Strengthening of Israeli Veterinary Inspection Authorities for Animal Health
and Livestock Production
ANNEXES to the
Twinning CONTRACT
ANNEX A1:Description of the action
ANNEX A2:General Conditions applicable to European Union-financed
grant contracts for external actions
ANNEX A3:Budget
ANNEX A4:Contract Award Procedures
ANNEX A5:Request for payment for Twinning Contract European Union external actions
ANNEX A6: Expenditure Verification: Terms of reference
ANNEX A7:Special Financial Annex
ANNEX A8:CVs
TWINNING WORKPLAN
CONTENTS
Acronyms and abbreviations
ARTICLE 1. BACKGROUND
ARTICLE 2. ACQUIS COMMUNAUTAIRE
ARTICLE 3. MANDATORY RESULTS
ARTICLE 4.TASKS (INPUTS)
Component 1 – Animal Feed
Component 2 – Animal Health
Component 3 – Animal Welfare
ARTICLE 5. RISKS
ARTICLE 6. SCHEDULE
ARTICLE 7.RESOURCES
ARTICLE 8 MANAGEMENT AND MONITORING
ARTICLE 9 TWINNING REVIEW MISSIONS
Acronyms and abbreviations
AW / Animal WelfareBC / Beneficiary Country
BIPs / Border Inspection Posts
DVPH / Italian Ministry of Health – Department of Veterinary Public Health, Nutrition and Food Safety
EC / European Commission
ECDC / European Centre for Disease Prevention and Control
EFSA / European Food Safety Authority
ENP / European Neighbourhood Policy (EU)
EU / European Union
FAO / Food and Agriculture Organization (of the United Nations)
FVO / Food and Veterinary Office (DG SANCO)
GIS / Geographic Information System
IT / Information Technology
IZSA&M / Istituto Zooprofilattico Sperimentale dell’Abruzzo e del Molise “G.Caporale”
IZSLER / Istituto Zooprofilattico Sperimentale della Lombardia e Emilia Romagna
KVI / Kimron Veterinary Institute
MARD / Ministry of Agriculture and Rural Development (Israel)
MOH / Ministry of Health (Israel)
MS / MemberState (of the EU)
OIE / World Organization for Animal Health (Office International des Epizooties)
PL / Project Leader
PPIS / Plant Protection and Inspection Services
RTA / Resident Twinning Advisor
DG-SANCO / Directorate General for Health and Consumer Affairs (EC)
SOP / Standard Operating Procedure
SPS / Sanitary and Phyto-Sanitary
STE / Short Term Expert
TAIEX / Technical Assistance and Information Exchange Unit (EC)
TMR / Total Mixed Rations
VMP / Veterinary Medicinal Product
VPH / Veterinary Public Health
VSAH / Veterinary Services and Animal Health (Israel)
WG / Working Group
WHO / World Health Organization (of the United Nations)
ANNEXA1 DESCRIPTIONOFTHEACTION
TWINNING WORKPLAN
The Israeli Veterinary Services and Animal Health (VSAH) Ministry of Agriculture and Rural Development of the State of Israel (hereinafter referred to as the Beneficiary Country) represented by Dr Boris Yakobson, Director, as Beneficiary Country SPO/Project Leader on the one part
And the Administration of the Republic of Italy (hereinafter referred to as the Member State) represented by Ms. Gaetana Ferri, General Director of Animal Health andVeterinary Medicinal Products, Italian Ministry of Health
HAVE AGREED THE FOLLOWING WORK PLAN WHICH THEY UNDERTAKE TO IMPLEMENT JOINTLY
ARTICLE 1. BACKGROUND
1. 1. Beneficiary Country policy developments in the sector
The Beneficiary Country, Israel, is a densely populated small country, with an average of 328 people per km2,and is also highly urbanised with as much as 92% of the total population classified as urban and the remaining 8% as rural. The two main cities of Jerusalem and Tel Aviv are less than 60km apart. Geographically, Israel is divided into four regions, with a narrow coastal plain about 1 to 30km wide that extends along the Mediterranean Sea, and that includes many of Israel's major cities and much of its agricultural land. Inland, a series of mountain ranges and highlands run from the north to the edge of the NegevDesert in the south. The land drops sharply to the Rift Valley, much of which lies below sea level and at its lowest point along the shore of the Dead Sea is 399m below sea level, the lowest area on earth. Agricultural land, 94% of which is state-owned, comprises 420000hectares of arable land and of around 140000hectares of pastures and represents approximately 20% of the land area of Israel. About 52% of arable land is irrigated and the remaining 48% rain-fed. Israel has a typical Mediterranean climate with cool, rainy winters and warm, dry summers, and has long faced a deficiency of water resources with twothirds of the land area defined as semi-arid or arid desert. Israel’s main source of fresh water is the small LakeKinneret (the Sea of Galilee). As the supply of natural fresh water remains limited, the government has invested heavily in developing purification of sewage water (primarily for use in irrigation) and the desalination of sea water. While the share of agriculture in overall water use in Israel tends to decline, it is still high at 50%55% in recent years. Around one-third of water is from effluents with a further one-fifth from brackish (saline) water. Israel is not rich in natural resources, and has been confronted with a shortage of energy sources, but discoveries of offshore natural gas deposits have raised hopes that Israel can meet some of its energy needs from domestic sources in the future.
Israel is relatively open to trade in goods and services, with the sum of exports and imports accounting for close to 90% of GDP. Since 1985 Israel has progressively reduced trade barriers, export subsidies and import licensing. Israel was the first country to sign a free-trade agreement(FTA) with the EU (then the EEC), in 1975, which was renewed and expanded in 1995. FTAs were also signed with the US in 1983, making Israel the first country to have FTAs with both the world’s main trading entities, and with the European Free Trade Association(EFTA) in 1993. Most of Israel’s agro-food trade is conducted under various preferential agreements. The main trade partners are the EU, the US, EFTA and Mercosur. The most important export market is Europe, with the EU alone accounting for around 70% of the total Israeli agro-food exports. European countries also remain the main source of Israel’s agro-food imports with the share at about 50%55% of the total over the last decade, such commodities as refined and raw sugar, cereals, bovine cuts and food preparations.
The Ministry of Agriculture and Rural Development(MARD) is responsible for setting agricultural policy, with the major objectives being to improve the quantity and quality of the food supply and achieve selfsufficiency in agricultural products that can be produced locally, expand existing export markets, and to maintain the rural population. The government also desires to preserve agricultural land and green space areas as well as to protect national social and public values. Due to growing concerns about environmental problems, an increasingly important policy objective is to develop environmentally-friendly agriculture. Agriculture played a vital role in the development of the Israeli economy, was given a prominent place in government priorities, and for the first 30 years of its existence, Israeli agriculture was heavily supported, but by the beginning of the 1960s, Israel reached food self-sufficiency. The opening of export markets for fruits, vegetables and flowers in the 1970s provided farmers with a further opportunity to expand production. At the beginning of the 1960s agriculture provided about 10% of net domestic product(NDP). Since then, the relative weight of agriculture has dropped to about 2% of NDP at the end of the 1980s, but then remained relatively constant at this level. The share of employment in the sector has also shown a steady decline, dropping from around 15% at the beginning of the 1960s to about 4% in 1990 and then to under 2% in 2007. The long-term decline in agriculture’s contribution to NDP and employment is very much in line with changes seen in other developed economies. In addition to those working directly in agriculture, the broadly defined agro-food sector employs 70000workers in production of agricultural inputs and some 100000in the “secondary circle of employment” linked with agricultural production. Thus, the overall level of employment related to agriculture amounts to some 240000workers which is almost 9% of the total labour force.
Israeli agriculture can be considered highly productive. For example, while in the early 1950s, one full-time agricultural employee supplied food for 17people, by 2005 this number had increased to 95. Between 1990 and 2006, total factor productivity(TFP) in agriculture doubled, increasing at a faster rate than in any other sector of the Israeli economy. While TFP normally increases more rapidly in agriculture than in other sectors, the rate of growth in Israel is particularly high. The long-term increase in productivity is the result of a number of factors including advances in technology due to research and development, agricultural training, the professionalism and high managerial skills of the Israeli farmers, and their ability to adopt innovative technologies. Israeli agriculture has some of the highest yield rates in the world. Average milk production per cow has increased two and half times since the 1950s, from 3900kg annually to 11200kg in 2005. Fat and protein percentage increased dramatically during these years, reaching the highest level ever in Israel in 2005 (3.65% fat and 3.20% protein in each litre of milk produced). The annual amount of fat and protein production per cow in Israel is the highest in the world (over 750kg). Israel is practically self-sufficient in the production of milk, poultry and eggs. Livestock production, heavily dependent on imported grains, is predominantly destined for the domestic market whereby livestock exports account for just 2% of total agro-food exports in 200507. Between 1990 and 2007, the agricultural for livestock and crops both recording a 60% increase. Annual growth in the quantity of agricultural production has averaged around 3% since 1990. Increasing agricultural exports are responsible for nearly half the increase in output value observed since 2000.Crop production accounts for 61% of output value with livestock products contributing 39%. While the contribution of livestock rose during the 1990s, the value of crop production has increased at a faster rate during the 2000s, primarily due to the large expansion in exports. Fruit and vegetables are the most important crops contributing around 50% of the total output value. Livestock and animal productsexported to the EU comprise mainly milk products, poultry meat, meat products, day-old chicks, fish and fish products, and honey bees.
Poultry and cow milk are the most important livestock products.There has been a steady increase in livestock production, with the number of broilers doubling between 1990 and 2007, and the number of milk cows increasing by 15%. Fowl and turkeys contribute to meat production (420,000 tons/year of broiler meat and 90,000 tons/year of turkey meat) and eggs (1.7 million eggs/year) for national and international markets. High automation and strict hygienic conditions contribute to production of large quantities of a wide variety of poultry products. Some of them are exported, mainly to Western Europe. The sheep and goat milk subsectors have developed significantly in recent years, driven by a growing demand for locally produced cheeses. Israel’s production of beef is much more modest as limited pasture area severely limits its capacity. Approximately 40% of the country’s fresh red-meat requirement is supplied from the dairy herd. The rest of the local market demand is met by beef-breed herds located in grazing areas and by imported fattened young.Livestock production is concentrated in the northern region which accounts for almost half of Israel’s milk production, around half of broiler production and almost 70% of egg production. The southern region contains a large proportion of the national sheep and goat industry, including some extensive flocks.
The level of food consumption in Israel is high and increasing. Meat consumption per capita in Israel was at 97kg in 2003, increasing from 56kg in 1990. Consumption of poultry meat and eggs per capita, on a ready-to-cook basis, is among the highest in the world. Approximately 36kg of chicken, 11kg of turkey, and 240eggs are consumed per capita in Israel annually. Israel is the world’s largest per capita consumer of turkey meat. Milk consumption per capita has been slightly falling, but still reaches 180litres per year in recent years.
Despite a large increase in the value of agro-food exports, in particular in the 2000s, Israel has been a net importer at around USD1billion a year. Israel has to import nearly all grains and other feedstuff products needed for domestic animal production, some 2 million tons yearly. It also imports meat, fish, sugar and a few other items of lesser importance. Israel’s agricultural exports reflect its advantages in season and expertise—mainly winter vegetables, potatoes, seeds, tomatoes, flowers, and fruit, in addition to seeds of improved variety. Israel has also been a large exporter of agricultural technologies and inputs, which generated USD2.2billion in 2007, thus even more than total agrofood exports.
One of the most distinguishing characteristics of Israeli agricultural production is the dominance of co-operative communities, principally the kibbutz and the moshav. While the cooperative aspects of agricultural production management have gradually been replaced by more privatised management systems, these communities still account for approximately 80% of agricultural output. Just over 60% of Israeli persons working in agriculture (both self-employed and employees) are located on co-operative farms, with over one-quarter on kibbutzim and over one-third on moshavim.The main part of the Israeli cattle industry, particular dairy production, is also located on kibbutzim and moshavim. Other Jewish and non-Jewish farms breed mainly cattle for beef. About 70% of the sheep and goat herds are located on non-Jewish farms. In recent years there has been a large increase in the number of sheep and goats, especially those designated for milk, on other farms in response to the growing domestic demand for goat cheeses.
The continued erosion in the profitability of various agricultural industries forced farmers to become more efficient whilst taking advantage of economies of scale from operating a larger production unit. Small farms were closed down and the remaining farms grew in size in order to survive. Tnuva, the marketing co-operative established in 1926 has become Israel's largest food conglomerate to meet the demands of the competitive local market and adapting its activities to advanced, global markets. Currently, it processes about 65% of the milk produced in Israel and offers the largest selection of commercial milk products. The other major players in the dairy sector are Tara and Strauss Dairies, each collecting and processing about 13% of milk produced in Israel. The rest of milk is delivered to seven small dairies. The poultry processing sector has also been experiencing far-reaching changes. Traditionally, slaughterhouses were owned by grower cooperatives, which in some cases were also suppliers of feeds and other inputs. Moreover, marketing and processing were performed, mostly, by companies owned by growers' cooperatives. In recent years, however, the market share of farmer-owned slaughterhouses has declined to less than 50%. An increasing percentage of production is processed by large, industrial slaughterhouses with a yearly processing capacity of more than 20000tons each. Currently there are seven such industrial slaughterhouses. In addition, there are13medium-sized slaughterhouses. Vertical integration of production is increasing, and nowadays more than 60% of production is organised through production or marketing contracts with so called “integrations” or industrial slaughterhouses.
MARD plans the growing and distribution of farm produce, and designs and administers most of the support programmes in the agricultural sector. The Veterinary Services and Animal Health (VSAH) is a largely independent unit within MARD. The main tasks of the Veterinary Service are to prevent, control and eradicate animal diseases and zoonoses. It formulates and enforces national strategies and action plans for protecting animal resources and public from epidemic/enzootic and infectious diseases, including zoonotic diseases. The Kimron Veterinary Institute (KVI) is the research and diagnostic arm of VSAH, and is situated adjacent to VSAH in the Bet Dagan campus. The majority of the diagnosis in Israel of farm, pet and wildlife animal diseases is conducted here. KVI contains scientists and veterinary specialists that work with the smaller VSAH professional staff in designing policy and actively participating in the many ministerial and inter-ministerial committees. This includes the formulation and enforcement of systems for animal identification and registration, vaccination, monitoring and control of animal movements and quarantine. VSAH is also responsible for animal welfare, supervision of meat inspection and veterinary control of slaughterhouses and abattoirs for local and export markets, of processing of animal products for food intended for export, for licensing food industries and conducting research and development in veterinary science and medicine.The Plant Protection and Inspection Service (PPIS) is also a unit within MARD, with main responsibilities of official certification and documentation of imported and exported plants and plant products, monitoring and controlling plant pests, and the control of animal feed. The activities of the Service are to a large extent based on Plant Protection Law. The VSAH and the PPIS in MARD are the main bodies responsible for inspection services. The Control of Plants and Animals Unit (“Pitzuach”) in MARD is responsible for implementing the agricultural agreements between Israel and the Palestinian Authority to ensure the protection of public, animal and plant health, and to prevent the smuggling of agricultural goods. Total budgetary expenditure on inspection services during 200608 averaged ILS87million (USD22million) annually, accounting for around 7% of the total budgetary expenditures on agriculture.