GAIN Report - IS4003Page 1 of 24

Required Report - public distribution

Date:4/30/2004

GAIN Report Number:IS4003

I

Israel

Tomatoes & Products

Annual

2004

Approved by:

Asif J. Chaudhry

U.S. Embassy, Cairo

Prepared by:

Gilad Shachar

Report Highlights:

Israeli tomato production in CY 2003 totaled 358,000 MT, of which 163,000 MT (46 percent) were consumed fresh, and 171,000 MT (48 percent) were deliveredto the processing plants. There is an increased demand for high lycopene tomato varieties (processing and fresh). Tomato production in CY 2004 is estimated at 422,000 MT, of which 240,000 MT

(56.9 percent) will be delivered to the processing plants.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Tel Aviv [IS1]

[IS]

Executive Summary / Page 3
Fresh Table Tomatoes / Page 4
PSD Table, Fresh Tomatoes / Page 4
Production / Page 4
Table 1: Tomatoes Disposition, by Destination, Thousand of Tons / Page 5
Table 2: Import from the Palestinian and Export to the Palestinian / Page 5
Table 3: Tomatoes Disposition, by Destination, $ Millions, CY 2002 / Page 5
Planted Area / Page 6
Table 4: Planted Area by Cultivation Method / Page 6
Table 5: Planted Area in Greenhouses and Net-Covers. MY 2003 /

Page 6

Growers /

Page 6

Organic Tomatoes / Page 6
R&D / Page 6
Production Policy / Page 7
Fresh Tomato Production Value Compared to Other Agriculture Sectors / Page 7
Table 6: Agriculture and Fresh Tomatoes Production Value, $ Millions / Page 7
Marketing / Page 7
Consumption and Household Expenditure on Fresh Tomatoes / Page 7
Chart 1: Monthly Average Household Expenditure, $, Real Terms / Page 8
Chart 2: Annual Average Household Expenditure, Percent / Page 8
Table 7: Annual Local Consumption Per Capita, Kg, CY / Page 9
Chart 3: Household Purchase by Outlet, Fresh Vegetables, Percent / Page 9
Table 8: Fresh Tomatoes, Arbitration Differnce in the Local Market / Page 9
Chart 4: Annual Average Prices in Local Stores, $ / Page 10
Trade / Page 10
Table 9: Exports of Fresh Tomatoes, MY, Tons / Page 10
Table 10: Exports of Israeli Fresh and Chilled Tomatoes, $ Thousand / Page 11
Table 11: Imports of Fresh and Chilled Tomatoes, $ Thousand / Page 12
Processing Tomatoes / Page 13
Production / Page 13
Table 12: Delivery to the Processing Plants. Thousands of Tons, CY / Page 13
Table 13: Planning and Execution, Net and Gross Weight, Tons / Page 14
Table 14: Waste as Percentage of Total Quantity, by Parameters / Page 14
Planted Area / Page 14
Table 15: Planted Area by Region, Hectare / Page 15
Irrigation /

Page 15

Organic Tomatoes for the Processing Plants / Page 15
Grower Prices / Page 15
Table 16: Financial Estimate For Processed Tomatoes / Page 16
Varieties / Page 16
Table 17: Varieties Share Out of Total Production for Industry, / Page 17
The Processing Plants / Page 17
Table 18: Delivery to Processing Plants, by Weeks, Tons (Gross) / Page 18
Processed Tomatoes Production Value / Page 18
Table 19: Agriculture and Industrial Tomatoes Production Value / Page 18
Local Consumption /

Page 18

Chart 5: Frozen and Canned Vegetables, Household Purchase by
Outlet Type, % of Total Non-Fresh Vegetables Expenditure / Page 19
Trade / Page 19
Table 20: Total Exports of Tomato Products, Tons, $ Thousand / Page 20
Table 21: Total Exports of Tomato Products, by Type / Page 21
Table 22 : Exports of Tomato Products, by Destination, Tons / Page 21
Table 23: Import of Tomato Products, by Origin / Page 22

Executive Summary

The tomato harvest in CY 2003 totaled 358,000 MT, 1.1 percent less than in the previous year.

Out of the total production in CY 2003, 171,000 MT (48 percent) were deliveredto the processing plants, 163,000 MT were consumed fresh, 16,000 MT (4.5 percent) were exported, mainly to the EU, while 8,000 MT were removed as surplus.

In addition, 15,000 MT of fresh tomatoes were imported from the Palestinian Authority. In January 2004 the surplus removal system came to an end.

The forecast for production in CY 2004 is for a crop of 422,000 MT, of which 240,000 MT (56.9 percent) will be deliveredto processing plants.

Planted area in MY 2003 totaled 3,435 ha, processing tomato varieties accounts for 68%, while the remainder is fresh tomato varieties. In response to increasing demand in Europe for processed organic tomatoes, 100-150 ha of organic tomatoes is planted annually.

The Household expenditure survey for the year 2002 showed that 15.4 percent of the household expenditure for fresh vegetables was spent on fresh tomatoes, and the monthly average household expenditure on fresh table tomatoes totaled $4.99.

The U.S. share of tomato products is expected to increase in CY 2004 due to the fast devaluation of the Euro against the Israeli Shekel.

PSD Table
Israel
Fresh Tomatoes
2002 / Revised / 2003 / Estimate / 2004 / Forecast / UOM
USDA Official [Old] / Post Estimate [New] / USDA Official [Old] / Post Estimate [New] / USDA Official [Old] / Post Estimate [New]
Market Year Begin / 02/2002 / 02/2003 / 02/2004 / MM/YYYY
Plnt For Fresh Consump / 0 / 1330 / 0 / 1345 / 0 / 1360 / (HA)
Plnt For Processing / 0 / 1760 / 0 / 2050 / 0 / 3000 / (HA)
TOTAL Area Planted / 0 / 3090 / 0 / 3395 / 0 / 4360 / (HA)
Harv. For Fresh Cons. / 0 / 1300 / 0 / 1320 / 0 / 1320 / (HA)
Harv. For Processing / 0 / 1650 / 0 / 2000 / 0 / 2950 / (HA)
TOTAL Area Harvested / 0 / 2950 / 0 / 3320 / 0 / 4270 / (HA)
Fresh Production / 0 / 202 / 0 / 187 / 0 / 182 / (MT)
Processing Production / 0 / 160 / 0 / 171 / 0 / 240 / (MT)
TOTAL Production / 0 / 362 / 0 / 358 / 0 / 422 / (MT)
Supply from the PA / 0 / 20 / 0 / 15 / 0 / 15 / (MT)
Total Supply / 0 / 382 / 0 / 373 / 0 / 437 / (MT)

Fresh Table Tomatoes

Production

Production of tomatoes in CY 2003 totaled 358 tmt, of which 163 tmt (45.5 percent) were consumed fresh, 16 tmt (4.5 percent) were exported, 8 tmt were removed as surplus, and the rest were delivered to the processing industry. Production of fresh tomatoes in CY 2003 totaled 178 thousand metric tons (tmt).

The forecast for CY 2004 is for a total local crop of 422 tmt of which 165 tmt (39.1 percent) are for the local fresh market, 17 tmt (4.0 percent) will be exported and 240 tmt (56.9 percent) will be delivered to processing plants.

Table 1: Tomatoes Disposition, Thousands Tons,Net Weight, Total Production[1]

CY / 1997 / 1998 / 1999 / 2000 / 2001 / 2002 / 2003 / 2004*
Total Exports / Quantity / 11 / 13 / 14 / 19 / 18 / 16 / 16 / 17
Percent / 3.1% / 2.9% / 2.8% / 4.6% / 5.5% / 4.4% / 4.5% / 4.0%
Delivery to Processors / Quantity / 176 / 267 / 307 / 223 / 139 / 160 / 171 / 240
Percent / 49.7% / 60.1% / 62.4% / 53.6% / 42.6% / 44.2% / 47.8% / 56.9%
Local Fresh Market / Quantity / 153 / 150 / 149 / 152 / 158 / 163 / 163 / 165
Percent / 43.2% / 33.8% / 30.3% / 36.3% / 48.5% / 45.0% / 45.5% / 39.1%
Surplus Removal System / Quantity / 14 / 14 / 22 / 23 / 11 / 23 / 8 / 0
Percent / 4.0% / 3.2% / 4.5% / 5.5% / 3.4% / 6.4% / 2.2% / 0.0%
Total / Quantity / 354 / 444 / 492 / 417 / 326 / 362 / 358 / 422
Percent / 100% / 100% / 100% / 100% / 100% / 100% / 100% / 100%

Source: Vegetable Board of Israel, Annual Report 2002, and Primary Report 2003.

*Forecast: Based on information collected from the Vegetable Marketing Board of Israel.

Table 2: Import From the Palestinian and Export to the Palestinian, Tons

CY / Total Fresh Vegetables / Fresh Tomatoes / Tomatoes as a Percentage of Total Vegetables Quantity
2004[2] / Import / 20,295 / 4,490 / 22.12
2003 / Export / N/A / N/A / N/A
Import / 79,000 / 15,000 / 18.98
Gap / N/A / N/A / N/A
2002 / Export / 13,500 / 70 / 0.005
Import / 82,400 / 19,963 / 24.62
Gap / 68,900 / 19,893 / 28.87
2001 / Export / 22,000 / 19 / 0.0008
Import / 89,100 / 30,300 / 34.00
Gap / 67,100 / 30,281 / 45.13

Source: Vegetable Board of Israel

Table 3: Tomatoes Disposition, by Destination, $ Millions, Nominal Terms, CY 2002

Kind

/

Local Market

/

Export

/

Delivery to Processors

/

Inter-Mediate Produce

Value

/

Percent

/

Value

/

Percent

/

Value

/

Percent

/

Value

/

Percent

All Tomato Kinds

/

86.58

/

71.1%

/

23.75

/

19.5%

/

10.63

/

8.7%

/

0.85

/

0.7%

Of Which: Fresh Table Tomatoes

/

86.58

/

77.9%

/

23.75

/

21.4%

/

0.00

/

0.0%

/

0.85

/

0.7%

Of Which: Cherries

/

8.02

/

28.8%

/

19.86

/

71.2%

/

0.00

/

0.0%

/

0.00

/

0.0%

Industrial Varieties

/

0.00

/

0.0%

/

0.00

/

0.0%

/

10.63

/

100.0%

/

0.00

/

0.0%

Source: Ministry of Agriculture and Rural Development, 2002 Annual Report.

Planted Area

The planted area for fresh table tomatoes in MY 2003 totaled 1,345 ha of which 1,295 ha (96.3 percent) were planted in greenhouses and under net covers. The forecast for crop year 2004 is for an increase of 15-20 ha in total planted area, of which most will be in open fields. The increase in open field planted area is now possible as result of the development of local new varieties that are resistant to the Tomato Yellow Leaf Curl Virus (TYLCV).

The advantages of greenhouse and net-covers are: better control on the production condition, reduction in pesticides use, weather problems protection, efficiency in water usage. Most of the fresh tomatoes planted area is concentrated in the southern parts of the country (Bsor area).

Table 4: Planted Area by Cultivation Method, for Export and Local Market, MY 2003[3]

Cultivation Method

/ Hectare / Percent
Open Fields / 50 / 3.70
Greenhouses+ Net Covers / 1,295 / 96.30
Total / 1,345 / 100.00

Source: Vegetable Board of Israel, Annual Report.

Table 5: Planted Area in Greenhouses & Net-Covers, by Region, Ha, MY 2003

Region / Regular and Cluster Tomatoes / Cherry Tomatoes / Total / Percent of Total Planted Area
Greenhouses / Net-Covers
Northern Region / 55 / 0 / 0 / 55 / 4.25
Interior Valleys / 38 / 0 / 5 / 43 / 3.32
Central Region / 170 / 15 / 0 / 185 / 14.29
Southern Region / 555 / 250 / 207 / 1,012 / 78.14
Total / 818 / 265 / 212 / 1,295 / 100.00

Source: Department of Vegetables, Ministry of Agriculture and Rural Development

Growers

The total planted area is owned by approximately 1,000 growers, of which 159 grew more than 200 tons per orchard. Those growers produced 52 percent of total tomato production in Israel.

Organic Tomatoes

Out of the total Greenhouses and Net-Covers area in MY 2002, 69 hectares were grown organically. Organic tomatoes export in MY 2002, totaled 3,400 tons, of which 1,400

(41.2 percent) tons were cherry tomatoes and 2,000 tons were other varieties. Out of the total organic vegetables export in MY 2002, 17 percent were tomatoes.

R&D

There are efforts to develop cherry varieties for open field planting in order to reduce production cost. This is due to a decrease in cherry prices in European markets. There are also efforts to develop the cherry mini plum with a color range of yellow, orange and red. In addition, researchers are trying to develop tomatoes with a higher level of lycopene.

Production Policy

In January 2004 the surplus removal system came to an end. In CY 2003 the tomato surplus totaled 8 tmt, 15 tmt less than CY 2002 (-65.21 percent), and represented 66.7 percent of total vegetables surplus removal. During the period of June-August 2003 there was not any government assistance with surplus removal, although they promised the growers to help them with the surplus removal. Due to facts mentioned above, the supply in the summer was bigger than local demand, and the wholesale price decreased by 48 percent to $0.266 per kg. Total damage to the tomato growers was estimated at $8.33 million. Growers are demanding compensation from the government.

Fresh Tomato Production Value Compared to Other Agriculture Sectors

Total production value in CY 2002 for all tomato kinds, decreased by 8.96 percent compared to CY 2001 (from $133.82 million to $121.82 million, in real terms). In addition, total production value for cherries decreased by 35.51 percent compared to CY 2001

(from $43.28 million to $27.91 million). The decrease in tomatoes’ value in CY 2002 was a result of an increase in tomato surplus quantity compared to CY 2001 (from 11 tmt to 23 tmt). In addition, the average retailer tomato price decreased by 1.9 percent in CY 2002 compared to CY 2001 (see table 8).

Table 6: Agriculture and Fresh Tomatoes Production Value, CY,

$ Millions- Real Terms (2002=100.0)

Agricultural Value

/

2000

/

2001

/

2002

Of Which: Vegetables Total

/

621.46

/

734.67

/

721.30

Of Which: Tomatoes of All Kinds

/

94.07

/

133.82

/

121.82

Of which: Fresh Table Tomatoes

/

80.25

/

123.57

/

111.19

Of Which: Cherries

/

14.02

/

43.28

/

27.91

Fresh Table Tomatoes as Percentage of Total Vegetable Value

/

12.91

/

16.82

/

15.41

Cherry Tomatoes as Percentage of Total Fresh Table Tomatoes

/

17.47

/

35.02

/

25.10

Source: Ministry of Agriculture and Rural Development, 2002 Annual Report.

Marketing

Consumption and Household Expenditure on Fresh Tomatoes

Consumption in CY 2003 totaled 178 tmt, of which 163 tmt (91.6 percent) were Israeli tomatoes and 15 tmt were imported from the Palestinian Authority. The local consumption of fresh table tomatoes in CY 2003 totaled 27.38 kg per capita, 10.87 percent higher than in the previous year.

According to the Household Expenditure Survey for 2002, the monthly average expenditure for fresh tomatoes totaled $4.99. From 1986 to 2002, the monthly average household expenditure for fresh tomatoes decreased by 49.4 percent (from $9.87 to $4.99). The fresh tomatoes share of the average household expenditure for fresh vegetables decreased from 19.1 percent in 1986 to 15.3 percent 16 years later.

Chart 1: Monthly Average Household expenditure[4] on food, Fresh Vegetables[5],

Fresh Tomatoes and Tomato Puree CY, Real Terms (October 2002=100)

Source: Household Expenditure Survey, Different Years, CBI.

Chart 2: Annual Average Household Expenditure in Israel, CY, Percent

Source: Household Expenditure Survey, Different Years, CBI.

Table 7: Annual Local Consumption Per Capita, Tomatoes and Vegetables, Kg

CY / Vegetables / Vegetables, Percent Change Compared to Previous Year / Tomatoes / Tomatoes, Percent Change Compared to Previous Year / Tomatoes as Percentage of Total Vegetables Consumption
1997 / 191.0 / 1.05% / 26.2 / 6.50% / 13.71%
1998 / 189.0 / -1.05% / 25.2 / -3.81% / 13.33%
1999 / 187.0 / -1.05% / 24.3 / -3.57% / 13.00%
2000 / 183.0 / -2.14% / 24.1 / -0.08% / 13.17%
2001 / 179.0 / -2.18% / 24.5 / 0.04% / 13.69%
2002 / 181.0 / 1.11% / 24.7 / 0.08% / 13.65%
Average / 185.0 / 24.8 / 13.42%

Source: Vegetable Board of Israel, Annual Report 2002

Chart 3: Annual Average Retailer Price, Fresh Tomatoes, and Tomato Puree,

Nominal Terms, $, CY

Source: Price Statistic Monthly, Different Years, CBI.

Table 8: Fresh Tomatoes, Arbitration Difference in the Local Market, $ Per Kg,

Real Terms, Percent, CY

CY / Average Wholesaler Price / Average Retailer Price / Arbitration Difference, $ / Arbitration Difference, Percent
1997 / 0.449 / 0.901 / 0.452 / 100.06
1998 / 0.633 / 1.000 / 0.367 / 57.98
1999 / 0.456 / 0.840 / 0.384 / 84.21
2000 / 0.418 / 0.865 / 0.447 / 100.69
2001 / 0.499 / 0.957 / 0.458 / 91.78
2002 / 0.501 / 0.939 / 0.438 / 87.42
Average of 6 Years / 0.493 / 0.917 / 0.424 / 87.023

Source: Vegetable Board of Israel, 2002 Annual Report

Chart 4: Household Purchase by Outlet, % of Total Fresh Vegetables Expenditure

Source: Household Expenditure Survey, Different Years, CBI

Trade

Up to the time of the report, (mid April 2004) fresh tomato export totaled 14.0 tmt in MY 2004, of which 9.0 tmt (60 percent) were cherry tomatoes and 5.0 tmt were cluster tomatoes. Fresh tomato exports totaled 18.3 tmt in MY 2003 (September 2002 to August 2003), of which 64.2 percent (11.7 tmt) were cherries. Western Europe is still the major market for Israeli fresh tomatoes. The U.S. share for Israeli fresh tomatoes in CY 2002 increased by 1.1 percent compared to the previous year (from 11.34 percent to 11.47 percent). There are two kinds of cherry tomatoes, open-fields’ and Greenhouses’ cherries. The Greenhouse cherry tomato is exported primarily to U.K., while the open fields cherry tomato is exported mainly to other European countries. There is a growing demand for tomatoes in clusters, either cherry or regular tomatoes. The Europeans demand EUROGAP certificate for fresh tomatoes exported to the EU, and the Ecofresh certificate for organic products. Those two certificates approve using certain dictated growing protocol.

Table 9: Export of Fresh Tomatoes, MY (September till August), Tons

Variety / 2000/1 / 2001/2 / 2002/3 / 2003/4- Till Mid April 2004 / 2002/3 Percent Change Compared to 2001/2
Cluster Tomatoes and Regular Tomatoes / 6,300 / 6,393 / 6,545 / 5,000 / 2.38
Cherry Tomatoes / 9,969 / 9,990 / 11,756 / 9,000 / 17.68
Total / 16,269 / 16,383 / 18,301 / 14,000 / 11.71

Source: Department of Vegetables, Ministry of Agriculture and Rural Development

Table 10: Exports of Israeli Fresh and Chilled Tomatoes, by Destination, CY

Value ($ Thousands) / % of Total export
Destination / 1997 / 1999 / 2001 / 2002 / 1997 / 1999 / 2001 / 2002
France / 822 / 1,094 / 492 / 477 / 3.43 / 4.82 / 1.70 / 1.71
Belgium / 348 / 490 / 166 / 292 / 1.45 / 2.16 / 0.57 / 1.05
Netherlands / 4,223 / 5,980 / 7,288 / 7,212 / 17.64 / 26.33 / 25.16 / 25.92
Austria / 1,056 / 1,549 / 1,417 / 1,405 / 4.41 / 6.82 / 4.89 / 5.05
Germany / 2,005 / 2,239 / 3,452 / 3,071 / 8.38 / 9.86 / 11.91 / 11.04
Sweden / 551 / 673 / 543 / 619 / 2.30 / 2.96 / 1.87 / 2.23
Denmark / 633 / 520 / 105 / 148 / 2.64 / 2.29 / 0.36 / 0.53
Finland / 336 / 369 / 477 / 490 / 1.40 / 1.62 / 1.65 / 1.76
U.K. / 8,291 / 6,483 / 10,601 / 8,988 / 34.64 / 28.55 / 36.59 / 32.31
Greece / 20 / 27 / 56 / 385 / 0.08 / 0.12 / 0.19 / 1.38
Italy / 62 / 1 / 38 / 37 / 0.26 / 0.00 / 0.13 / 0.13
Luxemburg / 55 / 0 / 0 / 0 / 0.23 / 0.00 / 0.00 / 0.00
Total EU / 18,402 / 19,425 / 24,635 / 23,124 / 76.88 / 85.54 / 85.03 / 83.12
Norway / 77 / 123 / 639 / 710 / 0.32 / 0.54 / 2.21 / 2.55
Switzerland / 478 / 410 / 338 / 482 / 2.00 / 1.81 / 1.17 / 1.73
Total West Europe / 18,880 / 19,958 / 25,612 / 24,316 / 78.87 / 87.89 / 88.40 / 87.41
Russia / 291 / 7 / 20 / 162 / 1.22 / 0.03 / 0.07 / 0.58
Other East Europe / 3 / 45 / 14 / 7 / 0.01 / 0.20 / 0.05 / 0.03
Total East Europe / 294 / 52 / 34 / 169 / 1.23 / 0.23 / 0.12 / 0.61
Total Europe / 19,174 / 20,010 / 25,646 / 24,485 / 80.10 / 88.11 / 88.52 / 88.02
U.S. / 4,673 / 2,553 / 3,286 / 3,191 / 19.52 / 11.24 / 11.34 / 11.47
Canada / 50 / 126 / 35 / 117 / 0.21 / 0.55 / 0.12 / 0.42
Asia / 34 / 20 / 2 / 25 / 0.14 / 0.09 / 0.01 / 0.09
Others / 6 / 0 / 3 / 1 / 0.03 / 0.00 / 0.01 / 0.00
Total Out of Europe / 4,763 / 2,699 / 3,326 / 3,334 / 19.90 / 11.89 / 11.48 / 11.98
Grand Total / 23,937 / 22,709 / 28,972 / 27,819 / 100.0 / 100.0 / 100.0 / 100.0

Source: CBI, Foreign Trade Statistics, Different Years.

Table 11: Imports of Fresh and Chilled Tomatoes, by Origin, CY, $ Thousands

Value ($ Thousands)
Origin / 1999 / 2000 / 2001 / 2002
Turkey / 0 / 0 / 0 / 469
Cyprus / 0 / 13 / 0 / 0
Jordan / 69 / 79 / 139 / 267
Grand Total / 69 / 92 / 139 / 736

Source: CBI, Foreign Trade Statistics, Different Years.

Processing Tomatoes

Production

Production in CY 2003 totaled 171 (net weight) thousand metric tons (tmt), 13 tmt higher than CY 2002 (8.23 percent). The production volume is determined by international prices for tomato products. The local market has the potential consumption of 120,000 tons of processed tomatoes and the rest is exported. In the pre-season negotiation between the growers’ representatives and the processors, the factories signed contracts for delivery of 203,350 tons (gross) in crop year 2003. However, production conditions during crop year 2003 were unfavorable for tomatoes, during the planting period. Heavy rains delayed the plantings that resulted in low quality and reduced yield. Moreover, some of the planting work was done without any machinery, which extended production cost. Brief heat waves during May 2003 caused blossom problems. All these production problems reduced total deliveries from the expected 203,350 tons to 182,789 (gross weight) tons (-10.1 percent) (see table 13). The delayed planting caused a substantial amount of waste in crop year 2003, and net weight totaled 170,984 tons (-6.46% waste).

Average yield in CY 2003 totaled 90 tons per hectare, 10 tons less than in the previous year.

The forecast for production in CY 2004 can be expected to reach 235-245 tmt. The increase in production is explained by a shortage in processing tomato products worldwide.

Table 12: Delivery to the Processing plants, Thousands Tons, Net Wight, CY

CY / Total Production / Percent Change Compared to Previous Year
1990 / 350
1991 / 160 / -54.28
1992 / 143 / -10.06
1993 / 205 / -43.33
1994 / 254 / 23.90
1995 / 315 / 24.01
1996 / 300 / -4.76
1997 / 176 / -41.33
1998 / 267 / 51.70
1999 / 307 / 14.98
2000 / 223 / -27.36
2001 / 139 / -37.67
2002 / 158 / 13.67
2003 / 171 / 8.23
2004* / 240 / 40.35
Average of 14 CY
1990-2003 / 226

Source: Vegetable Marketing Board of Israel.

*Forecast: Based on information collected from the Vegetable Marketing Board of Israel.

Table 13: Planning and Execution, Net and Gross Weight, Tons,by Plants

CY 2003 / Pri Nir / T’zam / Miloz / Gan Shamuel / ZanLa’col / Total
Planning / 29,800 / 59,300 / 45,350 / 58,100 / 10,800 / 203,350
Execution (Gross) / 24,585 / 52,220 / 41,477 / 53,203 / 11,032 / 182,789
Execution (Net) / 23,676 / 48,287 / 38,548 / 50,014 / 10,459 / 170,984
Difference between planned crop and actually produced (Gross) / -17.5 / -11.9 / -8.5 / -8.4 / 2.1 / -10.1
Percent Change Between Gross and Net Execution (Waste) / -3.8 / -7.5 / -7.1 / -6.0 / -5.2 / -6.4

Source: Vegetable Board of Israel, Annual Report 2003.

Table 14: Waste as Percentage of Total Quantity, by Parameters, CY

CY / 1998 / 1999 / 2000 / 2001 / 2002 / 2003 / 2003 Percent Change Compare to 2002
Green / 1.88 / 1.47 / 1.34 / 1.74 / 1.65 / 2.62 / 0.97
Mold / 0.14 / 0.33 / 0.17 / 0.40 / 0.21 / 0.67 / 0.46
Moth / 0.00 / 0.00 / 0.00 / 0.02 / 0.00 / 0.01 / 0.01
Washing Waste / 0.00 / 0.00 / 0.00 / 0.06 / 0.09 / 0.00 / -0.09
Heat Stroke / 0.05 / 0.05 / 0.30 / 0.21 / 0.12 / 0.03 / -0.09
Limited Use / 1.19 / 1.87 / 1.86 / 1.07 / 0.80 / 1.08 / 0.28
Added Soil and Objects / 2.05 / 2.05 / 1.54 / 1.28 / 1.84 / 2.11 / 0.27
Others / 0.39 / 0.47 / 0.39 / 0.49 / 0.60 / 0.38 / -0.22
Total / 5.22 / 5.23 / 5.05 / 4.42 / 4.76 / 6.46 / 1.70

Source: Vegetable Board of Israel, Annual Report 2003.

Planted Area

The planted area in crop year 2003 totaled 2,000 ha, 33 percent lower than pre-seasonal plans. It was a result of the low demand for tomato products in international markets. Post estimates that total planted area in crop year 2004 will total 3,000 hectares. The increased planted area is due to a shortage in tomato products. As a result of growing demand for organic products in Europe, 100-150 ha (4.2 percent of the total area) will be planted for organic tomatoes.

All tomato planted areas are in the northern parts of the country (see table 15).

The planting in the Eastern Valleys (Beit S’hean) began on February 5, 2004 and ended in the north in late March.

Processing tomatoes are grown mostly in cooperative agriculture settlements (Kibbutz and Moshav). Due to the lack of employees, mechanization is very intensive: about 98 percent of the tomatoes are machine planted and harvested.

The average tomato’s production units are 10 ha and higher.

Table 15: Planted Area by Region, Tomatoes for Industrial, MY 2003, Hectare

Region / Hectare / Percent
Western Galilee / 400 / 20
Western Valley / 500 / 25
Golan Heights and Upper Galilee / 400 / 20
Eastern Valleys / 700 / 35
Total / 2,000 / 100

Source: Central Bureau of Statistics- Israel, Different Years.

Irrigation

Various types of drip-sprinkler irrigate all the tomato orchards in Israel. Recycled water, which is commonly used for irrigation, is not used for vegetables in general and processing tomatoes particularly. Annual tomato water consumption in the coastal plain stands on 3,000 m3/ha. In the Eastern valleys it is around 7,000 m3/ha. The average annual tomato water consumption in Israel is approximately 5,500 m3/ha.

Organic Tomatoes for Processing Plants

In CY 2003 between 5-10 ha were grown organically. In response to increasing demand in Europe for organic tomato products there is an increase in organic plantings for CY 2004.

Out of the total area, approximately 100-150 (4.2 percent) will be grown organically. The price gap between the organic and the regular tomatoes is small, however, the production costs of organic tomatoes are higher than those of the regular produce. Forecast for production in CY 2004 is 12,000-14,000 tons.

Grower Prices

The basic price for growers in CY 2003 was set at $65.17/mt for brix of 4.9-5.0. This is $4.496 (7.40 percent) higher than in CY 2002. The maximum brix level for payment was 5.6 and there is no minimum brix level. The average brix level in CY 2003 was 4.92, 0.03 lower than in CY 2002. A premium/fine system is part of the payment system. The average premium for brix was $1.348 per ton for each percent above 5.0. Brix level less than 4.9 percent is due to a fine. The basic brix level in MY 2004 will be 4.8-5.0, while the maximum brix will stand at 5.6. In order to extend the harvest season in MY 2004, premium will be paid to deliveries at the beginning and at the end of the harvest season.