Gulf News

Arz seeks ways to beat Israeli lockout

PALESTINIA­N ICE CREAM MAKER EYES MARKETS BEYOND KUWAIT AND JORDAN AS TEL AVIV HARASSMENT BITES

- By Staff Reporter

APalestini­an ice cream maker blocked from selling its ice cream in Israel is planning to expand into the Middle East. Al-Arz, a fourth generation family-owned business in the West Bank, cannot sell in Israel even though its major competitor­s are Unilever and Nestle products made in Israel and sold in Palestine.

“We have been trying to enter the market of occupied Palestine for years. Unfortunat­ely, the political situation prevents us from entering that market,” Ramzi Anabtawi, Al-Arz’s assistant manager, told Gulf News.

But after moving this year to a new facility in Nablus that has quadrupled its production capacity to 8 million litres a month, it wants its ice cream to be sold across the Middle East.

“We need to find distributo­rs in the Mena [Middle East and North Africa] region so we can utilise the new capacity,” Anabtawi said.

Anabtawi was in Abu Dhabi last week exhibiting at a food and beverage trade show looking for “new opportunit­ies [and] a reliable distributo­r” for the company his great grandfathe­r founded.

Al-Arz is already exporting to Jordan and Kuwait, has sporadical­ly sold in Iraq, and commands around 40 per cent of the Palestinia­n ice cream market.

The Palestinia­n market is growing, even though Al-Arz cannot sell in Gaza because of the Israeli blockade. The recent surge in violence between the Palestinia­ns and Israelis is increasing sentiment in the West Bank to boycott Israeli made goods, according to Anabtawi.

Local products

“Palestinia­n consumers don’t want to buy any Israeli products anymore … now they’re going to the local products and we’re one of the local companies,” Anabtawi said.

Anabtawi believes Al-Arz can grow its market share in Palestine to “not less than 50 per cent” in the short-term.

Al-Arz used to rely on Israeli ingredient­s to make its ice cream but now imports everything it needs from outside. Machinery comes from Denmark, “milk from Poland” and “chocolate from Belgium,” Anabtawi said.

And to counter a drop in demand “between October and February when people [in Palestine] no longer eat ice cream,” Al-Arz is planning to start making wafer biscuits and marshmallo­ws.

But finding a regional distributo­r will help it guarantee year round production for a company that supports 200 Palestinia­n jobs, although exporting can be tough.

Palestinia­n companies say to export to Europe, they have to send their products through Israel’s Ben Gurion Internatio­nal Airport in Tel Aviv. The companies say their goods face discrimina­tory inspection­s by the Israelis, where products, such as ice cream, can spoil as their trucks are made to wait.

Exporting to the Middle East is easier but by no means simple.

Al-Arz’s ice cream for Middle East markets is exported by truck from the West Bank to the Jordanian border along the King Hussain Bridge. But the Israelis do not permit Palestinia­n trucks to enter Jordan, Ramzi said.

A second Jordanian truck is needed to drive the goods into Jordan.

“We move the ice cream from the back of one truck to the other,” Anabtawi said.

This increases export costs for Al-Arz and other Palestinia­n companies, who end up paying for two trucks, two drivers.

But Anabtawi is confident this won’t restrict the company.

“I can see Al-Arz ice cream as an internatio­nal brand. In the near future it will be available in the whole Mena region and it will be one of the main players in the ice cream market globally,” Ramzi said.

 ?? Courtesy: Al-Arz ?? Facing roadblocks The Al-Arz factory in Nablus, West Bank. Palestinia­n companies say they face discrimina­tory inspection­s by Israel and products such as ice cream can spoil as trucks are made to wait.
Courtesy: Al-Arz Facing roadblocks The Al-Arz factory in Nablus, West Bank. Palestinia­n companies say they face discrimina­tory inspection­s by Israel and products such as ice cream can spoil as trucks are made to wait.
 ?? Courtesy: Al-Arz ?? Ramzi Anabtawi
Courtesy: Al-Arz Ramzi Anabtawi

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