Value Added and Employment.. A Test for the Success of the Food Industries Strategy

The National Strategy for Food Industries for the years 2027–2029 aims to increase exports to 1.61 billion dinars by 2029, and to enhance value added and employment, thereby supporting the competitiveness of Jordanian products in foreign markets.

Experts explained, in an interview with Alrai, that achieving these targets requires modernizing production, stimulating investment, strengthening integration between agriculture and industry, and developing the export ecosystem.

The strategy seeks to raise the share of high-value-added products to 32–35% of total production and to provide about 95,000 job opportunities.

Ambitious targets and a clear implementation plan

Economic expert and member of the Amman Chamber of Industry Board of Directors, Engineer Musa Al-Saket, said in an interview with $, that reaching 1.61 billion dinars in food exports is an ambitious goal, but it is achievable if coupled with a clear implementation plan and supportive industrial policies, noting that the sector possesses accumulated expertise and quality products capable of reaching regional markets.

He explained that the most prominent challenges are the high costs of energy, raw materials, transport, and financing, in addition to foreign competition, shipping and marketing costs, as well as the technical and health standard requirements in target markets.

He stressed the necessity of identifying sub-sectors capable of leading export growth, priority markets, required investments, and the annual growth rates needed to achieve the goal, while periodically reviewing performance indicators to ensure challenges are addressed and the path is corrected.

Professor of Economics and expert in fiscal and economic policies at the German Jordanian University, Dr. Mitri Madanat, confirmed in an interview with $, that reaching the targets requires attracting new investments into high-value-added food industries, developing products to suit market needs, and enhancing research, innovation, and keeping pace with technological developments.

He pointed out that the sector constitutes an important pillar for food security and employment, and can leverage Jordan's geographical location and trade agreements to enhance access to foreign markets.

Technology and quality increase competitiveness

Al-Saket believed that enhancing the competitiveness of factories requires addressing the burdens that limit their price competitiveness, in parallel with modernizing production lines and developing products. He called for facilitating export procedures, improving logistics services, and providing soft financing to modernize factories and expand their production.

He emphasized that sustainable competition is not based on price alone, but requires investment in automation and productivity enhancement, the application of certified food safety and quality systems, and the development of packaging and R&D, which allows for the production of goods with higher value added.

Madanat pointed to the importance of shifting towards an industrial model based on innovation and compliance with international standards, developing digital tracking systems for products intended for export, and modernizing storage and refrigerated transport facilities, which improves supply chain efficiency and raises the readiness of Jordanian products for foreign markets.

Agricultural integration supports local production

Al-Saket emphasized the importance of strengthening partnerships between food factories and farmers to ensure stable supplies of raw materials and reduce reliance on imports, whenever local inputs are available in the appropriate quantities, quality, and prices.

He said that the success of the strategy should not be measured by export growth alone, but also by the volume of new investments, created job opportunities, the local value-added ratio, and the extent of the factories' connection with local farmers and producers.

He added that food industries provide opportunities to enhance integration between agriculture and industry, support food security, provide job opportunities in the governorates, and open fields for small and medium enterprises.

Madanat explained that expanding reliance on local production inputs, where possible, contributes to stimulating food industries and reducing reliance on the outside, emphasizing the importance of integration with other economic sectors and developing products based on research and innovation.

New markets and stricter requirements

Madanat pointed out that African and Asian markets and reconstruction markets, including Iraq, Syria, and Yemen, provide strategic opportunities for Jordanian food exports, but they require enhancing price competitiveness, reducing shipping costs, and complying with international standards.

He called for developing trade corridors that accelerate customs clearance, establishing collection and packaging centers in border free zones to support export and re-export, in addition to diversifying markets and benefiting from trade agreements.

He stressed the importance of adhering to sustainability standards, including reducing the carbon footprint, increasing the efficiency of water and energy use, and implementing full digital tracking, which supports continued access to advanced markets.

Achieving the strategy's targets requires effective coordination between the government and the private sector, and monitoring performance indicators related to exports, investment, employment, and local value added, to ensure that goals are turned into tangible results that enhance the competitiveness of Jordanian food industries and the sustainability of their growth.