Royal Commitment, Economic Modernization Visionserve As Strong Pillars For Jordan's Food Industry Sector

(MENAFN- Jordan News Agency)

Amman, Jan. 8 (Petra) – The royal commitment and the Economic Modernization Vision (EMV) serve as strong pillars for Jordan's food industry sector, which boasts significant exports and rapid growth within its sub-sectors.
The sector has diverse and substantial production capabilities, enabling it to meet local market needs in quality and quantity while significantly boosting export levels. Currently, the sector's products reach 100 markets worldwide, with untapped export opportunities estimated at around JD1.4 billion across various global markets. This underscores its status as a high-value sector emphasized in the EMV due to its importance in achieving food security, creating jobs, and increasing exports. The vision aims to position Jordan as a leading regional industrial hub, supplying high-value, high-quality, and competitive food products to export markets.
The sector's annual production capacity exceeds JD5 billion, contributing about 6% to the GDP. Its exports amounted to JD675 million in the first ten months of 2024, marking a remarkable 32.4% growth compared to the same period in 2023. The Middle East remains the top market for the sector's products, accounting for 70% of export opportunities.
The sector's exports have expanded globally, with notable growth in markets such as the United States (26% increase), the Netherlands (34% increase), and Germany (49% increase). The sector also achieved 15.9% growth in the Jordanian Industry Index during the third quarter of 2024.
The number of establishments in the sector has grown from 364 two decades ago to 2,800 today, covering 65% of local market needs and bolstering food security a resilience demonstrated during global and regional health and political crises.
Royal Support and EMV
According to Mohammad Waleed Al-Jitan, Representative of the Food and Agricultural Industry Sector at the Jordan Chamber of Industry (JCI), the sector benefits from substantial royal support, as evidenced by His Majesty King Abdullah's continuous directives to prioritize it within the 2023–2033 EMV.
Al-Jitan told the Jordan News Agency (Petra) that royal directives have resulted in initiatives such as the formation of specialized committees to support local production, improve industrial-agricultural integration, and the 2021 launch of the National Food Security Strategy. These efforts aim to address food security issues and enhance future preparedness.
The King's meetings with representatives of the food industries have led to tangible outcomes, including the issuance of food traceability regulations published in the Official Gazette, launch of the "Jordan Identity" campaign to market authentic Jordanian food products in collaboration with the Jordan Tourism Board, networking with Walmart stores in the U.S. and facilitating entry processes for Jordanian factories, and establishing foundational steps for a food innovation center to enhance product development and competitiveness.
Sector Priorities and Challenges
According to Al-Jitan, the sector is identified as a priority in the Economic Modernization Vision, which targets an annual value addition of 6%, equivalent to JD1.5 billion. It also aims to create 34,000 full-time jobs and achieve an annual export growth rate of 14.4%, reaching JD4.3 billion by 2033.
The vision includes initiatives to enhance the competitiveness of food manufacturing, promote food industries and marketing efforts, strengthen supply chains for plant-based food manufacturing, and improve the quality and standards of Jordanian food products.
Despite its resilience, the sector faces challenges, including high production costs particularly energy expenses, which exceed competitors' costs by over 40%. The sector also struggles with limited product development and innovation and faces competition from imported goods, which lack sufficient protective measures. Local products face an import competition gap of JD1.5 billion.
Future Steps
Al-Jitan, who is also JCI vice president, emphasized the need for accelerating the establishment of a dedicated food innovation center to develop sustainable, science-backed solutions for product improvement and diversification, expanding exports to the U.S. market by enhancing technical capabilities to meet requirements, supporting participation in international exhibitions to raise awareness of Jordanian products, and educating manufacturers about available export markets and their needs.

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