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Jordan's Food Processing Sector Analysis and Strategy for Sectoral Improvement

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Jordan's Food Processing Sector Analysis and Strategy for Sectoral Improvement GIZ JORDAN EMPLOYMENT-ORIENTED MSME PROMOTION PROJECT (MSME) TRADE FOR EMPLOYMENT PROJECT (T4E) JORDAN’S FOOD PROCESSING SECTOR ANALYSIS AND STRATEGY FOR SECTORAL IMPROVEMENT Authors: Mrs Lina Hundaileh, Mr Fadi Fayad Published in May 2019 GIZ JORDAN EMPLOYMENT-ORIENTED MSME PROMOTION PROJECT (MSME) TRADE FOR EMPLOYMENT PROJECT (T4E) JORDAN’S FOOD PROCESSING SECTOR ANALYSIS AND STRATEGY FOR SECTORAL IMPROVEMENT Authors: Mrs Lina Hundaileh, Mr Fadi Fayad Published in May 2019 JORDAN’S FOOD PROCESSING SECTOR — ANALYSIS AND STRATEGY FOR SECTORAL IMPROVEMENT TABLE OF CONTENTS ABBREVIATIONS ................................................................................................................................................................................................................................................... 05 EXECUTIVE SUMMARY ............................................................................................................................................................................................................................. 06 1 INTRODUCTION ..............................................................................................................................................................................................................................................08 1.1 Context ............................................................................................................................................................................................................................................................ 09 1.2 Scope and methodology of study ....................................................................................................................................................................................... 09 2 SECTOR PROFILE ....................................................................................................................................................................................................................................... 12 2.1 Brief sector description .................................................................................................................................................................................................................. 13 2.2 Jordan’s food processing performance: an overview ....................................................................................................................................... 17 2.3 Jordan’s food processing competitiveness and business enabling environment .......................................................... 20 2.4 International, regional and domestic markets and trends .................................................................................................................... 24 2.5 Conditions and implications for Jordan’s food processing sector ................................................................................................... 27 3 SUB-SECTOR BRIEFS AND DESCRIPTION OF PRIORITY SUB-SECTORS ................................................30 3.1 Profiling of MSMEs within the food processing sub-sectors ................................................................................................................. 31 3.1.1 Food processing MSMEs: establishments and employment ........................................................................................................................... 32 3.1.2 Profit margins, costs, utilisation of capacities, infrastructure ...................................................................................................................... 34 3.2 Sub-sector characteristics .......................................................................................................................................................................................................... 36 3.2.1 Processed fruits and vegetables – priority sub-sector ......................................................................................................................................... 36 3.2.2 Dairy – priority sub-sector ........................................................................................................................................................................................................ 43 3.2.3 Arabic sweets – priority sub-sector .................................................................................................................................................................................... 50 3.2.4 Processed and preserved meat ............................................................................................................................................................................................. 56 3.2.5 Vegetable oils ................................................................................................................................................................................................................................... 59 3.2.6 Manufacture of grain mill products .................................................................................................................................................................................. 62 3.2.7 Manufacture of cocoa, chocolate and sugar confectionery ............................................................................................................................ 63 3.2.8 Processing and preserving of fish, crustaceans and molluscs ........................................................................................................................ 64 3.2.9 Processing and preserving of pasta and macaroni ................................................................................................................................................. 64 3.2.10 Other food productsrustaceans and molluscs .......................................................................................................................................................... 64 3.2.11 Prepared animal feeds ................................................................................................................................................................................................................ 66 TABLE OF CONTENTS 03 4 CHALLENGES AND OPPORTUNITIES ........................................................................................................................................................................68 5 STRATEGIC INTERVENTIONS ................................................................................................................................................................................................. 72 5.1 Improving MSMEs’ competitiveness in the processed food sector ................................................................................................ 77 5.2 Enhancing competences of food processing MSMEs and employment .................................................................................. 80 5.3 Improving business climate through policies and governance facilitating MSMEs ................................................... 82 6 BIBLIOGRAPHY ............................................................................................................................................................................................................................................. 84 7 ANNEXES ................................................................................................................................................................................................................................................................ 87 7.1 Sector interviews and validation meetings ............................................................................................................................................................. 88 7.2 List of entities providing support to MSMEs ......................................................................................................................................................... 90 7.3 Trade policies relating to Jordan ........................................................................................................................................................................................... 91 7.4 International trade relating to Jordan .......................................................................................................................................................................... 93 7.5 Product HS codes .................................................................................................................................................................................................................................. 94 7.6 Turning tomatoes into money: Tomato and pesto sauce ......................................................................................................................... 95 7.7 ITC List of major export destinations for various Jordanian processed food products 2017 ............................. 96 7.8 Main exporters of fresh and dried dates ..................................................................................................................................................................... 98 7.9 Main exporters of cheese and curd ................................................................................................................................................................................... 99 7.10 Steps
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