Israel has been at the forefront in delivering a number of innovative fresh produce delights in recent years. In particular, the introduction of new pepper varieties is striking a chord with the global fresh produce sector and substantial investments in salads, organics and citrus are also paying off.
As growers gear up for winter activity, many are optimistic that it will be a time of opportunity for key lines. Overall, weather conditions have been favourable and growers have reported a long, dry summer, followed by much-needed rain.
MTEX is Israel’s largest grower and exporter of citrus and is anticipating a strong 2009-10 season. According to general manager Marius du Plessis, fruit set and development has been good following the mild weather conditions. However, du Plessis is mindful that Mother Nature can be contrary and the situation can change quickly. “The timing of the citrus season is comparable to the last two years,” he says.
The producer is anticipating a significant rise in volumes this season, following a number of new citrus plantations coming into production, in particular for Sunrise grapefruit and Orri clementines. “With the eating quality of Sunrise and Orri clementines, we always have strong demand and the two products satisfy customers’ needs,” du Plessis explains.
Satsuma exports got underway in October and were slightly later than normal, due to strong domestic demand. Navel is the first orange variety on the market and is available between December and February. This is then followed by Shamouti in January and Valencia Late in March.
As well as oranges, MTEX handles a wide range of easy peelers including Suntina (a clementine and Orlando hybrid) and minneolas, as well as Or and Mor.
New varieties of Navels and clementines will be introduced and exported to the UK this season and there will also be a strong focus on some of the new grapefruit varieties that MTEX has worked on over the last few years, du Plessis says. Marketers are hoping that new grapefruit varieties will re-energise the sector and find favour among UK consumers.
Agrexco is highlighting its green-skinned red pomelo and reports that this year its grapefruit-pomelo cross Sweetie is bigger in size and also juicier. Strawberries are also on the agenda and Agrexco’s agreement with Fertiseeds, announced in July, has boosted the producer’s strawberry volumes. Under the deal, Agrexco has acquired worldwide exclusivity to distribute all strawberry varieties cultivated by Fertiseeds, an Israeli company that breeds unique strawberry varieties.
“The acquisition of Fertiseeds has been of prime importance and is a major investment,” says Oded Yacovson, general manager of Agrexco UK. “It is the first time that we have invested in the whole production-related area as opposed to dealing and marketing the end result - the ready-made product.”
As well as gaining exclusive rights, Agrexco will also have the worldwide rights to market Fertiseeds’ saplings and be able to enter into exclusive agreements with their customers. “The varieties ripen very early and can reach the markets in time for Christmas, before any other varieties worldwide and this is a huge benefit,” Yacovson says. “We have also focused on becoming even more efficient, cutting third parties by packing at source and storing at Carmel premises.”
Agrexco will begin picking strawberries in the third week in November and this is comparable to 2008. “We are currently looking at double the volume - a similar situation to last year,” says Yacovson.
Like other producers, Agrexco marketed a large percentage of its crop in the local market last season due to the disparity in the exchange rate. “Prices were better in Israel, with better returns to the growers,” Yacovson says. “It would be great and possibly over-optimistic to hope that the exchange rate might improve this season.”
Arava Export Growers of Israel is also handling strawberries and the group will explore opportunities this season. According to David Crossland, managing director of Mill Associates, which represents Arava in the UK, the firm shipped very little of its strawberries to the UK last season, purely because Israeli prices were so strong. “If the UK market can offer attractive prices this season, then exporters will ship there but if they can’t, volumes will stay in the domestic market,” Crossland predicts.
Arava anticipates stronger demand for a number of products, including tomatoes. “We are already seeing good demand, as problems with some produce from Spain and Morocco are manifesting themselves in the marketplace, as prices have risen and there is tighter supply,” Crossland explains.
Arava’s growers have increased their acreage for both tomatoes and peppers this season. However, Crossland does not think that pepper production will match the volumes achieved in 2008. “There were very high yields in 2008-09 and they are unlikely to be repeated this year,” he says.
Insiders are also forecasting a strong performance for herbs. According to Crossland, the UK is a very good market for Israel and growers enjoy strong demand. Although UK herb production has increased, the extra volumes affect the summer deal, rather than winter activity.
Avocado producers are also hoping for a return to form following a challenging season last year, when frost severely damaged crops. Israel has seen a 10-12 per cent increase in land devoted to avocado production, with 300-400 hectares added each year. Agrexco is predicting that around 80,000 tonnes will be grown this season. Some 50,000-55,000t is destined for export and 25,000-30,000t will be sold on the domestic market.
MTEX is on course to grow its avocado volumes, but du Plessis points out that production will rise from a modest base. “We had a good season with our partners in the UK last season and will continue to support this market segment,” he adds.
Meanwhile, Edom Fruits plans to increase its pomegranate, avocado and citrus exports to the UK this season and is optimistic about the opportunities available. The producer is excited about its new pomegranate variety, Shir. “This is a big, red pomegranate with a very nice crown and perfect taste,” says Yinon Osem, director of Edom Fruits. “Shir will be sold in Tesco’s Finest range.”
Over the past year, Edom Fruits has invested heavily in building three packhouses equipped with state-of-the-art machinery, to handle and pack pomegranates. “All of our pomegranates are now washed and sterilised and in the future, they will also be treated with organic wax,” Osem tells FPJ.
In terms of salads and vegetables, Agrexco intends to increase its production of organic tomatoes, avocados, celery and specialist long, sweet peppers this season. In addition, the 2009-10 deal will be the second year that Agrexco has achieved 52-week supply of organic sweet potatoes. The exporter’s organic potatoes will be available towards the end of the winter.
Israel is known as a high-quality producer of dates and the country can produce the sweet treat year round. Production is lower in Israel this season, but MTEX says it will supply its current contracts in the UK. “The sales have been programmed and are fair so far,” du Plessis says.
Yacovson says that there is a huge spike in demand in the two weeks leading up to Christmas. After the festive period, demand stabilises once again.
Despite the fervent activity this season, the industry remains concerned about the exchange rate and the weak sterling. Osem points out that growers’ returns have dropped dramatically in recent seasons because of the unfavourable exchange rate of the weak sterling against the strong shekel.
“The exchange rate has been a worry recently,” agrees Crossland. “Although sterling had levelled out to £1.15 against the euro, on occasions it has dropped to £1.10 and lower.”
Other challenges include the ongoing concern over water availability. There has been a water shortage in Israel for years following periods of drought and, according to some sources, the situation is now reaching crisis point. The cumulative deficit in Israel’s renewable water resources is around two billion cubic metres and it is believed that the agricultural sector has suffered most because of the crisis.
According to experts, the situation seems to be deteriorating. “The authorities have cut back growers’ allocation of water irrespective of price,” says Crossland. “There are a number of big infrastructure projects, but they are going to take time.”
One measure being mooted is to recycle water that has already been used in the home. This ‘grey water’ would come from showers, sinks, air conditioners and washing machines. However, the Israeli health ministry has dismissed the idea.
Recent reports also suggest there are fears of labour shortage. Growers in the southern Arava region have been planning to protest against government policies limiting the number of foreign agricultural workers entering Israel.
The UK remains a key market for Israel but, in order to increase fresh produce consumption further, promotional campaigns highlighting the quality of the country’s products could boost demand. Crossland adds: “Unfortunately, so much food is now bought on price, but certainly Israel stands out in terms of quality and provenance.”
The taste of the product should be the priority for the industry, as opposed to other specifications such as fruit sizes, says Osem, adding that more tasting in stores would also increase consumption.
Israel is also eyeing other markets with interest and Russia is one country that has increased its demand significantly in recent times. “It’s easier for Israel to supply Russia geographically compared to some of its other competitors, such as Spain,” Crossland says.
As the UK prepares to greet new winter lines, the Israeli sector is confident it will continue garnerning consumer support.
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