The economic costs of the Israeli occupation for the occupied Palestinian territory

(Part of report

The economic costs of the Israeli occupation for
the occupied Palestinian territory


Besides representing an irreparable loss to an inherent part of the Palestinians’ land, Israel’s policy
of tree uprooting also creates a grave economic damage for the Palestinian people. The vast
majority of the uprooted trees have been fruit bearing trees in their highly productive period of life;
thus the uprooting has deprived Palestinians of a valuable source of income.
The annual loss for the Palestinian economy is given by the foregone value of the trees’ economic
production. ARIJ estimates that around one third of the 2.5 million uprooted trees were olive trees
and the remaining consist of other types of fruit trees, including around 34,000 palm trees.
The average annual productivity of one olive tree is about 70 kg (Agriculture department of ARIJ),
with olive production being valued at ex farm price of USD 1.103 per kilo, which is an estimate on
the basis of data from PCBS (2009b). Therefore:
 The cost of uprooted olive trees/year = 2.5 million x 0.33 x 70 kg /tree x $1.103/kg = USD
The other fruit trees are estimated to have an average annual production of around USD 50, with the
exception of palm trees which yield an average production value of USD 70 (data from the
Palestinian Ministry of Agriculture). Therefore the total production value of these trees is USD
85,713,333 million.
Considering that there is very little intermediate consumption in the production of rain-fed fruit
trees, we estimate that the gross value added is around 98% of the production value, so the total
forgone value added as a result of uprooted trees by the Israelis is equivalent to USD 138 million per year.

(Source / 18.04.2013)

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