The major cash crops produced by Palestinian farmers today include tomatoes, cucumbers, eggplants, beans and peas, in addition to olive oil in the West Bank. In the Gaza Strip the major cash crops are citrus, strawberries, cut flowers, and cherry tomatoes. The total output of the agricultural sector was estimated at US$ 856 million in 2004 with a value added of US$ 415 million. Over 55% of agricultural output was from plant production (fruit trees, vegetables, field crops, and cut flowers), over half of which is accounted for by vegetable production intended for the local and Israeli markets. Of a total estimated crop output of about 1 million tons in the 2003/ 2004 season, an estimated 568,000 tons were of vegetables (including strawberries), 263,000 tons of fruits (including olives), and 180,000 tons of field crops. The trade data reveals that outside of olive oil to Arab countries, the West Bank exports very little agricultural produce to countries other than Israel. Gaza on the other hand depends heavily on EU exports, with nearly 40% of its exports composed of primarily strawberries and carnations to EU markets. Cucumbers and tomatoes are also notable exports, but are mostly exported to the Israeli market from the West Bank with some cherry tomato exports to the EU countries from the Gaza Strip.

Despite the problems associated with the movement and access restrictions, cash crops continue to be exported to and through Israel in large quantities.

This is an indication of the existence of effective demand for Palestinian cash crops, implying that they are competitive in the Israeli and other markets. With the important exception of olive oil and citrus to Arab countries, Palestinian farmers are almost entirely dependent on Israeli export companies (primarily AGREXCO) to export either to Israel or to other markets through Israel. International agricultural marketing is characterized by tough competition in light of state policies that support exports, decrease imports and attempts to glut markets. Palestine currently has two main agricultural products exported outside of Israel, strawberry and carnation, both of which face severe competition. Palestinian produce enjoys some advantages with respect to price and off-season availability compared to European suppliers and is competitive with regional suppliers in terms of quality.

Targeted export markets include Israel, Western Europe, Saudi Arabia and other GCC countries as well as potential markets in newly or imminently acceding countries to the EU.

The key strengths of the Palestinian cash crop sector are quality and variety of produce, long and off-season availability, and proximity to markets. Opportunities available to the sector are taking advantage of preferential treatment in trade with the EU and Arab markets as well as potential for sector development through the intervention of NGOs and donors.

The biggest threat to this sector is the political instability, restricted access to farms and markets as a result of Israeli restrictions, and competition of large regional suppliers such as Syria, Egypt, and Lebanon.

Source: PalTrade, Trade Development Strategy/ Cash Crops Sector, 2005