Hundreds of Israeli fruit growers have decided not to pay their dues to the statutory Plants Production and Marketing Board, in protest against an unprecedented fruit surplus in the country, which is being blamed for a second consecutive year of heavy losses to growers.

The surplus of peaches, nectarines, plums, apricots and grapes has driven prices below cost, according to growers, who blame the PPMB and the government for poor management. They are demanding that the government compensates them for their losses.

In response, the PPMB said that the surplus stems from the expansion in plantations "and any suggestions to interfere with the market behaviour will bear no fruits." It added that in an effort to minimise losses, the Board is involved in finding new overseas markets.

Gaddy Horowitz, manager of the Fruit Sector at the Board, said that from the beginning of this year Israel has exported 500 tonnes of apricots and 600t of peaches and nectarines to Europe, mainly to the UK, which represents a 400 per cent and 300 per cent increase for the respective fruits. He added that last week Israeli growers exported 5,000t of plums and about 5,500t of grapes to Europe, a 100 per cent rise for each of the two items.

In addition, the export of 5,000t of apples to Syria, and the negotiations currently held to export large volumes of fruit to Jordan "and to other countries in the region" might alleviate the serious crisis in Israel's fruit sector, said the PPMB.