Israeli Food Companies Reeling From European Economic Downturn

Israeli food exports to Europe have been hard hit by the European economic crisis in the last year and plagued by the shrinking value of the Euro. Mazon, Israel’s on line food industry news site reports that EU countries purchase some 72 percent of Israel’s produce exports so that the deteriorating Euro has caused profits to decline to the point where some farmers actually suffered losses. The website reports that 48 percent of Israel’s overall food exports go to EU countries and North America represents about 25 percent of the sales.

In 2009, following nine years of constant growth in exports, there was an 18 percent decline in sales. However, data from the Israel Export Institute finds that 2010 is showing some recovery as first quarter sales to the EU are up four percent. According to sources in Israel, many Israeli food companies will be looking to the US market to replace losses from the EU.

{Lubicom Kosher/Matzav.com}