Israel Must Balance Import Reforms With Food Security, Says Industry Chief
Aviv Hatzbani warns that Israel cannot produce all its food over the next 20 years and urges responsible import policies alongside stronger local industry support to ensure national food security.
Israel will not be able to produce all the food required for its citizens over the next two decades, and the state must adopt a responsible import policy to secure its supply chains, according to Aviv Hatzbani, head of the Food Industries Association.
Speaking at the annual conference in New York, Hatzbani addressed the high cost of living in Israel and emphasized that the local food industry serves as a vital strategic and security asset. When asked why food prices remain so elevated, he pointed to overarching government costs and a difficult business environment rather than industry failure. Over the past 15 years, successive government reforms aimed at lowering prices through increased imports have failed to improve the underlying business conditions for local manufacturers.
Food Security and Local Production
Today, approximately 75% of packaged food consumed in Israel is produced domestically. Hatzbani warned that if aggressive import policies reduce local manufacturing to just 30%, the domestic industry will no longer be able to guarantee national food security during severe crises.
Highlighting the resilience demonstrated during the COVID-19 pandemic, the Russia-Ukraine war, and the ongoing conflict sparked on October 7, Hatzbani noted that local food plants in Sderot, Kiryat Shmona, and Netivot continued operations despite immense security challenges. 'Our factories opened their gates, brought in employees alongside soldiers, and kept the shelves full,' he said. While maritime disruptions such as Houthi threats in the Red Sea complicate logistics, alternative overland routes through Jordan remain viable, albeit more costly.
Reforming the Business Environment
Addressing government support, Hatzbani pointed out that agricultural subsidies in Israel are close to zero, whereas farmers in the USA and the European Union receive direct subsidies ranging from 35% to 50%. He argued that cutting import tariffs without providing direct financial backing to local farmers creates an uneven playing field.
Looking ahead, Israel has formulated a national food security strategy for the next 25 years in collaboration with government ministries and the private sector. Since Israel cannot produce all its raw materials—such as wheat, historically sourced heavily from Russia and Ukraine—the country must diversify its supplier base globally, partnering with nations like the USA and India to hedge against supply chain risks.
