Wheat and meslin market in Israel

Earlier Report Observations

The wheat and meslin market in Israel remained heavily import-dependent throughout the period, with domestic production covering only 10-20% of consumption. The mandatory linkage policy, which required wheat importers to purchase local wheat, supported domestic growers despite the local wheat's reputation for lower quality and higher cost. This framework maintained a structural reliance on imports, primarily from Ukraine and Russia, shaping market volumes that fluctuated between 1.7 and 1.9 million tonnes, largely mirroring import trends.

External shocks significantly impacted the market. In 2020, the COVID-19 pandemic introduced volatility in global wheat prices and supply chains. The following year, severe drought conditions damaged local crops, increasing dependence on imported wheat and contributing to a market size of 1.92 million tonnes in 2021. These events highlighted the market's sensitivity to climate and global trade disruptions.

The Russian invasion of Ukraine in 2022 severely disrupted supply from two key sources, leading to a sharp contraction in imports and a drop in market size to 1.75 million tonnes. Soaring wheat prices boosted results for domestic agrochemical firms, reflecting the broader impact on the agricultural sector. By 2023, the market recovered to 1.92 million tonnes as import channels adapted, though the underlying vulnerability to geopolitical events remained.

Production wheat and meslin in Israel

In kind, 2017-2020, K t

Top producers of wheat and meslin, 2017-2020

World map of production of wheat and meslin, 2017-2020

Wheat and meslin production in Israel has increased for the second year in a row. In 2020, production reached 116.7 K t, which represents a 37.7% increase compared to 2019. Over the period from 2017 to 2020, production grew by 61.6%, with an average annual growth rate of 17.4%. The lowest production level was recorded in 2018 at 70.5 K t, which marked a 2.4% decline from the previous year.

Annual dynamics of production in Israel in kind, 2017-2020, K t

Exports wheat and meslin from Israel

Exports in kind, K t

The data shows irregular changes, indicating a volatile market environment. From 2017 to 2020, exports experienced extreme fluctuations, with a peak-to-trough amplitude of 233 times. In 2020, wheat and meslin exports from Israel totaled 0.0 K t, a sharp decrease of 99.4% compared to 2019. The largest increase occurred in 2019, with a growth of 93.8%.

Annual dynamics of product's exports from Israel in kind, 2017-2020, K t

From 2017 to 2020, Jordan, Denmark, and Romania were the leading destinations for exports in kind. Jordan accounted for 30.0% of exports, Denmark for 23.4%, and Romania for 13.0%. Together, these three countries represented 66.4% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Israel in kind, 2017-2020

Exports in value, M $ US

The market displayed volatility during the observed period. Export volumes reached their highest point in 2019 and their lowest in 2020, with a top-to-bottom ratio of 126 times. In 2020, wheat and meslin deliveries from Israel totaled 0.0 M $ US, a significant decrease of 99.2% compared to 2019. The maximum value was recorded in 2019 at 0.8 M $ US, which also saw the largest increase of 125.4%.

Annual dynamics of product's exports from Israel in value, 2017-2020, M $ US

From 2017 to 2020, Jordan, Denmark, and Romania were the main destinations for exports in value terms. Jordan accounted for 29.8% of exports, Denmark for 26.5%, and Romania for 11.0%. Collectively, these three countries absorbed 67.4% of total export value for wheat and meslin from Israel.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Israel in value, 2017-2020

Imports wheat and meslin to Israel

Imports in kind, K t

Wheat and meslin deliveries to Israel have declined for the second consecutive year. In 2020, imports amounted to 1 554 K t, showing a slight decrease of 2.7% year-over-year. Over the period from 2017 to 2020, imports decreased by 5.9%, with an average annual decline of 2.0%. The highest import level was recorded in 2018 at 1 838 K t, which saw an 11.3% increase. The largest decline occurred in 2019, with a drop of 13.0%.

Annual dynamics of product's imports to Israel in kind, 2017-2020, K t

From 2017 to 2020, Switzerland, Russia, and Ukraine were the primary sources for imports in kind. Switzerland accounted for 27.2% of imports, Russia for 18.0%, and Ukraine for 16.5%. Together, these three countries supplied 61.7% of total import volumes to Israel.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Israel in kind, 2017-2020

Imports in value, M $ US

Wheat and meslin shipments to Israel from abroad have declined for the second year in a row. In 2020, imports stood at 355.9 M $ US, which is 2.4% lower than the previous year. Over the period from 2017 to 2020, imports increased by 5.9%, with an average annual growth rate of 1.9%. The maximum value was recorded in 2018 at 400.6 M $ US, which experienced a 19.2% increase. The largest decline occurred in 2019, with a decrease of 9.0%.

Annual dynamics of product's imports to Israel in value, 2017-2020, M $ US

Throughout 2017 to 2020, Switzerland, Russia, and Ukraine remained the key partners for imports in value terms. Switzerland accounted for 26.7% of imports, Russia for 18.1%, and Ukraine for 16.6%. Together, these three countries accounted for 61.4% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Israel in value, 2017-2020