Syrian conflict looms over Jordan's fresh produce sector - FreshFruitPortal.com

Syrian conflict looms over Jordan's fresh produce sector

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Syrian conflict looms over Jordan's fresh produce sector

Export volumes have seriously declined in Jordan in recent weeks as unrest in neighboring Syria and Iraq involving the Islamic State of Iraq and the Levant (ISIL), other groups and government forces escalates. AgribusinessĀ consultant and exporter, Wael Haddadin, tells www.freshfruitportal.com how unfolding events are affecting businesses' ability to reach global markets.Ā 

A lack of transport, increased prices, tighter security and the looming threat of an ISIL invasion. These are all very real concerns for Jordanian communities and the fresh produce sector is no exception. shutterstock_128311652 - panorama tomatoes 2

Jordan's border with Syria has been closed for several months now and access to a previously lucrative market for the country's key fresh produce items is sealed off.

The Nasib Border Crossing, now controlled by rebel forces belonging to a faction of the Free Syrian Army (FSA), was a key gateway between Syria and Jordan with fresh produce loads, aid and other goods transported on a daily basis.

Nasib was an important route into Damascus, not only to supply Syrian importers but for forwarding on to Gulf markets.

There was a time when trucks would make the crossing by road, but a huge clamp down on security means exporters have been forced to rethink their market options.

Haddadin is part of family-business Kariem Haddadin Farms which grows, packs and exports cucumbers, tomatoes, green beans, okra, herbs and a range of other fruit and vegetables. He is also involved in projects with USAID, a U.S. government organization helping to end poverty by building sustainable agriculture.

He says the main focus for Jordan now is targeting European, Russian and UAE markets.

"The border closure with Syria has influenced exports dramatically leaving farmers, exporters and refrigerated truck companies with huge losses," he told www.freshfruitportal.com.

"We are trying to move our exports through airfreight but that is very expensive. Currently, we are trying to use seaports which is another challenge in itself.

"The main market for Jordan is the United Arab Emirates and the key export item is tomatoes as production is all year round because of Jordan's climatic conditions, which allow us to grow almost anything during the year. We're also interested in the EU and Scandinavian markets."

Lack of transport

With many exporters unable to sell their goods outside the domestic market, there has been a glut in some categories and consequent price pressure.

"There was a lack of trucks as some Syrian exporters started using Jordanian trucks to reach the Gulf markets. This caused transport prices to skyrocket and therefore Jordanian production stayed in Jordan with continuous price decline.

"The overall spending habits of Jordanians have decreased recently."

As for future months, Haddadin believes one of the biggest challenges will continue to be reaching international markets in a cost-effective way against the backdrop of intensifying violent conflicts across borders.

"Jordan's political structure is different than other countries. ISIS ['Islamic State of Iraq and Syria', previous name] penetration will not be easy but the overall mood in Jordan is foggy and in observance of new changes on the ground.

"Jordan can be very competitive in the Russian markets providing there are tax exemptions. We can only be competitive if transport is secured to these markets.

"European markets are also good for Jordan during the winter time and the UAE and Gulf will continue to be the preferred market for many exporters, but upgrading the quality of exports is a must for them to be able to continue."

Government support

Officials from Jordanian farmers' associations recently told news agency Anadolu Agency more government support is needed for the agricultural sector, a sentiment echoed by Haddadin.

"His Excellency Dr. Akef Al-Zoubi, the Minister of Agriculture, has made many dynamic moves to ensure the flow of all export to market.

"He has visited European and Arab countries in an attempt to overcome all the obstacles and make the flow of goods much easier and more competitive. However, we think there are still other issues that have to be addressed, but with the current situation, it seems to be a little difficult."

Photo: www.shutterstock.com

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