High production costs make competition difficult — food sector traders

market food
(File photo: Ameer Khalifeh/Jordan News)
AMMAN — A measure of optimism could be felt in some commercial sectors after Qatar announced its intention to increase imports of Jordanian food products during the 2022 World Cup, but many remain skeptical about the possible windfall.اضافة اعلان

Several traders and food sector workers Jordan News spoke to mentioned challenges they face, most prominent of which is high production costs, which, they say, weaken the competitiveness of Jordanian products in foreign markets.

Member of the Board of Directors of the Jordanian Poultry Producers Association Hassan Bu Diqer told Jordan News that the sector is one “that incurs the highest costs of production, resulting in a higher selling price”.

“If traders want to sell poultry to Qatar, they must offer a preferential price, especially since Qatar imports poultry from Brazil and Ukraine at lower prices,” he stressed.

In order to be competitive in the export market, “the government needs to reduce production costs in diverse food sectors, and enable traders to sell at preferential prices, without losing”, he said.

Head of the Cooperative Society for Cattle Owners and Milk Producers, Laith Al-Hajj, told Jordan News that Jordan does not raise enough cattle, therefore “dealers have to import some, which makes exporting cattle or meat unfeasible for them”.

He added that cattle and beef will not be among the items Qatar will import from Jordan, “given that there are meat-producing countries, and competition with them is difficult, especially since they sell meat at the lowest cost to the buyer”.

According to economist Salameh Al-Darawi, the agricultural sector will stand to benefit most “if Qatar imports food from Jordan”.

He said that markets in Qatar “received Jordan’s agricultural exports in abundance previously, and the Jordanian producer had a prominent presence there”.

A Jordan Chamber of Commerce source who spoke on condition of anonymity told Jordan News that “a Qatari delegation visited Jordan at the beginning of October, and showed interest in importing certain food items, according to certain specifications, during the World Cup”.

The volume of trade between Jordan and Qatar over the past 10 years had reached more than $3.17 billion. Qatar imports Jordanian food products due to the quality and efficiency of the local product, which satisfies the Qatari consumer.

The most prominent products and foodstuffs Jordan exports to Qatar are vegetables and fruits, including zucchini, cucumbers, tomatoes, cauliflower, eggplant, all kinds of peppers, carrots, green beans, cabbage, watermelons, cherries, peaches, and apricots, in addition to leafy greens that include parsley, spinach, mint, coriander, lettuce, grape leaves, mallow, and watercress.


Read more Features
Jordan News