Israeli Farming Companies Seek Court Protection Amid 30 Million Shekel Debt

Two prominent Israeli agricultural companies, "Malei HaSal - Vegetable Marketing" and "Malei HaSal - Fruits and Vegetables," founded by veteran farmer Zion Swisa, have filed for temporary proceedings suspension in the Beersheba District Court. The companies, which supply major retail chains, are collectively facing debts of approximately 30 million shekels. The filings attribute the financial crisis to a series of external events, including the COVID-19 pandemic, the "Swords of Iron" war which severely impacted the agricultural sector by causing foreign workers to leave and preventing the hiring of Palestinian laborers, leading to crop spoilage and operational collapse. The companies also cited the 2025-2026 direct confrontation with Iran, which caused a dramatic increase in the prices of raw materials, fuel, packaging, and transportation, increasing production and packaging costs by tens of percent. Furthermore, the companies stated that no government support grants have been provided.

"Malei HaSal" is a major supplier of fresh produce to large Israeli supermarket chains, including Bichurei Sde, Rami Levy, Shufersal, and others, with annual purchases amounting to tens of millions of shekels. The companies operate extensive growing areas in Kibbutz Chatzor, Be'erot Yitzhak, and the Jordan Valley settlement of Petzael. They are also a significant source of livelihood for hundreds of employees, suppliers, and service providers.

In addition to the company proceedings, a request has been made for personal proceedings suspension for Zion Swisa, described as a "salt of the earth" farmer and a recipient of excellence awards, to allow him to continue managing and rehabilitating the companies. The debts are divided between the two entities: "Malei HaSal - Vegetable Marketing" owes about 13 million shekels, and "Malei HaSal - Fruits and Vegetables" owes about 17 million shekels. The companies have entered into a preliminary agreement with an external investor for a 2.5 million shekel investment in exchange for a 50% stake, intended to stabilize operations.

Lawyer Gila Hachmon, representing Swisa, stated that the agricultural sector in Israel faces immense challenges, including difficult economic realities, complex security situations, the pandemic, foreign boycotts, imports, and price discrepancies. She emphasized Swisa's commitment to reaching a settlement with creditors while enabling him to continue farming.