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As the War of Iron Swords continues to grip Israel, the economic ripple effects are manifesting as severe consequences for food security across the nation.
The impact of escalating food prices, especially with the recent Rosh Hashana holiday and the approaching Sukkot celebration, is placing significant stress on vulnerable populations, pushing many into a state of nutritional imbalance.
Recent data released by Leket Israel and BDO highlights a troubling increase in food prices, overshadowing the Jewish New Year festivities. Compared to last year, prices for fruits and vegetables have surged by 9%, with meat prices climbing by 7%, chicken by 6%, and dairy products by 4%.
This sharp rise in food costs is particularly alarming as Israel grapples with the financial repercussions of an ongoing conflict that has already cost the nation over NIS 250 billion (approximately $66 billion).
Additionally, concerns about potential escalations with Hezbollah and Iran, along with recent downgrades of Israel’s credit rating by multiple financial agencies, exacerbate the already fragile economic situation.
The statistics are sobering: nearly half a million Israeli families currently face financial instability. During this year’s Rosh Hashana, many were compelled to forgo healthier meal options, resorting instead to cheaper, less nutritious alternatives.
Joseph Gitler, founder and chairman of Leket Israel, the country’s largest food bank and rescue organization, expressed the gravity of the situation, stating, “That’s called nutritional insecurity.
Nutritional insecurity means you have to make choices. And sometimes the choice is, ‘I can’t buy the right food; I need to buy enough food.’”
The humanitarian crisis is compounded by the displacement of thousands. Of the 143,000 individuals eligible for evacuation from their homes due to the ongoing conflict, approximately 22,800 are currently residing in hotels, while 54,000 have managed to return home.
Meanwhile, around 66,200 continue to live in temporary accommodations or alternative communities. These displaced populations are among the hardest hit, having not only lost their homes but also their means of livelihood.
Food data analysis from BDO highlights the challenges faced by the agricultural sector during this tumultuous period.
Chen Herzog, BDO’s chief economist in Israel, explained that approximately 30% of the country’s agricultural land is located in conflict areas, particularly near Gaza and the northern border, severely impacting harvesting capabilities.
The war has also disrupted the workforce, as Palestinian and foreign laborers, who constitute a significant portion of agricultural workers, have been unable to work since the conflict began. “Some foreign workers have left due to safety concerns, with some even being kidnapped on October 7,” Herzog noted.
The limited access to farmland and worker shortages have led to a decline in agricultural output in Israel. Despite efforts to increase food imports, the rising prices have resulted in shortages, particularly in fresh produce.
“We’ve seen significant price increases, particularly in fruits and vegetables like tomatoes,” Herzog said. Consequently, those facing financial difficulties are consuming less fresh produce, turning instead to more affordable, yet less nutritious, food options.
Gitler echoed these concerns, emphasizing the pressing need for community support during this festive season. He revealed a “40% increase in demand” from Leket’s nonprofit partners, stating, “We must unite as a community to ensure everyone has access to nutritious meals, especially during this festive season.”
Following the outbreak of violence on October 7, Leket’s meal collection project faced a drastic decline, dropping from an average of 10,000 to 15,000 meals a day to zero. In response, the organization adapted by purchasing meals from the same establishments that typically donated food.
Despite these challenges, Gitler expressed some optimism. “We are collecting meals again free of charge from hotels, corporate cafeterias, and army bases, and our costs have gone down to just the logistics—about one dollar per meal delivered.”
He noted that Leket continues to buy about 500 meals daily, primarily for elderly individuals in high-risk areas. The effects of the war extend beyond immediate food shortages. Gitler emphasized that many farmers have been severely impacted.
“The far north in Israel is basically a no-go zone, and it’s been like that for almost a year, which means these farmers are in a catastrophic situation. It’s not safe for them to work the fields,” he explained.
The aftermath of the violence on October 7 resulted in over $500 million in losses for farmers in southern Israel, with the destruction of more than 100,000 acres of farmland and essential agricultural equipment.
This destruction is not merely collateral damage; it is part of an intentional strategy by Hamas and Hezbollah to dismantle Israel’s agricultural infrastructure.
“Because so much equipment was purposely destroyed by Hamas on October 7, we’re trying to make up the difference between what the government provides, the farm insurance pays, and what the farmers have,” Gitler elaborated.
Herzog also warned of the long-term implications of rising food prices, noting that they are likely to strain Israel’s health system as citizens turn to less nutritious, processed foods.
A report from BDO and Leket found a direct correlation between poor nutrition and increased health costs, revealing that in 2022, food insecurity cost the Israeli economy NIS 5.2 billion (approximately $1.4 billion), accounting for about 5% of total national healthcare expenditures. With the ongoing conflict exacerbating food access issues, healthcare costs are expected to rise further.
In response to these challenges, organizations like Leket Israel are stepping up their efforts to provide essential support to the most vulnerable populations.
Gitler affirmed, “In these trying times, food is more than just sustenance—it is a symbol of solidarity and community. We must ensure that even during war, no one goes hungry.”
The Israeli government is also taking steps to address the looming food crisis through its Israeli National Plan for Food Security 2050.
This initiative aims to ensure the country’s long-term food supply over the next 25 years by balancing local production and imports.
Key objectives include promoting local production, fostering innovation, ensuring sustainable food systems, and managing risks in agriculture and food industries.
Herzog pointed out that the war has significantly impacted Israel’s food imports, even though most shipments arrive via Mediterranean ports, which are distanced from threats like the Houthi blockade in the Red Sea. Rising insurance and shipping costs have added to the burden, as increased risk premiums become the norm.
As the conflict persists, the situation remains dire, with rising costs, disrupted agricultural productivity, and increasing health concerns affecting Israel’s food security.
With vulnerable populations facing greater challenges, the efforts of organizations like Leket Israel are critical in providing immediate relief.
Meanwhile, the government’s long-term plans aim to stabilize the country’s food supply amid immediate turmoil, highlighting the urgent need for a collaborative response to an escalating crisis.