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 HOLIDAY GREETINGS the state was founded MORRIS FRIEDMAN Edith Eckstat, R.E. and, necessarily so. But AND SONS Albert Wolgin, R.E. times have changed. The Plumbing — 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 Holiday Good Cheer 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 Best Wishes For A 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 Passover Greetings Passover Greetings economy of the Mandate Leo Knight period and to seek new hori- zons which would eventu- Photography ally make Israel a self- • Weddings • Bar Mitzvas 1221 Twelfth St. sufficient economic entity. • Movies • Portraits 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 Holiday Good Cheer 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- Sincerest Passover Greetings 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 JOS. FRENKEL CO. EAGLE CLEANING CO. FIELD'S EMPLOYMENT r 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. 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