Despite the difficulties that Palestinian farmers in the Gaza Strip now face, due to the frequent closures of the Karni Passage, agricultural production for the local and export markets can still play an important economic role in the improvement of conditions for the region’s Palestinian population.
On November 13, Israel announced a new policy of free-passage of goods and people through the Karni Terminal, as well as permits to 10,000 Palestinians to work within Israel and to 1,000 traders to enter Israel and conduct import-export activities with their Israeli counterparts.
Regarding the passage of goods, Israeli officials told FPJ that all goods, including fresh produce slated for export, are subject to security checks, as agreed upon by the two sides and on the basis of international requirements, including quality, food safety and health considerations.
It took some time after the disengagement in mid-August for the Palestinian Authority to assess the potential of the greenhouses left by the Israeli settlers, of which 40 per cent were in working condition and the rest were dismantled either by departing Israeli settlers or wrecked by the Palestinians. However, the general infrastructure remains, the climate is good, especially for growing in open fields, and there is enough low-cost labour to support horticultural expansion in the Gaza region.
Of course, Palestinian farmers supplied the Israeli market throughout the years prior to disengagement with a wide range of vegetables, as well as exporting through Jordan to markets in neighbouring Arab countries.
Uri Madar, chief agricultural co-ordinator with the Palestinian Authority in Gaza region, says: “Palestinian agriculture is currently undergoing a transformation process, gradually becoming an intensive industry. It is replacing old, money-losing citrus plantations with more profitable crops, and Palestinian farmers in the Gaza region are well tuned to consumers demands.”
In an exclusive interview with FPJ, Madar adds there are currently 2,800 hectares of modern greenhouses operated by Palestinians. Israel’s ministry of Agriculture and the Defence Forces Co-ordination Office in the area do their best to assist farmers in all matters, knowing that this sector is a major contributor to the economy of the region, he says.
Using Israeli know-how, inputs and marketing logistics, Palestinian farmers have increased output, resulting in connections with several Israeli exporters, aimed at making the venture more competitive. Madar admits: “There are hostile elements on the Palestinian side, which try to torpedo any fruitful co-operation between Israel and the Palestinian Authority. This calls for strict security checks, which often cause delays and losses.” Even so, Palestinian farmers visit Israeli farms and participate in professional courses in Israel.
The workforce in Gaza amounts to 290,000 people, and 13 per cent - 37,700 are working in the agricultural sector. In 2004 the value of agricultural production in Gaza amounted to NIS824m (£101m), of which nearly 10 per cent was generated from exports. It is estimated that in 2005 export sales returns will exceed £12m. “The income from agricultural export is the only foreign currency revenue generator, which is the reason why the donor countries support the development of Palestinian agriculture in the Gaza region,” Madar says. He expresses confidence that in the near future, the Palestinian Authority and Israeli and international entrepreneurs will invest in this sector, “for the benefit of all sides”.
The three main items that Palestinian farmers export to western Europe are strawberries, tomatoes and flowers. The export and marketing of these products is carried out by Israeli companies, mostly by Agrexco, Israel’s primary exporter of fresh produce, and by several small private exporters. A number of flower growers also export directly to the auctions using their own brand names.
Assaf Adar, strawberry product manager at Agrexco, says that Palestinian growers will cultivate 220ha of open-field strawberries for export this season, 40ha more than last year. The season will begin by November 20, and volume is estimated at an all-time high of 1,700 tonnes, all to be marketed under the Palestinian brand Coral with the notation: ‘Palestinian Produce’.
“In view of the high costs of air transport, we aim this year to send large quantities of strawberries by sea, using our fast, refrigerated reefers that shuttle on a weekly basis between Ashdod and Marseilles and other ports in the Mediterranean, for marketing in central and southern European sales destinations,” says Adar. Last year, due to frequent delays at the Karni Terminal, Palestinian farmers exported just 1,050t of strawberries, lost money, he adds, “but the prospects for this year are much brighter”.
There are about 120 family-type farms in the Gaza Strip, employing some 600 workers, growing flowers for export. The speciality and key expertise of the farms are Standard Carnations, which are grown on 80ha of modern greenhouses. It is estimated that the Palestinians will expand acreage in the next two years, according to Haviv Haaze, marketing manager of Carmel Flower Division. He says the quality of Palestinian flowers “is excellent, and if the growers in Gaza play it right, they can become a major supplier of Standard Carnations to Europe”. In 2005, Palestinian growers are expected to export 50m stems, worth around €5.5m in sales.
Some flowers are sent directly to the auctions and some marketed through the Carmel channel. There are other Israeli exporters who specialise in the Russian market, to which 20 per cent of the Palestinian crops are sent. The flower industry in the Gaza region is a structured and profitable business, with growers organised into two administrative organisations that provide initial logistics and commercial advice.
“Palestinian flower growers receive the same service that Israeli growers get, in professional and marketing aspects, as well as promoting investments by local and international entrepreneurs. The climatic conditions in the area are like those in southern California, enabling the production of top quality flowers,” Haaze says. Each shipment is checked at the Karni Terminal, and he admits that “there were cases when shipments were delayed due to external events, such as terror and anti-terror attacks, but as time passes, following the withdrawal of Israeli settlements from Gush Katif in the Gaza area, the region now enjoys a period of relative peace”.
Yoel Dashevsky, tomato product manager at Agrexco, maintains that the success or failure of Palestinian export of fresh produce is totally dependent on the possibility of fast and efficient passage through Karni. Last year, though Agrexco signed contracts with Palestinian farmers to export 1,500t, “we were able to export just 150t. It’s all a matter of security. There were times when lorries loaded with tomatoes for export had to wait days before going through the terminal, and by that time, the quality of the produce was inferior,” he says.
Dashevsky adds that this year, Agrexco signed contracts with two farmers’ associations in Gaza to supply 1,000t of cherry tomatoes and standard tomatoes, for shipment to clients in western and central Europe and marketing under the Coral brand. He says that Palestinian tomato growers “are real professionals, and supply high quality produce, all grown in greenhouses and in accordance with EU requirements, but if the Karni Terminal is closed or there is a delay in transport, everybody loses. No export.”
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