The Israeli Business story A story of entrepreneurship Shafrir Godel September 7th, 20121
Introduction This meeting is about understanding and collaborating with Israeli agro-business sector. it is based on my personal experiences and some bibliography and reading.2
Our agenda for today• Shafrir Godel? Agriquality?• Changes in agricultures world• Israel – short introduction• Israel agriculture figures and numbers• India & Israel - trade statistic• Indian potential for collaboration with Israeli companies• Open discussion questions and answers
Changes in word agriculture map Dramatic changes in world agriculture During last decade• Rapid economic grows in the part of the world counties alongside with a sharp increase in standard of leaving and consumption, India and china – 1/3 of the world’s population• Sevier climate changes as result of global worming harm many traditional agricultural regions.• Use of agriculture production means for bio-fuel production.• Development of populated city areas into agricultural lands.
… as a results of the changes• Significant drop in agricultural commodities reserves around the globe.• Prices has gone up.• Increasing pressure on water and land resources.• Increasing usage of technologies and chemicals.
The need to feedMainly Increasing productivities of existing landand water resources but also developing of newlands for agriculture.The world is experiencing now what Israel isexperiencing for long time; the need to feed itspopulation from a limited water and landresources and under home land securityrestrictions.Israel has a lot to offer to the global efforts.
Israel – generally speaking • The state of Israel was established in 1948 after WW2 following earlier UN declaration of dividing Israel into two states. • Population - 7,881,000. • largest city: Jerusalem. • Israel borders with 4 countries: Lebanon, Syria, Jordan and Egypt. • Population composes 76% Jews , 17% Muslims, 7% other minorities.7
Israel – generally speaking • Israel has the largest number of Startup companies in proportion to the population, in comparison to any other country in the world. • 450 different foreign media organizations work in Israel.9
Numbers & Figures• Israel owns many international trade agreements with several countries, including the EU and in advanced process for making one with India.• GDP- $201.0 Billion (2010 est.)• Number of startups by 2009 is 3,850 with over 70,000 employed• 63% of the GNP involves international trading – a world record• Global financial crisis 2008 - Israel survived the crisis better than other countries in the world economy.10
Israel and the 2008 World Financial Crisis 2008 2009 OECD Eurozone Israel OECD Eurozone IsraelGrowth Rate 0.6% 0.5% 4% -3.5% -4% 0.7%Unemployment Rate 5.9% 7.5% 6.1% 8.2% 9.4% 7.6%Rate of Inflation 3.6% 3.3% 3.8% 0.5% 0.2% 3.9%The Current Account as a -1.6% 0.8% 0.7% -0.9% -0.6% 3.7%percentage of GDPPublic expenditure value in 41.4% 46.9% 42.7% 44.8% 50.7% 42.7%the growth ratePublic debt as a percentage 78.4% 73.2% 76.8% 90% 81.8% 79.4%of the growth rate
Leading economical sectors in Israel Hi-tech Army Water Agriculture R&D centers: Army, Water Agriculture Microsoft, IBM, homeland treatments and Intel, Motorola, security (Elbit, distribution, CISCO, ECI, Digital, IAI), security irrigation Dell, AMD, Google, EMC2, NDS, Jive Software12
Disk on Key• In April 1999 a patent was filed by the Israeli company “M-Systems” under the name “Disk on Key”.• IBM was the first to market the “Disk on Key” on December 2000 with a storage capacity of 8MB.• Around the world, this technology is commonly known as USB Flash Driver• Mobile, compact, easy to use, rewritable.• Replaced the floppy-disks and CD-ROMs• In 2006 M-systems was emerged with Sundisk
Wastewater Treatment• Water shortage, contamination of water resources and intensive irrigation in agriculture are the main reasons for putting wastewater treatment and reuse of woter high on Israel’s list of national priorities.• In 2009, 388 MCM of effluents were produced in Israel.• Nowadays, over 85% of the sewage water in Israel are destined for agriculture. Spain is next in line and recycling 20% of the water amount.
Drip Irrigation• Netafim, founded in 1965 pioneered the idea of drip irrigation, a process that virtually eliminates water waste in agricultural irrigation and became an innovative idea to the world.• The most economic way to use water.• Today, Netafim is a global company. It owns 13 factories located at 11 countries, over 30 Subsidiaries and representatives in about 110 countries around the world.• As a result of Netafim’s breakthrough , a few major irrigation companies joined the market: – Naan Dan merged with the Indian Jain irrigation systems in 2007 and now spread around the world in over 100 countries. – Metzerplas – Plastro Gevet – purchased by John Deere in 2007 – And others…
Iron Dome• The Iron Dome was developed by the Israeli company- Rafael.• The system identifies with a special radar, short-range rocket transmitted within the distance of 4-70 kilometers, intercept and destroy it.• By April 2012 it has intercepted 93 rockets launched towards Israel.
Agri is our culture• During last 50 years, the agriculture production has risen 10 time fold and at the same time reducing the use of water and the need for labor.• Using advanced technology, Israeli growers holds some productivity world records (diary farms, cotton, olives and more)• The agro industries in Israel are export oriented and willing to share the their knowledge abroad.• Many of the Israeli origin firms are now global companies owned by new owners.
“It is not because we are smarter. It is because we need it more” Nathan Barak, Netafim. “…they know everything… I only teach to doubt their traditional methods and change their habits”. Israeli Agro projects’ manager, talking about his customers abroad.56
Israel and India – The Resemblance • Both countries are open and free democracies that embrace modernity and progress whilst preserving their ancient heritage and history • Both countries also face a large number of threats and difficulties ranging from the scourge of terrorism to water and energy scarcity.57
Import and Export Main sections of Israeli export Main sections of Indian to India export to Israel raw diamonds polished 5% and precious diamonds and 8% stones 5% 16% precious stones chemical chemical products products15% machinery 6% transport 53% equipment 59% 14% 19% optical, medical & textiles & textile other equipment articles other other Total Israeli export to India - $2.97 billion Total Indian export to Israel - $2.1 billion58
Israel and India – The Ties • This year, 2012, Israel and India have celebrated 20 years of diplomatic relations. • By 2011, the annual civilian trade between the two countries had expanded to surpass $5 billion. • A treaty containing three-year work plan for cooperation in the field of agriculture was signed. • In the last few years, Israel has emerged as the second largest defence supplier to India after Russia, and following the 2008 Mumbai attacks, Israel has become a major player in the homeland security arena too.59
?Where to begin • Agriquality- – www.agriquality.net – firstname.lastname@example.org – 972-8-6901690 – Shafrir godel • Mr. Elad Goz- Delhi email@example.com • Mr. Mouneer Agbariya - Economic Counselor firstname.lastname@example.org • Elad Gafni- Mumbai email@example.com • Indian embassy to Israel60
Readings and bibliography • Senor, Dan and Soul Singer START-UP NATION, The Story of Israel’s Economic Miracle. USA 2009. • Carrison, Dan. Business Under Fire. New York: Amacom, 2005. • Preiss, Kenneth, Steven L. Goldman, and Roger N. Nagel. Cooperate to Compete: Building Agile Business Relationships. New York: VNR, 1996. • Israel Ministry of Finance- www.financeisrael.mof.gov.il/ • Israel Ministry of Industry, Trade and Labor - www.moital.gov.il • Central Bureau of Statistics- www.cbs.gov.il • Israel ministry of Foreign affairs- www.mfa.gov.il • The Knesset- www.knesset.gov.il • Bank of Israel - www.bankisrael.gov.il • Ministry of environmental protection- www.sviva.gov.il • Embassy Of Israel In India- http://embassies.gov.il/delhi • Ministry of industry- Israels Investment Promotion Center- http://www.investinisrael.gov.il • Israel water authority - http://water.gov.il/hebrew/Pages/home.aspx61