21.01.2015

Jordan poultry prices have jumped 30% after a packaging regulation was imposed that’s all but stopped shipments of U.S. chicken leg quarters (CLQ).
Although Jordan has been a forerunner in the region granting market access to U.S. CLQ, the process has faced challenges since its inception, and lately it has taken a turn for the worse. In 2009, on the eve of the first shipments of U.S. CLQ, Jordan’s Ministry of Agriculture (MoA) imposed a measure specifying that packages could not exceed 2.5 kg, the measure would have shunned most U.S. CLQ exports. The rapid intervention and coordinated work between the Foreign Agricultural Service (FAS), the US Embassy Amman, and local traders was critical to upend its implementation. U.S. CLQ boldly captured market share due to their competitive pricing and widespread acceptance by Jordan’s consumers. Trade reached its apex in 2013 when 5.2 thousand metric tons (TMT) with a value of $11.2 million were exported. During the first nine months of 2014, exports reached 4 TMT with a value of $ 6.6 million; however, trade has come to a virtual halt since then. In Sept 2014, MoA re-implemented the measure stating that packages must not to exceed 2.5kg. According to the MoA, their decision is based on sanitary concerns claiming that larger size packages pose a risk to human health, as contamination is possible when retailers open the large packages, selling the cuts individually. It is to note that the Jordanian Food and Drug Administration is responsible for implementing measures dealing with human health.  The implementation of the measure positions Jordan in breach of its commitments under its WTO and Jordan-US FTA agreements.