Page B8-The Canadian Jewish News, Thursday, December 21, 1989
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We wish all our customers & friends a VERY HAPPY & HEALTHY CHANUKAH
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ourish
TEL AVIV (IPPA) -
A warm pleasant breeze gently ruffled the Israeli "-riierchmir'TTavy flag" on board the refrigerated cargo ship, the Avocado Car-mel. The ship, newly . painted, was tied up along "the 'quay in Ashdod doclc : while, being loaded with 2,000 tons of the n6wsea-. son's^agricultural produce. This was to be the first shipment for Israel's Agricultural Export Company, Agrexco, for the season 1989/90.
This particular mixed cargo was destined for the French port of Marseille and from there Agrexco would distribute the produce all over Europe by road."We have high hopes for this season, espeGially after the previous two sea-sonSj," . says: Agrexco's managing director, Dan Zimche. He was referring "^0-the~iimrsually' b^-.weather which had destroyed a major part of the Country's avocado crop, avocado being Agrexco*s largest single export item. It seemed more than jiist oyer 30 years ago when Agrexco exported a small shipment of potatoes and gladioli as its first venture into foreign trade under the name of 'Car-niel.'Today the Carmel label is seen in supermarket shelves all over Europe and North America;
After the foundation of the State in 1948, agricul- . tural settlements were • formed all oVer the country. . Surpluses of fresh agrrcul-. tural produce made the es-^blishment of a central, forward looking selling or-
ganization a,necessity. So Agrexco was formed, joint-ly owned by the government and the producers; It was to be a non-profit mar-. . keting organization, but operating on a commercial basis.
Now, about 14,000 farm- . ers supply Agrexco. Some
of the Agrexco members have individual contracts, while the kibbutzim have a collective arrangement. Everything that is non-citrus is marketed by Agrexco, including flowers.
All citrus products are marketed by the Citrus Marketing Board of Israel, CMBI. The CMBI was established even before the foundation of the state. The trade mark of Jaffa has always been associated with the best quality citrus fruits and has set a standard of excellence that other countries' citrus products were measured by.
While the CMBI and Agrexco have a lot in common, they operate separately. "We do not always sell" our citrus products to the same buy^ ers as Agrexco," explains Reuven Andorn, the CMBI's economic advisor. "Although we do sometimes ship in each others vessels, the two boards have different needs, because of the products' nature, logistics and marketing requirements. We hope to export this year about 450,000 tons of citrus, mainly to Europe, with a fob value of about $160 million."
Agrexco will export about 200,000 tons of non-citrus for a fob value of about $300 million. The CMBI operates with its growers a flexible policy that will aissure an uninter-. rupted flow of produce in both variety and size. "You see," says Andorn, '.'it-is. only by having all the growers selling together that you can guarantee continuity of, supply and not let the customer down. Individually the single grower could not sellhis product successfully abroad, apart from.any-thing else it would be too expensive.."
JBoth boards were hit very -hard in May 1988 when a
Israeli researcher with the Divine Ripe Tomato, the longest shelf life tomato in the world.
heatwave caused untold damage to crops. If this was not enough, in February 1989 one of the hardest frost in years caused more loss of exports. Large buyers, such as Marks and "Spencer, Sainsbury and Tesco in the United Kingdom, place their order for a full season and expect the right goods at the right time. Everything must be done to ensure that the produce arrives at the consumer in the best possible condition. .
The 'road' to the supermarket shelves is along one for Israeli produce. On average the route is about 3,000 kilometres. Israel's competitors, wholare nearer to the European markets have a big advantage in transportation costs, which -are the CMBI's and Agrexco's largest single expense. : This- gives an important edge on price for the two boards competitors.
_-Although historically
the two boards have developed along their own lines, the future independence of each board must be put into question. This is not because the boards do not function properly, but because the buyers are getting corporately larger
every year and only a fully integrated selling organization willbe able to compete in such a competitive market.
The three "Ps"-planting, picking and packing, are perhaps the key to the country's success in export markets. The planting of a large- range of products, many of them new improved hybrid varieties, to cater for the local taste of the consumer. The picking of the fruit, at exactly the right time, so that.it arrives in the shop at its very best.
Finally, the packing. This last function has involved both boards in very expensive and detailed" research into specially developed plastic wrappihjgs to protect the produce. New technology in paper, rubber and. resins has also played a part.
Agrexco has an annual budget of $15 million alone. ju.st for packing. Effective packing can extend the shelf life and reduce spoilage. It. also means' better tastiiig fruit and vegetables at lower cost to the consumer and higher returns' to the grower. V
An example- is with avocado, which, with new
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packing, has a spoilage rate from a vciy hefty .10 per cent to under 1 per cent.
At all stages of picking and packing the boards' inspectors make rigorous random sample inspections. With growers only identified by a number, unknown to the inspector, the produce is inspected once again at the sea or airport, when growers may receive bonus payments for higher than usiial quality. This payment may reach as high as 30 per cent above the average price of the product, and acts as a strong incentive for the farmer to produce superior goods.
The CMBI's citrus products are almost entirely .sent by sea. Modern packing technology and thfe nature of the citrus product ■ allows a good margin of time to enable the produce • to be sent by more econoni-.ical means and still arrive at its destination in plenty of time to be distributed and still have: good shelf life. . Both boards are always encouraging the growers to try new hybrids that will tempt the palate of the consumer. The CMBI tries to develop sweeter citrus varieties. A fafrly new hybrid derived/rom pomelo and grapefruit, called sweetie, is an example of this new fruit variety that the board hopes will sell very well in the
future. .....':•
Agrexco, apart from the exports of the more 'conventional ' produce such as avocados tomatoes, eggplants and melons, is developing exotic fruit and ■ vegetables, as well as enter-' ingthe market with organically grown produce. Agrexco plans to send 750 million flowers abroad this season, roses being the sin-, gle largest variety: v ■
1992 will.see the final . stage of the single market European Economic Conir munity and this will provide Agrexco and the CMBI with their biggest challenge as Europeis at present the biggest customer. The Eu-.ropean countries jyill want to protect their own growers. Prcxlucers outside the EEC. who have up to now regarded Europe as their niainexport consumer, v/ijl' have to tackle the new tariff . quotes, preferences and competition, L.. ' ■
Both organizations, are optimistic about this new challenge.