the israeli agro business story and india
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www.agriquality.net Presented to Business management students in India in September 2012. this presentation presents the Israeli agriculture aspect and the benefits of cooperation with India in this areaTRANSCRIPT
The Israeli Business story
A story of entrepreneurship
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Shafrir Godel
September 7th, 2012
Introduction
This meeting is about understanding and collaborating with Israeli agro-business sector. it is based on my personal experiences and some
bibliography and reading.
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Our agenda for today
• Shafrir Godel? Agriquality?
• Changes in agricultures world
• Israel – short introduction
• Israel agriculture figures and numbers
• India & Israel - trade statistic
• Indian potential for collaboration with Israeli companies
• Open discussion questions and answers
Changes in word agriculture map Dramatic changes in world agriculture During last decade
• Rapid economic grows in the part of the world counties alongside with a sharp increase in standard of leaving and consumption, India and china – 1/3 of the world’s population
• Sevier climate changes as result of global worming harm many traditional agricultural regions.
• Use of agriculture production means for bio-fuel production.
• Development of populated city areas into agricultural lands.
… as a results of the changes
• Significant drop in agricultural commodities reserves around the globe.
• Prices has gone up.
• Increasing pressure on water and land resources.
• Increasing usage of technologies and chemicals.
The need to feed
Mainly Increasing productivities of existing land and water resources but also developing of new lands for agriculture.
The world is experiencing now what Israel is experiencing for long time; the need to feed its population from a limited water and land resources and under home land security restrictions.
Israel has a lot to offer to the global efforts.
Israel – generally speaking • The state of Israel was established in 1948 after WW2
following earlier UN declaration of dividing Israel into two states.
• Population - 7,881,000.
• largest city: Jerusalem.
• Israel borders with 4 countries: Lebanon, Syria, Jordan and Egypt.
• Population composes 76% Jews , 17% Muslims, 7% other minorities.
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Israel – generally speaking
• Israel has the largest number of Startup companies in proportion to the population, in comparison to any other country in the world.
• 450 different foreign media organizations work in Israel.
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Numbers & Figures
• Israel owns many international trade agreements with several countries, including the EU and in advanced process for making one with India.
• GDP- $201.0 Billion (2010 est.)
• Number of startups by 2009 is 3,850 with over 70,000 employed
• 63% of the GNP involves international trading – a world record
• Global financial crisis 2008 - Israel survived the crisis better than other countries in the world economy.
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2009 2008
Israel Eurozone OECD Israel Eurozone OECD
0.7% -4% -3.5% 4% 0.5% 0.6% Growth Rate
7.6% 9.4% 8.2% 6.1% 7.5% 5.9% Unemployment Rate
3.9% 0.2% 0.5% 3.8% 3.3% 3.6% Rate of Inflation
3.7% -0.6% -0.9% 0.7% 0.8% -1.6% The Current Account as a percentage of GDP
42.7% 50.7% 44.8% 42.7% 46.9% 41.4% Public expenditure value in the growth rate
79.4% 81.8% 90% 76.8% 73.2% 78.4% Public debt as a percentage of the growth rate
Israel and the 2008 World Financial Crisis
הסבר
לשורה
4:
אינדיקטור , כאשר קיים גירעון בחשבון השוטף
ל או את "זה מודד את הירידה בנכסים בחו
-במונחי תוצר -ל "התוספת בהתחייבויות לחו
גירעון גבוה . הנחוצה למימון הגירעון
עלול להביא לגידול , ומתמשך במונחי תוצר
ניכר בחוב החיצוני ולפגיעה ביכולת העמידה
, מאידך. של המשק בתשלום החוב והריבית
עודף בחשבון השוטף מצביע על יצירת
י המשק להגדלת נכסים או "מקורות ע
ככל שעודף זה . ל"הקטנת התחייבויות בחו
המשקל היחסי של , גבוה יותר במונחי תוצר
.יצירת מקורות זו למשק גבוה יותר
Leading economical sectors in Israel
R&D centers: Microsoft, IBM, Intel, Motorola, CISCO, ECI, Digital, Dell, AMD, Google, EMC2, NDS, Jive Software
Army, homeland security (Elbit, IAI), security
Hi-tech Army Water Agriculture
Water treatments and distribution, irrigation
Agriculture
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What is common
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Disk on Key
• In April 1999 a patent was filed by the Israeli company “M-Systems” under the name “Disk on Key”.
• IBM was the first to market the “Disk on Key” on December 2000 with a storage capacity of 8MB.
• Around the world, this technology is commonly known as USB Flash Driver
• Mobile, compact, easy to use, rewritable. • Replaced the floppy-disks and CD-ROMs • In 2006 M-systems was emerged with Sundisk
Wastewater Treatment
• Water shortage, contamination of water resources and intensive irrigation in agriculture are the main reasons for putting wastewater treatment and reuse of woter high on Israel’s list of national priorities.
• In 2009, 388 MCM of effluents were produced in Israel.
• Nowadays, over 85% of the sewage water in Israel are destined for agriculture. Spain is next in line and recycling 20% of the water amount.
Drip Irrigation
• Netafim, founded in 1965 pioneered the idea of drip irrigation, a process that virtually eliminates water waste in agricultural irrigation and became an innovative idea to the world.
• The most economic way to use water.
• Today, Netafim is a global company. It owns 13 factories located at 11 countries, over 30 Subsidiaries and representatives in about 110 countries around the world.
• As a result of Netafim’s breakthrough , a few major irrigation companies joined the market:
– Naan Dan merged with the Indian Jain irrigation systems in 2007 and now spread around the world in over 100 countries.
– Metzerplas
– Plastro Gevet – purchased by John Deere in 2007
– And others…
Iron Dome
• The Iron Dome was developed by the Israeli company- Rafael.
• The system identifies with a special radar, short-range rocket transmitted within the distance of 4-70 kilometers, intercept and destroy it.
• By April 2012 it has intercepted 93 rockets launched towards Israel.
Agri is our culture
• During last 50 years, the agriculture production has risen 10 time fold and at the same time reducing the use of water and the need for labor.
• Using advanced technology, Israeli growers holds some productivity world records (diary farms, cotton, olives and more)
• The agro industries in Israel are export oriented and willing to share the their knowledge abroad.
• Many of the Israeli origin firms are now global companies owned by new owners.
“…they know everything… I only teach to doubt their traditional
methods and change their habits”. Israeli Agro projects’ manager, talking
about his customers abroad.
“It is not because we are smarter. It is because we need it more” Nathan Barak,
Netafim.
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Israel and India – The Resemblance
• Both countries are open and free democracies that embrace modernity and progress whilst preserving their ancient heritage and history
• Both countries also face a large number of threats and difficulties ranging from the scourge of terrorism to water and energy scarcity.
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Import and Export
Total Israeli export to India - $2.97 billion
Total Indian export to Israel - $2.1 billion
53%
19%
15%
5% 8%
Main sections of Israeli export to India
raw diamondsand preciousstoneschemicalproducts
machinery
optical, medical &other equipment
other
59% 14%
6%
5% 16%
Main sections of Indian export to Israel
polisheddiamonds andprecious stoneschemicalproducts
transportequipment
textiles & textilearticles
other
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Israel and India – The Ties
• This year, 2012, Israel and India have celebrated 20 years of diplomatic relations.
• By 2011, the annual civilian trade between the two countries had expanded to surpass $5 billion.
• A treaty containing three-year work plan for cooperation in the field of agriculture was signed.
• In the last few years, Israel has emerged as the second largest defence supplier to India after Russia, and following the 2008 Mumbai attacks, Israel has become a major player in the homeland security arena too.
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Where to begin?
• Agriquality- – www.agriquality.net – [email protected] – 972-8-6901690 – Shafrir godel
• Mr. Elad Goz- Delhi [email protected] • Mr. Mouneer Agbariya - Economic Counselor
[email protected] • Elad Gafni- Mumbai [email protected] • Indian embassy to Israel
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Readings and bibliography
• Senor, Dan and Soul Singer START-UP NATION, The Story of Israel’s Economic Miracle. USA 2009.
• Carrison, Dan. Business Under Fire. New York: Amacom, 2005.
• Preiss, Kenneth, Steven L. Goldman, and Roger N. Nagel. Cooperate to Compete: Building Agile Business Relationships. New York: VNR,
1996.
• Israel Ministry of Finance- www.financeisrael.mof.gov.il/
• Israel Ministry of Industry, Trade and Labor - www.moital.gov.il
• Central Bureau of Statistics- www.cbs.gov.il
• Israel ministry of Foreign affairs- www.mfa.gov.il
• The Knesset- www.knesset.gov.il
• Bank of Israel - www.bankisrael.gov.il
• Ministry of environmental protection- www.sviva.gov.il
• Embassy Of Israel In India- http://embassies.gov.il/delhi
• Ministry of industry- Israel's Investment Promotion Center- http://www.investinisrael.gov.il
• Israel water authority - http://water.gov.il/hebrew/Pages/home.aspx
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