First National Agricultural Policy Workshop

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First National Agricultural Policy Workshop

• The Citrus sub-sector Analysis and Policy
  Options
• Damascus, October 31st, 2000

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The team responsible for the study

• Mike Westlake, international consultant

Hassan Katana, MAAR Wafeeh Al Mouee, Citrus
Board Zakaria Fadlieh, consultant
Majd Abdullah Basima
Atieh Mayada Hammoud Sameer Jrad Amal
Nabaa Widad
Shahadeh Akram Shehaideh
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The goals of the presentation

• main characteristics of the citrus sector in
  Syria

• key issues

• proposed actions

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The importance of the Syrian citrus sector

• 5 of total value of agricultural output

• 1.3 of Gross Domestic Product

• 20 of fruit and vegetables export earnings

• 1.9 of total merchandise export earnings

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The citrus sector

• Production concentrated in 2 Governatorates
  Latakia (77 of production) and Tartous (23)

• 26.600 hectares (98/99), 27.300 farms

• 0,7 of world production

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Costs of production
Costs of production for 120 different cases
Tartous and Latakia oranges,
lemons, mandarins, grapefruit small,
medium and large scale five type of
irrigation systems
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Costs of production
Typical small scale farmers with mature orange
and lemon trees were able to make profits at
98/99 prices
This was not the case for mandarin and grapefruit
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Production projections
In medium term projection it has been assumed
that citrus do not yield until six years after
planting, and thereafter yields at fully mature
levels
Projections for the period 99/00 to 09/10 have
been produced assuming less semplistic yield
patterns, allowing year by year build up of yields
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Production projections
Two alternative assumptions regarding plantings
(a) no further plantings (b)
plantings at current rates
Two extreme alternative assumptions regarding
replacements (a) no replacement of
unproductive trees (b) no tree deaths take
place
Four different scenarios.
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domestic market
Most farmers harvest, pack and market their
citrus themselves
Still most farmers deliver to a wholesale market
on the day of harvest
There are no standards and grades for citrus
Some large farms have their own packing lines
(including waxing, washing and grading
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Exporting citrus

• Syria citrus exports in 96-98 were a marginal
  share of world exports (0,2) and a small share
  of regional exports (2)

• Saudi Arabia (53), Kuwait (15) and United Arab
  Emirates (10) absorb 3/4 of Syria citrus exports
  

• Exports have been increasing at a fast pace in
  most recent years as a result of exporters
  rapidly expanding their export capabilities
  (sorting, packaging, shipping, etc.)

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Exporting citrus

• In most recent years quality reputation of Syrian
  citrus has been increasing as a result of
  improvements in sorting, waxing and packaging

• Export competitivity (product quality and cost at
  the border) suffers from the weak production
  structures (small farms), the weak domestic
  marketing system, and high international
  transport costs

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Exporting citrus
Sale price at Riyad wholesale market 30.000
SPNet sale price (- commission)
28.500 SPUnit value at Saudi border
24.650 SPUnit value at Saudi border
after losses 22.185 SPUnit value out of
Damascus packhouse 17.041 SPUnit value in
Damascus packhouse 11.791 SPUnit value
into Damascus wharehouse 9.122 SPFarm gate
unit value 8.372
SP
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key issue
Low domestic (farm gate) price
need to increase efficiency throughout the
production and marketing chain
expand exports
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main policy recommendations -- production
retain current planting targets
give priority to establishing whether Syrian sour
orange rootstock is resistant to citrus tristeza
virus
modify water use incentives to increase
efficiency and minimise deseases and other
problems due to over uses
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main policy recommendations -- domestic marketing
concentrate efforts on creating an efficient
assembly market for citrus to make sorting close
to farm into grades for export, grades for
domestic market and grades for processing
support the creation of pilot farmers association
for local assembly, sorting and preparation
after studying export markets, consider
establishing nationals grades and standards
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main policy recommendations -- domestic marketing
establish effective marketing extension system
establish an effective market information system
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main policy recommendations -- processing
limit licences for importation of processing
equipment until adequate quantity of citrus is
absorbed by existing processing plants
have a study done on citrus juice and oil market
to access the existence of potential export gains
and support exporters decisions
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main policy recommendations -- exports
permit Syrian citrus exporters, as a short term
measure, to use tracks registered in Turkey
permit importation of refrigerated trucks that
are less than 5 years old, as long as they meet
TIR standards
have a study done on citrus potential import
markets with specific attention given to quality
requirements and focus on regional markets