VZCZCXRO0131
OO RUEHROV
DE RUEHJM #5005/01 3541504
ZNR UUUUU ZZH
O 201504Z DEC 06
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6104
INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHBS/USEU BRUSSELS PRIORITY

UNCLAS SECTION 01 OF 02 JERUSALEM 005005 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
NEA FOR FRONT OFFICE; NEA/IPA FOR 
WILLIAMS/SHAMPAINE/STEINGER; NSC FOR ABRAMS/DORAN/WATERS; 
TREASURY FOR SZUBIN/LOEFFLER/NUGENT/HIRSON 
 
E.O. 12958: N/A 
TAGS: EAGR ETRD ECON PGOV KWBG IS
SUBJECT: 2006 OLIVE HARVEST: HIGH YIELD EXCEEDS 
EXPECTATIONS; SETTLER INTERFERENCE REPORTED 
 
¶1.  (SBU) Summary:  The 2006 Palestinian olive harvest was 
very successful and is expected to produce USD 100 million in 
olive oil sales - tripling the USD 30 million earned in 2005. 
 (Note:  Olive harvests are cyclical, with each low year 
followed by a high year - 2006 was a cyclical high year for 
olives.  End note.)  The harvest ran from late October 
through November.  An estimated 48 percent of the 2006 oil 
will be consumed domestically, with the remainder scheduled 
for export.  Obstacles to movement and access in the West 
Bank hampered farmers' ability to sell their oil, as they 
reportedly faced 40 percent more physical obstacles and 
security restrictions than in 2005.  Israeli human rights 
groups reported 18 to 50 major instances of olive theft and 
violent disruptions by settlers of the 2006 Palestinian olive 
harvest.  End summary. 
 
EXPECTED OLIVE OIL REVENUES 
---------------------------- 
 
¶2.  (SBU) Paltrade specialist Said Sabri told EconOff that 
the 2006 olive harvest was exceptional and expected to 
produce 33,000 tons of olive oil, from which the Palestinians 
should earn USD 100 million in sales.  Olive harvests are 
cyclical, and, as 2006 was a high year, 2005 was a low 
production year that earned just USD 30 million in sales. 
Sabri stated that 52 percent of the 2006 Palestinian crop 
will be exported outside the Palestinian territories. 
Specifically, 24 percent of the 2006 oil will be sold to 
Israel and 12 percent to Jordan, Egypt and Saudi Arabia.  The 
U.S. will import 1 to 2 percent of total production and 
Europe 7 to 10 percent. 
 
OBSTACLES TO QUICK SALES 
------------------------ 
 
¶3.  (SBU) According to an October World Bank report, during 
the 2006 harvest, Palestinian olive farmers in the West Bank 
would likely face over 500 physical obstacles and closure 
restrictions; a 40 percent increase from 2005.  Sabri told 
EconOff that the main logistical issue for Palestinian 
farmers continues to be transportation of their olive oil to 
central West Bank for sale and export to and through Jordan, 
as shipments are stopped and delayed repeatedly.  (Note: 
OCHA's count of obstacles to movement in the West Bank 
totaled 533 in October and 540 in November. End note.) 
 
¶4.  (SBU) Sabri stated that a small percentage of Palestinian 
olive trees are located to the west of the separation 
barrier, forcing many farmers to travel long distances and 
request permission from Israeli security forces to harvest 
their olives.  In addition, Sabri said that growing movement 
and access issues in the Palestinian territories increase 
production, transportation, and inventory costs, making 
Palestinian olive oil more expensive and its producers much 
less competitive on the international market. 
 
REPORTED SETTLER ATTACKS 
------------------------ 
 
¶5.  (SBU) Issa Ishatla, Director of the Palestinian Olive 
Association, told EconOff that he received over 50 separate 
reports of violent interference by Israelis during the 
harvest.  Ishatla stated that, according to numerous 
complaints made to him by farmers, Israeli settlers 
throughout the West Bank threw rocks and insults at olive 
pickers working close to Israeli settlements.  His 
association estimated that 8,000 of the 100,000 West Bank 
families involved in the olive oil business were threatened 
and/or abused by settlers during the harvest. 
 
¶6.  (SBU) Rabbi Aric Ascherman, Director of Rabbis for Human 
Rights, told EconOff that there were far fewer acts of 
violence and harassment of farmers by settlers during the 
2006 harvest than during that of 2005.  He stated that a June 
26, 2006 Israeli High Court ruling, preventing the IDF from 
closing-off areas in a way that prevents Palestinians from 
working their crops, helped ensure the freedom of movement 
for farmers during the 2006 harvest.  Regardless, he added, 
settlers threw rocks and threatened Palestinians farmers 
during the harvest on numerous occasions - he estimated 50 
major instances. 
 
¶7.  (SBU) The Israeli human rights group Yesh Din recently 
reported that there were 18 major instances of olive theft 
 
JERUSALEM 00005005  002 OF 002 
 
 
and violent disruptions of the 2006 harvest by Israeli 
settlers. 
 
DUFFY