AGRO-FOOD SECTOR IN

PALESTINIAN NATIONAL

AUTHORITY: FACTS AND

FIGURES

COUNTRY TOTAL SURFACE

The total area of west bank and Gaza Strip isestimated at 6.245 million dunums.

The West Bank covers 5.88 million dunums

Gaza Strip 0.365 million dunums.

The ministry of Agriculture has divided thePalestinian N. Authority into five major Agro-Ecological zones: The classification was based onseveral factors including climate, topography, soiltype and farming systems as follows:1- The Jordan valley zone2- Eastern Slopes zone3- Central Highlands zone4- Semi-coastal zone5- Coastal zone

AGRICULTURAL AREA AND PRODUCTION

The main field, fruit trees, vegetableand stone fruit crops planted in Palestine,their areas, varieties and an indication oftheir production are given in Table 1 and2.

Table 1: Agricultural area and production 1998

Crops Cultivated Area(Dunums)

Production (Tons)

Fruit Trees 1148405 380787

Vegetables 181984 480848

Field Crops 530276 167934

Flowers 715 71.5 mill

Total 1861380 1029569

Table 2: Area, Varieties and Production of Field Crops, 1997/1998

Crops CultivatedArea

(Dunums)

Production(Tons)

Lemon 27277

Grapefruit 9983

Shammoty 34710

Valencia 59733

Strawberry 4363

Wheat 209436 3652.3

Barley 126313 15726

Lentil 27067 1469

Chickpeas 26381 2009

Sesame 6995 320

Peanut 144 79

Sun flower 67 17

Safflower 45 1

Thyme 562 853

Cumin 276 11

Chamomile 57 3

Olive 877059 98137

Grapes 747799 56912

Apple 2164 712

Palm 2809 3497

Banana 5165 20653

Figs 13941 6830

Citrus 59244 162042

Tomato 25918 153939

Eggplants 7634 36341

Pepper 5811 17709

Garlic 385 811

Onion 1475 16657

Broad Bean 4591 3515

Lettuce 972 2852

Watermelon 8381 19757

Cucumber 17516 100668

Radish 1074 2540

Carrot 1118 3702

Potato 23068 58692

Maize 4314 5388

Cauliflower 8364 20397

Beans 4765 6073

Peas 5157 2416

Okra 11491 2875

LIVESTOK PRODUCTION

Type Production (Tons)

Red Meat 21594

Milk 115395

Honey Bees 602

Fish 3572

Eggs 495 mill.

Broilers 65534

Type Quantity

Cattle 23858 heads

Sheep 504078 heads

Broilers 10654000

Layer Birds 2059000

MAJOR FOOD-PROCESSING ACTIVITIES IN PALESTINE

Product Cetegory Specific Products

Cereals Rice, Flour, Pasta, Noodles,Semolina

Meat, Fish and Poultry Cold Cuts, Processed Meat,Sardine and Tuna in Cans,Sisages

Diary Products Milk, Yogurt, Chees

Oils and Shortening Olive Oil, Vegetable Oil, SoyaOil, Corn Oil, Vegetable andAnimal Shortening

Fruits and Vegetables Dates, Raisins, Nuts and Seeds,Pickles, Soup Mix and Jams

NUMBER OF ESTABLISHMENTS IN OPERATION IN FOOD-PROCCESING (1998)

Type of Establishment Number ofEstablishments

Meat and Diary 63

Preserving Fruits andVegetables

15

Vegetables and Animal Oil 244

Total 322

AGRO-FOOD SECTOR IN PALESTINIAN NATIONAL

AUTHORITY

Agriculture plays an important role in the Palestinian

economy, although its contribution to the Gross Domestic

Product (GDP) has gradually declined over the last 30 years.

In 1997, the agricultural value added was 6.4 percent of GDP,

compared to 13.7 percent in 1994 and 40 percent in 1968. The

value of agricultural production in the WBGS amounted to

US$ 768.5 million in 1997.

Palestinian agricultural trade and food processing

industry have been influenced by and subjected to

political status and unsettled conditions in the

Middle East. While Israeli farm products have

free access to the markets of WBGS without

limitations, Palestinian agricultural exports to

Israel have been regulated and restricted. The

Israeli officials have claimed that most of the

regulations have been imposed for security

reasons.

Table 1: Palestinian Agricultural Trade in US$ million between 1995- 1997 compared to 1992-1994

Import ExportProduct

92-94 96 97 92-94 96 97

Live Animals 59 30 31.7 9 2.1 0.9

Frozen Meat 15 20 22 0 6 6

Poultry 17 8.9 10.9 0 0.45 0.26

Fish 12 3.1 4.1 1.4 1.3 1.4

Diary Productsand Milk

57 25.2 48.7 14.3 1.65 1.59

Import ExportProduct

92-94 96 97 92-94 96 97

Eggs 0 5 6 15 0 0

Rice 60 15 11.5 0 0.6 0.3

Wheat Flour 104 140 118 0 5.1 5.6

Sugar 10 35 39 0 0 0

Coffee andTea

10 12 7.5 0 0 0

Vegetables 45 13 18 44 12 20

Import ExportProduct

92-94 96 97 92-94 96 97

Fruits 40 40 20 13 6 8

Citrus 0 0 0 30 11 17

VegetableOils

15 6.8 16 3.3 23 24

Olive Oil No data No data No data No data No data No data

FeedingStuffs

70 65 67 0 0 0

Fertilizers 18 32 38 0 0 0

DOMISTIC MARKETING INFRASTRUCTURES,

FACILITIES AND SERVICES FOR

AGRICULTURAL PRODUCTS

Transportation

Transportation of agricultural products suffers from the conditions of the roads networks that slow movement of goods inside the WBGS. In addition, transportation of fresh agricultural products is subject to imposed measures such as the use of the so-called green trucks (in use to cross the border with Jordan), the lack of refrigerated trucks and the inadequate facilities at the border with Jordan and Egypt, which heavily affect the quality of perishable agricultural products. Finally, agricultural products undergo long procedures (i.e. convoy system and security checks) when transported through Israel by Palestinian licensed trucks. In case Israeli licensed trucks transport products, security procedures are faster at the checkpoints.

Transportation of animal products is not an exception, with only 8 refrigerated trucks in the WB to transport the meat from slaughterhouses to butchers. Such transportation facilities are important since many slaughterhouses do not provide refrigerated truck services.

Palestinian traders access foreign markets through Israeli ports of entry and exit, where Palestinian products, particularly agricultural, receive a discriminatory treatment (i.e. security measures) despite of the Paris Protocol that affirms the principle of equal treatment for the Palestinian and Israeli goods. Checks and lengthy delays are very costly, particularly for perishable goods, transported through the airport.

Inadequate Services of Wholesale Markets, Cold Storage and Packing Facilities for Plant

Production

Wholesale markets in the WB are 12, while 2 major ones operate in GS. A brief description of the dimensions and facilities available in the markets of the WB is presented in Table 2. These municipal markets deal with fresh products (fruits and vegetables).

Table 2: Wholesale Markets in the West Bank

Location Area in 1000Square Meters

Cold StorageCapacity in

Square Meters

Cold StorageCapacity in

Tones

Number ofWholesalers

Number ofStors

Nablus 40 5700 2850 31 42

Jenin 13 -- -- 30 30

Jericho 3.5 -- -- 11 11

Hebron 1.5 -- -- 14 14

Ramallah 2.5 -- -- 8 3

El Bireh 1.6 -- -- 3 --

Location Area in 1000Square Meters

Cold StorageCapacity in

SquareMeters

ColdStorage

Capacity inTones

Number ofWholesalers

Number ofStors

Halhoul 2.4 800 435 21 22

Qalqilia 0.75 -- -- 6 6

Bethlehem 15 Not working 500 25 30

Tulkaram 0.65 -- -- 9 9

Jerusalem 1 25 12 11 15

Sharawiya 4 -- -- 4 4

The inadequate service of cold storage and sorting capacities in wholesales markets have limited role in:

• -adjusting the agricultural supply of perishable agricultural products

• -extending the marketing period

• -reducing export as well as local price fluctuations.

• Table 3 describes the situation of refrigerated storing facilities in the Gaza Strip.

Table 3: Cooling Rooms for Fruits and Vegetables in the Gaza Strip

Location Number of CoolingRooms

Capacity in CubicMeters

Capacity in Tones

South Gaza 35 12719 4000

Gaza City 9 3267 1000

Middle Gaza 15 6250 3500

Khaniunis 20 4123 2500

Rafah 30 7364 3600

Slaughterhouses

Eight slaughterhouses exist (Table 4), four of which are recently built. Five of them offer refrigerated transportation facilities from the slaughterhouses to the butchers everyday. When the slaughterhouse dose not provide service, butchers normally transport the meat in private, non refrigerated cars under unhealthy conditions.

Table 4: Distribution and Conditions of Slaughterhouses in WBGS

Capacity(head per day)

District Slaughterhouses RefrigeratedTrucks

Sheep Cattle

Waste WaterNetwork

Ramallah Modern 2 1000 50 Yes

Bethlehem Old 1 110 18 Yes

Jericho Modern 1 20 5 Yes

Nablus Modern 3 500 50 Yes

Agro-Processing Enterprises

The availability of processing structures can absorb agricultural surpluses such as citrus, certain vegetables among which tomatoes are most representative, and fruits). In the present time, second class strawberries produced in the GS are sometimes sold to a juice factory in Israel for very low prices. This is due to the absence of a factory in the GS that can process the strawberries to higher value added products such as strawberry juice and ice cream. Moreover, local processed food can substitute imports from Israel and other countries which improves the Palestinian trade deficit.

Number of establishments in operation in food-processing (1998)

Type of Establishment Number of Establishments

Meat and Diary 63

Preserving Fruits and Vegetables 15

Vegetables and Animal Oil 244

Total 322

According to a study conducted by the Ministry of planning and international cooperation in 1998, Palestinian processed agricultural products suffer from the unavailability of quality controls. They are identified as having low standards compared to the requirements (i.e. ISO 9000) and lack consumer confidence. Moreover, while local agricultural inputs are available, direct imports of inputs (i.e. packing materials, additives and coloring) from other countries suffer from the general constraints affecting Palestinian trade.

MAIN CONSTRAINTS IMPOSED ON PALESTINIAN

AGRICULTURAL TRADE

Constraints facing plant production1- Inadequate direct export facilities

2- Incompetitive and weak agro-processing

industry

3- Instable prices in the domestic markets

4- Long marketing channels

5- Frequent surpluses

6- Inadequate services of precooling, grading,

export packaging, cold storage and trucks.

Constraints facing the livestock sector 1- Inadequate direct import facilities

2- Inadequate slaughter houses facilities

3- Incompetitive dairy industry

4- Long marketing channels

5- Frequent shortage in output and inputs

6- Inadequate services of cold storage and cold

trucks

Restriction on imported inputs

Animal feedstuffs and fertilizers are the two major controlled inputs imported from Israel. Importing fertilizers and animal feedstuffs from abroad have been highly restricted by the Israeli authorities. For example, imports of fertilizers from Jordan and Egypt were allowed up to six thousand tons annually.

Restriction on water and land utilization:

Of all the problems affect the Palestinian agricultural sector, water is the most complex issue. Water pumping and utilization in the WBGS has long been subjected to Israeli restrictions and regulations. Israeli water policy has influenced Palestinian agricultural.

Constraints affecting trade with the rest of the world

Obstacles to imports of feedstuffs from other countries than Israel have influenced the Palestinian diary sub-sector.

Concerning exporting, Palestinian products can be exported directly without restrictions. However, Palestinian export are subjected to Israeli practices such as security measures, checks and inspections that slow and sometimes impede the free movement of agricultural goods outside the WBGS. A major consequence of these practices is that Palestinian agricultural exports reach final destination countries late or damaged, affecting the reliability and reputation of Palestinian producers in foreign markets.

SOLUTIONS FOR ALLEVIATING EXISTING

CONSTRAINTS

There are few possible options

available to Palestinian agricultural trade and food

processing industry.

Cooperation between WBGS with Jordan

The following table shows possible areas of cooperation between the

two regions

Agricultural Products

Commodity Potential

Direction

Commodity Potential

Direction

Field Crops J P Red Meat J P

Vegetables P J Poultry Meat P J

Fruits J P Eggs P J

Citrus P J Fish P J

Olive

Products

P J Milk P J

Agricultural Inputs

Input Potential Direction

Fertilizers J P

Feedingstuff J P

Capital J P

Agricultural Services

Services Potential Direction

Research J P

Credits and Loans J P

Marketing Facilities J P

Cold Storage J P

Inventions J P

Transportation J P

Trade liberalization

WBGS as well as developing countries, are net importers of food products. They face serious difficulties in their balance of payments. When the trade of WBGS liberalize the domestic market will be less isolated from the international and regional prices.

RECOMMENDATIONS

Developing of local marketing structures and management through

improving the infrastructure and marketing facilities (transportation, storage, packing, slaughterhouses, laboratories and so on).

Investment in agroprocessing enterprises

Provide the legal framework and promoting establishment of growers, exporters and commission agents associations. Such associations would help in organizing production, marketing, and exports and providing marketing information about markets, standards and products quality.

Producers and exporters associations could be utilized as an instrument for providing specialized extension services and training for

growers and exporters.

Full collaboration with the private sector associations in order to establish an effective marketing information system that helps all stakeholder involved in production, marketing, exporting, importing consumers and researchers.

Establishing a quality standard system for agricultural products and food processing industries Low quality products is one of the major problems facing Palestinian exporters especially to Europe. Several trial shipments of seedless grapes to the UK markets have failed due to the low quality of the products. Establishing such systems will change the entire marketing system and its competitiveness.

Quality assurance programs should be developed to help growers, marketers and producers to comply with grades and standards of agricultural products sold in

domestic and international markets.