Tnuva, Israel’s largest agricultural producer and distributor, has decided to halt any further investments and stop the promotion and sales campaigns for its wholly-owned subsidiary Hardof Organic Food Company, in view of a two-year standstill in sales of organic food products in Israel.

Tnuva, which gained control of Hardof two years ago, has invested US$3.33m in branding and advertising Hardof’s wide range of organic food products.

According to a report in Ynet, “Tnuva’s investments in Hardof were based on the assumption that the organic food market in Israel will grow by 30% annually, but in reality there has been no growth, and the ‘organic revolution’ that we expected, never materialised.”