Israeli exporter Agrexco revealed it made a loss of some Shk70m (€14.2m) during 2010 on turnover of Shk2.5bn (€508m).

The results follow recent news that agricultural collective Granot, Israel’s largest regional marketing body and a major supplier of citrus and avocados to Agrexco, is switching its export volumes to rival group Mtex.

Agrexco chief executive David Bondi, who joined the company in late 2010, is understood to be concerned about the current direction of the group and has already undertaken to lead a major reorganisation, reports Fruitnet.com

The reorganisation will see it trim its staff by around 150 employees - equal to around 30 per cent of its total workforce - through lay-offs and early retirements.

According to Israeli financial website The Marker, the restructuring will also involve reducing the number of overseas affiliates the company works with and consolidation of its logistics operations at home and abroad.

However, according to an article in the Mashov Haklaut, the loss of Granot might only be only the tip of the iceberg, with other growers apparently awaiting their final seasonal payment before considering alternative export options.

Some also believe flower growers currently working with Agrexco could be poised to set up their own export organisation.

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