Israel is reporting a 9.3 per cent decline in value of its agricultural production for the first six months of 2006, to US$4.27 billion (£2.5bn), compared with US$4.71bn (£2.23bn) in the corresponding period last year.

The decline in the horticultural sector amounted to 11.7 per cent.

The Planning Authority at the Ministry of Agriculture attributes the decline in July partly to the war in Lebanon.

There has been a 1.8 per cent decline in the value of fresh produce exports so far this year, compared with the same period in 2005.

This decline has been felt most heavily in volumes of citrus and avocado, which are largely grown in the northern region of Israel.

Eitan Ben-David, secretary general of the Moshav Movement, maintains that the shortage of foreign workers is a major factor in the decline of agricultural production. He said Israel's agriculture has great potential to increase its export volumes “but the shortage of foreign workers causes losses of millions of shekels to our farmers”.

He called for the government to allocate additional foreign workers to farmers who cultivate produce for export.

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