Export Value Chain Analysis Fruit and Vegetables Jordan May 2016 Authorised by: Netherlands Enterprise Agency | RVO.nl Prepared by: Jos Leeters Milco Rikken www.bureauleeters.nl www.proverde.nl 2 Table of contents Management summary .................................................................................................................. 4 1 Introduction ............................................................................................................................... 6 2 Sector overview ........................................................................................................................ 8 2.1 General features and trends of the Jordanian fruit and vegetables sector................................................. 8 2.2 Key fruit and vegetables crops ................................................................................................................... 9 3 Market Analysis ...................................................................................................................... 12 3.1 The European fruit and vegetables market .............................................................................................. 12 3.1.1 Segmentation of EU/EFTA markets and product groups ................................................................. 12 3.1.2 Market trends .................................................................................................................................... 13 3.1.3 Trends in trade structure and logistics ............................................................................................. 14 3.2 Regional markets ...................................................................................................................................... 15 3.3 Trade flows ............................................................................................................................................... 16 3.3.1 Jordan exports .................................................................................................................................. 16 3.3.2 Jordan imports .................................................................................................................................. 19 3.3.3 EU imports, main markets and suppliers .......................................................................................... 20 3.3.4 EU imports from Jordan .................................................................................................................... 21 3.4 Main competitors and seasonal patterns .................................................................................................. 21 3.4.1 Jordan’s main competitors ................................................................................................................ 22 3.4.2 Jordan’s competitive position in selected products .......................................................................... 24 4 Mapping the value chain ........................................................................................................ 28 4.1 Chain stakeholders ................................................................................................................................... 28 4.1.1 Chain actors and their functions ....................................................................................................... 28 4.1.2 Chain supporters and their functions ................................................................................................ 30 4.1.3 Chain influencers and their functions ............................................................................................... 37 4.2 CSR risks in the value chain ..................................................................................................................... 38 5 Bottlenecks along the value chain ........................................................................................ 41 5.1 Introduction ............................................................................................................................................... 41 5.2 Market & market access ........................................................................................................................... 42 5.3 Technology & inputs ................................................................................................................................. 43 5.4 Human Resources .................................................................................................................................... 44 5.5 Business environment .............................................................................................................................. 45 5.6 Refugees ................................................................................................................................................... 46 5.7 Summary of bottlenecks along the value chain ........................................................................................ 46 6 Recommendations for interventions ..................................................................................... 48 6.1 Introduction ............................................................................................................................................... 48 6.2 Market & market access ........................................................................................................................... 48 6.3 Technology & inputs ................................................................................................................................. 48 6.4 Human Resources .................................................................................................................................... 49 6.5 Business environment .............................................................................................................................. 49 6.6 Refugees ................................................................................................................................................... 50 6.7 Summary of recommended interventions ................................................................................................. 50 6.8 Risks ......................................................................................................................................................... 51 6.9 CBI ............................................................................................................................................................ 52 ANNEXES ..................................................................................................................................... 53 Annex 1 References ................................................................................................................. 53 Export Value Chain Analysis - Fruit and Vegetables Jordan www.bureauleeters.nl www.proverde.nl 3 A1.1 Reports .................................................................................................................................................... 53 A1.2 Websites ................................................................................................................................................. 53 A1.3 Interviews in Germany (Fruit Logistica) and the Netherlands ................................................................. 54 Annex 2 Field trip program ...................................................................................................... 55 A2.1 Program .................................................................................................................................................. 55 A2.2 Round table invitation.............................................................................................................................. 56 Annex 3 Statistics .................................................................................................................... 57 A3.1 Production statistics ................................................................................................................................ 57 A3.2 Prices ...................................................................................................................................................... 58 A3.3 Jordan exports of fresh fruit per destination ........................................................................................... 59 A3.4 Jordan exports of fresh vegetables per destination ................................................................................ 60 Export Value Chain Analysis - Fruit and Vegetables Jordan www.bureauleeters.nl www.proverde.nl 4 Management summary The Jordanian production of fruit and vegetables is considerable and even has room for expansion. Exports to most of its traditional markets Syria, Iraq, Lebanon, Eastern Europe and Russia are under severe pressure because of closed borders, due to the Syrian crisis. Alternatives to reach the Eastern European and Russian markets, aren’t competitive or couldn’t be realised so far. Exports to Saudi Arabia and other Gulf countries are rising but cannot compensate all losses. For exports to high end markets, such as EU / EFTA, the sector doesn’t have the capacity yet. This report analyses the fruit and vegetables value chain in Jordan, emphasizes the bottlenecks in the chain that prevent exports along four themes and shows a set of interventions, aiming to rebuild and strengthen the export position of Jordan in