Government officials have been informed of a potential food shortage that could leave grocery and supermarket shelves partly empty in the coming months, as the ongoing war between Israeli forces and Hamas continues to push forward, and new geopolitical threats in the Red Sea place supply chains under increasing pressure.
During a meeting in December 2023, the Food Industries Association of Israel (FIAI) warned that the conflict between Hamas in Gaza, and the increasing tension with Houthi terrorists along the Bab al-Mandab Strait could place Israel’s food security in dangerous territory.
The current president of the Manufacturers' Association of Israel (MAI), Dr. Ron Tomer, and Chairman of the FIAI, Dodi Manevich have appealed that the appropriate government agencies and committees hold an emergency discussion regarding Israel’s food security and emergency stockpiles.
New challenges pose a threat to Israel’s food security
Both the FIAI and MAI have called on government officials to ensure that Israel’s food production continues to hold a steady pace and not fall below 75% of the country’s total food and agricultural needs.
The country’s production arteries have been stretched to their limits in recent months, with approximately 90% of Israel’s food production facilities located in or near conflict zones in both the north and south of the country, according to FIAI.
Roughly 40% of Israel’s deciduous and sub-tropical fruits grow in the north. More worrisome, the Ministry of Agriculture fears that there could soon be an egg and poultry shortage in the coming months, seeing as roughly half of the country’s total egg and production are located within 5k of the Lebanese border, according to TheMarker daily business newspaper.
The Ministry has since opened new import quotas of roughly 50 million eggs in response to depleting resources.
Elsewhere in the south, Ynetnews has reported that dairy farming and production facilities have seen decreasing output over recent months due to the ongoing war in Gaza.
While some facilities continue to operate despite the bombardment coming from either Lebanon in the north or Gaza in the south, many employees have been evacuated to remote areas. Production continues at a seemingly stagnant pace.
Many Israeli employees have been called up to serve in the reserves. On top of that, Israeli farms relied heavily on foreign laborers, mostly from Southeast Asia, who have largely returned to their native countries since the war began. Additionally, after Palestinian Arab workers working in Israel were found to have supplied intelligence to Hamas terrorists, Israel has wisely suspended almost all entry of Palestinian Arab workers over the Green Line.
Moreover, months of war in Gaza have now seen new threats beginning to emerge in the Red Sea, with Yemen’s Iran-allied Houthi terrorists vowing to attack ships bound for Israel in “support of Palestine”. The Houthi terrorists have been launching drones and missiles on commercial vessels passing through the Red Sea.
Freight companies have since begun rerouting vessels towards the Cape of Good Hope, South Africa, in an attempt to avoid passing through the Red Sea and the Suez Canal. Overland routes have been tried as well.
With Israel’s agriculture and production sector grappling to deal with major headwinds being forced from each end, experts suggest that producers and manufacturers could perhaps rely on the country’s growing and innovative food-tech industry.
Looking towards tech for solutions
Despite the continuous uncertainty, some believe that the country’s food-technology sector could provide the government with near and long-term solutions if the war continues to disrupt production and supply chains.
Development in the sector of alternative protein production continues to experience new opportunities following a banner few years of growth. The alternative protein category has managed to raise more than $1 billion in venture capital investments between 2022 and 2023, according to a report by the Israeli Good Food Institute.
Although the alternative protein industry experienced some disruptions in recent months, some suggest that the sector could push beyond current delays. One report showed that in 2022, Israel ranked second globally, only after the United States for fermentation and plant-based investments, with roughly 18% and 16% of total global investment in the sector, respectively.
Two of the biggest contenders in the alternative protein market at the moment are Aleph Farms and Oshi, both of whom have developed and launched synthetically produced meat and fish products in recent years.
Aside from alternative protein production and development, other Israeli-based technology companies have made new strides in further improving food safety and shelf-life for consumers.
Prevera, an Asbod-based company has for years been developing new mixtures of natural amino acids, aiming to deliver an antimicrobial protein that can help protect food against potential pathogens and other threats. Prevera formulas could become a vital solution for Israel’s food supply chain, as fresh produce and products could take longer to reach the end consumer without spoiling if new disruptions emerge.
Another company that has been working to prolong the shelf life of fresh produce and fight food spoilage is LiVA, a developer of natural protein formulas that help to wane off pathogens and other bacteria. LiVA claims that their formulas can help extend the shelf life of produce and other products by up to 100% by delaying the spread of pathogens and promoting the production of good bacteria growth on products.
GreenOnyx has combined advanced technology with traditional farming methods to shorten production chains and help provide consumers access to the freshest produce possible. GreenOnyx technology will enable consumers to grow freshwater lentils - considered to be a superfood with an abundance of nutritional properties - by using a sophisticated modular system that is both ecologically friendly and provides consumers with year-round production.
Artificial Intelligence (AI) continues to be one of the most popular arenas of technology, as companies across the world are racing to develop smarter and more agile artificial technology. One such company, Tastewise, is an AI-powered platform that allows businesses in the hospitality and food industry to carefully analyze and optimize consumer market trends.
Tastewise enables businesses to provide consumers with a more personalized experience, while at the same time allowing them to improve customer satisfaction, reduce waste by only stocking items customers need, and meticulously monitor food trends in the market.
The TasteGPT platform is widely used across Israel and the rest of the world, with some of the biggest names in the industry, including Nestlé, PepsiCo, and Kraft Heinz, among others making use of Tastewise technology.
A snarling year for Israel’s tech industry
Technology remains one of Israel’s biggest, and perhaps most innovative sectors. In 2022, the high-tech sector accounted for roughly 18.1% of Israel’s Gross Domestic Product (GDP), and for nearly half - 48.3% - of the country’s total exports.
However, the war has made funding increasingly difficult for tech-based companies and startups. Last year, already, perhaps due to the Kaplan demonstrations, tech startups secured more than $6 billion in funding, less than half of the reported $16 billion raised in the year before.
Limited new funding opportunities are only one of several challenges the industry has come face to face with in recent months. Roughly 15% of technology and software workers have been called up for military reserve duty since Hamas terrorists based in Gaza attacked Israel on October 7th, 2023.
Many of the industry's brightest minds and most innovative executives have since been taken away from everyday duties as they look to join the IDF and further support Israeli military personnel. Though it’s unclear when many of these workers will return, or how long it will take until the industry fully recovers.
This year presents multiple obstacles that could derail Israel’s road toward recovery following the pandemic, several years of tumultuous global economic performance and the current war. Yet, perhaps this could be the turning point for the country, allowing us to leverage native technology and Israeli skills for a spurt in progress and growth.