According to GlobalData, Israel's food security is threatened as lands remain uncultivated, and the workforce is depleted due to recruitment and an exodus of Thai and Palestinian workers.

Many shelves in Israeli supermarkets are empty, agricultural activities are halted, and a shortage of workers in logistics and production disrupts operations in major food factories.

Farmworkers, in the midst of the apple, avocado, and kiwi harvesting season, are reported to have been evacuated from settlements on the northern border as confrontations with the Lebanese terrorist organization Hezbollah escalate at the border, and the lands around Gaza decrease.

TheMarker, a Hebrew-language business daily, reports that government ministries are mapping agricultural crops in the north, where 40% of Israel's deciduous and subtropical fruits are grown, planning for the increasing prospect of a war in the north.

The Israeli Ministry of Agriculture is also concerned about an imminent shortage of poultry and eggs, given that half of the nation's total egg production occurs within 5 km of the border with Lebanon. Import quotas of 50 million eggs have now been opened.

Israeli English-language news outlet Ynetnews reports that milk production in the southern part of the country has also taken a major hit as milk producers responsible for supplying products like Tnuva, one of Israel's largest food producers, are denied access to their milk factories.

"We have abandoned the kibbutz milk factories that the army will not allow us to access," said Lior Simcha, CEO of the Milk Producers Association. "Dairies at Nahal Oz, Alumim, and Be'er are finished. We're talking about thousands of cows."

Tnuva did not immediately respond to a request for comment on how the conflict is affecting their business operations.

Meanwhile, the food sector workforce is affected as Israeli workers are called up to reserves. Palestinian workers either are too afraid or cannot show up for work. Calcalist, an Israeli business daily, reports that workers, even those with blue identity cards, struggle to reach and pass through checkpoints.

Kav LaOved, an Israeli NGO for labor rights, says that 100,000 Palestinian workers are employed in Israel or Israeli settlements, while Arab workers constitute a significant portion of the workforce in the baking and slaughterhouse sectors.

Approximately 20,000 Thai workers were also working on Israeli farmlands at the time of the October 7 attacks, according to Phil Robertson, deputy director for Asia at Human Rights Watch. At least 35 Thai citizens were killed or kidnapped, while many others returned home.

Supply challenges are further exacerbated by increased demand, according to Calcalist. Consumers are stockpiling, fearing an expansion of the conflict, as well as urban revolts similar to those that occurred during the 2021 "Guardian of the Walls" operation.

A spokesperson for Nestlé, which recently reopened one of its Israeli factories after closing during the conflict with Hamas, declined to comment on how the conflict is affecting its business operations in Israel. New businesses in Israel dealing with food and food technology focus on business continuity.

The ongoing Israeli food technology scene has also been affected by the conflict, with companies and research and development centers around the Gaza Strip being damaged by Hamas members who looted.

"The city of Sderot and kibbutzim around Gaza, which are one of the centers of the Israeli agricultural and food ecosystem, have been severely affected," explains Dr. Kardish, CEO at investor The Trendlines Group. "Many companies, incubators, and research and development centers are located in this region, and some have also been hurt."

Dr. Amit Yaari, CEO of the Israeli startup BioBetter, which grows growth factors for the cultured meat sector, also said that 20% of the company was prepared, presenting challenges for business continuity.

A solution has been the recruitment of Orthodox Haredi Jews who are exempt from military service.

The most significant food technology event in Israel, FoodTech IL 2023, scheduled for today, has also been canceled. The event, bringing together startups, major food companies, and investors, was supposed to showcase innovative food startups and futuristic foods.