Food to Jordan
(Last updated: 23 Aug 2011)
Trends and opportunities
The market
Following accession to the World Trade Organization in 2000 and the signing of a free trade agreement with the US, the Jordanian market has further opened up to imports of food and fine food items. Food imports (including live animal imports) account for 14.6 per cent of Jordan’s total imports. Meat products account for approximately 15 per cent of the total food imports, dairy products 9 per cent, and fruits, vegetables and nuts account for 14 per cent.
According to unofficial records, Jordanian consumes about 16,000 tonnes of local meat, 36,000 tonnes of imported chilled meat and 20,000 tonnes of imported frozen meat.
Jordan is also considered a gateway to the Iraqi market. Some of the Jordanian distributors or importers cater for the needs of Iraqi traders and food importers. Food items in demand include dairy products, infant milk, meat and meat products, pulses, fresh fruits and vegetables and there is a niche market for fine foods such as cold cuts, cheeses and wines.
Shopping at supermarkets and superstores is becoming a leisure activity for Jordanian consumers. Consumers are less dependent on neighbourhood stores and convenience stores except for last minute food needs. Supermarkets are scattered mostly in the suburbs of Amman and to a lesser extent in other cities and villages of Jordan. In small cities and villages, grocery and convenience stores still play an important role in the retail business.
With the global increase in food prices, The Civil and Military Service Consumer Corporations, which is owned and managed by the government contribute to the achievement of food security needs of citizens and provide food and basic needs at affordable prices and high quality.
Opportunities
The best opportunities for Australian suppliers are in meat, dairy products, and fruits and vegetable products. The expansion of tourism development projects in Jordan has increased the demand on high quality chilled Australian beef. Lamb import has declined due to the increase in Australian lamb prices. Some of the imported meat is also re-exported to Iraq.
Jordan is continuing to develop dairies and feedlots, which require appropriate grain and oilseed feed supplies. Dairy products remain an opportunity for Australian suppliers even as Jordan increases domestic production.
A niche market exists in the industrial food ingredients and organic food products.
Investment opportunities
Opportunities to invest exist in the food processing industry to supply not only the local market but also the regional and international markets. The geographic position and several free trade agreements enable Jordan to offer preferential access to millions of customers. The sector is also attractive because of the skilled labour force that is less expensive than in the Gulf.
Competitive environment
Jordan imports meat from several countries, notably Brazil, Australia, India, China, New Zealand, Sudan and the USA.
Jordan has a number of free trade agreements including, the US and European Union. Reduced tariff rates are working favourably in the interest of products/services coming from those countries.
Australian products can compete on quality but higher freight costs and the strong Australian dollar value add to the price making products less competitive.
Tariffs, regulations and customs
Customs tariffs are based on the Harmonized System coding practice. Commodities mostly fall under one of five different tariff rates: zero, five per cent, 10 per cent, 20 per cent and 30 per cent. Tax on food imports is between 4-30 per cent and food ingredients for manufacturing are exempt from duties. A value added tax of 16 per cent is applied on retail prices.
The exceptions are tobacco and alcoholic beverages, which are subject to a tariff range of 50–230 per cent.
The tariff schedule and the general sales tax law may be accessed at the Jordan Customs Department website.
Industry standards
A clear label describing ingredients, origin and date of production/expiry date in Arabic is mandatory. If not printed on the original packaging, a sticker to that effect would be acceptable. For further details on labelling, standards listings are published on www.jism.gov.jo.
Marketing your products and services
Market entry
Appointing a reputable distributor and food importer is the best way to gain market entry. These importers can facilitate customs clearance and advise the exporter on how to comply with product-specific regulations such as labelling, packaging, import duties, and sanitary regulations.
Importers either sell their products to wholesalers who distribute food products to retail outlets or sell directly to retailers. There are supermarkets that import food products directly for their own outlets.
Transport
Most imported products arrive in Jordan by sea freight through Aqaba Port, Jordan’s only access to the sea. Aqaba Ports Corporation is the official body that manages and supervises all port activities.
Only two (non-connecting) sections of the Hejaz railway still operate:
- Ma’an to the Aqaba Port
- Amman (in Jordan) to Damascus (in Syria)
Jordan has well-establish cargo road transport services and, supported by shipping agents and clearing firms, is a traditional supplier of trucking transportation to other countries in the region. The road network consists of 8,000km of surfaced roads. There are two major highways from the north border with Syria to Amman, continuing south to the port of Aqaba and southeast to Saudi Arabia, and upgraded or new highways going east from Amman to Iraq and west towards the West Bank and Israel.
Amman’s Queen Alia International Airport is Jordan’s main passenger and air cargo facility. Aqaba Airport (also known as King Hussein International Airport) services international flights and has some air cargo capacity.
Links and industry contacts
Government, business and trade resources for Jordan
Amman Chamber of Industry – www.aci.org.jo
Central Bank of Jordan – www.cbj.gov.jo
Department of Statistics – www.dos.gov.jo
Jordan Customs Department – www.customs.gov.jo
Jordan Food and Drug Administration – www.jfda.jo
Jordan Institute of Standards and Metrology – www.jism.gov.jo
Jordan Investment Board – www.jordaninvestment.com
Jordanian Businessmen Association – www.jba.com.jo
Ministry of Industry and Trade – www.mit.gov.jo
Media
The Jordan Times – www.jordantimes.com
Contact details
The Australian Trade Commission – Austrade – is the Australian Government’s trade, investment and education promotion agency.
Through a global network of offices, Austrade assists Australian companies to grow their international business, attracts productive foreign direct investment into Australia and promotes Australia’s education sector internationally.
For more information on how Austrade can assist you, contact us on:
Australia ph: 13 28 78 | Email: info@austrade.gov.au
A list of Austrade offices (in alphabetical order of country) is also available.