ISIL violence in Iraq hurts Jordanian agricultural exports


11-08-2014 11:50 PM

Ammon News - AMMONNEWS - The volume of Jordanian fruit and vegetable exports to Iraq has plummeted following recent "Islamic State of Iraq and the Levant" (ISIL) violence in northern Iraq.

In some cases, export has halted completely due to the crisis, farmers told Al-Shorfa.

Jordan Valley farmer Saeed Jaara said he used to export most of his crops potatoes, tomatoes and aubergines to Iraq, one of Jordan's largest markets for agricultural products.

Sales had grown dramatically in recent years, he said, but are now in decline after ISIL seized control of parts of Iraq.

"I stopped exporting to Iraq because truck drivers are reluctant to go there," he told Al-Shorfa, estimating he will lose thousands of dinars this year if the current security situation continues.

Jaara still exports to Gulf markets, he said, "but these do not compensate for the damage caused by the end of export to Iraq".

SIGNIFICANT DECLINE IN PROFITS

"This year will see a significant decline in profits due to suspension of exports to Iraq," said Mahmoud Abu Swailem, a farmer from the southern Jordan Valley.

Many Jordanian farmers are suffering greatly because of ISIL violence, he told Al-Shorfa.

"I never imagined that the violent acts carried out by ISIL in Iraq would impact my business," he said. "I used to export hundreds of tonnes of tomatoes to Iraq, but this has stopped completely."

"What have we benefited from ISIL?" he asked. "Because of them, many have died and many others have lost their incomes."

According to Abu Swailem, the in exports to Iraq has impacted sales in the domestic market, where prices have fallen dramatically.

Mohamed Jabbara, who sells vegetables and fruit at al-Hussein refugee camp, said the prices of vegetables such as tomatoes, courgettes, aubergines and potatoes have dropped by 70% to 90% in some cases due to the decline in exports to Iraq.

The decline in exports means there has been an abundance of produce on the domestic market, he said.

"This is tragic, even though lower prices are good for consumers, as many farmers and traders are forced to sell their crop at a loss, due to the massive supplies in the market," Jabbara said.

FARMERS REPORT HEAVY LOSSES

Jordan exports about 250,000 tonnes of fruits and vegetables to Iraq each year, said Zuhair Jwaihan, head of the Jordan Exporters and Producers Association for Fruits and Vegetables.

Now, "exports have ceased completely because of acts of violence carried out by ISIL and its elements", he said. "Those who drive refrigerated trucks refuse to go to Iraq for fear of the security situation there."

Jordanian farmers have lost hundreds of millions of dinars, especially as exports to Europe via Syria also have paused, Jwaihan said.

The halt in export to Iraq is "catastrophic", he added, as Iraq has been the largest importer of Jordanian fruits and vegetables, particularly in the winter.

"If the security situation continues as is, a number of farmers and exporters will be forced to close their businesses and work in other sectors," he said.

"We hope for the return security and normality to Iraq soon, especially before the winter season, because the situation is very difficult for farmers and others who make a living in this sector," he said.

*Al-Shorfa




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