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WEEKLY NEWSLETTER
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Israel
Index
Historically, agriculture has played a more important role in
Israeli national life than its economic contribution would
indicate. It has had a central place in Zionist ideology and has
been a major factor in the settlement of the country and the
absorption of new immigrants although its income-producing
importance has been minimal. As the economy has developed, the
importance of agriculture has declined even further. For example,
by 1979 agricultural output accounted for just under 6 percent of
GDP. In 1985 agricultural output accounted for 5.1 percent of GDP,
whereas manufacturing accounted for 23.4 percent.
In 1981, the year of the last agricultural census (as of 1988),
there were 43,000 farm units with an overall average size of 13.5
hectares. Of these, 19.8 percent were smaller than 1 hectare, 75.7
percent were between 1 and 9 hectares, 3.3 percent were between 10
and 49 hectares, 0.4 percent were between 50 and 190 hectares, and
0.8 percent were more than 200 hectares. Of the 380,000 hectares
under cultivation in that year, 20.8 percent was under permanent
cultivation and 79.2 percent under rotating cultivation. The farm
units also included a total of 160,000 hectares of land used for
purposes other than cultivation. In general, land was divided as
follows: forest, 5.7 percent; pasture, 40.2 percent; cultivated,
21.5 percent, and desert and all other uses, 32.6 percent.
Cultivation was based mainly in three zones: the northern coastal
plains, the hills of the interior, and the upper Jordan Valley.
Agricultural activities generally were conducted in cooperative
settlements, which fell into two principal types:
kibbutzim and
moshavim (see Glossary).
Kibbutzim often served strategic or
defensive purposes in addition to purely agricultural functions. In
the 1980s, such settlements usually engaged in mixed farming and
had some processing industry attached to them. A moshav provides
its members with credit and other services, such as marketing and
purchasing of seeds, fertilizer, pesticides, and the like. By
centralizing some essential purchases, the moshavim were able to
benefit from the advantages of size without having to adopt the
kibbutz ideology
(see
Distinctive Social Institution
, ch. 2).
The agricultural sector declined in importance from 1952 to
1985. This decline reflects the rapid development of manufacturing
and services rather than a decrease of agricultural productivity.
In fact, from 1966 through 1984, agriculture was far more
productive than industry.
Efficient use of the factors of production and the change in
their relative composition explain a significant portion of the
increased productivity in the agricultural sector. From 1955 to
1983, the agricultural sector cut back on employed persons and
increased the use of water, fertilizer, and pesticides, leading to
a substantial increase in productivity. Other factors that
contributed to increased productivity included research, training,
improved crop varieties, and better organization. These changes in
factor utilization led to a twelvefold increase in the value of
agricultural production, calculated in constant prices, between
1950 and 1983.
In absolute terms, the amount of cultivated land increased from
250,000 hectares in FY 1950 to 440,000 hectares in FY 1984. Of this
total, the percentage of irrigated land increased from 15 percent
in FY 1950 (37,500 hectares) to around 54 percent in FY 1984
(237,000 hectares). The amount of water used for agricultural
purposes increased from 332 million cubic meters in FY 1950 to 1.2
billion cubic meters in FY 1984.
The most dramatic change over this period was the reduction in
the agricultural labor force. Whereas the number of workers
employed in agriculture in the early 1950s reached about 100,000,
or 17.4 percent of the civilian labor force, by 1986 it had dropped
to 70,000, or 5.3 percent of the civilian labor force.
Agriculture has benefited from high capital inputs and careful
development, making full use of available technology over a long
period. Specialization in certain profitable export crops, in turn,
has generated more funds for investment in agricultural production
and processing, as has the development of sophisticated marketing
mechanisms. In particular, Israel has had success in exporting
citrus fruit, eggs, vegetables, poultry, and melons (see
table 9,
Appendix A).
Another factor important in Israel's agricultural development
has been the sector's impressive performance in foreign trade. The
rapid growth of agricultural exports was accompanied by a general
increase in total exports. Between 1950 and 1983, a prominent
development was the decline (by 65 percent) in the importance of
citrus fruit exports in relation to total raw agricultural exports.
This decrease was more than balanced by the increase in importance
of processed agricultural products, whose exports increased by
4,000 percent over the same period.
Data as of December 1988
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