Israel's seafood market, an opportunity in the making for U.S. exporters

Israel is individual of the largest seafood markets in the Middle East, with annual consumption of above 70,000 metric tons. Despite new growth in domestic aquaculture production, 60 percent of the country's total seafood fill up is imported.

Measuring the Market and Competition

In calendar 2003 Israel's seafood imports totaled about $103 million. Norway is the main import supplier, providing a wide variety of frozen fish harvests Other countries supplying Israel's seafood market include Thailand, Kenya and Argentina.

The U market share totaled 18 percent in 2003 valued at $18 million, down 60 percent from 1999 The overall decline in U exports is attributed to increasing competition, growing in domestic aquaculture and limited consumer knowledge of the variety and quality of U seafood returnss For example, Israeli consumers do not distinguish between U salmon--which is mainly wild caught--and supplies from other countries of the like kind as Chile and Norway, which export farmed salmon.

Although the U market share has declined in novel years, there are opportunities upon which U.S. exporters could capitalize. For example, the U.S.-Israel at liberty Trade Area provisions include market access end TRQs (tariff-rate quotas) and elimination of tariffs. In 2004 more than 5000 metric tons of U frozen freshwater and saltwater fish were allowed to come into duty-free under the annual TRQ

popularly U.S. exporters face no tariffs upon Atlantic and Pacific Ocean salmon or fish fillets or other parts, novel or chilled. By contrast, other exporters to Israel face duties ranging between 10 and 15 percent and surcharges of $555-$1000 through metric ton, depending on the outcomes and prevailing exchange rates. In addition, the annual TRQ will increase to 6800 tons in 2008 which will present more opportunities for U.S. exporters.

Changing Consumer Base Shifts Market Fundamentals

Although by means of capita fish consumption in Israel is depressed at 10.5 kg (1 kilogram = 22046 pounds) relative to that of other evolveed countries, total seafood imports are awaited to grow faster than the population above the next five years, through as much as 20 percent

The new influx of more than 1 million immigrants from the former Soviet Union has brought fresh consumer tastes into the market and make opened new vistas for U.S. exporters of many species of saltwater fish, similar as salmon, hake, halibut, mullet and sea bass.

Do Israelis delight in Seafood?

Israel's growing interest in seafood has ariseed from increased household income, interest about healthy eating and the growing immigrant community. new tilapia and carp are readily available and popular with Israeli consumer However, consumer are also purchasing more frozen and advanceed products. Immigrants from the former Soviet Union waste salmon, herring, mackerel, caviar and sardines.

More family are going to restaurants for premium seafood, including shrimp, crab, lobster calamari, shellfish, salmon and sushi. According to the Household Expenditure overlook conducted by the Israel Central Bureau of Statistics, almost 90 percent of Israeli households consum a certain quantity of seafood in 2002, and the annual household expenditures for seafood totaled $2966 million in 2002 up 841 percent from the 1986 horizontal of $161.1 million.

European Cuisine phraseology Reigns Supreme

The prevailing fish cooking mode of expression is based on Mediterranean cuisine, in which the whole fish is deep-fried or grilled. courses for preparing high-quality seafood are actual similar to European methods.

Shrimp are oftentimes deep-fried or sauteed in butter and garlic or in olive oil and white wine. Calamari is usually deep-fried or grilled, while oyster and mussels are many times served with classic sauces.

Business Opportunities in the Fish Market

With the euro getting stronger and making many European produces more expensive, it is likely that the demand for U harvests will increase. The best opportunities for imported fish are during Jewish holidays, including Rosh Hashanah (the novel Year) and Sukkoth (the Feast of Tabernacles), which fall in September and October, respectively, and Passover, usually in April, when meals traditionally include all kinds of fish.

With appropriate promotional activities, of the like kind as marketing campaigns that address the special tastes of the immigrant community, demand for U fish should be augmented significantly. Tilapia demand currently transcends supply, so opportunities for tilapia exporters are especially good

For details, diocese FAS Report IS4016. To find it upon the Web, start at www.fas.usda.gov, prefer Attache Reports and follow the prompts

Barak and Shachar are agricultural specialists in the FAS Office of Agricultural Affairs, U Embassy, Tel Aviv, Israel. Tel: (011-972-3) 519-7686; Fax (011-972-3) 510-2565; E-mail: Yossi.Barak@fas.usda.gov, Gilda.Shachar@fas.usda.gov

Diaby is an agricultural economist in FAS' Forest and Fishery harvests Division. Tel.: (202) 205-7763; Fax: (202) 720-8461; E-mail: Souleymane.Diaby@fas.usda.gov