www.agriquality.net AgriQuality, a consultancy and Agro-projects'-integration office, located in Omer, Israel. Shafrir Godel (CEO) offers a very deep understanding of and familiarity with the Israeli agricultural sector. In his work, he is focusing on international agro-business and rural development; Godel and his staff at AgriQuality, supports their customers throughout the developing of their own business, local or international. Being active in the agriculture sector in the last 25 years, Shafrir has developed a wide, tight and affective business networking to be used on an everyday basis for better planning and executing of new ventures. Under Shafrir's leadership Agriquality provides consultancy and managements services to farmers and agro-companies in Israel and in various countries, growing conditions and deferent business atmosphere. Agriquality address economic, marketing, operational and agronomic questions and offers professional solutions and value adding to our customers Among Shafrir's clients one can find few offices of the Israeli government, rural municipalities, farmers and agribusiness' companies in Israel, India and several European countries. Shafrir has participate in few rural development projects in the arid south of Israel and gain a precious experience in implementing government intentions and budget for the benefits of his customers in the regions he was working in. During the years shafrir has participate in in strategic decision and procedures taken by Agriquality's clients. He is involved with customer's dilemmas regarding deferent aspects of the value chain; starting up with an idea, planning, investment and fund raising, operational, agronomical and marketing aspects.

1. The Israeli Agri-business story
A story of entrepreneurship
East Africa Agriculture Value Chain
Investment Summit, Kampala
Shafrir Godel
December 4th , 2012

2. Introduction
Personal point of view based on my experience and
interviews. A collection of perspectives of different
professionals in the industry
Thanks to:
Prof. Yiftach Ben-Asher Ben Gurion University of the
Negev, Dr. Arie Regev Foreign Relations Department
,Ministry of agriculture, Mr. Haim Alush founder & CEO of
Mashov Group, Mr. Hagai Ofek founder & CEO - Bar Or
Economic Development, Mrs. Zohar Dvir founder and CO-
GM of Shiluvim, Mr. Mishi Salomon Agribusiness
consultant
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3. Our agenda for today
• Shafrir Godel? Agriquality?
• Israel – short introduction
• Israel agriculture figures and numbers
• Characterizing Israel’s agriculture's success
• Governmental and public involvement as Israel Developed
• Water and irrigation story
• Market’s story - who will buy the produce?
• R&D and extension services story .
• Trends of today
• What’s in it for East Africa
• Open discussion, questions and answers

4. Israel – generally speaking
• The state of Israel was established in 1948 after WW2
following earlier UN declaration of dividing Israel into
two states.
• Population - 7,794,900.
• Largest city: Jerusalem.
• Israel borders with 4 countries: Lebanon, Syria, Jordan
and Egypt.
• Population composed of 76% Jews , 17% Muslims, 7%
other minorities.
• GDP- $243 Billion (2012 est.)
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5. 5 www.agriquality.net

6. 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.
Number of startups by 2009 is 3,850 with over
70,000 employed
• 450 different foreign media organizations operate
in Israel.
• 63% of the GNP involves international trading –
one of the highest in the world.
• Global financial crisis 2008 - Israel survived the
crisis better than other countries in the world
economy.
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7. Israel and the 2008 World Financial
Crisis
2008 2009
OECD Eurozone Israel OECD Eurozone Israel
Growth 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 GDP
Public expenditure value in
41.4% 46.9% 42.7% 44.8% 50.7% 42.7%
the growth rate
Public debt as a percentage
78.4% 73.2% 76.8% 90% 81.8% 79.4%
of the growth rate

8. What is in common?
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9. 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
9 www.agriquality.net

10. Wastewater Treatment
• Water shortage, contamination of water
resources and intensive irrigation in agriculture
are the main reasons for putting wastewater
treatment and reuse of water 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.

11. 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…

12. Iron Dome
• The Iron Dome was developed by the Israeli
company- Rafael.
• It is one of kind solution
• By November 2012 it has intercepted
hundreds of rockets launched towards Israel.

16. Uganda- Generally speaking
• Area
241,040 km2
• Arable land (percentage of total area)
22.8%
• Irrigated land
9,150 ha

17. Agri is our culture
• During the last 50 years, the agriculture
production multiplied 10 times and at the same
time the use of water and the need for labor was
reduced.
• Using advanced technology, Israeli growers hold
some productivity world records (diary farms,
cotton, olives and more)
• The agro industries in Israel are export-oriented
and are willing to share their knowledge abroad.
• Many of the Israeli-origin firms are now global
companies owned by new owners.

20. National Challenges along the years
1970 until
End of the
Up until the the
Mid 80’s 1980’s and
1970’s. beginning of
onward
the 80’s
• Feeding the • Developing • Developing niche • ‫ניהול חוות גדולות‬
population, international markets. Losing ‫– יבול של משק‬
security and markets for main crops’ ‫אחד לבדו יכול‬
employment up treatment of markets to ‫להציף את השוק‬
until the 1970’s. output surpluses competitors part of the
caused by around the global effort to
inhabitants globe. locate new
scattering policy energy and food
and government ‫הישראלי. השקעה‬
support. ‫בשטחי גידול‬
‫בחו"ל‬

21. Public responsibility
the government story
• Infrastructure and land development - When a
farmer gets a new plot, he will get the water and
the road to the plot’s edge
• Water resources development and water
distribution. In September 2012 water quota for
agriculture has risen.
• Implemental R&D and extension services are
available to the farmer.
• Marketing infrastructure was built by
governmental company and the Ministry of
Agriculture.

22. Israel’s agriculture - a water story
• Chronic scarcity
• Rainfall fluctuates and is poorly distributed
• Almost all yearly rainfall within a period of 3
months.
• Frequent drought spells
• Moving from north to south, the precipitation
drops by 2mm every Km

25. Israel’s agriculture - a water history
• Non irrigated agriculture, winter crops grown
in the north of Israel.
• Beginning of floods irrigation, Gravitation
30’s to 50’s
• Introduction of sprinklers’ pressured irrigation
50’s 60’s
• Drip irrigation – Fertigation and irrigation
controller mid 60’s
• Customized irrigation.

31. Who is the customer?
“You do not plant before you know who is the
buyer, what is the final destination of the crop
and how will it get there”.

32. Out of the streets into the
supermarkets’ shelf
• From streets, markets and venders to
European supermarket shelves.
• From peasant to farmer
• Innovation: new varieties new packages
• Post harvest treatment
• Transportation and logistic

34. What is carrot?

35. Where are we going to….

39. Key success factors
• The need
• Availability of land and water
• Access to High End export markets that can pay
for big investments in R & D and infrastructure.
• Cooperativeness
– Agrexco
– R & D Close and open relationship along the value
chain
• Governmental involvement
• Innovation and Excellence
• Founds

42. Then and today
• The cooperative structures of the agriculture
in Israel has weekend
• Israel do import fresh produce, not only grain.
Entering the OECD supports that trend.
• Israeli agricultural is moving from the center
of Israel to the arid southern regions.
• The size of farm unit has grown significantly.

43. The need to feed
We will need a solution that is based on:
• Mainly Increasing productivities of existing
land and water resources, but also developing
new lands for agriculture.
• The world is experiencing now what Israel has
been experiencing for a long time: the need to
feed its population from limited waters and
land resources and under home land security
restrictions.
• Israel has a lot to offer to the global efforts.

44. What’s in it for East Africa
• Government involvement is crucial
• We need Patience
• Goals shifting
• Flexibility and Adjustment for relevant time
and “neighborhood”

47. Questions from the president lecture
• What has worked and what hasn’t worked
historically?
• What is needed in order to capture a higher
degree of value added locally?
• International brands vs. local producers
• Should the focus be on the local market or the
export markets?

48. Thanks
www.agriquality.net

49. 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
• Israel water authority - http://water.gov.il/hebrew/Pages/home.aspx
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