1. First National Agricultural Policy Workshop The Citrus sub-sector: Analysis and Policy Options Damascus, October 31st, 2000

2. The team responsible for the study Mike Westlake, international consultant Hassan Katana, MAAR Wafeeh Al Moue’e, Citrus Board Zakaria Fadlieh, consultant Majd Abdullah Basima Atieh Mayada Hammoud Sameer Jrad Amal Naba’a Widad Shahadeh Akram Shehaideh

3. The goals of the presentation l main characteristics of the citrus sector in Syria l key issues l proposed actions

4. The importance of the Syrian citrus sector l 5% of total value of agricultural output l 1.3% of Gross Domestic Product l 20% of fruit and vegetables export earnings l 1.9% of total merchandise export earnings

5. The citrus sector l Production concentrated in 2 Governatorates: Latakia (77% of production) and Tartous (23%) l 26.600 hectares (98/99), 27.300 farms l 0,7% of world production

9. 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

10. 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

11. 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

12. 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….

14. domestic market Most farmers harvest, pack and market their citrus themselves Some large farms have their own packing lines (including waxing, washing and grading There are no standards and grades for citrus Still most farmers deliver to a wholesale market on the day of harvest

16. Exporting citrus 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.) 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

17. 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

18. Exporting citrus Sale price at Riyad wholesale market 30.000 SP Net sale price (- commission) 28.500 SP Unit value at Saudi border 24.650 SP Unit value at Saudi border after losses 22.185 SP Unit value out of Damascus packhouse 17.041 SP Unit value in Damascus packhouse 11.791 SP Unit value into Damascus wharehouse 9.122 SP Farm gate unit value 8.372 SP

19. key issue Low domestic (farm gate) price need to increase efficiency throughout the production and marketing chain expand exports

20. 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

21. 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

22. main policy recommendations -- domestic marketing establish effective marketing extension system establish an effective market information system

23. 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

24. main policy recommendations -- exports permit Syrian citrus exporters, as a short term measure, to use tracks registered in Turkey have a study done on citrus potential import markets with specific attention given to quality requirements and focus on regional markets permit importation of refrigerated trucks that are less than 5 years old, as long as they meet TIR standards