The Israeli economy has worsened more than during COVID 0 14

Manufacturers say that the current crisis is tougher than during the coronavirus pandemic and far exceeds the economic consequences of the war in Ukraine. The main reason is a combination of rising shipping costs and a global fertilizer shortage. In particular, factories and manufacturing infrastructure in the UAE, which account for about 30% of the world's fertilizer consumption, have been affected.

As Ynet learned, fertilizer prices in Israel have already surged by 180%. Since fertilizers make up about 10% of the cost of agricultural production, this is a direct blow to consumers' wallets.

At the same time, plastic prices—a byproduct of oil refining—have sharply increased. Israeli packaging manufacturers have already notified food companies of price hikes of up to 35%. This concerns not only consumer packaging but also expenses for agricultural needs—from greenhouse film to irrigation systems.

Dani Siso, chairman of the "Shefa Deshen Tzafon" company from Beit She'an, which produces and sells fertilizers, said: "There is a huge complexity with imports and shipping, which have become more expensive. We have enough supplies for the next month, but if we cannot import additional batches, a shortage may arise as early as May."

Golan Argaman, CEO of "Deshen Tzafon," added that this is a crisis more severe than the coronavirus pandemic or the war in Ukraine. "The infrastructure in the Persian Gulf region is destroyed, and it will take time to restore it. This is the first case since World War II where factories are suffering on such a scale. This dramatic event is happening just as the peak season for sowing and fertilization in Israel begins—from April to October," he explained.

According to Argaman, global fertilizer prices have risen by 300%, while in Israel the increase has been more moderate: "Fortunately, Israel has managed to organize supplies from Eastern Europe, Egypt, and the Balkans. Additionally, some fertilizers are produced domestically from local raw materials—such as potash at the Dead Sea plants and potassium nitrate in Haifa. But for other components, we are completely dependent on imports.