dates world productions
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DATES’ MARKET
1. BACKGROUND
Date production is a world agricultural industry producing about 5.4 million tonnes of fruit per year
(FAO Trade statistics; 2003). The date fruit, which is produced largely in the hot ad arid region of
the Middle East and North Africa, is marketed all over the world as a high value confectionery and
fruit crop and remains an extremely important subsistence crop in most of the desert regions.
Date Palm is one of the oldest plants cultivated by man and its origin is said to be either from
Mesopotamia or the Gulf region. In the Gulf region, date culture and its basic technical practices
have been known at least since 2500 BC as proved by ancient texts.
The date palm has historically been connected with the sustaining of human life in many of the hot
and barren parts of the ancient world and it has become an integral part of the culture and tradition
of the people of these regions. The date palm has provided mankind for thousands of years with
essential nutrients. Dates are mentioned in the religious books of the Old Testament and the Koran,
and are particularly the favorite food for the Muslims all over the world during the Holy Month of
Ramadhan.
The date palm plays an important role in the ecology of arid and desert areas of the world; this tree
is, in fact, irreplaceable in irrigable desert lands. It provides protection to inrer-crops from the
harshness of the climate (heat, wind and even cold weather) and their fronds are alternative means
of reducing the damage from sand storms and wind erosion. Furthermore, date palm is very tolerant
to high temperatures, strong winds, light frost, soil and water salinity, and high pH. In areas of high
radiation the date palm produces a microclimate that is favourable for undergrowth production of a
range of crops. Hence, the date forms the framework for a production system. In this context, date
palms flourish where other fruit production would be marginal at best, which has perhaps
contributed to the producer’s special affection for the date palm and the habitat created by it. The
date palm and its by-products offer an extra income and provide work to a considerable number of
unemployed, landless and poor peasants.
In view of high nutritive value and universal appeal of the fruit, dates have been celebrated by
poets.
They are rich in carbohydrates, minerals and vitamins A. They are also fat free and do not contain
cholesterol.
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This study is organized in the following sections.
In the first section, the demand for dates has been analysed, considering different countries around
the world. In the second section, the supply side has been studied. The main varities of dates
existing and exported are presented in section three. In the fourth and fifth sections, date production
in Jordan is illustrated, showing potentialities and obstacles to export development. Some
conclusions and suggestions are reported in the final section.
2. DATE DEMAND
Peak season for date consumption is during the month of Ramadan. Entire Muslim communities
around the world, currently numbering 1.6 billion people, are loyal consumers of dates.
Consumption is also quite high during Christmas. Similarly, the fruit enjoys enormous significance
on the occasion of Divali and such festivals in other religions.
In Europe and North America, the fruit is particularly preferred during the dark winter months.
Usual sales of dates are spread to a period from October to April. Dates have found their way into
sweets, confectionery, chocolates, baking products, preservatives, salads, sauces, and breakfast
cereals. Dates also have bulk industrial uses. With advancements in food technology, newer and
very useful date products are being developed, indicating fruit's bright future.
2.1 Date demand in European Union
European Union (EU) is a key market for date exporters. Although the EU imports of dates
represent only 10 percent of world imports in volume, they account for some 30 percent in value.
This reflects the fact that EU import prices for dates are comparatively much higher than the world
average.
France, United Kingdom, Germany, Italy and Spain account for 85 percent of total EU imports of
dates in volume. The variations in net imports over the last decade show two distinct phases: during
the first half of the 1990s imports tended to be relatively stable. On the other hand, the second half
of the 1990s witnessed a moderate albeit steady growth. This rising trend is particularly visible for
Spain, Germany, Italy and France. In the United Kingdom imports have not really risen above their
average of the early 1990s if the exceptional imports of 1999 are not taken into account.
France is the leading market for dates in the EU. Its main suppliers are Tunisia and Algeria, which
account for over 85 percent of its date imports. France's gross imports have increased steadily,
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rising from an annual average of 18 600 tonnes in 1990-92 to 22 400 tonnes in 1998-2000. It is the
world's largest importer of deglet nour (18 000 tonnes in 1998). Imports of mejool are growing.
The United Kingdom is the second largest EU market for dates and consumes large quantities of
common dates. During the Christmas period it imports deglet nour packed in 227g glove boxes.
Supermarkets have the biggest share for date distribution, with demands for high quality and low
prices that some importers consider unrealistic. Recently introduced, mejool dates are selling well
and at high prices. Their sales are increasing rapidly due to their distribution by supermarket chains.
Italy is the third largest EU market for dates together with Germany. Imports of dates have
increased from some 5 000 tonnes in the early 1990s to over 6 000 tonnes in recent years. The main
variety is deglet nour and over 80 percent of the dates are sourced from Tunisia.
Due to the rise in incomes in eastern Germany, date consumption is on a slow rise. Germany
primarily imports common dates. These are packed in 200g-ravier and sold by supermarkets at
discount prices. However, consumption of higher quality dates (such as deglet nour) tends to
increase.
Spain is the fifth largest date market in Europe, with imports at 5 300 tonnes in 2000. However, it is
the country where imports are growing at the highest rate. As in France, Spanish importers favour
natural deglet nour in 5-kg bulk over processed dates. Common dates are packed in 250g ravier but
their consumption is slowly decreasing. There is also a small market for the hayani variety.
Denmark and Sweden have increased their imports since the mid 1990s. Although these markets are
small, they are dynamic and consumers have a high purchasing power. They mainly import
common dates. Ireland’s import are also growing, although from a very small base.
Conversely, Belgium, the Nederlands, Austria, Portugal, Greece and Finland show no clear trend.
2.2 Date demand in Latin-America
Latin America imports usually reduced quantity of dates, especially maghrebine re-export from
Spain. Imports prices are high enough to attract european exporters and Israel, that attempt a
promotional campain on this market. Despite the high deficit of this market, represented by import
weakness of some countries compared to a large muslim population (dates’ consumption per
Muslim person is lower than 70 grammes in Argentine and 30 grammes in Caraibes), the
geographic dispertion of latin american markets constitutes a big obstacle to exports’ development.
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2.3 Date demand for livestock alimentation
According to official estimates (FAO), some dates’ producers countries use dates for livestock
alimentation in a high proportion: more than 70% of United Arab Emirates production, that in
general has a mediocre quality, from 20 to 25 % for Maroc and Iraq.
The use of dates for livestock alimentation is considered as a valorisation of waste of production
unsuited to human consumption within traditional oasis cultivation (essential to fertility
preservation). Because of their high energetic qualities, and then because of their high zootechnical
qualities, dates are also commerce object between differentes oasis.
3. DATE SUPPLY
Dates are cultivated mainly in warmer regions of Africa, Middle East and Asia. The fruit is also
grown in some parts of Europe and the USA. Global production of this delicious fruit stood at 5.46
million metric tonnes in 2003. Egypt (1102 thousand tonnes), Iran (900 thousand tonnes), Saudi
Arabia (712 thousand tonnes), Pakistan (550 thousand tonnes), Iraq (400 thousand tonnes), Algeria
(370 thousand tonnes), UAE (318 thousand tonnes), Oman (260 thousand tonnes), Sudan (177
thousand tonnes), Libya (132 thousand tonnes), China (110 thousand tonnes) and Tunisia (107
thousand tonnes) are the "top twelve" date producing countries in the world.
Algeria and Tunisia are the EU's main suppliers. These two countries mainly export the deglet nour
variety. They also ship small quantities of common dates (kenta, alligh, and kouat alligh).
Tunisia is the world-leading producer of deglet nour. It possesses approximately 50 percent of the
world's deglet nour palm trees. The official production was 107 000 tonnes for all varieties, of
which about two third are deglet nour (Fruitrop 2001). Significant investments in modern deglet
nour plantations and an aggressive marketing strategy have led to a steady increase in exports.
While exports ranged between 15 000 and 20 000 tonnes in the first half of the 1990s, they were
above 25 000 tonnes in 2000 and even reached a record level of 27 000 tonnes in 2001. Tunisia has
been the main beneficiary of the rise in EU imported quantities. However, the value of exports has
not enjoyed the same growth due to falling export prices.
Although Tunisia accounts for only 2 percent of world date production, its share of global exports
in value is 21 percent. It represents 55 percent of EU imports in value. Tunisia exports about the
same quantity of processed and natural dates. The recent liberalization of the export date sector has
led to the emergence of a multitude of smaller exporters. According to some importers, this
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development has had an adverse effect on prices. Tunisia's main clients are, by order of decreasing
importance, France (11 000 to 12 000 tonnes per year, i.e. almost half of its exports to the EU), Italy
(over 5 000 tonnes per year), Spain (about 3 500 tonnes), Germany (3 000 tonnes) and the United
Kingdom (1 200 to 1 300 tonnes).
Algeria is the world second largest producer of deglet nour (1 million trees). The official production
in 2000 was 365 000 tonnes for all varieties. Algeria accounts for 17 percent of EU imports in
value. The liberalization and privatisation of the date sector has had a positive impact on exports.
Algeria exports more natural dates than processed dates, as there is a lack of processing capacity.
The majority of Algerian dates are destined for France. After a period of growth in the early 1990s,
Algeria's exports to the EU seem to have reached a plateau at some 10 000 tonnes since 1997. There
was even a marked fall to 7 000 tonnes in 2001. Import prices of Algerian dates have followed the
same declining trend as those of Tunisian dates.
Iran has traditionally been the EU's third supplier. However, it took over Algeria as the second
largest EU supplier in 2001 with over 10 000 tonnes. It is the leading date supplier in the United
Kingdom, which absorbed some 60 percent of its exports to the EU (the UK imported 6 600 tonnes
of Iranian dates in 2001). Its other two largest clients are Germany and Denmark. Iran is the second
largest date producer in the world with some 900 000 tonnes, just after Egypt. It exports common
dates (mozafati, sayer and zahedi) at very low prices. It accounts for 6 percent of EU imports in
value. It has taken advantage of the fall in Iraq's exports after 1991 to increase its shipments to
Europe as well as to other regions.
Israel produces very small quantities of dates (production was estimated at 9 500 tonnes in 2001).
However, its exports to Europe have increased over the past 10 years, reaching 4 300 tonnes in
2001. It accounts for 14 percent of EU imports in value. Its main clients are France (1 200 to 1 400
tonnes per year in 2000-2001), the UK (700-1000 tonnes), Spain (800-900 tonnes) and Italy (400-
700 tonnes). Israel exports the mejool, deglet nour, hayani and bahri varieties. It is the leading
supplier of mejool and the only supplier of hayani. There are plans to increase mejool production to
3 000 tonnes in 2003-2004. Most of producers have diversified into organic production of dates.
Israel, such as Tunisia and U.S. (California) export certified organic dates to the European
countries.
United States dates production is concentrated in California. The output has decreased in recent
years and stood at 16 000 tonnes in 2001. The United States chiefly exports deglet nour and mejool
dates to the EU. Their shipments to the EU have been decreasing since 1995, because of the strong
competition of North African deglet nour. In 2001, US dates export was down to just over 1 000
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tonnes. Thus, exporters, now, tend to replace deglet nour with mejool, which faces less competition
and fetches higher prices.
Pakistan is the world's fourth largest date producer with over half a million tonnes in 2000. It
exports common dates to Europe and compete directly with Iran on the same markets (mainly
United Kingdom, Germany and Denmark). Pakistani supplies to the EU have been relatively stable
and low over the late 1990s, ranging between 1 700 and 1 800 tonnes annually. In 2001 they fell to
800 tonnes, as Iran increased its market share in the UK, Germany and Denmark.
Other suppliers of smaller quantities to the EU include Saudi Arabia, the United Arab Emirates,
Egypt and Turkey.
4. DATE VARIETIES
4.1. Common dates
Common date is a term generally used by European traders to designate dates that are not deglet
nour or mejool. This group includes several varieties such as kenta, alligh, kouat alligh, sayer and
zahedi. The United Kingdom and Germany together import approximately 10 000 tonnes of
common dates annually. Zahedi variety
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In Germany, traders are interested in common dates because of the low price. In United Kingdom,
the population of Asian origin is thought to have a big influence on the consumption of common
dates. These dates are also used by the foodstuff industry in the UK.
While EU imports of common dates are significant (about 16 000 tonnes), this quantity has not
increased substantially over the past years. This seems to indicate that demand is shifting towards
higher quality dates such as mejool or deglet nour. Only the foodstuff industry keeps a stable
demand for common dates.
4.2. Deglet nour dates
Imports of the deglet nour date variety are approximately 30 000 tonnes per year. It is the most
popular variety in EU. Nevertheless there are some differences between South and North Europe.
Southern EU countries mainly consume deglet nour dates. Due to their history and culture, France,
Spain and Italy have strong trading links with Tunisia and Algeria. Some 90 percent of the deglet
nour produced in the world is exported from these two countries. The remaining 10 percent is
produced in Israel and the United States. With 25 000 tonnes, the southern EU countries represent
85 percent of deglet nour imports. They consume the bulk of natural deglet nour, which is not very
popular in Germany and the United Kingdom where consumers tend to prefer processed dates.
As they have less trade relationship with Maghreb countries, the United Kingdom and Germany
import smaller quantities of deglet nour (some 4 200 tonnes together in 2000). However, it seems
that deglet nour consumption is increasing.
Deglet nour still offers significant opportunities as evidenced by the increase in imports since 1998.
Nevertheless, its price has decreased steadily since 1995.
4.3. Mejool dates
In Europe, mejool dates have been known since the early 1990s and it is only in the last three to
four years that they have really taken off. They are to be found on the market of the main European
countries. Imports of mejool are very low (1 800 tonnes in 1999) but they have been rapidly
increasing.
With approximately 1 800 tonnes per year, and especially an exponential growth, these dates are
arousing interest and hopes among importers. On a market in which there is seldom any innovation,
the promising beginnings of mejool give some reason to think that, in coming years, it could be a
major product in the range of dates on offer.
The United States and Israel today share the European market. The United States is the foremost
producer. Located in California, the palm groves lay mainly in the two areas of Bard Valley, which
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by itself produces 70 percent of mejool dates, the second area being Coachella Valley. Mejool dates
exports rose to approximately 800 tonnes in 1999.
Israel offers an interesting alternative to buyers. It guarantees the traceability of products and
continues to be less expensive by virtue, in particular, of lower transport costs. It is developing its
production (2 000 tonnes), mainly in the regions of Eilat and the Dead Sea. As in the case of other
varieties of dates, the marketing of mejool has been entrusted to two companies, Agrexco and
Hadiklaim. According to these traders, exports to Europe were expected to exceed 1 200 tonnes in
the 1999-2000 season (Eurofruit 1999).
Some other countries (e.g. Namibia) have also started producing mejool.
This extends from the end of August to the end of November for both Israel and California, which
allows the markets to be supplied from September to May, bearing in mind the possibilities of
keeping the product under refrigeration.
From Israel, imports take place in 20' refrigerated containers containing 1 440 palletised cartons, as
well as collectively by refrigerated truck. Transit time is approximately two weeks. From the United
States, imports - in the case of complete consignments - also take place in 20' or 40' refrigerated
containers containing 3 600 palletised cartons. By boat, the transit time is three to four weeks. Other
consignments primarily take place by air freight, which obviously increases the cost of the product,
but does allow greater flexibility of supply.
Three sizes are offered: jumbo, large and medium (fancy). In the case of the United States, the
jumbo size represents approximately 40 percent of the quantities harvested, while the other two
sizes represent approximately 30 percent each.
There is not really a specific quality standard for mejool. It normally has its best degree of maturity
and full flavour when it turns dark brown, almost black, and soft to the touch.
In France, some pallets of processed mejool have been sold and been much appreciated. Generally
speaking, mejool has a light dusty appearance on the surface of the skin, which is, in fact, the sugar
of the date which has been released. The French, used to deglet nour, would rather it was lighter
and shinier in appearance. On the other hand, it may display detachment of the skin which renders it
rather unattractive. For a quality product, the presence of fruit with detached skin needs to be
minimal. Under open-air storage conditions, mejool also tends to sweeten more rapidly than deglet
nour does as it dries.
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Medjool variety
Mejool stored under positive refrigeration retains all its qualities for six months. It may also be
frozen, which extends its keeping and, above all, allows the gap between seasons to be bridged.
Dates from the United States are subject to 10.6 percent taxation when they enter the EU. There is
exemption from this tax if the product is imported in order to be repackaged. This is what the
British traders do, to avoid the charge. They import mejool dates in 15 lb. cartons of loose dates and
repackage them using their customers' trademark.
Packaging intended for re-packers is generally 5 kg or 15 lb. That intended for loose sale is 5 kg.
This kind of packaging is produced using quality kraft material and sufficient thickness to avoid any
sagging. The carton is generally telescopic with a printed lid which may, like the Bard Valley one,
serve as a display. The bottom is of the same quality as the lid. It is covered with a film which
protects the dates and has a cardboard divider, which prevents the fruit from being compressed in
the course of handling.
Only the United Kingdom, through large-scale retailers, has so far succeeded in getting a small
package onto the market. In Germany, trials with a 150-g pack were under way in 2000. In France,
a 250-g window box is selling sluggishly. On the other hand, the Brousse Vergez company has just
created a 150-g pack which it calls the Cristal pack, the dual advantage of which is matching quality
to a product of this price and not being very expensive per unit considering its low weight.
Prices vary depending on the origin, the manufacturer, the size and the means of transport. While in
the UK the CIF price of a 200g ravier of processed kouat alligh was Euro 1.45/kg in 2000, that of
mejool sold in 5-kg package was Euro 6.37/kg. In Germany and France, the price of mejool was
Euro 6.18/kg and Euro 6.86/kg respectively. Trade in mejool is currently very profitable, as demand
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seems to outweigh supply. The higher price of mejool is reflected in Figure 11. The United States
and Israel, the only two countries exporting mejool, enjoy high unit values of imports. The fact that
this value is rising may be explained by the increasing share of mejool in their exports.
The first limit on the development of mejool stems from the low quantities currently produced. The
direct consequence of this small volume of supply is the high price of the product, which, after the
succession of margins applied to it within the distribution system and to which taxes are to be
added, reaches the consumer at €13 or 15 per kilo. The second limit on the development of mejool
is the capacity or willingness of large-scale retailers to invest in the product. After all, if mejool is to
be accessible to consumers as a whole, it is essential that it should be available in the departments
of large hypermarkets and supermarkets. While this appears to be the case in the United Kingdom,
it is not in other countries. Germany is up against the high price of the product, which is alien to the
mentality of discount buyers and do not see the benefit of such an expensive product. In France and
Spain, the constraint is the centralization of the decision-making systems of large-scale retailers
whose job is to carry products that sell well and not new products that might sell well. In other
words, the product will be available in those countries when the traditional retail trade has done its
work of promotion among the largest number of consumers.
As consumption stands at present, it seems impossible for an exporter to access the European
market on his own. He needs a logistical and commercial base in order to be able to supply and
invoice the different outlets and central buying offices. The role of the importer is one which cannot
be ignored. Today it seems that fresh fruit specialists are better equipped to introduce a product into
large-scale retail. Generally speaking, dried fruit follows a standard referencing channel whose
starting-point is the national central buying office and which goes right down to shop level. Fresh
fruit can follow a shorter circuit. It is possible for access to regional outlets and even, in some cases,
directly to shops. On the other hand, the ideal packaging suited to the fresh fruit department has yet
to be found.
4.4. Hayani dates
Through its form, texture, taste and storage characteristics, hayani is very distinct from other dates.
It is a fresh fruit in its own right. Familiar in Israel, where it is sold practically throughout the year,
the marketing of this product in Europe has been undertaken for ten years or so with limited success
by the Hadiklaim company. Outside Spain, which takes 700 tonnes, the other European countries
only take 500 tonnes per year. While all agree on the total import of 1 200 tonnes, it may be that the
estimated tonnage for France and Italy is grossly overestimated, while Spain may take more than
the 700 tonnes reported.
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The production period is September/October.
They are frozen, pitted or unpitted, immediately after harvesting. The fibrous texture of the fruit and
its high sugar content allow it to undergo this treatment perfectly and to remain in perfect condition
in terms of appearance and taste. Once it has been thawed, it really does look as though it had just
been harvested.
Hayani dates are exported in a 20' refrigerated container containing nine pallets.
There are two sizes, jumbo and standard, but they are not always adhered to.
They are mainly imported in a 5 kg carton of loose dates. Consumer packaging is handled directly
by importers, generally distributing 500-g transparent plastic window boxes.
The Israeli traders always offer CIF prices. According to the latest information the consultant had,
the price of hayani at source was on the decrease.
The product is supplied frozen directly to the shop. It is then thawed and put on display chilled,
depending on demand. It thus retains a shelf life of approximately 10 days. Legally, the shop is
bound to indicate that the product has been thawed.
EC legislation provides for the packed products having to show a sell-by date. If the shop is
supplied with the frozen product and it thaws it to put it on display, as it would do in the case of the
loose product, it is obliged to indicate the sell-by date on each packet. This operation is impossible
in practical terms. It can therefore only accept products which are already marked and therefore
ones already thawed ready to be put on display. It can clearly be seen that with window box
packaging, all the benefits conferred by the frozen product are lost. This becomes very restrictive,
since it means the importer has to carry out this marking operation himself. And, above all, it
considerably reduces the quantities supplied. In the case of fresh products, shops can only order the
quantities needed for several days' sale. It accordingly limits importers of this type, who must be
able to guarantee the logistics of the fresh fruit sector - in other words, be capable of supplying
shops rapidly over a wide area under profitable economic conditions.
This is dependent on the exporter/importer combination. The Israeli marketing system is based on
two principles: a pooling of exports and the choice of a small number of importers per country. As
far as the Hadiklaim company - which markets hayani dates but also all other Israeli dates - is
concerned, the type of partners they work with already in each country is a determining factor. The
ideal importer must therefore be able to sell both products at once. He must be at the same time the
seller of dried fruit and the seller of fresh fruit and in addition he must have refrigeration facilities
and sufficient resources to repack the product when necessary. It is obvious that ideal candidates are
few and far between.
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5. PRICES
The EU is an important market for exporting countries, as it primarily imports dates of high value.
In 1998-2000, the average unit value of dates imported ranged between US$1.7 and 2 per kg, while
at the global level the unit value was only US$0.6/kg.
However, average date prices in the EU have generally been decreasing since the second half of the
1990s. This fall has several causes. The primary reason is the strong rise in supply worldwide. More
dates have been made available on the European market. In face of a relatively stable demand
(consumption per capita does not seem to increase substantially) prices have decreased. This
phenomenon first hit the prices of common dates only. However, as supply of deglet nour from
Tunisia and Algeria increased, prices for this variety have also declined. This trend has been
compounded by the increasing competition between deglet nour exporters, as these countries
liberalized their date sectors. According to some importers, the increase in the number of exporters
combined with the removal of central co-ordination has led to a drop in product quality.
Furthermore, pressure from large-scale retailers in the wake of a series of mergers is accentuating
the fall in prices. In an oversupplied market, it is easy for the retail chains to demand lower prices.
Today the price of the ravier is at a level that importers consider the lowest possible. However, the
outlook is for prices to remain at the current level, at least for common dates and deglet nour.
It should be borne in mind that there are exceptions to the general trend of price decrease. The
above observations relate to an average price that does not reflect wide differences across date
categories. Prices for speciality dates, in particular mejool, can be very high. Depending on variety,
origin, packaging and quality the difference in import prices may be almost ten fold.
The following retail price were noted in London:
Marks & Spencer Medjool (USA) £2.5/250g Covenant Fresh Produce Market
Gilgrove Ltd (Agent): Medjool (Israel) £3/lb Louis Reece (Agent) Medjool (Israel) £33/5k Medjool (USA) £45/15lbs
6. DATE MARKET IN JORDAN
The Jordan date market, as in most of the Muslim countries, has a stagional demand, concentrated
in proximity of the period of the Ramadan. In fact, the Iftar, the traditional meal which ends the
fasting, starts with dates, that, for their nutritive qualities and lack of fats, are considered the best
fruit to regain strenght.
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Local demand of dates used to be totally satisfied from Saudi Arabia imports. Data on Jordan’s
production, were not available untill 1994; the reason is either the lack, or a marginal level of
production.
Jordan started to produce dates in middle 90s, mostly in the Jordan Valley, where water availability
is higher than in other regions.
Graph. 1: Trend of Plantation’s Area
Trend of Plantation's Area
0
50
100
150
200
250
300
350
400
1994 1995 1996 1997 1998 1999 2000 2001 2002
Hec
tars
Area of plantation
Source: The Hashemite Kingdom of Jordan Department of Statistics, 2003
In 1994, the dates’ plantation area was 108,3 hectars. Untill 1996 was stable and in 1997 there was
a very big increase, from a plantation area of 111 hectars to 212 hectars. In 2002, the plantation area
was 345,6 hectars. In the space of nine years an increase of 68% took place.
Obviously, the production has registered a relevant increase, equal to 57%. From 1995 to 1998, the
production increased from 641 tons to 1407 tons. There was a small decrease between 1998 and
1999: the production fell from 1407 tons to 1104 tons. As a whole, production grew from 893 tons
in 1994 to 2016 tons in 2002.
The total number of trees has tripled. The enormous increase, 65%, of bearing trees, allows us to
predict a relevant increase of production in the next years. (For data, see table 2. A.) in the
appendix).
In the beginning of 90s, new re-export firms were founded in Jordan, with the aim of importing
dates from Saudi Arabia, especially, mejool and deglet nour, varieties there less appreciated and
consequently sold at lower prices. Until 1995, imported dates were cleaned, processed and
packaged in Jordan and sold in the local market, whose size, however, is limited. Graph. 2: Number of Bearing Trees
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Number of Bearing Trees
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
1994
1995
1996
1997
1998
1999
2000
2001
2002
Tree
s
Number of Bearing Trees
Source: The Hashemite Kingdom of Jordan Department of Statistics, 2003
Graph. 3: Trend of Dates’ Production
Trend of Dates' Production
0
500
1000
1500
2000
2500
1994
1995
1996
1997
1998
1999
2000
2001
2002
tons Dates' Production
Source: The Hashemite Kingdom of Jordan Department of Statistics, 2003
Only in 1998 dates started to be exported.
At the moment, local dates’ industry is constituted by four producers and exporting firms and eight
firms that, after importing, package and export dates.
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Table 1: Companies’ name, type of company and markets exported to
Nabil Abdel Hay Attieh Farms Exporter
Bahrain, Iraq, Lebanon, Saudi
Arabia, Syrian Arab Republic, UAE,
Yemen
Al-Baraka Farms Co. Ltd. Producer/Exporter
Bahrain France Kenya Lebanon
Kuwait Qatar United Arab Emirates
United Kingdom
Atta Abdel Hakim Syouri Exporter Iraq
Sameeh Rajabi Sons Co. Exporter Bahrain
Mohanad Al Shamaelh Farms Exporter
Algeria Bahrain Belgium Egypt
France Germany Italy Kuwait
Morocco Saudi Arabia Syrian Arab
Republic Tunisia United Kingdom
United States Of America
Gaze Al-Jbale Co. Exporter
Kuwait Morocco Oman Qatar Saudi
Arabia United Arab Emirates
Yemen
Jordan River For Agricultural Products Co.(Jorico) Producer/Exporter
Belgium Canada France Germany
Greece Sweden United Kingdom
Arar Establishment Producer/Exporter
Bahrain France Lebanon United
Arab Emirates United Kingdom
Al Fares Farms
Bahrain Kuwait Netherlands Saudi
Arabia United Arab Emirates
United Kingdom
Agricultural Investment Producer/Exporter Jordan, Kuwait
Al- Haq Farm Exporter Jordan, Kuwait
Mohanad Al-Hashlamouny Farm Exporter Jordan, Kuwait
Source JEDCO
First markets exported to are Gulf countries, due, of course, to geographic proximity.
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Graph. 4: Fresh Dates Domestic Export
Fresh Dates Domestic Export
0.00
50000.00
100000.00
150000.00
200000.00
250000.00
300000.00
350000.00
400000.00
450000.00
500000.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
euro
0.00
200000.00
400000.00
600000.00
800000.00
1000000.00
1200000.00
KG
QuantityValue F.O.B. in euro
Source: Jordan Export Development and Commercial Center Coorporation, 2004
How graph. 4 shows, export value in 1998 was 58,538 euro and export quantity was 92,000 kg. In
the space of time of two years, export value increased by 82%, reaching the value of 324,400 euro
and export quantity increased of 83%, reaching 538,566 kg. In 2002 there was a pick of export
value and export quantity: 470,352 euro and 991,787 kg.
Graph. 5: Juice of Date Treacle Domestic Export
Juice of Date Treacle Domestic Export
0
20000
40000
60000
80000
100000
120000
140000
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
euro
0
50000
100000
150000
200000
250000
KG Quantity
Value F.O.B. in euro
Source: Jordan Export Development and Commercial Center Coorporation, 2004
A different trend is shown by the juice of date domestic export. In 1994, its value was 18,000 euro
and the quantity was 22,134 kg. In 1997 there was a pick of juice of date domestic export: it
reached the value of 115,000 euro and the quantity of 193,242 kg. Juice of date domestic export
17
decreased untill 2000. Now it is increasing very slowly; in 2003, export value was 28,411 euro
while export quantity was 45,161 kg.
The challange for Jordan producers/exporters is the penetration on the European and the American
market.
In order to penetrate in the European market, Jordanian producers/exporters have to deal with some
problems that, untill now, prevented the increase of Jordanian dates’ exports and, that often, have
been the cause of rejections at the import stage.
The main problems are the weakness in identifying demand as well as weakness in fulfilling
sophisticated market needs of the European markets.
In fact, untill now Jordanian producers/exporters did not successfully exploited European markets
because of the lack of:
a) efficient export control;
b) knowledge about certification, documents and procedures;
c) information and communication.
The first point is related to decomposition, mould, microbiological contamination, low-acid canned
foods, pesticide residues, additives, contaminants, toxins.
The second point is related to rejections at the import stage. Infact, countries in EU are allowed to
accept fruits and vegetables from non EU markets, only if the goods have obtained specific
certifications.
7. CERTIFICATIONS REQUIRED TO EXPORT TO EUROPEAN MARKET
Jordan, as a member of the WTO (World Trade Organisation), must accept the agreement for the
application of the Sanitary and Phyto-Sanitary measures (SPS agreement) and the agreement about
Technical Barriers to Trade (TBT agreement).
Moreover, international agreements have been implemented on the basis of specific standards, to
which governments or companies may demand compliance.
Finally, the trade in agri-food products is specifically subjected to various standards, codes,
specifications and recommendations called "Codex Alimentarius”.
18
Source: “Entreprendre dans l’industrie agro-alimentaire“ , ONUDI and Ministèr de l’Agriculture , de l’Alimentation,
de la Péche et des Affaires Rurales study on agro-food industries, 2004
Food companies must set up internal policies for the control of production to ensure product quality.
Internal management and production decisions must conform to international agreements.
7.1. Codex Alimentarius
The aim of Codex Alimentarius Commission is to protect consumer health and direct good
commercial practices in the food industry, through the harmonisation of different international food
standards.
Codex is composed of more than 220 standards relating to:
- Tolerance levels and maximum dose allowed for additives, agro chemical products, pesticides,
residues and contaminants.
- Evaluation of food hazards
- Harmonisation of quality control rules
- Control and certification of imported and exported food products
- New products and products coming from biotechnology
- General hygienic principles
- Food allergy
- Product labelling
7.2. TBT and SPS Agreements
The SPS agreement sets general international standards, but each country is given the right to
implement other standards respecting the following conditions: national measures must not be
19
applied in "arbitrary and unjustified" ways; standards have not to be used for protectionist purposes;
standards must be based on scientific criteria to prevent hazards; risk analysis procedures agreed to
by SPS must be used.
These SPS agreements also include the harmonisation of standards and rules governing production
techniques. This means that to take a decision, which will affect the provisions of a bilateral or
multilateral agreement, all the partners have to agree on the amendments.
TBT agreements aim to ensure that technical regulations, standards and procedures for evaluation
and of conformity are not unjustified obstacles to trade. On this basis, all members are allowed to
take measures to protect life and health (human, animals, plants) or to protect the environment and
to establish their own level of protection.
Source: “Entreprendre dans l’industrie agro-alimentaire“ , ONUDI and Ministèr de l’Agriculture , de l’Alimentation,
de la Péche et des Affaires Rurales study on agro-food industries, 2004
7.3. STANDARD’S REQUIREMENTS
The most important standard requirement is EUREP-GAP, the Euro-Retailer Produce Working
Group (EUREP). It started as a retailer initiative in 1997 with major inputs and support from
20
chemical companies with the aim of setting standard and procedures for the development of GAP,
the Good Agricultural Practices policies and surveillance systems.
EUREP-GAP describes essential elements and develops best practices global production of fresh
produce. It demonstrates to customers a company’s commitment and ability to produce safe food
under an exhaustive system (HACCP) verified by an internationally recognized independent third
party. Grawers receive their EUREP GAP approval via a EUREP GAP certificate, which is issued
by a EUREP GAP. A specifically designed approval process, the EUREP GAP Benchmarking
Option, facilitates existing national or regional quality assurance schemes, to prove equivalence
with EUREP GAP requirements. Avoids multiple audits at grower level and encourages the
development of regionally adjusted integrated crop management systems.
Within EU markings, it is important to distinguis between obligatory markings and preferential
markings.
Whitin obligatory markings there are mainly two:
Health and Safety marking:
HACCP certificate: it demonstrates that the company applies suitable production,
processing and/or packaging systems and procedures for hygiene and food safety to
minimize food safety risks.
CE marking: printed on the product and the packaging, it demonstrates that the
product complies with the essential requirements on safety, health and the
environment and consumer protection. Applicable (compulsory) to a range of
manufactured products as listed under the New Approach Directives.
Environment marking:
Eco-labelling marking: the most commonly used eco-label is the Green Dot, printed
on the product (packaging), demonstrates that the producer/importer of the product
participates (financially) in a packaging waste management system.
7.3. a. Hazard Analysis Critical Control Point (HACCP)
The HACCP system is structured to intrinsically verify and manage the safety of food products.
This spans every production stage including raw materials, production processes; taking into
consideration handling methods, sorrounding conditions and the working environment, to the final
stage of packaging and storage. HACCP is now the key of the whole quality insurance system: this
risk analysis and hazard control method, which is described below, is the most adapted and the most
21
used in the food industry in order to ensure the quality of the products. This systematic procedure
can be applied at the different levels of the food process: it is different from older methods and it is
the most efficient. It has become obligatory in ISO version 2000, in BRC and GMP statutes. In
Europe, HACCP is an obligation to obtain the CE approval.
The HACCP system is founded on a preventive approach, where hazardous stages and critical
control points are identified for each step. Furthermore, these points are scheduled for timely
follow-up in order to initiate corrective and preventive actions when necessary. The system is
reviewed on a regular basis in order to ensure its effectiveness, and to embody the continuous
improvement of the quality and safety bearing of the production method and the products. The EU
directive on hygiene for foodstuffs 93/43/EC stipulates that foodstuff companies identifies each
aspect of their activities, which has a bearing on the safety of foodstuffs, and ensure that suitable
safety procedures are established, applied, maintained and revised on the basis of the HACCP
system. All food processors in the EU are legally bound to have an HACCP system in place.
HACCP has the quality to identify all the hazards that may occur to the product during its life cycle,
to determine the maximum allowable deviations to the standard of each critical control point, and to
design and to implement a corrective action plan for each critical control point. The HACCP
method is part of the total quality management in the company. It is the analysis of the complete
process including all detailed steps of the production process. Hazard identification and risk
evaluation will then lead to the identification of the critical points of control (CCP) through which
controls will be planned and specifications will be established, taking into account clients' needs
and countries' regulations.
The HACCP is based on these 7 steps:
i. Conduct a hazard evaluation: identify hazards at every step of the food chain, from the
primary production to consumption, find the probability of their occurrence and find ways to
keep them under control.
ii. Determine critical control points (CCPs): find procedures and actions that can be
implemented to eliminate or reduce identified hazards.
iii. Establish critical limits: critical limits must be found to guarantee quality.
iv. Establish monitoring procedures: set up a monitoring system for management of CCPs.
v. Identify corrective actions needed when the monitoring system shows that the CCP is not
under control.
vi. Identify verification procedures to confirm the efficiency of the system.
vii. Establish record-keeping and documentation of the procedures and their application.
In practice, 12 tasks must be followed, coming from theseven steps.
22
a. Create the HACCP team with multidisciplinary staff b. Complete description of the product c. Determine the use of the product d. Establish a diagram of the operations e. Check the diagram in the plant f. Find all the dangers at each step, analyse hazards,
Identify quality management actions g. Find the Control Critical points (CCP) h. Establish critical limits for each CCP i. Establish a control system for each CCP j. Take corrective measures for each CCP k. Apply checking procedures on the HACCP system l. Create support documentation and precise recording
HACCP presents the following structure:
HACCP
Production Facilities Agriculture Handling Processing Distribution Retailers Consumers Products GFP GHP GMP GDP GRP GCP
Where:
a) GFP: Good Farming Practices b) GHP: Good Handling Practices c) GMP: Good Manufacturing Practices d) GDP: Good Distribution Practices e) GRP: Good Retailing Practices f) GCP: Good Catering Practices
Between those six single certificates, the GMP certificate is considered very important in order to
better penetrate foreign markets, expecially the European market and the North American one.
The GMP practices are part of "Quality System Regulation" from FDA (Food and Drug
Administration). They require perfect quality in production, packaging, storage and transport of the
products and processing plants. It includes different and frequent controls of process, staff (health,
formation,...), buildings and equipment (healthiness, adaptability to products, hygiene rules) and
production defects. This quality system, created by the FDA, is harmonised with the ISO 9001:1994
23
standard, but not with the 2000 version. Revisions must be made in order to simplify trade
negotiations and exchanges.
To sum up, the benefits of HACCP implementation are:
1. Reduction and restriction of dangers that might be inflicted upon the product.
2. Optimal utilization of production resources, which leads to a general reduction in cost.
3. Increasing the firm’s competitive edge in the market.
4. Improving working environment and condition for employees that would increase the
productivity and effectiveness of each.
7.3. b CE Marking
The CE Marking is a conformity marking consisting of the letters "CE". The CE Marking applies to
products regulated by certain European health, safety and environmental protection legislation.
CE is an abbreviation for 'Conformité Européenne', French for 'European Conformity'. The CE
Marking indicates that the product it is affixed to conforms to all relevant essential requirements
and other applicable provisions that have been imposed upon it by means of European directives,
and that the product has been subject to the appropriate conformity assessment procedure(s). The
essential requirements refer, among other things, to safety, public health and consumer protection.
The CE Marking is not a quality-mark. First, it refers to the safety rather than to the quality of a
product. Second, CE Marking is mandatory for the product it applies to, whereas most quality
markings are voluntary.
The CE Marking must be affixed visibly, legibly and indelibly. Where special provisions do not
impose specific dimensions, it must have a height of at least 5 millimeters.
Whitin preferential markings there are mainly three:
Quality marking.
ISO 9000 series certificate: it demonstrates that a company has a quality
management system in place, according to the criteria set by the ISO 9000 series
standard.
EN/ISO norms: they demonstrate conformity to a set level of performance.
Social Accountability marking:
Social/Fair trade labels: Label printed on the product (packaging that demonstrates
that the product is produced (and traded) on the basis of fair trade/social principles
with respect to labour conditions and remuneration. Applicable to various consumer
goods. Increasing market requirement, especially of the labels that demonstrate
production free of child labour.
24
SA 8000 certificate: it demonstrates that a company applies ethical principles for the
sourcing and production of goods and services, according to the criteria set by
CEPAA and based on the Conventions of the ILO.
Codes of conduct: written declaration of business principles, mainly in relation to
business integrity, social responsability and the environment. It is an increasing
market requirement to formulate proper codes of conduct. For recognition and
acceptance; companies often apply for (inter) national labels or certificates.
Environment marking:
Eco-lables: Labels, printed on the product (packaging), that demonstrate friendly
characteristics of the product and/or production process. According to criteria set by
the different bodies. Increasing importance as a market requirement, especially for
organically produced food products.
ISO 14000 series certificates: it demonstrates that a company has a management
system in place to manufacture in an environmentally consious way, according to the
criteria set by the ISO 14000 series standard.
7.3. c ISO 9000 and ISO 14000.
The ISO 9000 and ISO 14000 families are among ISO’s most widely known standards ever.
ISO 9000 has become an international reference for quality management requirements in business-
to business dealings, and ISO 14000 is well on the way to achieving as much, if not more, in
enabling organizations to meet their environmental challanges. The ISO 9000 family is primarily
concerned with “quality management”. This means what the organization does to fulfil:
- the customer’s quality requirements;
- applicable regulatory requirements, while aiming to:
- enhance customer satisfaction;
- achieve continual improvement of its performance in pursuit of these objectives.
The ISO 14000 family is primarily concerned with “environmental management”. This means what
the organization does to:
- minimize harmful effects on the environment caused by its activities;
- achieve continual improvement of its environmental performance.
The standards that have earned the ISO 9000 and ISO 14000 are known as “generic management
system standards”.
25
“Generic” means that the same standards can be applied to any organization, large or small,
whatever its product (goods or services), in any sector of activity and wheter it is a business
enterprise, a public administration, or a government department. “Management system” refers to the
organization’s structure for managing its processes- or activities- that transform inputs of resources
into a product or service which meet the organization’s objectives, such as satisfying the customer’s
quality requirements, complying to regulations, or meeting environmental objectives.
To apply the system of quality management ISO 9001:2000, it is necessary to take the following
steps:
1. Identify the objectives to reach 2. Identify what others (staff, customers, consumers) expect 3. Get information about the ISO 9000 family 4. Apply the standards of the family ISO 9000 in the system of management 5. Find guidelines for specific subjects in the system of quality management 6. Set up the current statute of the company, find out the differences between current quality management and the ISO 9001:2000 requirements 7. Set up processes necessary to provide products to the customers. See the requirements of the section ISO 9001:2000 on the realisation of the product. 8. Set up a plan to fill the gaps identified at Step 6 and to work out the given processes at Step 7. Identify the actions necessary to fill the gaps, allocate the resources to carry out these actions, assign responsibilities and establish a calendar to carry out the actions necessary. 9. Carry out the plan. Carry out the execution of the identified actions and supervise actions according to the timing. 10. Perform periodic internal evaluations. The standard set up requires certain documents, among them, the Quality Management Handbook.
This is written by a team composed of different people from the different services of the company
(and not by external consultants). QMH must take into account the idea of progress: for a plant
already certified for several years, the QMH must be the proof of changes in the plant.
Different quality management systems have been set up by Certification companies; they include
the HACCP method and clients' standards or specifications (nutritive, sensorial) as well as
conformity with food regulation, and points for the product's quality are added to the CCPs.
7.3. d SA 8000 certificate
SAI’s first social accountability system, SA8000, is a way for retailers, brand companies, suppliers
and other organizations to maintain just and decent working conditions throughout the supply chain.
The SA8000 standard and verification system is a credible, comprehensive and efficient tool for
assuring humane workplaces because it includes:
• A standard that covers all widely-accepted international labor rights.
26
• Factory-level management system requirement for ongoing compliance and improvement. • Independent, expert verification of compliance: Certification of facilities by auditing bodies
accredited by SAI. SAI accreditation ensures that auditors have the procedures and resources needed to conduct thorough and objective audits. There are currently nine organizations accredited to do SA8000 certification.
• Involvement by all stakeholders: Participation by all key sectors, including workers and trade unions, companies, socially responsible investors, nongovernmental organizations and government, in the SA8000 system. Such participation is required withthe Advisory Board, drafting and revision of the standard and auditing system, conferences, training, and the complaints system.
• Public reporting: SA8000 certified facilities are posted on the SAI Web site. Companies that join level two of the SA8000 Corporate Involvement Program (CIP) release annual progress reports verified by SAI.
• Harnessing consumer and investor concern: The SA8000 Certification and Corporate Involvement Program help consumers and investors to identify and support companies that are committed to assuring human rights in the workplace SA8000 Standard Elements.
Untill now only four companies have obtained or are working to obtain specific certification to
export abroad: Al-Baraka Farms Co, Nabil Abdel Hay Attieh Farms, Atta Abdel Hakim Syouri,
Agricultural Investment.
They have the following quality certifications.
Nabil Abdel Hay Attieh Farms CE-MARK
Al-Baraka Farms Co. Ltd.
IPM (Integrated Pest
Management) and Quality
Mark
Atta Abdel Hakim Syouri ISO 9000
Agricultural Investment
It is working to obtain ISO
9001:2000 certificate and
HACCP and Eurep-Gap (in
order to start organic dates
export)
CE-MARK, ISO, EUREP-GAP and HACCP have been already explained. It is important to point
slightly to Quality Mark certificates.
7.3.e The Quality Mark
The Quality Mark is a specific certificate required to export in U.K. It is part of the Community
Legal Service (CLS), a major government initiative launched in April 2000. The aim of the CLS is
to improve access, for the public, to quality information, advice and legal services through local
networks of services supported by co-ordinated funding and based on an assessment of local needs.
27
Initially it will consist of members with a Quality Mark for the level of service they provide.The
Quality Mark is the quality standard that will underpin all CLS services, so that members of the
public who need legal information, advice and other help can rely on receiving a quality assured
service.To be awarded the Quality Mark and be able to display the Quality Mark logo, organisations
will need to demonstrate that they meet the standard required for the type of service being
delivered.
The three Quality Mark standards are:
• Information • General Help • Specialist Help
The Quality Mark logo will instantly identify the factory to clients and funders alike. The Quality
Mark is a major government initiative - its logo will be recognised throughout England & Wales.
The Quality Mark will demonstrate that factories are committed to providing a quality service. The
standards have been developed specifically to assure quality legal service provision.Other service
members will know what the factory does and will be able to refer clients to the factory. A regional
Directory of Quality Mark holders, is widely available to the public and to other service members.
8. OTHER OBSTACLES TO EXPORT DEVELOPMENT
Other problems related to the obstacles to export development are:
a) weak role of agricultural associations;
b) weak transportation system especially to Europe;
c) lack of packing houses, agricultural marketing and processing companies.
Only in June 2003, the Horticultural Export Promotion Department has been established as a part of
Jordan Development & Commercial Centers Corporation (JEDCO), thanks for a loan granted to the
Jordanian government by the World Bank. The Horticultural Export Promotion is implementing a
plan that would increase the level of Jordanian horticulture products to international markets, by
enabling farmers to reach higher output and better quality in order to meet international standards
and competition.
Regarding to the second point, air transportation presents very high cost of flight trajectory. There
are two RJ airplanes for cargo; one of them (Boeing 707) is not permitted to fly to Britain, currently
flying to Mastrich and will cease flying soon. Although the sea transportation is the best and
cheapest exporting mean for different varieties of products, the exporters do not use it through
Aqaba port because of the long delivery time, the absence of developed road transportation, lack of
proper refrigerating system and low volume of exports. Road Transportation: There is a great
28
potential to export fresh fruits and vegetables through refrigerated road transportation to the
European markets but out of 800 acting trailers, just 12 trailers meet the international standards.
This means negative effects on the product quality and the reduction of product real prices.
Regarding to the third point, most of the nationally produced packages are not appropriate for
exporting purposes, and can not compete with imported ones, because of low quality.
9. CONCLUSION AND SUGGESTIONS
Date production in Jordan and export to European countries and to U.S. are two activities that offer
a very high development potentiality.
As already mentioned before, Jordanian exports’ development has been hindered by many problems
that can be summed up in the following way:
a) Weak knowledge of world dates demand due to lack of market researches;
b) Lack of cooperation between differents producers/exporters;
c) Lack od knowledge of required quality’s standards;
d) Weak knowledge about marketing and packaging regulations
In order to work out those mentioned problems it is important to implement an effective and
sostainable project of dates’ export development, by paying particular attention to demand
requirements, marketing strategy, food safety certifications, traceability process and a greater co-
ordination between producers/exporters.
9.1. Attention to demand requirements
In order to be able to satisfy the world demand, Jordanian producers should:
1) Increase the plantation area, the number of trees and thus the production of mejool variety,
instead of common variety dates that are subjected to a higher competition;
2) Start an organic cultivation of date, following the success example of Israel that found in
organic date production a very profitable niche market.
Relating to the first point, the demand of mejool dates in U.K. and in France is growing rapidly and,
above all, is not satisfied by North African countries’ supply. Moreover, Jordanian producers should
start a penetration policy in Denmark, Sweden and Ireland. Denmark and Sweden have increased
their imports since the mid 1990s and, although these markets are small, they are dynamic and
consumers have a high purchasing power. Ireland’s imports are also growing, although from a very
small base.
29
Conversely, Jordanian producers should not be interested to penetrate in countries such as Belgium,
Netherlands, Austria, Portugal, Greece and Finland, because their dates’ damand shows no clear
trend.
Relating to the second point, Jordan can satisfy a higher demand of organic products starting an
organic production. Key factors that affect consumer demand for organics include awareness and
knowledge of organics, motivation, willingness to pay, and availability. In general, consumers of
organic products are affluent, educated and health-conscious.
In some markets, organic products are sold through small local specialty markets but in others,
organic products sit on supermarket shelves next to conventional products, available to a wide cross
section of consumers.
Europe is a primary market for organic products, but it is not a uniform market. Not only are there
differences in language, business customs, regulations, and consumer preferences, but the
distribution and retail systems vary, affecting the availability of organic products.
The U.K.'s organics market is lagging in its development, but the situation is dynamic. Demand is
growing at 40 percent a year, outpacing supply, which is growing at 25 percent annually. In 1999,
U.K. retail sales of organic products totaled about $650 million, up from $250 million in 1995.
Germany is the largest market in Europe for organic food and the second largest in the world after
the United States. Nevertheless, this represents only about 1.75 percent of total German food sales
and a fairly low per capita consumption level compared to more developed organic markets in
Europe like Denmark and Sweden. Organics is still a niche market in France in terms of value,
representing only 1.0 percent of total retail food sales compared to certain other European Union
(EU) countries. However, the market has been growing at a rate of 12 percent per year, and that rate
is expected to reach 20 percent per year in the near term. Growing demand, coupled with a
government initiative to stimulate domestic production and improve distribution, is expected to
boost organic food sales to $2.6 billion by the year 2004.
Of course an organic date plantation needs many investment in order to sustain high costs.
However, those costs may be overcome by the higher revenues due to the growing global demand.
9.2. Importance of marketing improvement
Marketing is involved at all levels of an enterprise, from technical choices and long-term
investment, to guiding principles and short-term plans of action:
- In defining the scale of production: a quantitative market study is a key element in sizing the unit;
a qualitative approach can help to determine the product and even the choice of technologies. These
30
elements are a key point in the planning of an enterprise, have a direct impact on the cost of
investments and determine the long-term equilibrium of the project.
- In organizing the overall guiding principles: the positioning of the enterprise, based on market
studies and competition, the possibilities inherent to the market and the tendencies of long- and
middle-term demand play an essential role in strategic choices.
- In suggesting operational strategies, from the characteristics of the product to be sold to the
conception of commercial action, an analysis of market demand, consumer behaviors and
distribution circuits will be useful basic tools.
The concept of a marketing strategy is the confrontation between the resources and objectives of the
enterprise with its competitive and regulatory environment and its market. This is not a fixed
concept: the consumer evolves, as does the competition, thus the concept and its devices must
evolve as well.
Overall, marketing is at the heart of the strategy of the enterprise, which demands coherence
between the marketing strategy and the mission and positioning of the enterprise and internal
coherence among all the composite parts of the marketing strategy.
The agri-food enterprise, often driven by distribution, should aim more and more to offer assurances
other than a simple product guarantee: social or environmental implication, preservation of
resources and sustainable development. The enterprise should therefore develop a new field of
listening and dialogue with the consumer, which is an integral part of marketing.
Two important themes that can influence marketing choices in the dates’ sector have to be outlined:
1) Questions relevant to labeling:
Generally, the enterprise should not misinform the consumer through labeling or advertising for a
product. International regulations are evolving, especially in the agri-foods sector, towards a
demand for greater transparency for the consumer, which may have two consequences, in particular
for products exported to the EU:
- The framing of certain claims, notably nutritional and health claims which are strictly limited: they
may restrain marketing choices or engender specific costs for the producer. For example, the claim
"non-allergenic" can be very difficult to use.
- The obligatory mention of additives, colorants or preservatives contained within a product: such a
mention could damage an image of high quality.
- The obligatory mention of the geographic origin of products. These constraints may influence the
positioning of a product in exterior markets.
2) Official seals of quality:
31
The EU has put in place a system of official seals which, depending on the product and the sector,
have begun to have an impact on the consumer. They are reserved for enterprises of the EU and
may therefore concern the Union's new members.
Systems of the same type may be put in place by developing countries to officially control and
guarantee the quality of their products.
They offer regulatory methods to an enterprise to prioritize a specific characteristic of its products,
approved and guaranteed by the official seal, under the condition of inspection and control by an
external organization.
Unfortunately, a policy of marketing improvement is not costless and it needs time.
The marketing costs can be significant and diverse. They may include internal costs (personnel,
economic intelligence and documentation) and external costs.
The price of a study is impossible to calculate for a general case. As specific examples, a survey
investigation of 500 consumers, in a European country, could cost from 10,000 to 20,000
(depending on the questionnaire) including analysis; this cost could be lowered to 5,000 to 10,000 if
the survey is performed by telephone; the use of a consumer panel for a product class could cost
from 20,000 to 50,000.
Moreover it is important to organise a tight collaboration between the marketing function and the
more technological functions of the enterprise (notably Research and Development, and production)
to take into account their respective constraints and infuse the enterprise with a marketing spirit.
Concerning the time requirements, a market study takes between 2 and 6 months.
9.3. Importance of food safety
Food production and consumption are of crucial importance for any society. For the majority of the
world population, food safety is equivalent to sanitary safety of human food.
Today there is a real risk of food related incidents: they can have an impact on humans and an
economic impact on trade marks and supply chains. In this context product quality and consumer
safety, products that are not well known, or that come from developing countries, can make
consumers especially anxious; they will have to comply with more and more specifications and will
be the subject of strict controls. Thus, food safety has become an angle for market differentiation of
a product, a choice criteria for the consumer and a key to exportation.
32
Food producers are completely responsible for the safety of their products: the implementation of
hazard analysis and control methods must be carried out at every level, from raw material to
finished product.
Generally speaking, food safety practices include:
- evaluation of the exposition of the products to toxic substances;
- strict and permanent control of pathogenic micro organism contamination;
- evaluation of the safety of processes and procedures;
- respect for standards of sanitation;
- monitoring and control of diseases caused by food.
As a policy of marketing improvement, food safety controls are not costless and they are time
consuming.
The direct cost for setting up the certified quality procedures includes:
- subscription costs to the certification company;
- cost of the surveillance audit.
Whatever the quality control system chosen, the different complementary internal costs must be
added. These costs are specific of each company and, therefore, more difficult to estimate. All in
all, these include:
- setting up of the quality control system (and all the investments needed),
- consultancy for the quality management system implementation (consultant and trainer),
- staff sensitising,
- staff formation,
- documentation (quality manual, process, instructions, etc.),
- monitoring and control of the quality system,
As a guide, the average cost in a European country for the intervention of an external body for the
quality record of a 50 person plant may be about 7,000 euro for the first audit and 2,000 euro per
year for the surveillance audits. Hidden costs and internal costs can represent much more than the
external cost.
Overall, conformity to standards must be considered as an investment much more than a necessary
cost: it generally leads to a reduction in the costs of quality problems.
Setting up a quality control system to assure the complete safety of the finished product is a full
time job for one person. Monitoring and controlling the quality control procedures is, then, a part
time job for one qualified employee.
It is necessary to form a team to manage hygiene in the new system; this management can be done
by:
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- regular formation meetings adapted to everybody's level of knowledge;
- fast training and instruction for temps;
- display of notices detailing the main procedures.
The formation of this team must be accounted for in the time taken to set up the system. To be
efficient, the HACCP system should describe each person's role in the system.
Time is a function of the individual plant situation, client requirement, initial level of the quality
management, 6 to 12 months may be necessary to set up a quality control system. If it is a new
approach for the company, more than one year may be necessary.
For a company, the guarantee of the food safety of its production depends upon:
- A global quality management approach in cooperation with veterinary services.
- The set-up of a clear and functioning quality management organization, including everyone's
responsibilities.
- A well informed and mobilized staff.
- Periodic controls allowing permanent validation of the product specifications.
9.4. Importance of traceability
Traceability is defined as "the aptitude to recall the history, the use or the localization of a product
or service, or similar products or services, by means of recorded identifications." (ISO 8402)
Traceability makes it possible to follow and find a product or a service from the time of its creation
(production) up to its destruction (consumption).
Today, all industries are concerned with traceability. It is now treated as essential, and for reasons
beyond simple logistic issues.
The first goal of traceability is to quickly find solutions to solve any problem that may be
encountered: for instance, the identification of batches of products turning out to be dangerous
(food crises) or the search for causes of non-conformity.
Traceability mostly allows intervention upstream of the marketing stage or the receipt of services.
This ability to control adherence to procedure at all times leads to a decrease of the non-quality
costs and to a precise tracking of defects and reduction of actual costs of production or processing.
Traceability, in its various forms, is bound to become an obligatory tool and requirement for all
firms. It corresponds to both the security needs of the consumer and the growing expectations of
retailers; it also helps to meet the demands of internal organisation.
The increase in consumers' perceptions of food risks has necessitated total control of agro-industrial
production and distribution.
A firm is liable for its products and brands; as a result, it has to dispose of the necessary means to:
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- sell safe products,
- demonstrate their safety.
The traceability process is one of the means to meet the transparency requirement, which is
fundamental to strengthen or reconquer consumer's confidence.
Traceability implies different forms of organisation in the various links of the chain as well as for
the products. Its implementation will therefore depend on the sector and on its position in the chain
(cattle food, breeding, food industry, distribution.).
Besides, the question of the extent to which traceability can be developed demands the careful
definition of the term "batch." This notion of the batch, which generically defines a homogeneous
group of products to be traced, is often specific to a type of raw material or to a process.
One particular aspect of the food sector should be highlighted: when using a living raw material,
account should be taken of consumer fears regarding intensive agricultural practices, pesticides and
contaminants, the traceability of finished food products allows a wider following of the agricultural
production, upstream the processing.
As a policy of marketing improvement and food safety controls, the traceability process is not
costless and it is time consuming.
Administrative traceability requires a suitable computer system since paper documentation no
longer suffices.
Traceability obviously implies an increase in the amount of information recorded. Its
implementation can use simple but effective means like color codes (according to the batches). It
may also require investment in new technologies such as bar codes, radio reading or transponders.
In both cases, the effectiveness of the traceability system will depend on the data storage (paper or
computer)
The cost remains difficult to measure: when routinized, the registrations do not increase the
operators' tasks and can contribute to a rigorous following of the production. This cost is therefore
included in the cost of quality control and usually requires the presence of a quality manager for
implementation as well as for operation. This high cost can generate indirect benefits, such as
increased awareness of quality.
In firms where the computer is adapted to traceability, minimum periods of one year have been
necessary before getting to optimal tracing.
To conclude, in order to have a higher attention to demand requirements, an appropriate marketing
strategy, a set of food safety certification the dates’ production sector has two main needs:
A. More investment from private and governamental sector, and an easier access to credit, in
order to have financial support to higher initial costs.
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A greater co-ordination between different producers/exporters, also through a creation of a national
association or through a greater partecipation to the Date Production Global Network, that has, as
general objective, to increase the technical co-operation among all date producing countries and , as
specific objectives, protection, marketing, research and development, post-harvest and processing
technology of dates palm by-products and residues.
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REFERENCES
Audran X., Pinon F. and Gauthier R., (2004), “Food and Agricultural Import Regulations and
Standards”, FAIRS Annual Report 2004, USDA Foreign Agricultural Service, GAIN Report
Darmawan T., (2004), “Exporting Fruit & Vegetablesto the EU, practical Guidance on the Relevant
EU Rules”, Power Point presentation at Safety First Seminar: How EU food safety rules can help ASEAN’S exporters
Eurofruit (1999), “Increased interest in Europe boosts dating game”, Agrexco, November 1999,
London, UK FAO (2002), FAOSTAT Statistical database Greiner, D. (1998), “Le marché de la datte, produit de rente des oasis : enjeux, diversité, tensions.
in Sécheress“ , Special issue on Oasis, vol. 9 no. 2, June 1998 John Libbey Eurotext Limited, Montrouge, France
Liu, P (2003), “The marketing potential of date palm fruits in the European market”, FAO
Commodity and trade Policy Research Working Paper No. 6 Ministry of Planning Jordan National Competitiveness Team, (2000), “Agriculture Cluster in the
Jordan Valley” Najma, M., (2004), “Plants of the Qur'an: The Date Palm”, from the web site www.islamonline.net ONUDI and Ministèr de l’Agriculture, de l’Alimentation, de la Pèche et des Affaires Rurales,
(2004), “Entreprendre dans l’industrie agro-alimentaire“, Study on agro-food industries www.jordanhorticultural.com www.fao.org www.usaid.org www.exportbureau.com www.jedco.gov.jo www.dos.gov.jo
37
APPENDIX
Table 1. A. : Value F.O.B. and Quantity of Domestic Export (Quantity are in KG net)
Code Commodity_Description Year Domestic Export: Value F.O.B. in
euro.
Domestic Export: Quantity
80410100 Dates, fresh ( ripe dates ) 1994 203 500 1995 .. .. 1996 696 623 1997 .. .. 1998 58538 92000 1999 129867 155897 2000 324400 538566 2001 309068 573679 2002 470352 991787 2003 251740 424956
80410290 Dried dates in packing,of a content exceeding 1kg.
1994 1518 18720 1995 .. .. 1996 11352 4780 1997 28300 9000 1998 7701 16200 1999 .. .. 2000 .. .. 2001 .. .. 2002 .. .. 2003 300872 739188
200980100
Juice of date treacle (dibbs), unfermented and not containing added spirit or sugar
1994 17359 22134 1995 36211 69112 1996 43500 112880 1997 114779 193242 1998 45949 99465 1999 55139 61493 2000 13535 12880 2001 24360 22039 2002 26386 33600 2003 .. ..
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Table 2. A. : Data on Area, Number of Trees, Number of Bearing Trees and
Production
Year Area (hectars) Total Number
of Trees Number of
Bearing TreesProduction
(Tons) 1994 108 20,560 14,857 893 1995 108 20,559 15,268 641 1996 111 21,142 15,708 910 1997 212 37,242 14,975 1107 1998 250 42,199 29,551 1407 1999 251 42,735 28,615 1104 2000 264 44,290 32,357 1321 2001 264 44,290 36,438 1414 2002 346 63,181 41,965 2106