Increasing demand for citrus in Europe and good levels of profitability for growers mean that there is a run on citrus seedlings to grow new plants in Israel.

According to agriculture analysts in the Middle East, the rising demand for the seedlings will mean they will remain in shortage until 2006. Prices are strong too, ranging from $4.50-5.70.

The foreign service of the US department of agriculture has carried out research in Israel and forecasts the area under production will rise this year by 450ha. Land will mainly be given over to Shamouti, Navel, Valencia, Or and Mor production. Researchers found that some 150ha will be for the fresh market with the remainder for processing.

This season is proving a successful one for the Israelis with production predicted to close the campaign up 15 per cent on last year at 563,000 tonnes. “The yields for Or, Mor, Shamouti, Navel, red and white Pomelo and other easy-peel varieties all increased,” the USDA report found. “The increased harvest is a result of favourable weather conditions and the fluctuations phenomenon - an exceptional high yield that occurs once in every five years.”

Easy-peelers are forecast to continue to grow, largely at the expense of grapefruit. This season, oranges are estimated to account for 28.4 per cent of the total citrus crop up from 27.2 per cent last year. Easy-peelers are expected to hold a 21.1 per cent share up from 18 per cent in 2003-04, while grapefruit’s share is declining from 48.6 per cent to a forecast 43.9 per cent.

Israel’s export fortunes this season have also been boosted by the misfortunes of others and volumes are some 16 per cent up so far. Shortages in Spain have given Israel extra space on the European market and hurricane damage in Florida meant Israel exported white grapefruit to Japan for the first time this season in 10 years.