The Israel Food Ministry on Tuesday said that it has signed an agreement with Israeli milk and honey company Livestock to create a new honey shop in Tel Aviv.
The agreement with Livestocks was reached in August, and the first honey shop is expected to open in March 2019, the ministry said in a statement.
It added that the company has already purchased land on the site and is building a new factory and a new processing plant.
The new plant will produce honey, as well as other sweet and savory products.
“This agreement will allow us to offer our customers honey at competitive prices,” said Food and Agriculture Minister Uri Shaked.
The announcement came as part of the Israeli government’s ongoing effort to improve its domestic supply chain and to boost exports.
The country’s agricultural production has dropped for three straight years, as its population has grown by 1.5 million people since 2009.
It also faces a steep decline in its export earnings as a result of the economic sanctions imposed by the U.S. and the EU over its 2014 annexation of the West Bank and the Gaza Strip.
The honey industry, which is estimated to generate $3 billion a year in exports, is a major component of the country’s economy.
It contributes about 15 percent of Israel’s total export revenue, and a growing number of Israeli consumers are switching to the honey business.
The dairy industry accounts for about 60 percent of the domestic milk market, and has been hit hard by the sanctions.
The Israeli dairy industry employs more than 600,000 people and is expected by 2020 to grow by about 1.7 million people, according to the Ministry of Agriculture.