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Naty Barak | Chief Sustainability Officer

Top ways to feed the world – Israel’s irrigation systems Chamber of Commerce Switzerland - Israel, Geneva, November 2019

Helping farmers grow more with less

Founded in 1965 by Farmers for Farmers

In the desert area of kibbutz Hatzerim, which suffered from a severe lack of water, introducing

Drip Irrigation to the world

#1 The Largest Irrigation Company in the world

Leading the Drip Irrigation revolution, Offering end-to-end smart irrigation

solutions

By farmers, for farmers We’re farmers first and innovators second

We began over 50 years ago in Kibbutz Hatzerim – a community in Israel’s Negev desert

The struggle to grow crops in the dry, sandy soil inspired us to think differently

And to find a new way to grow

So we pioneered drip irrigation

A solution that made us the largest irrigation company in the world we are today.

We’re helping millions of farmers around the world to grow more with less

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Helping the world grow more

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> 1Billion $ sales

17 manufacturing plants

employees ~5,000

irrigation company 1 # ~30%

market share

110+ countries

29 subsidiaries HQ in Israel

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HQ

Subsidiaries

Manufacturing plant

Global presence

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GLOBAL WATER CHALLENGES

2/3 of Earth’ Surface is Water

97.5% Salty Water 2.5% Fresh Water

68.9% Ice 29.9% Underground 0.9 Swamp 0.3%

Rivers & Lakes

0.007% of Total is Available

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There is a positive correlation between income wealth and changing diets In China alone, food demand for animal protein is expected to increase by 37% for meat, 44% for eggs, and 55% for milk Many of these developing countries, including China, are not expected to meet this growing food, feed, fiber, and fuel demand through domestic production

12%

15%

22% 24%

28%

32%

0%

5%

10%

15%

20%

25%

30%

35%

Dairy Cotton Coursegrain

Meat Poultry VEG oilsfor foodand fuel

Food demand in developing countries: 2013-2022

Global water withdrawal by sector

Source: ICID annual report 2016-17, The Environmental Food Crisis, UNEP

69% of the world’s water use goes to agriculture

19% Industrial

12%Municipal

20% of the land is irrigated

Only 6% Micro-irrigation

69% of water goes to Agriculture

This water is used to irrigate only 20% of the arable land.

The rest pray for rain.

Still, 77% of the irrigated land is done inefficiently, by

flood irrigation

~80% not irrigated

77% Flood

17% Sprinklers

Irrigated area as % of arable land Global irrigated area by method

WATER USAGE BY AGRICULTURE • About 70% of available water goes to agriculture • 17% of all cultivated areas are irrigated • 78% of irrigated areas use flooding

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Water source depletion and contamination Excessive use of chemicals Greenhouse gases emitted to the environment, thereby boosting a warming trend

Flood irrigation

Israel – the challenge

60% of Israel is desert. The rest is semi-arid. Water economy is always on the brink of disaster

In recent years, Israel's water reserves have dropped below all red lines and severe short-term measures were taken:

Differential drought taxation Prohibition of landscape irrigation other than with recycled waste water

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A comprehensive approach to water use and management Developing and adopting several long-term measures Assuring that quality water would be reliably available In quantities that are sustainable

Israel’s vision: a sustainable water economy and society

A coordinated water policy was adopted to achieve this vision Clear Legal Framework

Integrated Water Management Water Saving Society Water Economy Technology & Innovation

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New water sources Wastewater reuse Using brackish water Desalination Efficient usage of water Products & systems Management Water tariff structure

Israel’s solutions – technology and innovation

By 2020 marginal & wastewater used for agriculture can make up to 60%, releasing fresh water for other uses. (“produced” water rather than “collected”)

% wastewater of total water used for agriculture

70% 50%

40%

30% 50%

60%

1995 2006 2020

Fresh water Treated water

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Wastewater recycling – reused effluent in Israel in relation to other counties

90%

35%

15% 14% 14% 11%

>[VALUE] 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Israel Singapure Australia USA China Spain C Europe

Source: Mekorot Israel 2014

CLOSING THE GAP: WATER RESOURCES INCLUDING DESALINATION (MCM / YEAR)

2020 2015 2013 2008 Year 1,170 1,170 1,170 675 Natural resources

70 70 50 30 Brackish water desalination

750 600 500 140 Sea water desalination

1,990 1,840 1,720 845 Total resources 1,970 1,840 1,765 1,382 Total demand -20 0 -45 +537 Gap

These figures do not include effluents, storm water and brackish water for irrigation in the amount of 500 MCM/Year.

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Optimizes moisture and aeration conditions Ensures precise quantities of water and nutrients directly to root zone Reduces release of gases to atmosphere due to imprecise fertilizer usage Increases yields and enhances productivity per unit of soil and water Modular design fits smallholder plots NUTRIGATION™

Drip irrigation – irrigate the plant, not the soil

Open-field Irrigation Solutions

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Sub Surface Irrigation

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Greenhouse results: strawberries 120t vs. 30t

19 Moshav Yesha, Israel

Digital farming: irrigation with a brain

The more you know, the more you grow

With increased insight comes increased profitability.

It’s why automation and data-harnessing technologies are taking farming to a whole new level.

By fully integrating and automating the entire irrigation loop, we’re helping farmers make better decisions – while reducing their inputs.

This is the next big leap in irrigation optimization.

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How NetBeat™ works

Cloud-based analytics

External sources Extern l

Mobile or desktop interface

MCU Field sensors

sourcesternal s

fertigation

System components

RTU

RTU

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Rice is the last frontier explored with drip irrigation

Since 2005 we study the application of SDI on rice

We see economical, agronomical, technical, environmental and health implications

We currently experiment with the following topics: Suitability of varieties to SDI, plant population, Water quantities and irrigation scheduling, Nutrigation, Weed and nematode control and more

Subsurface Drip Irrigation (SDI) in rice and other commodity crops

Gravity-based drip irrigation system developed for smallholders in developing countries

Provides growers with the know-how and means for self-sufficient agricultural production

Economical and easy to operate

Maximizes productivity using existing resources

Requires no additional investment in infrastructure

Incorporates planning, training, technical and agronomic field support

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Family Drip System (FDS™)

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Family Drip System easy operation & maintenance

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Family Drip System (FDS™)

Part of technology

Essential for sustainable productivity

More than just technology transfer; capacity building covers many areas

Treating participants as an equal

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Training & capacity building

Israeli Arava desert - impact

4,500ha

20 farming settlements

65% of all Israeli vegetable exports

Rainfall as little as 20mm/year

Partners: Government, NGOs, private sector, local farmers

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Ramthal project, Karnataka Community Irrigation

Netafim’s West side package: 11,700Ha

23 Zones & 230 Sub-zones & 2340 operating units

6700 farmers in 22 villages

Average land holding – 1.74 Ha, ranging from 1 acre to 10 Ha

Total project cost is borne by the Govt. of Karnataka, India

Robust & Complete automation from source to end

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Ramthal project, karnataka (Cont.) Major Components:

Engineering, Design, Supply, Installation and Commissioning

Operation & Maintenance for 5 years after commissioning

Formation of 23 Water User Associations (WUA) and 230 Water User Groups (WUG)

Market Linkage with Agro-Processing companies

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Israel: Wadi Attir Sustainable Bedouin community in the Negev desert

Initiated by The Sustainability Laboratory, a US-based NGO, and the Hura Municipal Council

Supported by JNF as part of its work with Bedouin communities in Israel’s Negev region

A sustainable, community-based organic farming, adapted to a desert environment.

combine Bedouin aspirations, values and experience in desert agriculture, with sustainability principles developed by The Lab, and cutting-edge technologies

Sustainable agriculture is a must. Israeli innovations in water technology in general, and drip irrigation in particular, can be further disseminated to developed and emerging countries and make a difference

Drip irrigation touches most of the SDGs: Eliminating poverty and hunger, combating the negative effects of climate change, investing in women and girls, improving health, wellbeing and education, ensuring availability of clean water and sanitation and delivering inclusive economic growth.

Adopting drip irrigation, combined with know-how, can lead to real change among rural poor by creating a more knowledgeable agricultural community

Awareness is important. Private Public Partnerships are needed. Collaboration will bear fruits

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Summary

Thank you

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