Despite the call by some countries to boycott goods from Israel due to the conflict with Hamas, Israel's fresh produce business is not anticipating any serious export problems as it heads into its main supply season between September and May.

That said, exporters claim some European supermarkets are unwilling to source from Israeli-occupied territories, although that could change when supply from other sources runs dry.

"There is some concern but after the fighting stopped in Gaza and following the ceasefire, which has been extended, these concerns are fading," explains Gideon Bickel, chairman and owner of Agrexco, who turned the export firm into a private company after purchasing it from the Israeli government in November 2011.

"In general the events in Gaza occurred in July and concluded in August, and during these months exports are very small – they are based on summer items such as mangoes for example," Bickel tells www.freshfruitportal.com.

"The summer is used by the growers to organize and prepare the fields for the winter season which is the main export season for Israel. Therefore the events had a minor effect, if at all, on Israeli exports.

Oron Ziv of BeFresh, an Israeli import-export firm, agrees that the boycott is not a cause for concern as the first loads of citrus, pomegranates, red grapefruit and avocados get underway.

"Five or six years ago there was tension and it was more of a problem," he comments.

"But things have gone back to normal. In general, I don’t think it’s a major issue. Everything is quite normal at the moment."

Bellissima Europe, the European branch of Israeli importer-exporter Agro Logic Group, is also not encountering any problems with demand so far.

"From Israel we source conventional pomegranates, grapefruit, mangos, avocados and citrus as well as organic peppers, tomatoes and cucumbers, and all the supermarkets are still buying from us," notes the company's Michiel Groenewegen.

Indeed, supermarket chains who initially said they would not purchase from Israel this year have already placed their orders for the coming season, according to Bickel.

"We presume that the lack of ability to find the same good quality as from Israel helps in this matter, especially with Agrexco’s Carmel-labeled produce, which is one of the best known brands in Europe," he says.

Ziv agrees that product quality is key to maintaining sales.

"Overall, when the market is good and demand is there you won’t have a problem if you come with the right quality," he notes.

"But it’s a different story if the market is oversupplied or you don’t have the right quality."

According to some reports, Scandinavia and France are apparently two key market areas that have been unwilling to accept produce from Israel during the conflict.

To date, Bickel claims the only problem he has encountered is with Finland although he believes the situation is only temporary.

Produce from occupied territories

What is clear is that some retailers have expressed a wish not to procure produce from occupied territories.

"There are some retailers in western Europe which refuse to receive goods that are grown in the Jordan Valley and the Golan Heights but they are not willing to give up on Israeli fresh produce," Bickel says.

With that in mind, some buyers are asking for clarification that the produce they receive has not been grown in such areas.

"For some items like avocados we have to sign documents that declare our fruit is not from occupied territories," explains Eitan Zvi, sales manager at Galilee Export.

"There is noise from Scandinavia and you will find supermarkets in every country like the U.K. and Germany that don’t want to source produce from occupied territories."

Before Israel disengaged from the Gaza Strip in 2005, a considerable volume of agriculture was grown in strip settlements such as peppers and tomatoes. Today, however, the only real production is in the Jordan Valley, including peppers, dates and herbs, but volumes are now small.

"The items are really limited and I don’t think they are facing issues," Zvi points out.

"Peppers are the main crop but Israel exports 70% of its peppers to Russia, not to Europe.

"A lot of dates go to the supermarkets but the volume is limited and suppliers in occupied territories are finding a home for their products because there are a lot of open markets around the world for dates."

At the end of the day, all suppliers concur that Europe's sourcing from Israel will ultimately come down to the basic principle of supply and demand.

"As soon as produce from Spain runs out or quality deteriorates the market turns to Israel, and if you want a product like peppers in winter you will buy it from Israel," says Groenewegen at Bellissima Europe.

Furthermore, Bickel suggests that the Jordan Valley offers produce with a unique quality.

"Because of the special weather conditions in the Jordan Valley this area is considered one of the best growing areas and the quality received from there is outstanding," he notes.

"The market is based, like everything, on supply and demand so as soon as there is product missing in the market these supermarket chains are more than happy to take these items from the Jordan Valley or the Golan Heights."

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