Farm output in Israel rose by 11 per cent in 2004 to NIS18 billion (£2.2bn), according to Israel's Central Bureau of Statistics.

The reasons for the increase were the strong euro and high temperatures in Europe during the summer of 2003, which boosted demand for Israeli produce - potato exports rose by 88 per cent because of the excessively warm and dry conditions. Agricultural exports rose by more than 31 per cent in 2004, but export prices fell by 2.1 per cent. Net domestic agricultural proceeds totaled NIS5.9bn, and farmers also received NIS300 million in compensation for drought and cuts in water quotas.

According to the data released by the central bureau, income from agriculture totaled NIS6.2bn. Excluding employees' salaries, farmers' aggregate income totaled NIS2.4bn in 2004, an increase of 14 per cent compared with the year before.

The data showed that whereas citrus production fell by 17 per cent, prices rose by 16 per cent. And apricot production rose by 60 per cent, but prices slumped by 47 per cent on 2003. Potato production rose by 37 per cent, but the increase led to a dip in prices on the previous year by two per cent.