ON THE ECONOMICS AND MARKETING OF POMEGRANATES IN ISRAEL

The history of pomegranates in Israel began thousands of years ago. Israel was one of the first countries to which the species spread from its genetic origins in the vicinity of today’s Iran. The Old Testament mentions pomegranates as one of the seven species with which the land of Israel was blessed. In Israel today, close to 3,000 hectares (ha) are planted with commercial pomegranate orchards, of which approximately 2,500 ha are in bearing. One quarter of these are fruiting for their first or second year. Production is estimated at more than 50,000 tons in 2012 and close to 60,000 tons in 2013. Over 50% of 2013 production is destined for export, 30% for the domestic fresh fruit market and 20% for industrial processing. The leading cultivar is ‘Wonderful’ (close to 70% of production); over 15% are early cultivars (‘Shani’, ‘Akko’) and less than 15% ripen in mid-season. Production economics: the initial investment per hectare in Israeli orchards amounts to approximately US$ 17,000 per hectare, including the installation of drip irrigation and a trellising system to support over 40 tons of fruit. Assuming 60% high quality fruits for export to Europe, revenue is estimated at more than US$ 35,000/ha. Net annual income (from the 5th year onward) is at least US$ 15-18,000. Return of investment requires 5-6 years and the IRR is estimated at over 40%. Without a doubt good growers earn very well. Israeli pomegranate exports have grown rapidly, tripling during the last 5 years. Almost all of the high quality addition to production has been destined for export. The promising economic results of Israeli growers make the adoption of the country’s advanced production technology and good export management system attractive to growers in many countries.