Required Report - public distribution

**Date:** 1/31/2006

**GAIN Report Number:** IS6001

IS6001

**Israel**

**Grain and Feed**

**Annual**

**2006**

**Approved by:**

![](media/image1.wmf)Asif J. Chaudhry

U.S. Embassy, Cairo

**Prepared by:**

Gilad Shachar and Fred Giles

**Report Highlights:**

Total food and feed grain imports in MY 2004 amounted to approximately
4.2 million MT (same as MY 2003), of which 2.88 million MT (69 percent)
were feed and milling grains. The U.S. market share for feed grains in
MY 2004 decreased by 67 percent compared to MY 2003 levels. Israeli
production of milling wheat in crop year 2005 totaled 180,000 MT. Wheat
production in crop year 2006 is forecast at 162,000 MT.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Tel Aviv \[IS1\]

\[IS\]

+------------------------------------------------------------+---------+
| Executive Summary                                          | Page 3  |
+------------------------------------------------------------+---------+
| PSD Table Wheat                                            | Page 4  |
+------------------------------------------------------------+---------+
| Wheat Production                                           | Page 4  |
+------------------------------------------------------------+---------+
| Table 1: Wheat Production                                  | Page 5  |
+------------------------------------------------------------+---------+
| Table 2: Wheat Disposition, by Destination, \$ Millions    | Page 5  |
+------------------------------------------------------------+---------+
| Farm Gate Price                                            | Page 5  |
+------------------------------------------------------------+---------+
| Yields                                                     | Page 6  |
+------------------------------------------------------------+---------+
| Organic Wheat                                              | Page 6  |
+------------------------------------------------------------+---------+
| Stocks                                                     | Page 6  |
+------------------------------------------------------------+---------+
| Value of Wheat Production                                  | Page 6  |
+------------------------------------------------------------+---------+
| Table 3 Agricultural and Wheat Production Value            | Page 6  |
+------------------------------------------------------------+---------+
| Production Policy                                          | Page 6  |
+------------------------------------------------------------+---------+
| Table 4 Governmental Subsidies for Local Wheat, \$         | Page 7  |
| Millions                                                   |         |
+------------------------------------------------------------+---------+
| Consumption                                                | Page 7  |
+------------------------------------------------------------+---------+
| The Palestinian Authority                                  | Page 7  |
+------------------------------------------------------------+---------+
| Black Sea Competition                                      | Page 7  |
+------------------------------------------------------------+---------+
| The Broiler & Turkey Industries                            | Page 7  |
+------------------------------------------------------------+---------+
| Table 5: Monthly Average Price for Feed Mix, \$/ton        | Page 8  |
+------------------------------------------------------------+---------+
| Table 6: Sales of Feed Mix, Thousand of Tons               | Page 8  |
|                                                            |         |
| Trade                                                      | Page 8  |
+------------------------------------------------------------+---------+
| Chart 1: Total Imports of Wheat, Value, CY                 | Page 9  |
+------------------------------------------------------------+---------+
| Table 7: Imports of Wheat, Country of Purchase, Value      | Page 9  |
+------------------------------------------------------------+---------+
| Imports Trade Matrix, Wheat                                | Page 10 |
+------------------------------------------------------------+---------+
| PSD Table Barley                                           | Page 10 |
+------------------------------------------------------------+---------+
| Barley Production                                          | Page 11 |
+------------------------------------------------------------+---------+
| Table 8: Barley Disposition, by Destination, Value, \$     | Page 11 |
| Millions                                                   |         |
+------------------------------------------------------------+---------+
| Table 9: Monthly Average Price for Bulk Grain Barley,      | Page 11 |
| \$/ton                                                     |         |
+------------------------------------------------------------+---------+
| Trade                                                      | Page 12 |
+------------------------------------------------------------+---------+
| Table 10: Imports of Barley, Country of Purchase, Value    | Page 12 |
+------------------------------------------------------------+---------+
| Import Trade Matrix, Barley                                | Page 13 |
+------------------------------------------------------------+---------+
| PSD Table Sorghum                                          | Page 13 |
+------------------------------------------------------------+---------+
| Sorghum Production, Consumption & Trade                    | Page 14 |
+------------------------------------------------------------+---------+
| Table 11: Sorghum Production for Silage, Ton & Ha, CY      | Page 15 |
+------------------------------------------------------------+---------+
| Table 12: Sorghum Disposition, by Destination, Value, \$   | Page 15 |
| Millions                                                   |         |
+------------------------------------------------------------+---------+
| Table 13: Average Price of Grain Sorghum, \$               | Page 15 |
+------------------------------------------------------------+---------+
| Table 14: Imports of Grain Sorghum, Country of Purchase,   | Page 16 |
| Value                                                      |         |
+------------------------------------------------------------+---------+
| Import Trade Matrix, Sorghum                               | Page 16 |
+------------------------------------------------------------+---------+
| PSD Table Corn                                             | Page 17 |
+------------------------------------------------------------+---------+
| Corn Production & Consumption                              | Page 17 |
+------------------------------------------------------------+---------+
| Table 15: Monthly Average Price of Bulk Grain, \$/ton      | Page 18 |
+------------------------------------------------------------+---------+
| Trade                                                      | Page 18 |
+------------------------------------------------------------+---------+
| Table 16: Imports of Corn, Country of Purchase, Value      | Page 19 |
+------------------------------------------------------------+---------+
| Import Trade Matrix, Corn                                  | Page 20 |
+------------------------------------------------------------+---------+
| Table 17: Grains Imports to Israel, tmt, Marketing Year    | Page 20 |
+------------------------------------------------------------+---------+
| Table 18: Imports Share Out of Total Import's Quantity,    | Page 20 |
| Percent, MY                                                |         |
+------------------------------------------------------------+---------+
| Table 19: Market Share Out of Total Import's Quantity,     | Page 20 |
| Percent, MY                                                |         |
+------------------------------------------------------------+---------+

# Executive Summary

Israel is dependent on imports for its grain and feed needs. Wheat for
milling is the main domestically produced commodity, supplying nearly 21
percent of approximately 850,000 tons consumed annually. Total food and
feed grain imports in MY 2004 (October 2004- September 2005) amounted to
close to 4.2 million MT (same as in MY 2003), of which 2.88 (69 percent)
million MT were feed and milling grains and the remainder was soybeans,
gluten, meals, oats and other substitutes. Imports of wheat for feed
increased in MY 2004 and totaled 685 TMT, a 278 percent increase. The
U.S. market share for feed grains in

MY 2004 decreased by 67 percent compared to the previous year (from 1.9
MMT to 585 MT).

The U.S. market share for milling wheat in MY 2004 decreased by 43
percent compared to MY 2003 levels (from 673 TMT to 307 TMT). The
decrease was due to a high price gap between U.S. milling wheat and
other sources for milling wheat. The U.S. market share is influenced by
two phenomena: imports of feed grains from new origins, mainly the Black
Sea Basin, and successive droughts in Israel. The fluctuations in U.S.
market share is due to the price sensitivity of Israeli feed mills and
their ability to shift easily from one source to another. In MY 2004,
there was an adequate supply of feed wheat. As a result, prices were
lower and led to an increase in demand for feed wheat, reducing corn,
sorghum and barley imports. In MY 2005, U.S. market share is forecast to
be the same as in MY 2004.

In crop year 2005, local wheat production totaled 180 TMT, 40 percent
higher than in the previous year, of which 135,000 MT (94 percent) were
delivered to the wheat stock and the remainder was sold in the local
market. The increase was due to favorable rainfall in the southern parts
of the country. Ninety thousand hectares of wheat were planted in crop
year 2006, of which 65,000 HA (72 percent) were planted for grain wheat
and 25,000 HA for silage. Due to late rainfall in the southern parts of
the country, the forecast for production in crop year 2006 is 162,000
MT, 10 percent below crop year 2005 levels.

Crop year 2005 was the second consecutive year that corn for grain
(yellow corn) was grown in Israel. Approximately, 1,500 HA were planted,
and production totaled 20,000 MT. In crop year 2005, yellow corn area
planted increased by 200 percent compared to the previous year.

#  

# 

+-------------+------+-------+------+-------+------+-------+-------+
| **PSD       |      |       |      |       |      |       |       |
| Table**     |      |       |      |       |      |       |       |
|             |      |       |      |       |      |       |       |
| **Israel**  |      |       |      |       |      |       |       |
|             |      |       |      |       |      |       |       |
| **Wheat**   |      |       |      |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+
|             | **20 | *     | **20 | **    | **20 | **    | **    |
|             | 04** | *Revi | 05** | Estim | 06** | Forec | UOM** |
|             |      | sed** |      | ate** |      | ast** |       |
+-------------+------+-------+------+-------+------+-------+-------+
|             | **   | *     | **   | *     | **   | *     |       |
|             | USDA | *Post | USDA | *Post | USDA | *Post |       |
|             | Offi | Est   | Offi | Est   | Offi | Est   |       |
|             | cial | imate | cial | imate | cial | imate |       |
|             | \    | \[Ne  | \    | \[Ne  | \    | \[Ne  |       |
|             | [Old | w\]** | [Old | w\]** | [Old | w\]** |       |
|             | \]** |       | \]** |       | \]** |       |       |
+-------------+------+-------+------+-------+------+-------+-------+
| ####        |      | 07    |      | 07    |      | 07    | MM    |
| #### Market |      | /2004 |      | /2005 |      | /2006 | /YYYY |
|  Year Begin |      |       |      |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+
| **Area      | 70   | 65    | 75   | 65    | 0    | 65    | (1000 |
| Harvested** |      |       |      |       |      |       | HA)   |
+-------------+------+-------+------+-------+------+-------+-------+
| **Beginning | 230  | 165   | 207  | 165   | 237  | 165   | (1000 |
| Stocks**    |      |       |      |       |      |       | MT)   |
+-------------+------+-------+------+-------+------+-------+-------+
| **P         | 128  | 128   | 180  | 180   | 0    | 162   | (1000 |
| roduction** |      |       |      |       |      |       | MT)   |
+-------------+------+-------+------+-------+------+-------+-------+
| **TOTAL     | 1549 | 1430  | 1600 | 1420  | 0    | 1438  | (1000 |
| Mkt. Yr.    |      |       |      |       |      |       | MT)   |
| Imports**   |      |       |      |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+
| **Jul-Jun   | 1549 | 1430  | 1600 | 1420  | 0    | 1438  | (1000 |
| Imports**   |      |       |      |       |      |       | MT)   |
+-------------+------+-------+------+-------+------+-------+-------+
| **Jul-Jun   | 469  | 434   | 0    | 500   | 0    | 520   | (1000 |
| Import      |      |       |      |       |      |       | MT)   |
| U.S.**      |      |       |      |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+
| **TOTAL     | 1907 | 1723  | 1987 | 1765  | 237  | 1765  | (1000 |
| SUPPLY**    |      |       |      |       |      |       | MT)   |
+-------------+------+-------+------+-------+------+-------+-------+
| **TOTAL     | 0    | 0     | 0    | 0     | 0    | 0     | (1000 |
| Mkt. Yr.    |      |       |      |       |      |       | MT)   |
| Exports**   |      |       |      |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+
| **Jul-Jun   | 0    | 0     | 0    | 0     | 0    | 0     | (1000 |
| Exports**   |      |       |      |       |      |       | MT)   |
+-------------+------+-------+------+-------+------+-------+-------+
| **Feed Dom. | 800  | 650   | 850  | 680   | 0    | 680   | (1000 |
| Co          |      |       |      |       |      |       | MT)   |
| nsumption** |      |       |      |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+
| **TOTAL     | 1700 | 1558  | 1750 | 1600  | 0    | 1600  | (1000 |
| Dom.        |      |       |      |       |      |       | MT)   |
| Co          |      |       |      |       |      |       |       |
| nsumption** |      |       |      |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+
| **Ending    | 207  | 165   | 237  | 165   | 0    | 165   | (1000 |
| Stocks**    |      |       |      |       |      |       | MT)   |
+-------------+------+-------+------+-------+------+-------+-------+
| **TOTAL     | 1907 | 1723  | 1987 | 1765  | 0    | 1765  | (1000 |
| DIS         |      |       |      |       |      |       | MT)   |
| TRIBUTION** |      |       |      |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+

# 

# Wheat Production

In crop year 2005 (October 2004 -- September 2005), 90,000 hectares were
planted for wheat, of which 65,000 HA (72 percent) were planted for
grain wheat and 25,000 ha for silage. Crop year 2005 was characterized
by favorable rainfall in the southern part of the country. Production in
crop year 2005 totaled 180,000 MT, of which 135,000 MT (75 percent) were
delivered to wheat stock, and the rest was sold directly to the local
market. Of the total wheat production, 2,000 MT (1.1 percent) were grown
organically.

The quality of the 2005 crop was good: the average protein level was 12
percent, and less wheat suffered from low gluten index compared to the
previous year. Of the total production, 70 percent had protein levels
above 11.5 percent, and the remainder had protein levels of 10.5-11.5
percent. Of the total planted area for milling, 13,000 HA (20 percent)
were planted in the north of Israel, and 52,000 HA were planted in the
southern part of the country.

Planted area in crop year 2006 is the same as in the previous year. Due
to late rainfall in the southern parts of the country, the forecast for
production in crop year 2006 is 162,000 MT, 10 percent below crop year
2005 levels.

**Table 1: Wheat Production, Thousand Metric Tons, Crop Year**

  ------------- ------------------- --------------------------------------
  **Crop Year** **Total             **Percent Change Compared to Previous
                Production**        Year**

  1980          253                 

  1990          291                 15.02

  1993          217                 -25.43

  1994          103                 -52.53

  1995          242                 134.95

  1996          185                 -23.55

  1997          116                 37.30

  1998          155                 33.62

  1999          29                  -81.29

  2000          96                  231.03

  2001          162                 68.75

  2002          179                 10.49

  2003          187                 4.47

  2004          128                 -31.55

  2005          180                 40.62

  2006\*        162                 -10.00
  ------------- ------------------- --------------------------------------

Source: CBI, Statistical Abstract of Israel, Different Years.

\*Forecast: Based on information collected from the Field Crops
Organization.

**Table 2: Wheat Disposition, by Destination, \$ Million**[^1]**, CY,
Real Terms (2004=100)**

+------+--------+-----+----------+----+-------+-----+-------+-----+
| ##   | **De   |     | **Local  |    | **Int |     | **    |     |
| #### | livery |     | M        |    | er-Me |     | Grand |     |
|  Per | to     |     | arkets** |    | diate |     | To    |     |
| iod  | Proces |     |          |    | Prod  |     | tal** |     |
|      | sors** |     |          |    | uce** |     |       |     |
+------+--------+-----+----------+----+-------+-----+-------+-----+
| #    | **V    | **  | *        | *  | **Va  | **  | **Va  | **  |
| #### | alue** | %** | *Value** | *% | lue** | %** | lue** | %** |
| # CY |        |     |          | ** |       |     |       |     |
+------+--------+-----+----------+----+-------+-----+-------+-----+
| 2002 | 21.3   | 7   | 1.6      | 5  | 5.2   | 1   | 28.1  | 10  |
|      |        | 5.8 |          | .7 |       | 8.5 |       | 0.0 |
+------+--------+-----+----------+----+-------+-----+-------+-----+
| 2003 | 28.2   | 7   | 2.2      | 5  | 6.7   | 1   | 37.1  | 10  |
|      |        | 6.0 |          | .9 |       | 8.1 |       | 0.0 |
+------+--------+-----+----------+----+-------+-----+-------+-----+
| 2004 | 26.8   | 7   | 1.4      | 4  | 5.6   | 1   | 33.8  | 10  |
|      |        | 9.3 |          | .1 |       | 6.6 |       | 0.0 |
+------+--------+-----+----------+----+-------+-----+-------+-----+

Source: Ministry of Agriculture and Rural Development, 2004 Annual
Report.

# Farm Gate Price for Locally Produced Wheat

The price paid to farmers is based on the CBOT price at harvest time
(U.S. freight costs and handling costs are added to the base price to
make the prices for local and imported wheat equivalent). In crop year
2005, the average base price for milling wheat was \$184 per ton, 10
percent lower than the price in the previous year (\$204). There was an
incentive program for growers based on the level of protein content in
the wheat. For premium wheat with protein levels between 12 and 12.4
percent a surcharge of \$1.75 per MT was added to the base price. For
protein levels above 12.5 percent, the price increased by \$4.23 per MT
to \$187.7. There was a second class of wheat known as "fine wheat" with
lower levels of protein. Growers were penalized \$3 per metric ton for
protein content within the range of 10.5 percent to 10.9 percent.
Protein content less than 10.5 percent saw a \$9 ton penalty reduced
from the base price. As a result of the high penalty, growers who had
protein content less than 10.5 percent preferred to deliver the wheat to
silage than to milling.

A price protection program for wheat was put into a place in 1995 to
prevent sharp decreases in prices. Of the total wheat production, 60,000
MT (33 percent) were protected. Each grower that joined the price
protection system received a premium of \$2/ton.

**Yields**

In crop year 2005, the average yield totaled 2.8 tons per hectare.
Considerable differences in yields have been found between fields across
the country: in crop year 2005, while the average yield in the southern
area of Israel was 2.5-3.0 tons per hectare, the average yield in the
north totaled 4.5-5.0 tons per hectare.

**Organic Wheat**

In crop year 2005, 2,000 MT (5 percent less than in crop year 2004) of
wheat were grown organically, originating from approximately 800
hectares. Most of the organic planted area is in the southern part of
the country. The average base price for organic wheat in crop year 2005
was about \$250 per ton, 6 percent lower than the previous year; the
average yield totaled 2.5 tons/ha. In the next few years, organic wheat
production is expected to vary between 1,700-2,000 tons per year.

**Stocks**

At the beginning of October, stocks totaled 165,000 tons. However, that
is expected to drop to 10,000 tons by next September, due to a shortage
in wheat this cycle that occurs every year. Of the total wheat
production in crop year 2005, 135,000 MT (75 percent) were delivered to
stocks, and the rest was sold in the local market

**Value of Wheat Production**

In CY 2004, the value of wheat production decreased by 9 percent
compared to CY 2003. (from \$37.4 million to \$33.9 million). Wheat
value, as a share of total value of agricultural production, also
decreased during CY 2004 (see table 3). This trend is not expected to
continue in CY 2005 due to higher local production.

**Table 3: Agricultural and Wheat Production Value, CY, \$ Million,**

**Real Terms (2004=100)**

+---------------------------------------+-------------+---------------+
| # Agriculture Sector                  | # 2003      | # 2004        |
+---------------------------------------+-------------+---------------+
| Total for Agriculture Sector          | 3,504       | 3,804         |
+---------------------------------------+-------------+---------------+
| Of Which: Field Crops                 | 241.1       | 256.7         |
+---------------------------------------+-------------+---------------+
| Of Which: Wheat                       | 37.4        | 33.9          |
+---------------------------------------+-------------+---------------+
| Wheat as Percentage of Total          | 1.1%        | 0.9%          |
| Agriculture Value                     |             |               |
+---------------------------------------+-------------+---------------+
| Wheat as Percentage Of Total Field    | 15.5%       | 13.2%         |
| Crops Value                           |             |               |
+---------------------------------------+-------------+---------------+

Source: Ministry of Agriculture and Rural Development, 2004 Annual
Report.

**Production Policy**

The continuing tension in the Middle East has convinced the government
of the importance of self-sufficiency in food production. Therefore,
subsidies have been put into place for wheat production. In CY 2004, the
subsidy totaled \$7.9 million and represented 6 percent of all
agricultural subsidies (see table 4). However, agricultural subsidies
over all, and for wheat in particular, decreased by 9 and 29 percent,
respectively, compared to 2003 levels.

**Table 4: Governmental** **Subsidies For Local Wheat, \$ Millions, CY**

**Real Terms (2004=100)**

  ------------------- ---------- ---------- ---------- ---------------------
  Subsidies Budget    **CY**                           CY 2004 Percent
                                                       Change Compared to CY
                                                       2003

                      **2002**   **2003**   **2004**   

  Total Budget For    128.9      141.7      128.2      -9.5%
  Agricultural                                         
  Subsidies                                            

  Of Which: Local     6.7        11.2       7.9        -29.5%
  Wheat                                                

  Subsidy for Local   5.2%       7.9%       6.2%       
  Wheat as a                                           
  Percentage of Total                                  
  Agricultural                                         
  Subsidies                                            
  ------------------- ---------- ---------- ---------- ---------------------

Source: Ministry of Agriculture and Rural Development, 2004 Annual
Report.

**Consumption**

Wheat is consumed by the milling industry and the livestock sector,
mainly poultry. In

MY 2004, annual consumption totaled approximately 1.5 million tons, of
which about

850,000 tons (57 percent) were consumed by humans, and the rest was
consumed by the livestock sector. In MY 2004, wheat consumption per
capita totaled 125 kg, same as in the previous year; the U.S. market
share for milling wheat dropped by 43 percent and represented 42 percent
of the market. In Israel milling wheat must be kosher. There are 16
flour mills, and their full capacity stands on 1.3-1.4 million tons.
Feed wheat is imported solely from the Black Sea Basin. The Israeli feed
milling industry shifts easily from corn and sorghum to feed wheat, as
these crops are substitute products.

# The Palestinian Authority

Almost all Palestinian wheat is imported. Wheat production is not under
inspection, and the data are not reliable. The estimate for wheat
consumption in the Palestinian Authority is 150-160 Kg per capita. There
are approximately 3.8 million Palestinians in Gaza and the West Bank.
Therefore, the annual consumption is estimated at 570,000 tons of
milling wheat.

**Black Sea Competition**

After many years of total American domination of the feed corn and
milling wheat markets, sources for these grains are now more
diversified. Many Israeli traders consider the Black Sea Basin a
"natural" source for grains due to its proximity and the convenience of
small shipments. In previous years the price gap between American and
Russian wheat was approximately \$80; however, the price gap has
narrowed due to a Russian price increase. The price gap between the two
sources of wheat is near \$40. In MY 2004, imports of feed wheat
increased significantly compared to the previous year (In MY 2003 there
was practically no import of feed wheat due to a worldwide shortage).
Total imports of feed wheat in MY 2004 totaled 685 TMT, 504 TMT (up 278
percent) higher than in MY 2003.

The forecast for MY 2005 is for 650-700 TMT.

# The Broiler and Turkey Industries

For CY 2005, broiler production is estimated at 380,000 MT, six percent
higher than that in CY 2004. CY 2005 was the fourth consecutive year
that turkey production declined. Turkey production in CY 2005 totaled
approximately 107,000 MT, 7 percent less than in CY 2004. The decrease
in turkey production is a result of a number of factors: 1) high demand
for broiler meat, meat factories prefer to use broiler meat than turkey
meat; 2) the prevalence of diseases; and 3) increasing competition with
imported frozen turkey meat. All in all, in the next few years, the
forecast for domestic turkey production is for a continued decline to
approximately 70,000 MT.

## Table 5: Monthly Average Price for Feed Mix, \$ Per Ton 

  ----------- ---------- ----------- ------------- ----------- ------------- -----------
  **Month**   Feed Mix   **Percent   **Feed Mix    **Percent   **Feed Mix    **Percent
              For        Change      For Turkeys** Change      For Cattle**  Change
              Broilers   Compared to               Compared to               Compared to
                         Previous                  Previous                  Previous
                         Month**                   Month**                   Month**

  1/2005      \$266.3                \$269.4                   \$196.2       

  2/2005      \$264.9    -0.5%       \$264.3       -1.9%       \$193.8       -1.2%

  3/2005      \$267.2    0.9%        \$266.1       0.7%        \$192.8       -0.5%

  4/2005      \$273.6    2.4%        \$271.1       1.9%        \$199.8       3.6%

  5/2005      \$271.6    -0.7%       \$271.3       0.1%        \$194.9       -2.5%

  6/2005      \$270.6    -0.4%       \$271.4       0.0%        \$195.0       0.1%

  7/2005      \$281.4    4.0%        \$283.3       4.4%        \$200.5       2.8%

  8/2005      \$278.2    -1.1%       \$279.9       -1.2%       \$199.8       -0.3%

  9/2005      \$270.7    -2.7%       \$272.7       -2.6%       \$194.1       -2.9%

  10/2005     \$270.1    -0.2%       \$273.0       0.1%        \$194.1       0.0%

  **Average   \$271.5                **\$272.2**               **\$196.1**   
  Price**                                                                    
  ----------- ---------- ----------- ------------- ----------- ------------- -----------

Source: Agricultural Statistics Quarterly, Israel.

**Table 6: Sales**[^2] **of Feed Mix, by Type, Thousand of Tons, CY**

+----+------+-------+-----+------+------+------+------------+------+
| ** | *    | **For |     |      |      |      | **For      | **G  |
| CY | *For | Poul  |     |      |      |      | Sheep,     | rand |
| ** | Catt | try** |     |      |      |      | Goats and  | Tot  |
|    | le** |       |     |      |      |      | Other      | al** |
|    |      |       |     |      |      |      | L          |      |
|    |      |       |     |      |      |      | ivestock** |      |
+----+------+-------+-----+------+------+------+------------+------+
|    |      | **    | #   | ##   | *    | *    |            |      |
|    |      | Broil | ### | #### | *Oth | *Tot |            |      |
|    |      | ers** | ##  |  Tur | er** | al** |            |      |
|    |      |       | Lay | keys |      |      |            |      |
|    |      |       | ers |      |      |      |            |      |
+----+------+-------+-----+------+------+------+------------+------+
| 20 | 4    | 733.6 | 29  | 3    | 1    | 1,5  | 291.7      | 2,2  |
| 02 | 73.1 |       | 5.1 | 47.3 | 50.0 | 26.0 |            | 90.8 |
+----+------+-------+-----+------+------+------+------------+------+
| 20 | 4    | 723.1 | 30  | 3    | 1    | 1,5  | 315.0      | 2,3  |
| 03 | 90.0 |       | 6.8 | 29.7 | 74.2 | 33.8 |            | 38.8 |
+----+------+-------+-----+------+------+------+------------+------+
| 20 | 5    | 786.5 | 31  | 3    | 1    | 1,5  | 265.9      | 2,3  |
| 04 | 07.8 |       | 1.3 | 16.9 | 62.1 | 76.8 |            | 50.5 |
+----+------+-------+-----+------+------+------+------------+------+
| 20 | 3    | 583.1 | 22  | 2    | 1    | 1,1  | 175.5      | 1,6  |
| 05 | 43.1 |       | 3.0 | 35.3 | 20.8 | 62.1 |            | 80.7 |
| [^ |      |       |     |      |      |      |            |      |
| 3] |      |       |     |      |      |      |            |      |
+----+------+-------+-----+------+------+------+------------+------+

Source: Agricultural Statistics Quarterly, Israel.

# Trade

In MY 2004, total imports of wheat were 30 percent higher than in the
previous year due to higher imports of feed wheat from Eastern Europe.
Milling and feed wheat imports in

MY 2004 totaled 730,000 MT and 685,000 MT, respectively. Milling wheat
imports decreased by approximately 19 percent compared to the previous
marketing year. On the other hand, total feed wheat import increased by
278 percent. Imports of feed wheat are from Russia, Ukraine, Bulgaria
and Romania. The U.S. market share for milling wheat in MY 2004
decreased by 43 percent compared to MY 2003 levels (from 74 percent
market share to

42 percent market share). The decrease was due to a high price gap
between U.S. milling wheat and other sources for milling wheat. For
example, the price gap (\$/ton) between U.S. milling wheat and Russian,
Hungarian, German, Ukrainian, Bulgarian milling wheat was \$50, \$40,
\$30, \$45, \$45, respectively. In addition, there are many high quality
flour wheat suppliers to Israel (Russia, Bulgaria, Ukraine, Romania,
Hungary, Austria, Germany, France and Denmark). The Russian milling
wheat is the most demanded wheat in Israel. In the beginning of MY 2004,
the price gap was \$40-\$50, however, the price gap has narrowed due to
a Russian price increase, and at present, the price gap between the two
sources of wheat is close to \$25. Due to non-favorable weather
conditions in Russia there will be a negative effect on next year's crop
(May-June harvest). The U.S. market share of milling wheat in Israel is
expected to increase to 45-50 percent. There has been no export of
milling wheat from Israel in recent years, and it is not expected to
change in the future.

**Chart 1: Total Imports of Wheat, by Year, CY, Value (\$ Thousand)**

![](media/image2.wmf)

Source: CBS, Foreign Trade Statistics, Different Years

####### Table 7: Imports of Wheat, Country of Purchase, CY, \$ Thousand

+-----------+--------+--------+--------+--------+----------+-----------+
| #         | *      |        |        | **% of |          |           |
| ##### Cou | *Value |        |        | Total  |          |           |
| ntry  {#c | (\$    |        |        | Imp    |          |           |
| ountry-1} | Thous  |        |        | orts** |          |           |
|           | and)** |        |        |        |          |           |
+-----------+--------+--------+--------+--------+----------+-----------+
|           | **     | **     | **     | **     | **2003** | **2004**  |
|           | 2002** | 2003** | 2004** | 2002** |          |           |
+-----------+--------+--------+--------+--------+----------+-----------+
| France    | 4,615  | 7,417  | 8,531  | 2.4    | 4.3      | 3.7       |
+-----------+--------+--------+--------+--------+----------+-----------+
| Belgium   | 320    | 223    | 0      | 0.2    | 0.1      | 0.0       |
+-----------+--------+--------+--------+--------+----------+-----------+
| Ne        | 18,318 | 9,609  | 10,067 | 9.6    | 5.6      | 4.3       |
| therlands |        |        |        |        |          |           |
+-----------+--------+--------+--------+--------+----------+-----------+
| Austria   | 0      | 310    | 1,027  | 0.0    | 0.2      | 0.4       |
+-----------+--------+--------+--------+--------+----------+-----------+
| Germany   | 4,084  | 6,523  | 5,262  | 2.1    | 3.8      | 2.3       |
+-----------+--------+--------+--------+--------+----------+-----------+
| Denmark   | 642    | 0      | 0      | 0.3    | 0.0      | 0.0       |
+-----------+--------+--------+--------+--------+----------+-----------+
| U.K.      | 17,469 | 21,769 | 9,820  | 9.1    | 12.6     | 4.2       |
+-----------+--------+--------+--------+--------+----------+-----------+
| Hungary   | 2,039  | 2,983  | 2,204  | 1.1    | 1.7      | 1.0       |
+-----------+--------+--------+--------+--------+----------+-----------+
| Other EU  | 0      | 15     | 0      | 0.0    | 0.0      | 0.0       |
+-----------+--------+--------+--------+--------+----------+-----------+
| **Total   | **47   | **48   | **36   | **     | **28.3** | **15.9**  |
| EU**      | ,487** | ,849** | ,911** | 24.8** |          |           |
+-----------+--------+--------+--------+--------+----------+-----------+
| Sw        | 22,523 | 20,031 | 39,416 | 11.8   | 11.6     | 17.0      |
| itzerland |        |        |        |        |          |           |
|           |        |        |        |        |          |           |
| (Major    |        |        |        |        |          |           |
| trade     |        |        |        |        |          |           |
| center)   |        |        |        |        |          |           |
+-----------+--------+--------+--------+--------+----------+-----------+
| **Total   | **70   | **68   | **76   | **     | **39.9** | **32.9**  |
| West      | ,010** | ,880** | ,327** | 36.6** |          |           |
| Europe**  |        |        |        |        |          |           |
+-----------+--------+--------+--------+--------+----------+-----------+
| Russia    | 15,133 | 12,302 | 22,090 | 7.9    | 7.1      | 9.5       |
+-----------+--------+--------+--------+--------+----------+-----------+
| Ukraine   | 9,123  | 12,846 | 652    | 4.8    | 7.4      | 0.3       |
+-----------+--------+--------+--------+--------+----------+-----------+
| Romania   | 1,035  | 0      | 0      | 0.5    | 0.0      | 0.0       |
+-----------+--------+--------+--------+--------+----------+-----------+
| Other     | 1,309  | 1,160  | 421    | 0.7    | 0.7      | 0.2       |
| East      |        |        |        |        |          |           |
| Europe    |        |        |        |        |          |           |
+-----------+--------+--------+--------+--------+----------+-----------+
| **Total   | **26   | **26   | **23   | **     | **15.2** | **10.0**  |
| East      | ,600** | ,308** | ,163** | 13.9** |          |           |
| Europe**  |        |        |        |        |          |           |
+-----------+--------+--------+--------+--------+----------+-----------+
| **Total   | **96   | **95   | **99   | **     | **55.2** | **42.9**  |
| Europe**  | ,610** | ,188** | ,490** | 50.5** |          |           |
+-----------+--------+--------+--------+--------+----------+-----------+
| **U.S.**  | **93   | **76   | **132  | **     | **44.4** | **57.1**  |
|           | ,748** | ,536** | ,356** | 49.0** |          |           |
+-----------+--------+--------+--------+--------+----------+-----------+
| Argentina | 38     | 186    | 115    | 0.0    | 0.1      | 0.0       |
+-----------+--------+--------+--------+--------+----------+-----------+
| Others    | 961    | 632    | 2      | 0.5    | 0.4      | 0.0       |
+-----------+--------+--------+--------+--------+----------+-----------+
| **Total   | 94,747 | **77   | **132  | **     | **44.8** | **57.1**  |
| Outside   |        | ,354** | ,473** | 49.5** |          |           |
| Europe**  |        |        |        |        |          |           |
+-----------+--------+--------+--------+--------+----------+-----------+
| **Grand   | **191  | **172  | **231  | **1    | *        | **100.0** |
| Total**   | ,357** | ,542** | ,963** | 00.0** | *100.0** |           |
+-----------+--------+--------+--------+--------+----------+-----------+

Source: CBS, Foreign Trade Statistics, Different Years.

\* Israel's trade statistics are based on "country of purchase" which in
many cases is different from the "country of origin". UK, Netherlands
and Switzerland, which are large trading centers, appear in Israel's
statistics as suppliers of feed and food grains, when actually they are
locations of brokers.

+-----------------+----------------+----------------+----------------+
| **Import Trade  |                |                |                |
| Matrix**        |                |                |                |
|                 |                |                |                |
| **Israel**      |                |                |                |
|                 |                |                |                |
| **Wheat**       |                |                |                |
+-----------------+----------------+----------------+----------------+
| **Time Period** | **MY**         | **Units**      | **1,000 MT**   |
+-----------------+----------------+----------------+----------------+
| **Imports for** | **2003**       | **Imports      | **2004**       |
|                 |                | for**          |                |
+-----------------+----------------+----------------+----------------+
| **U.S.**        | 673            | **U.S.**       | 307            |
+-----------------+----------------+----------------+----------------+
| **Others**      |                | **Others**     |                |
+-----------------+----------------+----------------+----------------+
| ** **           |                | ** **          |                |
+-----------------+----------------+----------------+----------------+
| **Total for     | 0              | **Total for    | 0              |
| Others**        |                | Others**       |                |
+-----------------+----------------+----------------+----------------+
| **Others not    | 415            | **Others not   | 1,108          |
| Listed**        |                | Listed**       |                |
+-----------------+----------------+----------------+----------------+
| **Grand Total** | 1,088          | **Grand        | 1,415          |
|                 |                | Total**        |                |
+-----------------+----------------+----------------+----------------+

**[Barley]{.underline}**

+------------+-------+------+-------+-------+-------+-------+-------+
| ###        |       |      |       |       |       |       |       |
| ###### **P |       |      |       |       |       |       |       |
| SD Table** |       |      |       |       |       |       |       |
|            |       |      |       |       |       |       |       |
| **Israel** |       |      |       |       |       |       |       |
|            |       |      |       |       |       |       |       |
| **Barley** |       |      |       |       |       |       |       |
+------------+-------+------+-------+-------+-------+-------+-------+
|            | **2   | **R  | **2   | **    | **2   | **    | **    |
|            | 004** | evis | 005** | Estim | 006** | Forec | UOM** |
|            |       | ed** |       | ate** |       | ast** |       |
+------------+-------+------+-------+-------+-------+-------+-------+
|            | *     | **   | *     | *     | *     | *     |       |
|            | *USDA | Post | *USDA | *Post | *USDA | *Post |       |
|            | Off   | Esti | Off   | Est   | Off   | Est   |       |
|            | icial | mate | icial | imate | icial | imate |       |
|            | \[Ol  | \    | \[Ol  | \[Ne  | \[Ol  | \[Ne  |       |
|            | d\]** | [New | d\]** | w\]** | d\]** | w\]** |       |
|            |       | \]** |       |       |       |       |       |
+------------+-------+------+-------+-------+-------+-------+-------+
| ######     |       | 10/  |       | 10    |       | 10    | MM    |
| ## Market  |       | 2004 |       | /2005 |       | /2006 | /YYYY |
| Year Begin |       |      |       |       |       |       |       |
+------------+-------+------+-------+-------+-------+-------+-------+
| **Area     | 1     | 0    | 1     | 0     | 0     | 0     | (1000 |
| H          |       |      |       |       |       |       | HA)   |
| arvested** |       |      |       |       |       |       |       |
+------------+-------+------+-------+-------+-------+-------+-------+
| *          | 88    | 49   | 80    | 38    | 52    | 28    | (1000 |
| *Beginning |       |      |       |       |       |       | MT)   |
| Stocks**   |       |      |       |       |       |       |       |
+------------+-------+------+-------+-------+-------+-------+-------+
| **Pr       | 2     | 0    | 2     | 0     | 0     | 0     | (1000 |
| oduction** |       |      |       |       |       |       | MT)   |
+------------+-------+------+-------+-------+-------+-------+-------+
| **TOTAL    | 350   | 374  | 450   | 390   | 0     | 400   | (1000 |
| Mkt. Yr.   |       |      |       |       |       |       | MT)   |
| Imports**  |       |      |       |       |       |       |       |
+------------+-------+------+-------+-------+-------+-------+-------+
| **Oct-Sep  | 350   | 374  | 450   | 390   | 0     | 400   | (1000 |
| Imports**  |       |      |       |       |       |       | MT)   |
+------------+-------+------+-------+-------+-------+-------+-------+
| **Oct-Sep  | 0     | 0    | 0     | 0     | 0     | 0     | (1000 |
| Import     |       |      |       |       |       |       | MT)   |
| U.S.**     |       |      |       |       |       |       |       |
+------------+-------+------+-------+-------+-------+-------+-------+
| **TOTAL    | 440   | 423  | 532   | 428   | 52    | 428   | (1000 |
| SUPPLY**   |       |      |       |       |       |       | MT)   |
+------------+-------+------+-------+-------+-------+-------+-------+
| **TOTAL    | 0     | 0    | 0     | 0     | 0     | 0     | (1000 |
| Mkt. Yr.   |       |      |       |       |       |       | MT)   |
| Exports**  |       |      |       |       |       |       |       |
+------------+-------+------+-------+-------+-------+-------+-------+
| **Oct-Sep  | 0     | 0    | 0     | 0     | 0     | 0     | (1000 |
| Exports**  |       |      |       |       |       |       | MT)   |
+------------+-------+------+-------+-------+-------+-------+-------+
| **Feed     | 350   | 374  | 470   | 385   | 0     | 390   | (1000 |
| Dom.       |       |      |       |       |       |       | MT)   |
| Con        |       |      |       |       |       |       |       |
| sumption** |       |      |       |       |       |       |       |
+------------+-------+------+-------+-------+-------+-------+-------+
| **TOTAL    | 360   | 385  | 480   | 400   | 0     | 402   | (1000 |
| Dom.       |       |      |       |       |       |       | MT)   |
| Con        |       |      |       |       |       |       |       |
| sumption** |       |      |       |       |       |       |       |
+------------+-------+------+-------+-------+-------+-------+-------+
| **Ending   | 80    | 38   | 52    | 28    | 0     | 26    | (1000 |
| Stocks**   |       |      |       |       |       |       | MT)   |
+------------+-------+------+-------+-------+-------+-------+-------+
| **TOTAL    | 440   | 423  | 532   | 428   | 0     | 428   | (1000 |
| DIST       |       |      |       |       |       |       | MT)   |
| RIBUTION** |       |      |       |       |       |       |       |
+------------+-------+------+-------+-------+-------+-------+-------+

**Barley Production**

All barley production is located in the south of Israel. The barley
grown in the Jewish sector was planted for silage. Most of it is sold to
the Arab sector for feeding livestock, mainly sheep. Planted area is
approximately 1,000 hectares. Production in crop year 2005 totaled 3,000
tons, 20 percent higher compared to the previous year. The increase is a
result of favorable rainfall in the southern parts of the country. In
crop year 2005, the average yield totaled 3 tons/ha. In crop year 2005,
the average base price of barley for silage was \$158 per ton. In CY
2004, total production value increased by 14 percent compared to the
previous year (from \$1.5 million to \$1.7 million).

Due to non-favorable rainfall in the southern parts of the country, it
is expected that total production in crop year 2006 will be 2,700 tons,
10 percent below crop year 2005 levels.

# Table 8: Barley Disposition, by Destination, \$ Millions, Real Terms (2004=100), CY

+------+--------+-----+----------+----+-------+-----+-------+-----+
| ##   | **De   |     | **Local  |    | **In  |     | **    |     |
| #### | livery |     | M        |    | terme |     | Grand |     |
|  Per | to     |     | arkets** |    | diate |     | To    |     |
| iod  | Proces |     |          |    | Prod  |     | tal** |     |
|      | sors** |     |          |    | uce** |     |       |     |
+------+--------+-----+----------+----+-------+-----+-------+-----+
| #    | **V    | **  | *        | *  | **Va  | **  | **Va  | **  |
| #### | alue** | %** | *Value** | *% | lue** | %** | lue** | %** |
| # CY |        |     |          | ** |       |     |       |     |
+------+--------+-----+----------+----+-------+-----+-------+-----+
| 2002 | 0.0    | 0.0 | 0.0      | 0  | 1.4   | 10  | 1.4   | 10  |
|      |        |     |          | .0 |       | 0.0 |       | 0.0 |
+------+--------+-----+----------+----+-------+-----+-------+-----+
| 2003 | 0.0    | 0.0 | 0.0      | 0  | 1.5   | 10  | 1.5   | 10  |
|      |        |     |          | .0 |       | 0.0 |       | 0.0 |
+------+--------+-----+----------+----+-------+-----+-------+-----+
| 2004 | 0.0    | 0.0 | 0.0      | 0  | 1.7   | 10  | 1.7   | 10  |
|      |        |     |          | .0 |       | 0.0 |       | 0.0 |
+------+--------+-----+----------+----+-------+-----+-------+-----+

Source: Ministry of Agriculture and Rural Development, 2004 Annual
Report.

Table 9: Monthly Average Price for Bulk Grain Barley, \$ Per Ton

+-----------------------+-----------------------+-----------------------+
| **Month**             | **\$/Ton**            | **Percent Change      |
|                       |                       | Compared to Previous  |
|                       |                       | Month**               |
+-----------------------+-----------------------+-----------------------+
| 1/2005                | \$170.2               |                       |
+-----------------------+-----------------------+-----------------------+
| 2/2005                | \$170.2               | 0.0%                  |
+-----------------------+-----------------------+-----------------------+
| 3/2005                | \$170.2               | 0.0%                  |
+-----------------------+-----------------------+-----------------------+
| 4/2005                | \$170.2               | 0.0%                  |
+-----------------------+-----------------------+-----------------------+
| 5/2005                | \$170.9               | 0.4%                  |
+-----------------------+-----------------------+-----------------------+
| 6/2005                | \$170.9               | 0.0%                  |
+-----------------------+-----------------------+-----------------------+
| 7/2005                | \$173.5               | 1.5%                  |
+-----------------------+-----------------------+-----------------------+
| 8/2005                | \$173.5               | 0.0%                  |
+-----------------------+-----------------------+-----------------------+
| 9/2005                | \$169.8               | -2.1%                 |
+-----------------------+-----------------------+-----------------------+
| 10/2005               | \$168.4               | -0.8%                 |
+-----------------------+-----------------------+-----------------------+
| ###### Average Price  | **\$170.8**           |                       |
+-----------------------+-----------------------+-----------------------+

Source: Agricultural Statistics Quarterly, Israel.

**Trade**

In MY 2004, barley imports totaled 374 TMT, a 24 percent decrease
compared to MY 2003 levels (from 493 TMT to 374 TMT). The decrease was
due to a large price gap between barley and other grains. Currently the
price gap between Ukrainian feed wheat and Ukrainian barley is about
\$20-\$25 (\$125 feed wheat, \$145-\$150 barely). In addition, in MY
2004, some of the barley was displaced by feed rye imports from Ukraine
and Russia, which are cheaper. In MY 2004, approximately, 50-60 TMT of
feed rye were imported. There has been no import of barley from the
United States in recent years, and it is not expected to change in the
future. The forecast for imports in MY 2005 is 370-400 TMT, same as in
the previous year. However, if barley prices will continue to increase
or feed wheat prices will decrease, barley imports are expected to stand
at 250-300 tmt.

**Table 10: Imports of Barley, Country of Purchase, CY, \$ Thousand**

  ------------- ------------- ------------ ------------ ----------- ----------- -------------
                **Value (\$                             **% of                  
                Thousand)**                             Total                   
                                                        Imports**               

  **Country**   **2002**      **2003**     **2004**     **2002**    **2003**    **2004**

  France        1,799         4,052        8,836        3.9         7.0         11.1

  Netherlands   9,882         12,268       21,319       21.2        21.1        26.7

  Austria       1,918         3,137        461          4.1         5.4         0.6

  Germany       4,837         1,709        1,747        10.4        2.9         2.2

  U.K.          10,160        6,473        6,208        21.8        11.1        7.8

  Hungary       668           1,080        317          1.4         1.9         0.4

  Other EU      79            1,342        501          0.2         2.3         0.6

  **Total EU**  **29,343**    **30,061**   **39,389**   **62.9**    **51.8**    **49.3**

  Switzerland   7,647         9,050        22,107       16.4        15.6        27.7

  **Total West  36,990        **39,111**   **61,496**   **79.4**    **67.4**    **77.0**
  Europe**                                                                      

  Russia        4,705         11,399       12,154       10.1        19.6        15.2

  Ukraine       2,221         2,979        5,018        4.8         5.1         6.3

  Romania       545           0            0            1.2         0.0         0.0

  Bulgaria      117           0            0            0.3         0.0         0.0

  Other East    216           1,196        1            0.5         2.1         0.0
  Europe                                                                        

  **Total East  **7,804**     **15,574**   **17,172**   **16.7**    26.8        **21.5**
  Europe**                                                                      

  **Total       **44,794**    **54,685**   **78,668**   **96.1**    **94.2**    **98.5**
  Europe**                                                                      

  Bahamas       800           656          0            1.7         1.1         0.0

  Others        1,022         2,727        1,161        2.2         4.7         1.5

  **Total       **1,822**     **3,383**    **1,161**    **3.9**     **5.8**     **1.5**
  Outside                                                                       
  Europe**                                                                      

  **Grand       **46,616**    **58,068**   **79,830**   100.0       **100.0**   **100.0**
  Total**                                                                       
  ------------- ------------- ------------ ------------ ----------- ----------- -------------

Source: CBS, Foreign Trade Statistics, Different Years.

\* Israel's trade statistics are based on "country of purchase" which in
many cases is different from the "country of origin". UK, Netherlands
and Switzerland, U.S.A, which are large trading, centers, appear in
Israel's statistics as suppliers of feed and food grains, when actually
they are locations of brokers.

+-----------------+----------------+----------------+----------------+
| **Import Trade  |                |                |                |
| Matrix**        |                |                |                |
|                 |                |                |                |
| **Israel**      |                |                |                |
|                 |                |                |                |
| **Barley**      |                |                |                |
+-----------------+----------------+----------------+----------------+
| #####           | **MY**         | **Units**      | **1,000 MT**   |
| ### Time Period |                |                |                |
+-----------------+----------------+----------------+----------------+
| **Imports for** | **2003**       | **Imports      | **2004**       |
|                 |                | for**          |                |
+-----------------+----------------+----------------+----------------+
| **U.S.**        | 0              | **U.S.**       | 0              |
+-----------------+----------------+----------------+----------------+
| **Others**      |                | **Others**     |                |
+-----------------+----------------+----------------+----------------+
| ** **           |                | ** **          |                |
+-----------------+----------------+----------------+----------------+
| **Total for     | 0              | **Total for    | 0              |
| Others**        |                | Others**       |                |
+-----------------+----------------+----------------+----------------+
| **Others not    | 493            | **Others not   | 374            |
| Listed**        |                | Listed**       |                |
+-----------------+----------------+----------------+----------------+
| **Grand Total** | 493            | **Grand        | 374            |
|                 |                | Total**        |                |
+-----------------+----------------+----------------+----------------+

**[Sorghum]{.underline}**

+-------------+------+-------+------+-------+------+-------+-------+
| **PSD       |      |       |      |       |      |       |       |
| Table**     |      |       |      |       |      |       |       |
|             |      |       |      |       |      |       |       |
| **Israel**  |      |       |      |       |      |       |       |
|             |      |       |      |       |      |       |       |
| **Sorghum** |      |       |      |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+
|             | **20 | *     | **20 | **    | **20 | **    | **    |
|             | 04** | *Revi | 05** | Estim | 06** | Forec | UOM** |
|             |      | sed** |      | ate** |      | ast** |       |
+-------------+------+-------+------+-------+------+-------+-------+
|             | **   | *     | **   | *     | **   | *     |       |
|             | USDA | *Post | USDA | *Post | USDA | *Post |       |
|             | Offi | Est   | Offi | Est   | Offi | Est   |       |
|             | cial | imate | cial | imate | cial | imate |       |
|             | \    | \[Ne  | \    | \[Ne  | \    | \[Ne  |       |
|             | [Old | w\]** | [Old | w\]** | [Old | w\]** |       |
|             | \]** |       | \]** |       | \]** |       |       |
+-------------+------+-------+------+-------+------+-------+-------+
| ####        |      | 10    |      | 10    |      | 10    | MM    |
| #### Market |      | /2004 |      | /2005 |      | /2006 | /YYYY |
|  Year Begin |      |       |      |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+
| **Area      | 0    | 0     | 0    | 0     | 0    | 0     | (1000 |
| Harvested** |      |       |      |       |      |       | HA)   |
+-------------+------+-------+------+-------+------+-------+-------+
| **Beginning | 8    | 5     | 0    | 5     | 0    | 5     | (1000 |
| Stocks**    |      |       |      |       |      |       | MT)   |
+-------------+------+-------+------+-------+------+-------+-------+
| **P         | 0    | 0     | 0    | 0     | 0    | 0     | (1000 |
| roduction** |      |       |      |       |      |       | MT)   |
+-------------+------+-------+------+-------+------+-------+-------+
| **TOTAL     | 34   | 50    | 50   | 50    | 0    | 52    | (1000 |
| Mkt. Yr.    |      |       |      |       |      |       | MT)   |
| Imports**   |      |       |      |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+
| **Oct-Sep   | 34   | 50    | 50   | 50    | 0    | 52    | (1000 |
| Imports**   |      |       |      |       |      |       | MT)   |
+-------------+------+-------+------+-------+------+-------+-------+
| **Oct-Sep   | 27   | 27    | 0    | 25    | 0    | 23    | (1000 |
| Import      |      |       |      |       |      |       | MT)   |
| U.S.**      |      |       |      |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+
| **TOTAL     | 42   | 55    | 50   | 55    | 0    | 57    | (1000 |
| SUPPLY**    |      |       |      |       |      |       | MT)   |
+-------------+------+-------+------+-------+------+-------+-------+
| **TOTAL     | 0    | 0     | 0    | 0     | 0    | 0     | (1000 |
| Mkt. Yr.    |      |       |      |       |      |       | MT)   |
| Exports**   |      |       |      |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+
| **Oct-Sep   | 0    | 0     | 0    | 0     | 0    | 0     | (1000 |
| Exports**   |      |       |      |       |      |       | MT)   |
+-------------+------+-------+------+-------+------+-------+-------+
| **Feed Dom. | 37   | 45    | 45   | 47    | 0    | 48    | (1000 |
| Co          |      |       |      |       |      |       | MT)   |
| nsumption** |      |       |      |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+
| **TOTAL     | 42   | 50    | 50   | 50    | 0    | 51    | (1000 |
| Dom.        |      |       |      |       |      |       | MT)   |
| Co          |      |       |      |       |      |       |       |
| nsumption** |      |       |      |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+
| **Ending    | 0    | 5     | 0    | 5     | 0    | 6     | (1000 |
| Stocks**    |      |       |      |       |      |       | MT)   |
+-------------+------+-------+------+-------+------+-------+-------+
| **TOTAL     | 42   | 55    | 50   | 55    | 0    | 57    | (1000 |
| DIS         |      |       |      |       |      |       | MT)   |
| TRIBUTION** |      |       |      |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+

**Sorghum Production, Consumption and Trade**

All sorghum production is used for silage in the livestock sector
(mainly cattle). As a result of water shortage in Israel, there were
efforts to increase the planted area for sorghum due to the fact that
sorghum has extremely high water use efficiency. Under local conditions,
sorghum can be grown twice a season. In recent years, there has been a
rise in demand from cattle growers for feed grains that contain a low
level of starch, which is a key characteristic of sorghum. However, in
the previous year, new research showed that the fat content in sorghum
is higher compared to substitute products. As a result, sorghum
production is expected to decrease in crop year 2006. In CY 2005, 3,000
hectares were planted for sorghum silage, and the area is expected to
decrease to 2,400 hectares (down 20 percent) in CY 2006. The majority of
sorghum production is located in the north of Israel. Production in CY
2005 totaled 45,000 MT, 22 percent above CY 2004 levels. In CY 2005, the
average yield totaled 15 tons/ha. Total production value in CY 2004
increased by 21 percent compared to CY 2003 (see table 12).

Feed wheat, corn and sorghum are substitute products. Due to normal
yields of feed wheat in Eastern Europe, sorghum imports in MY 2004
decreased by 74 percent compared to the previous MY (from 194 TMT to 50
TMT). Of total imports in MY 2004, 27,000 MT were imported from the U.S.
and the rest was imported from Ukraine. In MY 2004, the U.S. market
share for sorghum decreased by 39 percent compared to MY 2003 (from 89
percent market share to 54 percent market share). After many years of
total U.S. domination of the sorghum market, Israeli traders consider
Ukraine as another source for sorghum.

MY 2004 was the first time that Ukraine sorghum was imported instead of
U.S. sorghum. The decrease was due to a large price gap between U.S.
sorghum and Ukraine sorghum. The quality between the two sources of
sorghum is the same. Currently, the price gap is \$10-\$14 (Ukraine
sorghum \$123, U.S. sorghum \$136). Sorghum imports in MY 2005 are
expected to remain at 50-55 TMT, and the U.S. market share is forecast
to decrease to 40-50 percent. The decrease is due to the expected price
gap. Israeli traders will increase imports of U.S. sorghum only if its
price decreases.

**Table 11: Sorghum Production for Silage, Ton and Ha, Calendar Year**

  ------------- ---------------- ---------------------- -----------------
  **CY**        **Ha**           **Yields -- Ton**      **Ton Per Ha**

  2000          800              12,000                 15.0

  2001          1,000            13,500                 13.5

  2002          1,370            18,400                 13.4

  2003          2,340            30,200                 12.9

  2004          2,530            36,900                 14.6

  2005          3,000            45,000                 15.0
  ------------- ---------------- ---------------------- -----------------

Source: Ministry of Agriculture and Rural Development, 2004 Annual
Report.

# Table 12: Sorghum Disposition, by Destination, \$ Millions, CY

Real Terms (2004=100)

+-----+--------+-----+-----------+-----+-------+-----+-------+-----+
| ##  | **De   |     | **Local   |     | **In  |     | **    |     |
| ### | livery |     | Markets** |     | terme |     | Grand |     |
| # P | to     |     |           |     | diate |     | To    |     |
| eri | Proces |     |           |     | Prod  |     | tal** |     |
| od  | sors** |     |           |     | uce** |     |       |     |
+-----+--------+-----+-----------+-----+-------+-----+-------+-----+
| ### | **V    | **  | **Value** | **  | **Va  | **  | **Va  | **  |
| ### | alue** | %** |           | %** | lue** | %** | lue** | %** |
|  CY |        |     |           |     |       |     |       |     |
+-----+--------+-----+-----------+-----+-------+-----+-------+-----+
| 2   | 0.0    | 0.0 | 0.0       | 0.0 | 2.09  | 10  | 2.09  | 10  |
| 002 |        |     |           |     |       | 0.0 |       | 0.0 |
+-----+--------+-----+-----------+-----+-------+-----+-------+-----+
| 2   | 0.0    | 0.0 | 0.0       | 0.0 | 3.43  | 10  | 3.43  | 10  |
| 003 |        |     |           |     |       | 0.0 |       | 0.0 |
+-----+--------+-----+-----------+-----+-------+-----+-------+-----+
| 2   | 0.0    | 0.0 | 0.0       | 0.0 | 4.15  | 10  | 4.15  | 10  |
| 004 |        |     |           |     |       | 0.0 |       | 0.0 |
+-----+--------+-----+-----------+-----+-------+-----+-------+-----+

Source: Ministry of Agriculture and Rural Development, 2004 Annual
Report.

# Table 13: Average Price for Grain Sorghum, \$, Real Terms (2004=100), CY

#  

+--------------+---------------------+--------------------------------+
| **CY**       | **Price Per Ton**   | Percent Change Compared to     |
|              |                     |                                |
|              |                     | Previous Year                  |
+--------------+---------------------+--------------------------------+
| 2002         | 139.1               | 7.3%                           |
+--------------+---------------------+--------------------------------+
| 2003         | 114.5               | -17.6%                         |
+--------------+---------------------+--------------------------------+
| 2004         | 112.8               | -1.5%                          |
+--------------+---------------------+--------------------------------+

Source: Ministry of Agriculture and Rural Development, 2004 Annual
Report.

**Table 14: Imports of Grain Sorghum, Country of Purchase, CY, \$
Thousand**

  ------------- ------------- ------------ ----------- ----------- ----------- ------------
                **Value (\$                            **% of                  
                Thousand)**                            Total                   
                                                       Imports**               

  **Country**   **2002**      **2003**     **2004**    **2002**    **2003**    **2004**

  France        469           0            359         13.77       0.00        4.6

  Netherlands   1             263          0           0.03        1.57        0.0

  U.K.          0             570          0           0.00        3.41        0.0

  **Total EU**  **470**       **833**      **359**     **13.80**   4.98        4.6

  Switzerland   1,893         3,827        4,498       55.58       22.87       57.4
  (Major                                                                       
  trading                                                                      
  center)                                                                      

  **Total West  2,363         **4,660**    **4,857**   **69.38**   27.85       62.0
  Europe**                                                                     

  **Total East  **0**         **0**        **0**       **0.00**    **0.00**    0.0
  Europe**                                                                     

  **Total       **2,363**     **4,660**    **4,857**   **69.38**   **27.85**   62.0
  Europe**                                                                     

  U.S.          1,040         12,071       2,978       30.53       72.14       38.0

  Other         3             1            1           0.09        0.01        0.0

  **Total       **1,043**     **12,072**   **2,979**   **30.62**   72.15       38.0
  Outside                                                                      
  Europe**                                                                     

  **Grand       **3,406**     **16,732**   **7,836**   **100.0**   **100.0**   **100.0**
  Total**                                                                      
  ------------- ------------- ------------ ----------- ----------- ----------- ------------

Source: CBS, Foreign Trade Statistics, Different Years.

\* Israel's trade statistics are based on "country of purchase" which in
many cases is different from the "country of origin". UK, Netherlands
and Switzerland, which are large trading centers, appear in Israel's
statistics as suppliers of feed and food grains, when actually they are
locations of brokers.

+-----------------+----------------+-----------------+----------------+
| **Import Trade  |                |                 |                |
| Matrix**        |                |                 |                |
|                 |                |                 |                |
| **Israel**      |                |                 |                |
|                 |                |                 |                |
| **Sorghum**     |                |                 |                |
+-----------------+----------------+-----------------+----------------+
| **Time Period** | **MY**         | **Units**       | **1,000 MT**   |
+-----------------+----------------+-----------------+----------------+
| **Imports for** | **2003**       | **Imports for** | **2004**       |
+-----------------+----------------+-----------------+----------------+
| **U.S.**        | 173            | **U.S.**        | 27             |
+-----------------+----------------+-----------------+----------------+
| **Others**      |                | **Others**      |                |
+-----------------+----------------+-----------------+----------------+
| ** **           |                | ** **           |                |
+-----------------+----------------+-----------------+----------------+
| **Total for     | 0              | **Total for     | 0              |
| Others**        |                | Others**        |                |
+-----------------+----------------+-----------------+----------------+
| **Others not    | 21             | **Others not    | 23             |
| Listed**        |                | Listed**        |                |
+-----------------+----------------+-----------------+----------------+
| **Grand Total** | 194            | **Grand Total** | 50             |
+-----------------+----------------+-----------------+----------------+

**[Corn]{.underline}**

+-------------+------+-------+------+-------+------+-------+-------+
| **PSD       |      |       |      |       |      |       |       |
| Table**     |      |       |      |       |      |       |       |
|             |      |       |      |       |      |       |       |
| **Israel**  |      |       |      |       |      |       |       |
|             |      |       |      |       |      |       |       |
| **Corn**    |      |       |      |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+
|             | **20 | *     | **20 | **    | **20 | **    | **    |
|             | 04** | *Revi | 05** | Estim | 06** | Forec | UOM** |
|             |      | sed** |      | ate** |      | ast** |       |
+-------------+------+-------+------+-------+------+-------+-------+
|             | **   | *     | **   | *     | **   | *     |       |
|             | USDA | *Post | USDA | *Post | USDA | *Post |       |
|             | Of   | Est   | Of   | Est   | Offi | Est   |       |
|             | fici | imate | fici | imate | cial | imate |       |
|             | al** | \[Ne  | al** | \[Ne  | \    | \[Ne  |       |
|             |      | w\]** |      | w\]** | [Old | w\]** |       |
|             | **\  |       | **\  |       | \]** |       |       |
|             | [Old |       | [Old |       |      |       |       |
|             | \]** |       | \]** |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+
| ####        |      | 10    |      | 10    |      | 10    | MM    |
| #### Market |      | /2004 |      | /2005 |      | /2006 | /YYYY |
|  Year Begin |      |       |      |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+
| **Area      | 0    | 1.5   | 0    | 1     | 0    | 1.5   | (1000 |
| Harvested** |      |       |      |       |      |       | HA)   |
+-------------+------+-------+------+-------+------+-------+-------+
| **Beginning | 97   | 80    | 97   | 40    | 97   | 45    | (1000 |
| Stocks**    |      |       |      |       |      |       | MT)   |
+-------------+------+-------+------+-------+------+-------+-------+
| **P         | 0    | 20    | 0    | 16    | 0    | 20    | (1000 |
| roduction** |      |       |      |       |      |       | MT)   |
+-------------+------+-------+------+-------+------+-------+-------+
| **TOTAL     | 1300 | 1040  | 900  | 1189  | 0    | 1200  | (1000 |
| Mkt. Yr.    |      |       |      |       |      |       | MT)   |
| Imports**   |      |       |      |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+
| **Oct-Sep   | 1300 | 1040  | 900  | 1189  | 0    | 1200  | (1000 |
| Imports**   |      |       |      |       |      |       | MT)   |
+-------------+------+-------+------+-------+------+-------+-------+
| **Oct-Sep   | 0    | 251   | 0    | 345   | 0    | 400   | (1000 |
| Import      |      |       |      |       |      |       | MT)   |
| U.S.**      |      |       |      |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+
| **TOTAL     | 1397 | 1140  | 997  | 1245  | 97   | 1265  | (1000 |
| SUPPLY**    |      |       |      |       |      |       | MT)   |
+-------------+------+-------+------+-------+------+-------+-------+
| **TOTAL     | 0    | 0     | 0    | 0     | 0    | 0     | (1000 |
| Mkt. Yr.    |      |       |      |       |      |       | MT)   |
| Exports**   |      |       |      |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+
| **Oct-Sep   | 0    | 0     | 0    | 0     | 0    | 0     | (1000 |
| Exports**   |      |       |      |       |      |       | MT)   |
+-------------+------+-------+------+-------+------+-------+-------+
| **Feed Dom. | 1200 | 1060  | 800  | 1100  | 0    | 1130  | (1000 |
| Co          |      |       |      |       |      |       | MT)   |
| nsumption** |      |       |      |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+
| **TOTAL     | 1300 | 1100  | 900  | 1200  | 0    | 1200  | (1000 |
| Dom.        |      |       |      |       |      |       | MT)   |
| Co          |      |       |      |       |      |       |       |
| nsumption** |      |       |      |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+
| **Ending    | 97   | 40    | 97   | 45    | 0    | 65    | (1000 |
| Stocks**    |      |       |      |       |      |       | MT)   |
+-------------+------+-------+------+-------+------+-------+-------+
| **TOTAL     | 1397 | 1140  | 997  | 1245  | 0    | 1265  | (1000 |
| DIS         |      |       |      |       |      |       | MT)   |
| TRIBUTION** |      |       |      |       |      |       |       |
+-------------+------+-------+------+-------+------+-------+-------+

# 

# Corn Production and Consumption

**Production:** In CY 2005, 8,000 hectares were planted for silage corn.
In addition, crop year 2005 was the second consecutive year that corn
for grain (yellow corn) was grown in Israel. Approximately, 1,500 HA
were planted, and production totaled 20,000 MT. In CY 2005, yellow corn
planted area increased by 200 percent compared to CY 2004. Average yield
totaled 13 tons per hectare. All local grain corn was non-biotech and
was consumed by food manufacturers that export their products to Europe.
The quality of the domestic grain corn was satisfactory. In CY 2005, the
average price for yellow corn was \$135 per ton, and it is expected that
the average price in CY 2006 will decrease by 15 percent (\$115)
compared to

CY 2005. As a result, local yellow corn production is expected to
decrease by 15-25 percent. The local production volume is determined by
international prices for yellow corn.

**Consumption:** In MY 2004, corn consumption totaled 1.06 million tons,
18 percent lower than in the previous year. The decrease was due to
increased imports of feed wheat from Eastern Europe (feed wheat price
was cheaper than corn price). The demand for corn feed in MY 2005 is
expected to increase slightly as a result of a little price gap between
Ukrainian corn and Ukrainian feed wheat. Currently the price for
Ukrainian corn is cheaper than the price for Ukrainian feed wheat. In
the previous year, Ukraine became a major corn feed supplier to Israel.
Despite the fact that corn is considered an excellent grain for poultry,
its use in broiler rations in Israel is limited. The presence of
Xanthophyll 1 pigmentation in corn has the effect of turning the broiler
meat yellow. Israeli consumers refuse to buy yellow chickens, since they
relate the color to poor health and fatness.

Table 15: Monthly Average Price for Bulk Grain Corn, \$ Per Ton

+----------------------+-----------------------+-----------------------+
| **Month**            | **\$/Ton**            | **Percent Change      |
|                      |                       | Compared to Previous  |
|                      |                       | Month**               |
+----------------------+-----------------------+-----------------------+
| 1/2005               | \$153                 |                       |
+----------------------+-----------------------+-----------------------+
| 2/2005               | \$153                 | 0.0%                  |
+----------------------+-----------------------+-----------------------+
| 3/2005               | \$153                 | 0.0%                  |
+----------------------+-----------------------+-----------------------+
| 4/2005               | \$152                 | -0.5%                 |
+----------------------+-----------------------+-----------------------+
| 5/2005               | \$153                 | 0.5%                  |
+----------------------+-----------------------+-----------------------+
| 6/2005               | \$154                 | 0.7%                  |
+----------------------+-----------------------+-----------------------+
| 7/2005               | \$159                 | 2.9%                  |
+----------------------+-----------------------+-----------------------+
| 8/2005               | \$159                 | 0.0%                  |
+----------------------+-----------------------+-----------------------+
| 9/2005               | \$156                 | -1.6%                 |
+----------------------+-----------------------+-----------------------+
| 10/2005              | \$156                 | 0.1%                  |
+----------------------+-----------------------+-----------------------+
| ###### Average Price | **\$155**             |                       |
+----------------------+-----------------------+-----------------------+

Source: Agricultural Statistics Quarterly, Israel.

**Trade**

In MY 2004, corn imports totaled 1,040 TMT, 252 TMT (down 19.5 percent)
lower than in

MY 2003. In MY 2004, Argentinean, Ukrainian, Russian and Bulgarian corn
replaced U.S. corn. The price gap between American corn and other corn
sources is about \$10, and Argentine corn quality is preferred to U.S.
corn. In addition, in MY 2004, feed wheat prices were cheaper than corn
prices; therefore some corn was displaced by feed wheat imports from the
Black Sea Basin. As a result, the market share for U.S. corn decreased
by 71 percent compared to the previous marketing year (from 82 percent
market share to 24 percent market share). Post estimates that corn
imports in MY 2005 will reach 1.1-1.2 million tons. However, if feed
wheat prices decrease during MY 2005, corn imports are expected to
decrease to 700-800 TMT. The forecast is for a 20-30 percent U.S. market
share, with Argentina and Eastern Europe supplying the remainder.

**Table 16: Imports of Corn, Country of Purchase, CY, \$ Thousand**

+------------+--------+-------+-------+--------+---------+-----------+
|            | *      |       |       | **% of |         |           |
|            | *Value |       |       | Total  |         |           |
|            | (\$    |       |       | Imp    |         |           |
|            | Thous  |       |       | orts** |         |           |
|            | and)** |       |       |        |         |           |
+------------+--------+-------+-------+--------+---------+-----------+
| *          | **     | **2   | **2   | **     | *       | **2004**  |
| *Country** | 2002** | 003** | 004** | 2002** | *2003** |           |
+------------+--------+-------+-------+--------+---------+-----------+
| France     | 3      | 5,328 | 3,094 | 0.00   | 4.19    | 1.55      |
+------------+--------+-------+-------+--------+---------+-----------+
| Italy      | 72     | 263   | 14    | 0.07   | 0.21    | 0.01      |
+------------+--------+-------+-------+--------+---------+-----------+
| N          | 357    | 2,513 | 1     | 0.35   | 1.97    | 5.82      |
| etherlands |        |       | 1,593 |        |         |           |
+------------+--------+-------+-------+--------+---------+-----------+
| Austria    | 370    | 863   | 0     | 0.37   | 0.68    | 0.00      |
+------------+--------+-------+-------+--------+---------+-----------+
| Germany    | 428    | 3,208 | 1,338 | 0.42   | 2.52    | 0.67      |
+------------+--------+-------+-------+--------+---------+-----------+
| U.K.       | 12,020 | 7,861 | 1,596 | 11.91  | 6.18    | 0.80      |
+------------+--------+-------+-------+--------+---------+-----------+
| Other EU   | 0      | 150   | 144   | 0.00   | 0.12    | 0.07      |
+------------+--------+-------+-------+--------+---------+-----------+
| **Total    | **13   | **20, | **17, | **1    | 15.86   | 8.92      |
| EU**       | ,250** | 186** | 779** | 3.13** |         |           |
+------------+--------+-------+-------+--------+---------+-----------+
| S          | 24,856 | 5     | 11    | 24.63  | 40.89   | 58.18     |
| witzerland |        | 2,032 | 5,902 |        |         |           |
|            |        |       |       |        |         |           |
| (Major     |        |       |       |        |         |           |
| trading    |        |       |       |        |         |           |
| center)    |        |       |       |        |         |           |
+------------+--------+-------+-------+--------+---------+-----------+
| **Total    | **38   | **72, | *     | **3    | 56.75   | 67.10     |
| West       | ,106** | 218** | *133, | 7.76** |         |           |
| Europe**   |        |       | 681** |        |         |           |
+------------+--------+-------+-------+--------+---------+-----------+
| Russia     | 370    | 236   | 0     | 0.37   | 0.19    | 0.00      |
+------------+--------+-------+-------+--------+---------+-----------+
| Ukraine    | 0      | 1,451 | 236   | 0.00   | 1.14    | 0.12      |
+------------+--------+-------+-------+--------+---------+-----------+
| Romania    | 129    | 861   | 1,509 | 0.13   | 0.68    | 0.76      |
+------------+--------+-------+-------+--------+---------+-----------+
| Other East | 111    | 129   | 286   | 0.11   | 0.10    | 0.14      |
| Europe     |        |       |       |        |         |           |
+------------+--------+-------+-------+--------+---------+-----------+
| **Total    | *      | **2,  | **2,  | **     | 2.10    | **1.02**  |
| East       | *610** | 677** | 031** | 0.60** |         |           |
| Europe**   |        |       |       |        |         |           |
+------------+--------+-------+-------+--------+---------+-----------+
| **Total    | **38   | **74, | *     | **3    | **      | 68.12     |
| Europe**   | ,716** | 895** | *135, | 8.36** | 58.86** |           |
|            |        |       | 712** |        |         |           |
+------------+--------+-------+-------+--------+---------+-----------+
| U.S.       | 57,824 | 4     | 5     | 57.29  | 37.32   | 26.54     |
|            |        | 7,491 | 2,874 |        |         |           |
+------------+--------+-------+-------+--------+---------+-----------+
| Argentina  | 4,344  | 3,587 | 9,832 | 4.30   | 2.82    | 4.94      |
+------------+--------+-------+-------+--------+---------+-----------+
| Brazil     | 31     | 1,267 | 0     | 0.03   | 1.00    | 0.00      |
+------------+--------+-------+-------+--------+---------+-----------+
| Others     | 9      | 6     | 805   | 0.01   | 0.00    | 0.40      |
+------------+--------+-------+-------+--------+---------+-----------+
| **Total    | **62   | **52, | **63, | **6    | 41.14   | 31.88     |
| Outside    | ,208** | 351** | 511** | 1.64** |         |           |
| Europe**   |        |       |       |        |         |           |
+------------+--------+-------+-------+--------+---------+-----------+
| **Grand    | **100  | *     | *     | **1    | **      | **100.    |
| Total**    | ,924** | *127, | *199, | 00.0** | 100.0** | 0**       |
|            |        | 246** | 223** |        |         |           |
+------------+--------+-------+-------+--------+---------+-----------+

Source: CBS, Foreign Trade Statistics, Different Years.

\* Israel's trade statistics are based on "country of purchase" which in
many cases is different from the "country of origin". UK, Netherlands
and Switzerland, which are large trading centers, appear in Israel's
statistics as suppliers of feed and food grains, when actually they are
locations of brokers.

+-----------------+-----------------+-----------------+----------------+
| **Import Trade  |                 |                 |                |
| Matrix**        |                 |                 |                |
|                 |                 |                 |                |
| **Israel**      |                 |                 |                |
|                 |                 |                 |                |
| **Corn**        |                 |                 |                |
+-----------------+-----------------+-----------------+----------------+
| #####           | **MY**          | **Units**       | **1,000 MT**   |
| ### Time Period |                 |                 |                |
+-----------------+-----------------+-----------------+----------------+
| **Imports for** | **2003**        | **Imports for** | **2004**       |
+-----------------+-----------------+-----------------+----------------+
| **U.S.**        | 1,055           | **U.S.**        | 251            |
+-----------------+-----------------+-----------------+----------------+
| **Others**      |                 | **Others**      |                |
+-----------------+-----------------+-----------------+----------------+
| ** **           |                 | ** **           |                |
+-----------------+-----------------+-----------------+----------------+
| **Total for     | 0               | **Total for     | 0              |
| Others**        |                 | Others**        |                |
+-----------------+-----------------+-----------------+----------------+
| **Others not    | 237             | **Others not    | 789            |
| Listed**        |                 | Listed**        |                |
+-----------------+-----------------+-----------------+----------------+
| **Grand Total** | 1,292           | **Grand Total** | 1,040          |
+-----------------+-----------------+-----------------+----------------+

**Table 17: Grains Imports to Israel, MY, Thousand Metric Tons**

  ------------- ----------- --------- ----------- ------------ ----------- ------------- -----------
  **MY**[^4]    **Milling   **Feed    **Total     **Barley**   **Corn**    **Sorghum**   **Total
                Wheat**     Wheat**   Wheat**                                            Import**

  2000          906         423       1,329       342          1,030       167           2,868

  2001          838         739       1,577       430          1,047       31            3,085

  2002          614         666       1,280       460          698         45            2,483

  2003          907         181       1,088       493          1,292       194           3,067

  2004          730         685       1,415       374          1,040       50            2,879

  **Average**   **799**     **539**   **1,338**   **420**      **1,021**   **97**        **2,876**
  ------------- ----------- --------- ----------- ------------ ----------- ------------- -----------

Source: Ministry of Agriculture, Office of Prices and Supply

# Table 18: Import Share of Total Import Quantity, Percent, MY

  ------------- ----------- ---------- ---------- ------------ ---------- ------------- -----------
  **MY**        **Milling   **Feed     **Total    **Barley**   **Corn**   **Sorghum**   **Total
                Wheat**     Wheat**    Wheat**                                          Import**

  2000          31.6        14.7       46.3       11.9         35.9       5.8           100.0

  2001          27.2        24.0       51.1       13.9         33.9       1.0           100.0

  2002          24.7        26.8       51.6       18.5         28.1       1.8           100.0

  2003          29.6        5.9        35.5       16.1         42.1       6.3           100.0

  2004          25.4        23.8       49.1       13.0         36.1       1.7           100.0

  **Average**   **27.7**    **19.0**   **46.7**   **14.7**     **35.2**   **3.3**       **100.0**
  ------------- ----------- ---------- ---------- ------------ ---------- ------------- -----------

Source: Ministry of Agriculture, Office of Prices and Supply

# Table 19: U.S. Market Share of Total Import Quantity, Percent, MY

  --------- --------------- ------------ ------------ ----------- -------------
  **MY**    **Milling       **Feed       **Barley**   **Corn**    **Sorghum**
            Wheat**         Wheat**                               

  2000      68              7            0            63          100

  2001      74              0            0            73          100

  2002      58              0            0            39          89

  2003      74              0            0            82          89

  2004      42              0            0            24          54
  --------- --------------- ------------ ------------ ----------- -------------

Source: Ministry of Agriculture, Office of Prices and Supply

[^1]: Exchange Rate, 1 USA Dollar=4.6 NIS.

[^2]: Including sales to Palestinian Authority, estimated at about 7%.

    Excluding sales by feeding centers.

[^3]: Till September 2005.

[^4]: October-September