The Israeli agricultural exports are experiencing a near-total paralysis due to the repercussions of the American-Israeli war on Iran, inflicting losses estimated in millions of dollars on farmers, amidst urgent calls for government intervention to prevent the crisis from escalating, according to Yedioth Ahronoth newspaper.
The Israeli newspaper reported that the agriculture sector has incurred severe losses since February 28, as farmers are unable to export their products. It noted that the most affected sectors are fresh herb cultivation, followed by citrus fruits, avocados, and vegetables designated for industry.
Details of the Situation
The newspaper quoted Ezra Becker, the director-general of the Plant Council, urging the government to provide immediate support, stating that "farmers protect food security and must be compensated before it's too late." He pointed out that the continuation of the war exacerbates the economic damages incurred by those working in this sector.
These developments come at a time when agricultural supply chains are under increasing pressure due to halted flights, delayed shipments at ports, and rising transportation and insurance costs, leading to disruptions in the export of key products such as fresh herbs, citrus fruits, and avocados.
Background & Context
The cultivation of fresh herbs—such as basil, rosemary, and arugula—is the most affected, as Israel exports about 3,500 tons annually via air freight to Europe and East Asia. However, the suspension of flights, coinciding with a near-total paralysis at Ben Gurion Airport, has halted exports during the peak season.
The newspaper also warned of the risks of losing trust among international customers, which could lead them to terminate future contracts, especially as domestic demand has also declined due to the closure of restaurants and event halls.
Impact & Consequences
The repercussions are not limited to herbs, as the citrus and avocado sectors—which export between 100 and 120,000 tons of citrus and about 140,000 tons of avocados annually—are facing increasing challenges during the peak season, with delays in ships at ports, rising storage costs, and declining product quality.
Shipping costs have sharply increased due to rising insurance premiums and fuel prices, which pressures farmers' profit margins and increases their losses.
Regional Significance
In this context, the industrial vegetable sector has been significantly affected, as factories in northern Israel have reduced their operational capacity in compliance with security directives, limiting their ability to absorb crops, especially with the harvest season for some products like peas beginning, leading to reduced demand and additional losses for farmers.
It is noteworthy that fertilizer prices in Israel have risen by up to 180% due to a global shortage resulting from damage to production facilities in the UAE, which accounts for about 30% of the global supply of potassium nitrate and phosphate fertilizers.
Since fertilizers represent about 10% of agricultural production costs, these increases are likely to be directly passed on to food prices, warning of a wave of food inflation in the local market.
Additionally, plastic prices—linked to oil prices—have risen by up to 35%, increasing the costs of packaging and agricultural infrastructure, from greenhouses to irrigation systems.
Estimates warn that the crisis is not limited to immediate losses but extends to the risks of losing trust among international customers, which could lead to the cancellation of future contracts and undermine the market share of Israeli agricultural products in the long term.
The repercussions of the war continue, highlighting its impact on direct productive sectors such as agriculture, deepening economic pressures and reshaping the risk landscape in the Israeli economy.