October 24, 2003
Weather Favors Jordan's 2002-03 Grain Production
Rainfall for Jordan's 2002-03 crop season was favorable, which reflected positively on winter and summer crop production, according to a U.S. Department of Agriculture attache report posted Thursday on the Foreign Agricultural Service Web site.
Production and Consumption
For the second year in a row, weather conditions during the 2002/2003 rainfall season were favorable. Wheat production is estimated at 55,000 metric tons from a planted area of 50,000 hectares. This is compared to 75,000 metric tons from an area of 72,400 hectares in 2001/2002. Therefore, total area planted was 31 percent less in 2001/2002 and total production decreased by 27 percent. Wheat consumption is estimated at 600,000 metric tons annually, the attache said.
Trade
Wheat imports during MY2002/2003 totaled 666,097 tons against 660,000 tons during MY2001/2002. The United States supplied 200,000 metric tons (30 percent of total imports). USDA programs 416(b) program facilitated the shipment of 200,000 tons of wheat from the United States. Although GSM-102 program was available during MY2002/2003, but due to very high prices in the U.S., Jordan was forced to purchase wheat from alternative suppliers, i.e. Ukraine, Czech. Republic, Kazakhstan, Australia, Russia and Germany.
Imports of wheat during MY2003/2004 from the United States are forecast around 235,000 tons. USDA PL480 Title I program will facilitate the shipment of 135,000 tons and Jordan is looking forward to receive a new PL 480 Title I program for FY 04. Commercial U.S. wheat exports are expected to decline during this marketing year due to: (1) Japanese aid of 300,000 metric tons of which Jordan already received 54,000 tons; and (2) to high U.S. prices relative to other origins. However, Jordan is not expected to be in the market for new purchases until March 2004 since 135,000 tons of wheat from the United States under PL 480 Title I will be shipped before the end of this year and a Japanese aid of 200,000 tons will be shipped before the end of this year and early 2004.
Production and Consumption
Jordan's barley production during MY 2002/2003 is projected at 40,000 metric tons from a planted area of 59,600 hectares. This compares to 63,000 metric tons from a planted area of 49,000 hectares in MY 2001/2002. Domestic barley consumption is about 40,000 metric tons monthly. Barley is mainly used for cattle and sheep and sometimes for poultry feed.
Trade
Barley imports during 2002/2003 totaled 402,000 metric tons, Syria was the major supplier shipping 300,000 metric tons or 71percent of total imports. In early November 2002, Jordan and Syria signed an agreement for the supply of 500,000 metric tons of Syrian barley to the Jordanian market, thus meeting all of Jordan's barley needs for year 2003. Jordan's barley imports of barley during MY2003/2004 are expected to be nearly the same as 2002/2003. Syria is expected to remain as the major supplier. Japan donated around 58,000 tons of barley to Jordan, which were supplied from Turkey. Since 1999, the GOJ has been the sole importer of barley and sets the price of barley for the livestock producers at JD70 per ton during the current year.
Production and Consumption
Jordan's locally produced corn is mostly used as corn-on-the cob for human consumption. Corn consumption is around 35,000 metric tons, mainly used for poultry.
Trade
Corn imports during MY2002/2003 are estimated at 360,000 metric tons of which 7.5 percent were from the United States. Argentina is the major source supplying 332,678 metric tons or 92.5 percent of total imports. Argentina will continue to be the main competitor for U.S. for both quality and price. Jordanian farmers and traders complain that the percentage of broken kernels and dust in US corn shipments is higher than Argentinian corn. They also perceive Argentinian corn as having a hard gelatine coat that prevents breaking. Also, cost of U.S. corn is higher than Argentinian corn because of transportation cost as cargoes coming from Argentina do not pass through the Suez Canal and this reduces the cost by $6 per ton. Corn is imported in bulk and by the private sector. Also, according to traders and importers, there is a price advantage for the Argentinian corn since mixed shipments are bought by some importers - a mixture of soybean and corn. Although according to the Free Trade Agreement signed between Jordan and the U.S., imports of American corn and soybean meal no longer pay the 5.2 percent Jordanian import tariff, importers report that a price gap in favor of Argentina still remains for corn and soybean meal.
Production and Consumption
Jordan does not produce rice. Rice consumption is around 100,000 tons of medium and long grain annually, 90 percent of which is medium grain.
Trade
Imports in 2002 were 105,000 metric tons, 19,000 of which came from the United States. Total rice imports during 2003 are forecasted at 90,00 metric tons. The U.S. is expected to supply only 20,000 metric tons. Competition for medium grain rice is tough between the U.S., Australia and Egypt. Egyptian rice is imported bagged and in small ships. The Australian rice is imported in bulk and bagged. The U.S. rice is imported in bulk and is bagged in Jordan. Imports of consumer packaged parboiled long grain and basmati rice during 2002 are expected to amount to 10,000 tons. The U.S. long grain rice exports face strong competition from Thailand. Rice is imported freely by Jordanian private sector companies.
Production and Price Policy
For the second year in a row, abundant rains affected the area and were well distributed over the various regions of the country during the 2002/2003 rainfall season. The GOJ continues to import wheat and barley and fixes prices for wheat sold to millers, flour sold by millers to bakers. The Government also fixes retail price of two types of bread known as unified and baladi bread. The two types of bread account for 90 percent of Jordan's wheat consumption. Price of wheat sold to millers is JD99.300/metric ton. Price of flour is JD 123.200 for the unified flour and JD.124.400 for the baladi flour. The GOJ continues to subsidize the sale of barley to the farmers, the report said.
In addition, the GOJ continued its grain subsidy policy whereby it encourages the farmers to plant wheat and barley and purchases these crops at higher than market support prices which are announced every year prior to the planting season. This year, GOJ purchased from the farmers 32,734 tons of wheat and 17,130 tons of barley.
No policy changes have been implemented during MY 2002/2003.
Market Development
Jordan will continue to import most of its wheat and barley needs and all of its corn and rice requirements. The United States is expected to continue its presence in the wheat market by facilitating its sales through GSM Credit Guarantees and other assistance programs. Financing will continue to be a crucial factor in Jordan's purchasing decision because of Jordan's limited foreign exchange and budgetary structure.
