Kibbutz export growth now in doubt [pg. 18]

By DANIEL KENNEMER
July 26, 2006 23:17
1 minute read.

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later

If kibbutz industry exports had continued to develop as they were on the eve of Hizbullah's attacks, they would certainly have grown 6 percent to 7% in the third quarter against the same period last year, estimated Kibbutz Industry Association export director Amos Shalev. "In light of the situation, we can no longer say that for sure," Shalev said. "If the situation continues for another week or two, it is clear that we'll have to update the forecast. But to date, there has been great optimism that the damage to factories' exports in the second half of the year would be minimal." Although the indirect damage has been slow to show up in the businesses' accounting ledgers for now, greater damage could occur in less visible ways, Shalev said. "With destruction of property, the amount is known, but when a client is lost, there is no compensation and we don't know how to quantify the extent of the damage," he said. Though some factories have decided to take the relatively expensive step of sending their goods by air - which could cost up to ten times marine shipment - others are having to consider moving at least part of their production abroad to satisfy clients and keep supplies running. Kibbutz factories providing industry abroad with components - such as the auto industry - must be particularly sensitive to clients' concerns, Shalev added. Kibbutz industry exports in the first half of the year totalled $1.2 billion, or 5.2% above the same period of 2005. A 12.9% surge in exports in the second quarter accounted for the bulk of the growth. Some factories' profits, however, were hurt by the dollar's devaluation in the first six months of the year, and rising prices of raw materials.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS