The UK market has always been big business for Israeli winter line exporters, but with the increase in consumer interest for exotics and organics, the upward demand curve is extending further.
Amos Orr, general manager for Agrexco UK, says: “The UK is the main market for us, accounting for 25 per cent of total exports. It is almost impossible to pick out which product is most popular, as each has a market. Some come in the regular shopping basket, such as grapefruit, easy-peeler citrus, peppers and tomatoes. Sweet potatoes, once considered exotic, are now more or less a conventional line, and our strawberries come in perfect time for the Christmas period and for Valentine’s Day. But this year has been a record one for organic salad lines, particularly tomatoes, peppers and avocados, as well as organic potatoes and sweet potatoes.
“Demand for exotics, although still more of a niche product, is increasing, and demand for organic lines under our Bio Top brand is also on the up,” says Orr. “Various organic items, such as potatoes, carrots, capsicum, tomatoes, cucumbers, sweet potatoes, avocados and grapefruit, will amount to 40,000 tonnes this season.”
The UK is also the largest market for Mehadrin Tnuport Export (MTEX), which cultivates 8,500 hectares of land in Israel. Its citrus offer to the UK accounts for 35 per cent of the company’s export business, with red grapefruit and the Shamouti orange being its most popular winter lines. “The UK market is very important to us, and we have accreditation to supply all major retailers,” says Dov Warmen of MTEX. “We forecast an increase in exports of approximately 20 per cent in the 2007-08 season, due to our new plantations of red grapefruit and Or clementines beginning to bear fruit.”
The number of winter lines grown across Israel is increasing. Agrexco, which works with approximately 2,000 growers throughout the country, reports that its total growth has exceeded 50 per cent over the last four years. Agrexco predicts a total global turnover of e600 million (£418m) this season. “Consumer demand is higher and consumer knowledge of different products has widened, as well as the fact that they expect to have a year-round supply of fresh produce,” says Orr.
With demand increasing, production is becoming more innovative.
Adafresh Ltd, exporter of fresh herbs, peppers and speciality tomatoes, exports 25-30 per cent of its average 2,500-tonne production of fresh herbs to the UK a season. “Our fresh herb business in the UK is increasing consistently, as it is a high-quality product that is in demand,” says Ayelet Lantzer, marketing director at Adafresh, which supplies several multiples. “Adafresh is increasing its fresh herb production by 30 per cent this year, and the UK will take a large portion of this growth. We have more than 26 varieties in our range of herbs, with basil, mint, chive, tarragon, flat parsley, coriander, rosemary and thyme making their way into the UK. We are working together with our English customers to introduce more varieties.”
Agrexco invests heavily in R&D, having recently introduced Shelley mangoes, yellow tomatoes and new types of sweet potatoes, citrus and figs into the UK. “Pomegranates and pomegranate arils are other products that have been gaining in popularity,” says Orr. “This season we are working with a new variety of pomegranate, which is dark-red in colour and has a great taste, and has gone down particularly well in the UK.” The company is also developing disease and pest-resistant root crops with the aim of reducing the need for pesticides, fungicides and herbicides.
A total of 40 per cent of Adafresh’s 1,500t of speciality tomato production is organic. “The UK imports around 70 per cent of our speciality tomatoes,” says Lantzer. “There is a large demand for organic tomatoes from the UK, more so than any other country. We find the conventional tomato market very competitive in the UK, and the added value for conventional tomatoes out of Israel is slowing, as Spanish and Italian produce is much cheaper due to lower transportation costs.”
The popularity of Israeli winter lines and the continued success of the export business is mainly due to the country’s reliable climate, providing excellent growing conditions year after year. Israel seems to be one of the few places in the world that has not experienced some kind of weather-related disruption this year, and the industry expects another good season. According to Orr, fruit and vegetables thrive in Israel’s climate due to the country’s long, hot and dry summers, and its mild winters. “The weather has been as we expected this year,” explains Orr. “Israel has not experienced the dramatic climate changes as seen in other parts of the world, so we have not seen any significant change.
“The season has started well and looks to continue that way. We are looking to provide our customers with excellent quality at all times.”
Although the Israeli fruit and vegetable industry’s standards and level of investment have improved dramatically over the last couple of years, it still experiences some limitations, but they can be quickly addressed and overcome. Agrexco has found that the publicity surrounding issues such as the carbon footprint and sustainability has had an effect. “One of the most important developments in the company has been our investment in new vessels,” says Orr. “We have seen how efficient and environment-friendly they are, and we can now send more products by sea. With this emphasis on the carbon footprint, we know that by sailing at the right speed we can save on hundreds of tonnes of fuel, without jeopardising our service level.”
The fact that the Israeli fruit and vegetable industry is moving forward and dealing with relevant issues is another reason for its success. Adafresh, which works with more than 70 growers in Israel, has found that a close working relationship with UK retailers is the way forward. “Relations with UK retailers have strengthened in the last few years,” says Lantzer. “Supermarket representatives are coming to Israel to visit our growers, and these visits are very important as they demonstrate the standards we are working to, and reveal what we have to offer.”
As a leading exporter, Agrexco is also following the market and is aware that it is in a constantly changing, fast-paced industry. “In this business nothing stands still,” says Orr. “Our aim is to go with the flow. It is just as important to have the correct facilities for handling product as to having the right product in the first place, and one without the other is useless. We are building a new transit station in the Arava to serve our growers, and we are also planning new modern facilities in Ashdod with a separate organic building.”
WINTER SHAPING UP FOR ARAVA
Arava Export Growers supplied peppers and tomatoes to the UK over the summer this year - a first not only for the company, but really for Israel itself, according to the firm’s David Crossland. “By growing crops using different techniques in different regions, we were able to supply such lines for the first time in the summer,” he says.
“Over the summer we also introduced random microbiological testing, with which we have decided to be proactive and take the initiative,” he continues. “Microbiology testing - for E.coli, salmonella, listeria etc - has become much more of an issue nowadays, so we are trying to lay down some protocols of our own for the future.”
The testing project is due to continue on winter lines, which according to Crossland are shaping up well. “We are very optimistic for crops and prices this winter,” he says. “Our pepper acreage in Israel has gone up 40 per cent, thanks to new growers and expansion of existing growers’ plantations, and quantities from Spain will be down in general. Dutch product is clearing up a little earlier than usual and we are coming on stream slightly sooner than expected. All bodes well for a good season with both tomatoes and peppers, including our more speciality lines.”
Arava’s strawberry business is also increasing this winter following a successful trial in 2006-07, and the firm is set to supply three times the volume of fruit this year - most of which will hit UK shores. “Our Israeli strawberry plantations are progressing well, but our Egyptian operations will also provide more volume to the UK market this year,” adds Crossland.
KEDEM EYES UP UK CHANCES
Exporter Kedem Hadarim sends a multitude of products to the UK market, including sweet peppers, avocados, cherry tomatoes, grapefruit, mangoes, potatoes, sweet potatoes, plums and mangoes, as well as more exotic lines such as kumquats, limequats and lychees.
“Our shipments will increase next season, as we have lots of new plantations due to start producing,” says the firm’s Mike Stout. “We are involved in joint venture citrus and avocado plantations up and down Israel, and as a result have been able to strengthen our position in the UK market.”
Exports to the UK make up about 10 to 15 per cent of Kedem Hadarim’s total sendings, and these are growing year on year due to the firm’s increasing efforts to meet the market’s stringent demands. “Avocados, white and red grapefruit, mangoes, stonefruit and capsicums are very popular in the UK, and we would like to increase our shipments of sweet peppers, tomatoes, cherry tomatoes and potatoes to the market,” says Stout. “This season, sweet peppers and capsicums have enjoyed high prices and strong demand, partially due to the issues surrounding residues on crops from Spain.”
The company works with more than 100 growers across Israel, from Golan Heights and Upper Galilee through to the Arava desert and Dead Sea area.
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