Investigating production opportunities, marketing efficiency, and options of trade for fruits and vegetables in Palestine.

Abstract

The marketing efficiency for fruits and vegetables in the West Bank, Palestine, is analysed. The situation of prices, demand, supply, and surplus of fruits and vegetables is examined and the market infrastructure is assessed. Marketing costs and marketing margins for the main fruits and vegetables for different regions in the West Bank are determined and the comparative advantages of producing these crops are investigated. An interregional trade model is used to analyse alternative markets in the Middle East and the European Union. Domestic Resource Cost ratios between 0 and 1 indicate that grapes on trellises in the southern West Bank, irrigated grapes in the Jordan Valley, and irrigated tomatoes and egg plants in greenhouses have a comparative advantage. All the studied markets in the West Bank were operationally efficient and the margins were reasonable. For all the crops, the producers received the largest share of the consumer price. The best trade option would be free trade with Israel and other countries. Palestinians cannot reap the benefits unless Israel eliminates all constraints on free trade.