In Israel, mango and avocado cultivation is on an upward trend, increasing the need for sorting and packaging facilities. "We currently use our largest packing plant only for citrus, and in the spring we'll install a new optical sorting line for round mango and avocado varieties," begins Ayelet Shuer, Bustan Fruit’s manager.
Ayelet Shuer
Ayelet estimates that Israel's total mango production for next season at between 70,000 and 80,000 tons.
FAOSTAT figures show that, in 2020, yields were still just under 35.000 tons, 15.000 of which was destined for overseas markets. "Avocado cultivation, too, will be double or triple in a few years from a few years ago. So we need more packing plants in the country to streamline marketing and exports," Ayelet explains.
In 2020, 147,000 tons of avocados were harvested in Israel, of which just under 37,000 tons were exported. That is according to the United Nations Food and Agriculture Organization's statistics office. Since Israel is self-sufficient in both fruits, imports are virtually zero.
Mangoes and avocados fill gaps
Bustan Fruit plans to employ product diversification to keep its packaging facilities running year-round. Citrus seasons used to be longer, but with Sweeties and white grapefruit export market demand declining, avocado and mango processing is filling that gap.
"White grapefruit consumption has declined a bit in recent years. People used to eat these leisurely, often cutting them in half, sprinkling them with sugar, and spooning the segments out. But, consumption habits change - as for instance people preferring the convenience of easy peelers. Children will invariably choose a mandarin over a grapefruit. Avocado is highly regarded as a “”power food”” in the health industry, and mangoes remain wildly popular demand."
Global labor shortage
The new optical sorter has also addressed the ever-tougher search for workers. "A palletizer will also take over the work of people in our packing plant. Staff is not only hard to find and train, and wages have increased substantially as expected by the basic economic law of supply and demand,” says Ms Shuer. When she started working at the packing station 12 years ago, the highest cost was packaging materials, then personnel. "Today labor is the number one cost item. During the peak season, we need about 70 employees here, 35 at our second facility, and about 20 at a smaller plant where we pack sweet corn. With the new optical sorter, we'll need about 15 fewer people."
Orange exports
Ayelet also cites oranges and the competition from Egypt as an example. We cannot compete with our neighboring country's low production costs. The minimum wage in Israel is about €1,500; in Egypt, it's much lower." A comparative study of orange exports between Israel and Egypt clearly shows the diametrically opposite trends in these two countries over the past 50 years. In the 1970s, Israel still exported an average of 600,000 tons of oranges.
For Egypt, that was around 150,000 tons. Since the 1980s, however, things have gradually gone downhill for Israel. In 2012, it still shipped just under 45,000 tons, but in 2020 that was a symbolic 2,000 tons. Egypt had its ups and downs in the last century and the early years of this century. However, from 2007, when it still only shipped 270,000 tons of oranges abroad, that country gained significant ground each year and clocked in at nearly 1.5 million tons in 2020, FAOSTAT figures show.
These are undoubtedly challenging times for Israel's fruit-growing sector. "There's not only competition from developing countries and the problem of higher wages in Israel. The exchange rate isn't helping, either. The shekel-euro is not currently favourable for us and our growers to achieve the most competitive selling prices on the international market. Today we are selling at prices to meet market conditions and it is still a bit higher than desired. And to justify high prices on the European market, products must be of outstanding quality. Thus, we must stick close to our growers in these times so they keep focused. That, too, is part of our job," Ayelet concludes. “Israeli fruits are associated with with top quality as a brand and we will maintain that above all.”
For more information:
Ayelet Shuer (manager)
Bustan Fruit
Beit Shan 11710 (Israel)
Tel: +972 460 65 658
Tel: +972 507 523 189
Email: [email protected]