Lieberman's Agricultural Reform: Can it Deprive Farmers of Work and Weaken Israel's Security?

Israel's Minister of Finance wants to reduce the price of a number of vegetables and fruits by opening the country up to competition, but his attempts are already angering local farmers, who say it will be the final nail in the coffin of Israeli agriculture.

After only two months in office, Israel's Finance Minister Avigdor Lieberman is already planning a series of reforms that allegedly aim to improve the lives of ordinary Israelis.

One of these is the decision to open the Israeli market to competition and decrease regulations on imported products such as eggs, garlic, asparagus, pineapples and a number of other fruits and vegetables, a move that's designed to eventually bring prices down.

Prices Up in the Air

The high cost of basic products has long been an issue in Israel, and the Israeli press has published a number of reports comparing prices in the country with prices elsewhere in the world. 

The press compared several products for sale in Israel and the UK, noting that Israelis were forking out $4.6 per kg of cherry tomatoes produced in Israel, whereas in London that same product would only cost customers $1.49.

Similarly, pears, bananas and avocados in Israel would cost slightly more than $3, $2.7 and $18 per kg, whereas in London consumers would need to pay $1.5, $2.3 and $3.4, respectively. 

One reason for the high prices is the desire among Israelis to consume produce that doesn't grow in Israel and that is thus more expensive, rather than traditional goods which cost less.

Another reason is the urge among Israelis to buy agricultural produce year-round, which pushes farmers to use pricey techniques that enable them to collect the harvest twice per year. The expensive production process involves growing produce in desert conditions, employing foreign workers and transporting goods to local markets.

But Uri Alon, an Israeli farmer who has been involved in agriculture since the 1980s, says the main reason for the high prices is the retail chains and the revenues they are trying to make.

"Israel's retail chains hold the monopoly over prices on products. So it doesn't matter how cheap farmers sell their produce for, supermarkets will continue to overcharge to make sure that their profits are not hurt," he said.

This is why Alon believes Lieberman's reform will not change much on the ground, and Israelis will not feel any relief in their pockets. What it will do, however, is drive Israeli agriculture to the brink of extinction. 

On a Verge

Throughout the years, Israeli farmers have been facing a number of problems, which have driven some of them to quit the sector. In the south, they face the constant threat of incendiary balloons from the Gaza Strip as well as periodic missile attacks. In the north, their activity has been threatened by the escalation of tensions with Hezbollah. In the Jordan Valley, they have been dealing with excessive theft. 

Now, if Lieberman's reform is passed, many more are expected to both literally and figuratively leave the field and try their luck elsewhere.

But that, says Alon, will create an even bigger problem -- one of food security. 

"Our agriculture is not located in the centre, but rather on the periphery, next to the Gaza Strip, in the West Bank and near Lebanon. If farmers lose their jobs there, they will leave and the result is that our borders will be exposed."

In a way, it is already happening in Israel's south, where the state is struggling to provide security to its citizens, who are often threatened by Bedouin gangs. But Alon says the situation might spiral out of control even more, if farmers end up leaving.

Compromise Needed

But the real problem, according to Alon, is that Israeli politicians are "not thinking straight".  Nor do they understand the repercussions of their actions.

"They (politicians) are not stupid. But they are acting out of populism. They genuinely think opening the country up to competition will reduce prices. But it won't. They need to think things through."

Many farmers have already made their voices heard, and since the intention to pass the reform was announced, hundreds have taken to the streets to vent their anger at the government. 

They’re demanding that Lieberman call off his plans. But Alon is certain that a compromise will be needed. This is why he is suggesting a number of measures to tackle the crisis.

One of these is allowing exports from other states during off-seasons, when Israeli produce is expensive. Another is tackling the retail chains that spiral the prices up, or creating a market for second-class quality products that would be sold at more affordable prices.

But no matter what the solution is, he says, they should not rush it, and they should also make sure that all changes that will be taking place are coordinated with the farmers.

"Politicians need to work together with us, if they want to make changes. The pressure we are putting is working and the public is on our side. So I doubt this reform will pass the way it is presented now."