percent was exported. Exports brought in seven percent less than the previous year, due to a combination of foreign currency fluctuations (i.e. lower shekel prices) and smaller quantities. The price of inputs climbed 10 percent in 1998-2000, to about $2.2 billion.Agricultural Output (percentage of value), 2000
Source: Statistical Abstract of Israel, 2001
Export of Fresh Agricultural Products
(percentage of value), 2000
Source: Israel Farmers Federation
Agriculture is of major importance: in certain areas, such as the Arava and the Jordan Valley, it provides almost the sole means of livelihood for the population. In 2000, approximately 72,000 people were involved in farming, constituting about 1.7 percent of the country's workforce.
In monetary terms, Israel produces almost 70 percent of its food requirements. It imports sugar, coffee and cocoa and much of its grains, oilseeds, meat and fish. However, these imports are partially offset by exports of fresh agricultural produce and processed foods valued at $800m. Today, just under a fifth of the income of Israel's farmers derives from the export of fresh produce, including such products as flowers, avocados, vegetables that are out of season elsewhere, and certain exotic fruits grown exclusively for export. In addition, some 442,000 tons of fruit and vegetables - 16 percent of the entire crop - were sold to factories for processing and export in 2000.