Isaac Chavel wrote:The closest is Mike's report from his brother-in-law and Elie's remark on the retail prices. Elie's remark, if true, indicates there is a problem somewhere in the chain. Did Mike's brother-in-law refer to the rabbanut rabbis, other "free-lancers, or to the marketing and retail level?
OK. Here is a historical introduction. I hope it is not too long!
In the beginning (pre-State, and up to the mid 1990s) there were a small number of farmers who kept shmitta without any recourse to the hetter mechira. They were, broadly speaking, PAI affiliated settlements. They were encouraged by the Hazon Ish, who was prepared to use a number of halachic leniencies in order to make it possible for them to keep shmitta without recorse to the hetter mechira. Paradoxically (at least to an outsider) Rav Kook was extremely stringent in his approach to shmitta, so much so that many have argued that it is totally impossible to keep shmitta according to Rav Kook's approach unless the hetter mechira is applied. Regardless of this point, Rav Kook himself regarded the hetter mechira as a 'last resort' in extremely difficult times, when farmers barely had enough food and clothing (his own description)) and did not rely on it himself (he attests to this in some of his responsa literature).
Those farmers who kept shmitta set up an otsar beit din. In Bnei Berak most greengrocers took their produce from this otsar beit din, with clear notices warning the public to take care with the shmitta produce. In other places the produce was distributed in small 'distribution centres' which were not usually open as stores. The produce was distributed on a cost basis, with the farmers being paid for their work as labourers and for their use of any equipment etc. It was usually significantly cheaper than the regular, hetter mechira produce. Nobody at this stage was producing significant quantities of wine or grape juice due to logistical problems.
Prior to the shmitta of 1994 a number of grape growers joined together under the guidance of Rav Yanovsky (who was at the time the Rav of Carmel Wines) and Rav Karelitz (of Bnei Berak) to form what was probably the largest otsar beit din since the destruction of the Temple, if not the largest ever. This otsar beit din was run according to very strict guidelines, with all work done on the vines requiring explicit approval beforehand. A large quantity of grape juice was produced, and also a quantity of (rather poor quality) sweet 'kiddush wine' (I think it was Carmel Concord and Carmel Chateau Richon). The reason for the poor quality is that a good proportion of it was intended for grape juice but it began to ferment so it had to be 'turned into wine'! This otsar beit din operated in 2001 and 2008 as well (with better results on the wine front, although the attempts at producing table wines were a major disaster). The grape juice and wine has always been very significantly cheaper than the 'regular' version. This otsar beit din has never been 'profitable' in any meaningful way but has enabled the grape growers to sell their produce, which is on the trees anyway ...
In 1994 Rav Weitman, who later became the Rav of the Tenuva agricultural cooperative (now no longer a cooperative) was the Rav of Kibbutz Kefar Etzion. He encouraged the farmers there to keep shmitta in their fruit orchards without recourse to the hetter mechira. Once again the otsar beit din method was used. Rav Weitman published a series of articles about this shmitta experience which he later published as a book. Gush Etzion were the largest producers of cherries, peaches and nectarines in the souther part of the country, and this was not mean feat from a logistical point of view. Rav Weitman was guided by the leading rabbinical luminaries of the time and his correspondences with them are collected in his book.
By the shmitta of 2001 Rav Weitman was the Rav of Tenuva and he set up a massive otsar beit din under their auspices. It made massive losses, but Tenuva were prepared to accept them as a market leader.
It must be stressed that all of the above have been pretty much 'regular', and what is more to the point 'regulated' otsar beit dins. Most of the chareidi public were happy with the wine and grape juice from Carmel (at least the specially distributed otsar beit din I described above). Use of the Kefar Etzion fruit was more limited, but it was distributed in Bnei Berak (but less so in Jerusalem). The later, Tenuva otsar beit din (in its 2001 incarnation) was popular in what could be termed 'national religious' circles, but broadly ignored by most chareidim. However, Rav Weitman was regarded very highly for his pioneering work in spreading shmitta observance to more and more farmers.
However, in 2008 things changed. More 'national religious' Rabbis preferred to move away from the hetter mechira and to the otsar beit din approach. A campaign was launched, with them signing up farmers on 'otsar beit din' 'contracts' rather then on hetter mechira documents (yes, it really was a type of campaign). To the farmer it would make no difference anyway - just a different form of halachic legal document which really didn't commit him to anything at all. This became the basis for the otsar beit din of Tenuva and the general otsar beit din of Carmel wines (not the 'special' one described earlier which continued as before) for the shmitta of 2008. But, note the differences: no real restrictions of what the farmers may do in their fields, no restrictions of distribution (and specifically pricing) and (I can vouch for this) at least not all shopkeepers even made agents of the beit din.
So what happened? Plenty of people (like ourselves, for instance) who had previously welcomed the Tenuva otsar beit din (in 2001) no longer relied on it in 2008. Not only that, but within the chareidi world, the term 'otsar beit din' began to be regarded in the same vein as 'hetter mechira'. In fact, halachically speaking, it may be preferable in many instances to keep using the hetter mechira than this (highly distorted) version of otsar beit din.
As I wrote before:
"It is very upsetting when you have relatives who live off farming, support a large family, do not work in shmitta, and have a difficult time managing to work with a properly run otsar beit din, and others come along, essentially permit everything to be done 'business as usual' and then also call it 'otsar beit din'. The more that otsar beit din gets used as a sort of 'alternative hetter mechira' the less people who used to rely on it will do so. Yes, I do know this trend is true, based on what my brother in law (the said farmer) has told me."
Who is my brother in law referring to? To well-meaning (but in my opinion, misguided) 'national religious' Rabbis who have to all intents and purposes just renamed hetter mechira as otsar beit din. It sounds great, but in practice it has meant that the term has become meaningless to the vast bulk of the chareidi public who are not as familiar with the whole setup as I am. The moment they see the term 'otsar beit din' they just walk away. To them it is just another cop out. They do not have enough background knowledge to differentiate between the otsar beit din for farmers who are genuinely keeping shmitta and for whom it is a truly brave step to take; and what I would call a 'pseudo otsar beit din' which is pretty much business as usual.