As the War of Iron Swords continues to grip Israel, its economic ripple is beginning to show severe consequences for food security across the Jewish state. With last week’s Rosh Hashana holiday and the approaching Sukkot holiday, the looming cost of food items is placing even more stress on an already fragile situation, pushing vulnerable populations into nutritional imbalance.
Newly released data by Leket and BDO revealed a significant increase in food prices, casting a shadow over the Jewish New Year holiday. Fruit and vegetable prices have surged by 9% compared to last year, with meat prices climbing by 7%, chicken by 6%, and dairy products by 4%.
Amid a war that, so far, has cost more than NIS 250 billion, around $66 billion, the potential for escalation with Hezbollah and Iran, and Israel’s credit rating being downgraded by multiple financial agencies, this sharp increase in prices means many Israelis, particularly those already struggling with food insecurity, will face even greater difficulty accessing nutritious food.
The numbers are concerning, as nearly half a million Israeli families are currently dealing with financial instability. During this year’s Rosh Hashana, many were left with less healthy meals, as they were forced to substitute fruits and vegetables with cheaper, less nutritious alternatives.
Joseph Gitler, founder and chairman of Leket Israel, the country’s largest food bank and rescue organization, told The Media Line, “That’s called nutritional insecurity. Nutritional insecurity means you have to make choices. And sometimes the choice is, ‘I can’t buy the right food, I need to buy enough food.’”
Of the 143,000 individuals eligible for evacuation from their homes, 22,800 remain housed in hotels, 54,000 have managed to return home, and 66,200 continue to live in temporary accommodations or alternative communities. These displaced populations are among the hardest hit, as many have been forced to leave behind not only their homes but also their means of livelihood.
Food data analysis
Chen Herzog, BDO’s chief economist in Israel, analyzed Leket’s data and explained to The Media Line: “Around 30% of Israel’s agricultural land is in conflict areas—specifically near Gaza and the northern border. The ability to harvest has been greatly impacted.” He added that Palestinian and foreign laborers, who make up a substantial part of the workforce, have been unable to work since the war began. “Some foreign workers have left due to safety concerns, with some even being kidnapped on October 7.”
The limited access to farmland and worker shortages have led to a decline in agricultural output in Israel. “Even though Israel increased food imports, it wasn’t enough to prevent shortages and price hikes. We’ve seen significant price increases, particularly in fruits and vegetables like tomatoes.” As a result, those facing financial difficulties are consuming less fresh produce and shifting to less nutritious food, according to the BDO’s chief economist.
Gitler expressed concern, during an interview, noting, “The rising cost of food during the holidays is a pressing concern that affects our most vulnerable populations, especially those impacted by the Swords of Iron War.” He highlighted a “40% increase in demand” from Leket’s nonprofit partners and stressed the need for community support: “We must unite as a community to ensure everyone has access to nutritious meals, especially during this festive season,” he said. He explained that after October 7, Leket’s meal collection project “went completely dry,” dropping from “an average of 10,000 to 15,000 meals a day to zero.”
In an initial attempt to adapt to a post-October 7 reality, Israel’s largest food bank found itself purchasing meals from the same meals from the same places that usually donated food. Fortunately, it also saw increased financial donations since that fateful day.
He noted that the meal rescue project is “mostly back to normal” nearly a year later. “We are collecting meals again free of charge from hotels, corporate cafeterias, and army bases, and our costs have gone down to just the logistics, about one dollar a meal delivered.” He added, “We continue to buy about 500 meals a day,” mainly for elderly individuals in high-risk areas.
Gitler explained that despite government financial aid and volunteer efforts, Israeli fields have seen a sudden productivity drop. “The far north in Israel is basically a no-go zone, and it’s been like that for almost a year, which means that these farmers are in a catastrophic situation. It’s not safe for them to work the fields.”
Because of the immense loss of life that happened on October 7, much of the material damage that Hamas’ terrorism caused that day went unnoticed by most people worldwide. On that day, farmers in southern Israel had losses of over $500 million in income, the destruction of more than 100,000 acres of farmland, tractors, plows, combine harvesters, general infrastructure, and irrigation systems.
This has been the result of an intentional effort by Hamas and Hezbollah to destroy farming infrastructure in Israel. “Because so much equipment was purposely destroyed by Hamas on October 7, we’re trying to make up the difference between what the government gives, the farm insurance pays, and what the farmers have.”
Herzog noted that rising food prices are expected to strain Israel’s health system, as citizens turn to less nutritious, processed foods. BDO and Leket have found a link between poor nutrition and increased health costs. “In 2022, due to food insecurity, the Israeli economy incurred expenditures of NIS 5.2 billion ($1.4 billion), about 5% of total national healthcare expenditures. This year, because of the war, more people will be unable to consume a healthy food basket, further increasing health care costs in Israel.”
While the situation remains dire, organizations like Leket Israel are leading the battle to ensure that the most vulnerable populations are not left behind. As Gitler noted, “In these trying times, food is more than just sustenance—it is a symbol of solidarity and community. We must ensure that even during war, no one goes hungry.”
This context could be challenging for the Israeli government, which recently launched the Israeli National Plan for Food Security 2050. This plan aims to ensure the country’s long-term food supply over the next 25 years, emphasizing balancing local production and imports. Key goals include promoting local production, ensuring sustainable and climate-adapted food systems, reducing costs, fostering innovation, and managing risk in agriculture and food industries.
Herzog explained that the war has affected Israel’s food imports, even though most arrive through Mediterranean ports far from the Houthi threat in the Red Sea. “Some of Israel’s meat production takes place in the Golan Heights, which has also been affected by the conflict in the north.” Insurance and shipping costs have risen due to increased risk premiums, despite the Houthi blockade not directly impacting imports.
The ongoing conflict continues to exacerbate Israel’s food crisis, with rising costs, disrupted agricultural productivity, and increasing health concerns. As vulnerable populations face greater difficulties, organizations like Leket Israel are crucial in providing relief, while government plans aim to stabilize long-term food security despite immediate challenges.