Identifier
Created
Classification
Origin
06JERUSALEM5005
2006-12-20 15:04:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Consulate Jerusalem
Cable title:  

2006 OLIVE HARVEST: HIGH YIELD EXCEEDS

Tags:  EAGR ETRD ECON PGOV KWBG IS 
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VZCZCXRO0131
OO RUEHROV
DE RUEHJM #5005/01 3541504
ZNR UUUUU ZZH
O 201504Z DEC 06
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6104
INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHBS/USEU BRUSSELS PRIORITY
UNCLAS SECTION 01 OF 02 JERUSALEM 005005 

SIPDIS

SENSITIVE
SIPDIS

NEA FOR FRONT OFFICE; NEA/IPA FOR
WILLIAMS/SHAMPAINE/STEINGER; NSC FOR ABRAMS/DORAN/WATERS;
TREASURY FOR SZUBIN/LOEFFLER/NUGENT/HIRSON

E.O. 12958: N/A
TAGS: EAGR ETRD ECON PGOV KWBG IS
SUBJECT: 2006 OLIVE HARVEST: HIGH YIELD EXCEEDS
EXPECTATIONS; SETTLER INTERFERENCE REPORTED

UNCLAS SECTION 01 OF 02 JERUSALEM 005005

SIPDIS

SENSITIVE
SIPDIS

NEA FOR FRONT OFFICE; NEA/IPA FOR
WILLIAMS/SHAMPAINE/STEINGER; NSC FOR ABRAMS/DORAN/WATERS;
TREASURY FOR SZUBIN/LOEFFLER/NUGENT/HIRSON

E.O. 12958: N/A
TAGS: EAGR ETRD ECON PGOV KWBG IS
SUBJECT: 2006 OLIVE HARVEST: HIGH YIELD EXCEEDS
EXPECTATIONS; SETTLER INTERFERENCE REPORTED


1. (SBU) Summary: The 2006 Palestinian olive harvest was
very successful and is expected to produce USD 100 million in
olive oil sales - tripling the USD 30 million earned in 2005.
(Note: Olive harvests are cyclical, with each low year
followed by a high year - 2006 was a cyclical high year for
olives. End note.) The harvest ran from late October
through November. An estimated 48 percent of the 2006 oil
will be consumed domestically, with the remainder scheduled
for export. Obstacles to movement and access in the West
Bank hampered farmers' ability to sell their oil, as they
reportedly faced 40 percent more physical obstacles and
security restrictions than in 2005. Israeli human rights
groups reported 18 to 50 major instances of olive theft and
violent disruptions by settlers of the 2006 Palestinian olive
harvest. End summary.

EXPECTED OLIVE OIL REVENUES
--------------


2. (SBU) Paltrade specialist Said Sabri told EconOff that
the 2006 olive harvest was exceptional and expected to
produce 33,000 tons of olive oil, from which the Palestinians
should earn USD 100 million in sales. Olive harvests are
cyclical, and, as 2006 was a high year, 2005 was a low
production year that earned just USD 30 million in sales.
Sabri stated that 52 percent of the 2006 Palestinian crop
will be exported outside the Palestinian territories.
Specifically, 24 percent of the 2006 oil will be sold to
Israel and 12 percent to Jordan, Egypt and Saudi Arabia. The
U.S. will import 1 to 2 percent of total production and
Europe 7 to 10 percent.

OBSTACLES TO QUICK SALES
--------------


3. (SBU) According to an October World Bank report, during
the 2006 harvest, Palestinian olive farmers in the West Bank
would likely face over 500 physical obstacles and closure
restrictions; a 40 percent increase from 2005. Sabri told
EconOff that the main logistical issue for Palestinian
farmers continues to be transportation of their olive oil to
central West Bank for sale and export to and through Jordan,
as shipments are stopped and delayed repeatedly. (Note:
OCHA's count of obstacles to movement in the West Bank
totaled 533 in October and 540 in November. End note.)


4. (SBU) Sabri stated that a small percentage of Palestinian
olive trees are located to the west of the separation
barrier, forcing many farmers to travel long distances and
request permission from Israeli security forces to harvest
their olives. In addition, Sabri said that growing movement
and access issues in the Palestinian territories increase
production, transportation, and inventory costs, making
Palestinian olive oil more expensive and its producers much
less competitive on the international market.

REPORTED SETTLER ATTACKS
--------------


5. (SBU) Issa Ishatla, Director of the Palestinian Olive
Association, told EconOff that he received over 50 separate
reports of violent interference by Israelis during the
harvest. Ishatla stated that, according to numerous
complaints made to him by farmers, Israeli settlers
throughout the West Bank threw rocks and insults at olive
pickers working close to Israeli settlements. His
association estimated that 8,000 of the 100,000 West Bank
families involved in the olive oil business were threatened
and/or abused by settlers during the harvest.


6. (SBU) Rabbi Aric Ascherman, Director of Rabbis for Human
Rights, told EconOff that there were far fewer acts of
violence and harassment of farmers by settlers during the
2006 harvest than during that of 2005. He stated that a June
26, 2006 Israeli High Court ruling, preventing the IDF from
closing-off areas in a way that prevents Palestinians from
working their crops, helped ensure the freedom of movement
for farmers during the 2006 harvest. Regardless, he added,
settlers threw rocks and threatened Palestinians farmers
during the harvest on numerous occasions - he estimated 50
major instances.


7. (SBU) The Israeli human rights group Yesh Din recently
reported that there were 18 major instances of olive theft

JERUSALEM 00005005 002 OF 002


and violent disruptions of the 2006 harvest by Israeli
settlers.

DUFFY