Agriculture & Livestock

Agricultural sector:

The Jordanian agricultural sector is economically important in Jordan, despite its small share contributed 4% to the nation’s GDP ($1381m), employing 1.7% of the country’s labor force (Center Bank of Jordan Statistics,2015).  Jordan is self-sufficient in a number of agricultural products such as olive oil and tomatoes but must import some basic items such as cereal, animal and dairy products, and sugar. 


Overview:

  • The primary industries within the sector are rainfed agriculture(87%), irrigated agriculture, rangeland farming, support services (marketing and extension), horticulture (fruits and vegetables) and animal production.
  • There are no major obstacles for Jordanian exports to traditional and foreign markets (especially GCC & Iraq markets), which could play a major role in increasing agriculture production. Agricultural exports contributed to around 3% of merchandise exports in 2015.
  • Tomatoes made up 58 % cent of the exported vegetables, followed by lettuce and bell peppers, according to the Ministry of Agriculture 2015 Report, which indicated that peaches constituted 51 % of the exported fruit, followed by watermelon and melon which made up 44 % of fruit exports.
  • The Gulf market is the main importer of local produce, with 82 % of the fruit and vegetables imported by Gulf countries.
  • Jordan imports up to 98 percent of consumable items from abroad, including wheat, barley, sugar, rice, powdered milk, tea, coffee, corn, vegetable oil (excluding olive oil), cheese, chick peas, vermicelli, and lentils.[1]
  • Jordan ranked 47/140 in agriculture policy costs according to the WEF Global Competitiveness Report 2015– 2016.
  • The Country’s location, supported with by free trade agreements (FTAs) offering Access to 1.5bn customers in 161 countries. For more details, please click here.
  • An attractive incentives package: From total income tax exemption in Free zones for export to reduced corporate income tax of 5% in development zones and exemption of customs duties and sales tax. For more information click here.

 

Business Opportunities:

  • Marketing firms focusing on promoting agricultural products
  • Research and development for enhancing attributes of food and beverage products
  • Extraction of flavors and fragrances from local plants
  • Development of post-harvest activities for fruit and vegetables, as well as working towards adopting an orchard to market approach that aggregates production and establishes economic packing, storage, and marketing functions
  • Fruit concentrate production
  • Cottage farming, livestock production, and processing, and export of fresh fruits and vegetables
  • Organic farming for the production of vegetables, as well as medical and aromatic plants production for local and overseas markets
  • Production of animals feeds on farm by-products
  • Utilization of date palm by-products in the manufacturing of containers, floor mats, and more.

 

[1] Doing Business in Jordan: 2015 Country Commercial Guide for U.S. Companies- Department of commerce- USA.

 

Investment opportunities in the Agriculture & Livestock sector