According to a new agriculture reform plan, the Citrus Marketing Board of Israel will merge with the Fruit Production and Marketing Board, and the Vegetable Production Board will merge with the Flower Board. The developments mark 'the first step toward establishing a single production board for the entire agricultural sector of the country,' Israeli farm minister Simhon said.

As part of this move, farmers will pay reduced fees as the government plans to finance the activities of the extension service, R&D and the country-wide plant protection activities. The proposition to abolish the production boards was rejected by the sub-committee, explaining that such a move will result in 'production and marketing chaos, both for the local market and for export.' The government's ministerial committee on privatisation, headed by prime minister Ariel Sharon, approved Simhon's plan to privatise Agridev, the government-owned international company engaged in agricultural projects in more than 50 countries. The reasoning behind the decision to privatise Agridev was that 'the activities of this company can be carried out under private ownership, which will offer its services based on economic and competitive parameters.'

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