62 Friday, March 28, 1980
1
I
THE DETROIT JEWISH NEWS
Agricultural Industry Begins to Retrench
market where triple-digit
inflation has drastically re-
duced consumption of what
farmers grow and produce.
The government took a
hard line toward the
demonstrators, claiming
that the farmers were the
"most pampered" segment
DONATE
of Israeli society. If that
phrase was unfelicitous, its
TO THE
meaning was to a large ex-
BLOOD
tent true.
Israel's agriculture has
BANK
been a dependency of the
Happy Passover to Our
Friends and Relatives
government ever since
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the state was founded
MORRIS
FRIEDMAN
Edith Eckstat, R.E.
and, necessarily so. But
AND SONS
Albert Wolgin, R.E.
times have changed. The
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—
Heating
Contractors
Hair Removed Forever
supportive policies of the
24605 John R. Hazel Park
WO 3-0922
WO 3-3047
past have clashed with
LI 4-2454
566-1547
1309 Woodward Tower at the Park
the hard realities of the
Formerly Broderick Tower
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present, and that, in es-
Happy Passover to
sence, is the cause of the
Our Relatives and Friends
GLOBE PARCEL crisis.
EIDELMAN BROS.
The present condition of
SERVICE INC.
agriculture stems from a
INC.
Gift Parcels For
Whole Floor Coverings
Overseas Countries
built-in contradiction: a
26390 Van Born Rd.,
profit-oriented business
6720 Michigan
894-5350
Dearborn Heights
whose profits depend, at
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least in part, on subsidies
Holiday Good Wishes
Happy Passover
that drain the Treasury.
KARL GUTMAN
Subsidization of agricul-
FEDERAL
ture was inevitable in the
CUSTOM TAILOR
ALLOYS CO.
27031 Southfield Rd.
early years of the state. The
Lathrup Village, Mich.
country needed infusions of
2930 Denton
424-8666
foreign funds to emerge
from the small-scale
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economy of the Mandate
Leo Knight
period and to seek new hori-
zons which would eventu-
Photography
ally make Israel a self-
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1221 Twelfth St.
sufficient economic entity.
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26571 W. 12 Mile Rd.
Agricultural
exports were a
Detroit, Mich.
Southfield
352-7030
means to earn foreign cur-
rencies but Israeli farmers
needed support if they were
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to expand from the locally-
oriented market into an
export-oriented agricul-
Detroit
7735 Fenkell
tural industry.
Private farms as well as
864-2340
the more sophisticated
farms of the kibutzim and
A Very Healthy and Happy Passover
moshavim were created
to the Jewish Community
with Jewish Agency funds.
The money was used for an
infrastructure — houses,
work tools, livestock and
TR 3-7770
other necessities. In the
early days of the state, far-
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mers were not required to
reimburse the agency. As
Chinese and American Restaurant
Prof. Raanan Weitz, head of
Specializing in Cantonese Foods
the Jewish Agency's set-
tlement department, ex-
13715 West 9 Mile,
plained in a recent article in
West of Coolidge, Oak Park
LI
7-466U
L-
••••••••••••••••• o ic 00000000 ••••••••••••••• ■14•* Haaretz:
•
••
"It is true that in the
A Happy Passover
•
•
•
• past, in the early 1950s,
inefficient farmers were
given agricultural tools,
Jewelry
and
Watch
Repairs
•
• the reason being that all
•
•
Prompt Service on All Repairs
•
• new settlers were ineffi-
: 30100 Telegraph, Suite 102, Birmingham
647-6881
cient farmers. It was
•• • • • • • • • • • • 00 000 • • • • • • • • • • • • • • • ID • • ••
• • • • • • • •
known, a priori, that in
order to make them into
Holiday Greetings
successful farmers, one
to Our Friends and Customers
had to pay `rebbe gelt.' It
was the only way that we
succeeded in turning new
Bill Gross & George Rosetos
immigrants who had no
271 W. MAPLE, Birmingham, Mich. 642-4440
professional know-how
into successful farmers."
I lapin* Pus.sorer to •11I Our Friends null Pulroms
The farmers' debts were
written down only years la-
ter. Repayment was calcu-
Specializing in Amcric:n Food
lated on very easy terms.
Famous for All Chinese Native Foods
Real Cantonese Family Dinners
The farmers were asked to
CARRYOUT SERVICE
pay back loans that were
TO 8-7550 not linked to inflation, over
322 W. McNichols
a period of 50 years at two
Happy Passover
percent — virtually a gift.
Public support of Israel's
farmers did not end with the
infrastructure. Price sup-
ports were also needed. The
CORRUGATED CARTONS
intention was good. The
, 23823 Dequindre, Hazel Park
566-8640
state wanted to provide its
By GIL SEDAN
JERUSALEM (JTA) —
When 25,000 angry farmers
from all over the country
descended on Jerusalem
March 5 and„stormed the
Knesset building, the riot
was described as one of the
worst in the city's history. It
was symptomatic of the
mounting crisis in Israel's
agriculture, once the
proudest and in many ways
the most successful branch
of the nation's economy.
The farmers were in-
furiated by the Likud gov-
ernment's slash in price
support subsidies for ag-
ricultural products. It has
left them at the mercy of a
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EAGLE CLEANING CO.
FIELD'S EMPLOYMENT
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HOA KOW INN
• •
•
IDEAL JEWELRY
CO. • • • •
.
KEYSTONE FURS
!la
KOW KOW INN
MANHATTAN CONTAINER
CORP.
citizens with basic com-
modities at reasonable
prices.
Milk, eggs, bread and
other products — and
services — were supplied
to the consumer at low
prices. The government
paid the difference be-
tween the market price
and the actual cost. The
subsidies sometimes ab-
sorbed the greater part of
the costs.
With so much care and
support, it is small wonder
that agriculture prospered.
It enjoyed all of the ele-
ments of success: cheap
money, advanced technol-
ogy, high motivation —
especially in the kibutz and
moshav movements — and
a rising market. In 31 years,
Israel reached a point where
it was self-sufficient in most
food products and had a
healthy surplus for export.
The local demand for ag-
ricultural products never
exceeded an annual rise of
four percent. The prod-
uctivity of the farmers grew
by at least five percent per
annum. A growing share of
the local produce was being
sold abroad.
Israel's mild climate,
especially in the Jordan
Valley, Arava and the Be"-
ssor, permitted the large-
scale development of winter
crops such as tomatoes,
peppers, watermelon and
flowers. These were hun-
grily grabbed up by the
European market whose
customers were willing to
pay high prices in foreign
currency for out-of-season
crops of good quality.
Israeli flowers became
popular even in Holland,
the land said to have "in-
vented" • flowers. Israeli
flower production was
the result of huge invest-
ments in hot houses with
government loans at very
easy terms. High prices
were commanded on the
European market where
the clientele was an
affluent one. As a result,
Israelis deserted other
occupations to become
florists. Initial financial
and professional help
was provided by the Ag-
riculture Ministry.
But inevitably, the rapid
expansion of this branch
brought its downfall.
Recently, florists were
forced to destroy hundreds
of flowers because it was no
longer worthwhile to ship
them abroad. A similar
crisis may face other
export-oriented agricul-
tural products that overex-
panded.
The crisis on the local
market lias a similar back-
ground. For one thing, the
government no longer
makes gifts to farmers.
The government is also
determined to eliminate
price support subsidies
and has begun to reduce
them by stages. The rate
of inflation has made it
increasingly difficult for
We hand folks over to
God's mercy and show none
ourselves.
-- George Eliot
the state to catch up with
the rising costs of basic
commodities.
This trend, begun under
the previous Labor-led gov-
ernment, intensified when
Likud took power and has
become especially sharp
under the leadership of Fi-
nance Minister Yigal Hur-
witz. The government's pol-
icy is now the opposite of
what it was in the early
1950s. The state is no longer
willing to pay for milk, eggs
or bread. The price the con-
sumer pays for those basics
is now determined almost
entirely by the rules of sup-
ply and demand.
There is little argument
that Israel's agriculture is
passing through a serious
crisis. But most experts be-
lieve there is a way out.
They believe that a reorgan-
ization is needed so that Is-
rael produces those items
that are most in demand.
1,1
t
LASTAR
electric co.
Electrical Contractors
31681 Dequindre
Madison Heights, Mich.
HAPPY PASSOVER
TO ALL
Mr.
Meyer Levin
L
16938 Hilton
Southfield, Mich. 48075
Passover Greetings
Happy Holiday To All
RED-WAY
CARTAGE CO.
MEN DELSON
EGG CO.
5100 E. NEVADA
FO 6-6000
13080 Capitol Ave., Oak Pork
541-4060
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Wishes Their Customers
A Happy Healthy
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9130 JOS. CAMPAU
HAMTRAMCK, MICH.
TR 1-1500
Happy Holiday
MERCURY PAINT CO.
Best Wishes For A
Happy, Healthy Passover
REPUBLIC
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Holiday Greetings
STUDIO FLOWER
VIC ZUCKERMAN
13516 Second Ave. at Davison
Detroit, Michigan 48203
868-8442