Jordan: Logistical challenges and opportunities for Middle East produce
AgriJordan produces many kinds of fruits and vegetables, including tomatoes, peppers, melons and aubergines and two of its most important destinations are currently Turkey and Eastern Europe, where the produce from the Jordan Valley, shipped in refrigerated trucks, has found some good market opportunities.
The company’s logistics strategy, however, has been tremendously affected since Syria’s problems started and consequently, attempts have been made to find alternative routes to reach its destinations in the shortest time, striving for the produce to arrive in its freshest state, but without pushing costs to unsustainable levels.
According to Mohammed Bataineh, from AgriJordan, “we have been working with the governments of Turkey and Israel to promote the use of the route via Haifa, despite the fact that it also has some drawbacks, such as some delays and an increase in costs because of border controls.”
A lot of the company’s produce is shipped to the Gulf market, which only requires two to three days shipping time from Jordan and this gives it an advantage over its competitors in Egypt (and other African countries) and even Israel which cannot ship directly to GCC countries.
The firm has been trying to capitalise on Jordan’s stability and security compared to its neighbouring countries, trying to turn the situation into a stepping stone, not only for its agricultural produce, but also to attract others to establish themselves in the country and serve the area from Jordan.
Interest has been growing amongst European producers to expand in countries in the Middle East, like United Arab Emirates, and this is also the case for AgriJordan, which has been gaining market share in various destinations in the area, including UAE, Qatar, Kuwait and even Saudi Arabia, which had enforced prohibitions on Jordanian products for many years.
“We are finding that, despite the risks involved, the boom in the Gulf market provided Jordan with a great chance to explore new opportunities that are currently turning out to be quite lucrative for us,” concludes Mohammed Bataineh.
For more information:
Zahran Plaza, 7th circle
P.O. Box: 140825, Amman, 11814, Jordan
Tel: +962 6 5503245
agrijordan.com/welcome