When the European Union issued guidelines on labelling products from West Bank settlements last November, the winemakers at Shilo Wineries lost almost all of their European clients.

"Many businesses here stopped production to see what the impact of the law would be, but I wasn't worried for a moment. Jews have been in Judea and Samaria for thousands of years, and now we're here to stay," said Shilo employee Amichai Lourie.

"I can say that in some ways, Boycott, Divestment and Sanctions (BDS) has done a lot of damage, but in other ways, it turned out even better."

With Passover sales this month, Mr Lourie estimates that the winery has recouped its losses and is on the way to making a profit. This was made possible by a strategic shift away from European markets and a decision to emphasise its West Bank location as a selling point rather than hide it as a mark of shame.

The US market has replaced Europe as its largest trading partner, and the winery has begun to export as far away as Hong Kong and to new outlets within Israel.

Mr Lourie said that the "amazing quality" of his wine was testament to the ancient Jewish prophecy that "'the land will only yield fruit when the Jews have come back to Israel', and we're seeing that happening, literally".

With new buyers emerging, the EU guidelines were a minor hiccup, he added.

Europe is Israel's largest export market, but most of the Israeli companies in the West Bank produce about £417m worth of goods annually, making them a small percentage of Israel's £208bn economy.

But export models have nonetheless been affected by the BDS movement, which has called for the world to boycott companies located across the Green Line on land that Palestinians see as part of their future state, and which, according to most of the international community, is illegally occupied.

Under the EU guidelines, published last November, products from the settlements in the West Bank or from eastern Jerusalem and the Golan Heights are not allowed to carry the label "produce of Israel" but must say, for example, "produce of the West Bank (Israeli settlement)".

While Palestinians have said that the settlement businesses, which employ Palestinians, further entrench the occupation and prevent Palestinians from creating an independent economy, many Israeli politicians and business owners have condemned the EU pressure as antisemitic.

A number of small initiatives have also cropped up to reverse the effects of the EU guidelines, such as the Shiloh-based Lev Haolam. It home-delivers packages of West Bank specialities, including chocolates and honey from Hebron, and olive oil and wines from Shiloh. Because it is all done online, via a £70 per month subscription, there is no need to abide by the EU guidelines.

"We try to help the pioneers of Judea and Samaria, and we've had great responses from people all around the world, as well as Israeli president Reuven Rivlin, who said that ours was one of the best ways to fight BDS," said the organisation's founder, Nati Rom.

Michael Stines, a subscriber who lives in North Carolina in the United States, said: "My children are so excited to receive the packages right to our home, to connect to Israel in a personal way. There are Americans who love Israel and want to support the country, but they don't know how."

Mr Stines said that the call among pro-Israel groups to buy West Bank products had increased as Israeli companies have left the region.

Among the firms to leave were Soda-Stream, Teva Pharmaceuticals, and the Dead Sea minerals cosmetics company Ahava, which was bought out by a Chinese conglomerate.

Kuki Elbaz, head of the Medjool date groves in the Jordan Valley, said that if the boycott expands, it will hurt Palestinian workers more than Israelis.

Around 500 Palestinians lost their jobs when SodaStream completed its redundancy scheme last month.

Mr Elbaz said he would leave his home and business if a land swap looked like bringing lasting peace, but added that his family, who fled antisemitic persecution in Morocco, was deeply rooted in the Jordan Valley.

"Jews have been chased for thousands of years, but this is the only place where we can live, we don't have another state. If peace ever comes it will be through the people, not the politicians," he said.