Israel wants to create a digital agricultural market

Israel has a large number of advanced technologies in the agricultural field, but it has been lagging behind in the circulation of agricultural products for a long time. The Israeli government is planning to use its technological advantages to build the country’s first digital agricultural product trading market to improve the efficiency of agricultural product circulation and reduce circulation costs.

A report recently released by the Organization for Economic Cooperation and Development shows that although Israel has introduced many innovative technologies such as drones, robots, and smart sensors in the agricultural field, Israel needs to further reduce government regulations in the production and circulation of agricultural products and improve The transparency and competitiveness of the agricultural product supply chain can reduce the transaction cost of agricultural products and increase the activity of agricultural product transactions.

Elan Shavit, the head of the Israeli Ministry of Agriculture in charge of economic cooperation with the OECD, told reporters that although Israel has world-leading agricultural technology, one of the challenges now is to establish a modern market circulation system that will Quality produce is delivered from the field to the consumer.

Agricultural prices are generally higher in Israel. In addition, the number of large-scale agricultural product wholesale markets in Israel is limited, and the operation and storage conditions of a few small-scale agricultural product wholesale markets are poor, which affects the freshness and quality of agricultural products.

According to officials from the Israeli Ministry of Agriculture, the government plans to officially launch a digital agricultural product trading market in mid-2020, with an operating model similar to an auction market, which will be fully operational nationwide in 2021.

The plan to create a digital marketplace for agricultural products was initiated and promoted by the Israeli Ministry of Agriculture, the Ministry of Finance and the Innovation Agency. The Israeli government has issued a tender, hoping that farmers, entrepreneurs, logistics experts, and high-tech companies will actively participate in providing the best solutions for the efficient circulation of Israeli agricultural products.

The Israeli government hopes that by launching a digital trading platform, it will enhance the transparency of agricultural product pricing, improve the correlation between the quality and price of agricultural products, and create conditions for small and medium-sized enterprises and farmers to establish direct procurement channels, thereby reducing the intermediate circulation cost of agricultural products from the field to the table, and reducing the terminal of agricultural products. price.

Once the platform is put into operation, the big data generated will become a reliable basis for forecasting the supply and demand of various agricultural products, which will help promote the balance of supply and demand in the Israeli agricultural market.

The head of the Market Research Department of the Israeli Ministry of Agriculture, Chipi Sabag Fredkin, believes that the government is committed to promoting digital markets, allowing vegetables, fruits and other agricultural products to be traded online, which will help small businesses such as restaurants and grocery stores. Buy fresher and cheaper produce directly from farmers, changing the current high reliance on middlemen.

Fredkin expects that, starting next year, the supply chain between Israeli retailers and farmers will be shortened, and the cost of the entire distribution link of agricultural products will also be reduced.

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Published on 09/15/2022