Review of Israeli Economy

Cereals and Plantation products
Israely Industry

Cereals 1

Field Crops

Field crops require a high degree of mechanization. These crops are grown on about 175,000 hectares in Israel, 125,000 of which are winter crops, such as wheat for grain and silage, barley for grain, hay and grazing, and legumes for hay and seeds. Some 50,000 hectares are planted with summer crops, such as cotton, sunflowers, chickpeas, green peas, beans, corn, industrial tomatoes, groundnuts (peanuts), and watermelon for seeds. Most of these crops are irrigated using modern technologies and are not rainfed. The value of field crops reached $200 million in 2002, of which $70 million were from exports (mainly cotton, groundnuts, sunflowers, and sweet corn for processing). Most field crops produce high yields and are of top quality - the result of joint efforts between R&D and extension personnel, related institutions, and the growers.
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Cotton

The value of cotton production for 2002 was about $35 million, with most of the crop sold on Europe's long-fiber market. Some 600 tons of lint were produced as organic cotton and achieved good prices in Europe. Almost the entire 11,600 hectares of cotton crop is drip irrigated with Israeli-made equipment. Cotton yields per land unit are among the highest in the world, averaging 5.5 tons per hectare for raw Acala cotton, with 1.8 tons of fiber, and 5 tons per hectare for raw Pima cotton, with 1.6 tons of fiber. The cotton sector is totally mechanized and has a labor input of less than one-tenth of a hectare per day during the growing season. Each worker produces $100,000 worth of cotton annually. Israel produces high-quality cotton. The entire cotton yield is exported, mainly to Europe and the Far East. Israeli cotton fetches 5 - 7 cents per pound more than the regular market prices. The introduction of effluents for irrigation has contributed to a significant reduction in growing costs. Cotton seeds, a byproduct of fiber processing, are used in the manufacture of animal feed.
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Wheat

Cereals 2
Most of the 95,400 hectares of wheat are sown for grain, while some 29,000 hectares are grown for silage and hay, providing a major component in feed for dairy herds. Between 2.5 and 6.2 tons of grain are harvested per hectare, depending on the amount of annual rainfall and the region. In 2002, 183,000 tons of wheat were grown, with a value of $30 million. Most of this grain is processed and sold as flour on the domestic market. Winter wheat is largely a non-irrigated crop, and therefore yields are dependent on the amount of rainfall and its distribution throughout the winter months. Wheat for grain is grown mostly in the country's dry southern regions and the northeastern interior valleys, enabling extensive use of agricultural land.
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Sunflowers

In 2002, sunflowers for seeds covered an area of about 65,000 hectares. Some 68% of the yield is targeted for export. Israeli-developed sunflower seeds are known for their excellent size and quality. Some of the new sunflower varieties are known for their resistance to Orobanchaceae as well as for their particularly large seeds with attractive colorings. Most sunflower crops are drip irrigated, achieving significant savings in water: 1800 - 2500 m3 of water are sufficient to produce two to three tons per hectare.
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Groundnuts

About 3,500 hectares of groundnuts were grown in 2002, valued at $24 million. Most of the crop is grown in light soils in the south of Israel. About 80% of Israel's groundnuts, which are characterized by a very large yellow nut, are exported and sold in their shells for specialty niche markets in Europe.
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Chickpeas

About 5,000 hectares of chickpeas are grown and achieved a yield of three tons per hectare in 2002.The entire crop is grown for the local market, which has developed and expanded in recent years. Chickpea prices on the world market are low. Breeders, together with growers, are making efforts to increase the crop's value and adjust it to market needs by developing unique varieties, including a very large white pea and disease-resistant varieties.
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Implementation of New Technologies

Profitability of the field crop industry has been steadily declining during the last five years .To deal with the situation, Israeli farmers are investing in the implementation of advanced technologies and relatively high-cost machinery, such as GPS and CIS equipment for precision, no-till and minimum-till agriculture, in order to reduce long-term labor and other input costs.

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1995. Price-IL.com