Kibbutz - Economics

Economics

Kibbutzim in the early days tried to be self-sufficient in all agricultural goods, from eggs to dairy to fruits to meats, but realized this was not possible. Land was generally provided by the Jewish National Fund. Later, they became dependent on government subsidies.

Even before the establishment of the State of Israel, kibbutzim began to branch out from agriculture into manufacturing. Kibbutz Degania Alef opened a factory for diamond cutting tools that came to have a gross turnover of several US million dollars a year. Kibbutz Hatzerim has a factory for drip irrigation equipment. Netafim is a multinational corporation that grosses over $300 million a year. Maagan Michael branched out from making bullets to making plastics and medical tools, and running an ulpan. These enterprises bring in over US$100 million a year. A great wave of kibbutz industrialization came in the 1960s, and as of 2012 only 15% of kibbutz members worked in agriculture.

Hiring seasonal workers was always a point of controversy in the kibbutz movement. During harvest time, when hands were needed, labourers were sought outside the kibbutz. The founders of the kibbutz movement wanted to redeem the Jewish nation through manual labour, and hiring non-Jews to do hard tasks was not consistent with that idea. In the 1910s Kibbutz Degania vainly searched for Jewish masons to build their homes, but could not find Jewish stonemasons, and hired Arabs.

In the 1970s kibbutzim frequently hired Arab labourers. Since the 1990s teams of foreign workers were brought in, many from Thailand and China.

Kibbutzim have branched out into tourism, among them Kiryat Anavim, Lavi and Nahsholim. Many kibbutzim rent out homes or run guesthouses. Several kibbutzim, such as Kibbutz Lotan and Kfar Ruppin, operate bird-watching vacations.