Boycott Planned to Protest Rising Meat Prices; GOJ Takes

UNCLAS AMMAN 001867 SENSITIVE SIPDIS STATE FOR NEA/ELA AND EEB/TTP/ABT CAIRO FOR FAS AGMINCOUNS JGRESSEL, APHIS ATTACHE EJONES UDSA FOR FSIS, FAS/TRADE PROGRAMS, FAS/GLOBAL ANALYSIS FAS FOR OFFICE OF GLOBAL ANALYSIS E.O. 12958: N/A TAGS: EAGR ECON ETRD SOCI JO SUBJECT: Boycott Planned to Protest Rising Meat Prices; GOJ Takes Steps to Ensure Supplies REFS: A. 08 Amman 3121 ¶B. 08 Amman 2177 ¶C. 08 Amman 1616 ¶D. 07 Amman 3813 (U) Sensitive but unclassified. Not for internet distribution. ¶1. (SBU) The private Jordanian Consumer Protection Society (JCPS) has called for a week-long national boycott of the purchase and consumption of red meat in protest of what it described as the "unjustified rise in red meat prices." Historically, food prices in Jordan rise during the run-up to the holy month of Ramadan, but CPS blames recent increases on the primary importer of fresh meat (slandering it as a "greedy, monopolistic" importing company) and Government of Jordan (GOJ) policies during the 2008 spike in global commodity prices. ¶2. (SBU) A net food importing country, Jordan is particularly sensitive to price fluctuations. It imports 80 percent of its red meat (Australia and New Zealand are the main sources for lamb) and 97 percent of feed for livestock production. Still reeling from high food, oil, and commodity prices in 2008 and the enduring impact of the economic crisis, consumer response to recent increases has been harsh. Leading the charge, JCPS blames the GOJ for price hikes, arguing the government did little to assist farmers when feed prices went up, thereby forcing farmers to cull their herds to limit expenditures. As a result, the domestic supply of meat is lower than usual. Consumers are also reacting to reports that the Ministry of Agriculture (MOA) decided to resume sheep exports to Saudi Arabia, reviving old accusations that Jordan's neighbors benefit more from GOJ subsidies to farmers and herders than Jordanians (ref C). MOA Director of Import-Export licenses Izzat Jaalin denied allegations of exports to Saudi Arabia while Ministry of Industry and Trade (MOIT) Director of Market Surveillance Hassouni Muhailan attributed price increases to normal market fluctuations. ¶3. (SBU) Muhailan nevertheless confirmed that local firm Hijazi and Ghosheh Company is in effect monopolizing the sheep trade in Jordan and steadily expanding its reach across the region by buying in bulk and using its fleet of ships to transport live animals to the Gulf states, the Levant, and North Africa and providing meat at lower prices than other competitors. ¶4. (SBU) Regardless of the real cause for recent food price increases and consumption decreases -- be it market demand, price gouging, or the boycott call -- the GOJ has taken notice and MOIT Secretary General Montasser Okla told shop owners, "the Ministry will follow up on price increases and ensure that importers commit to their promises not to increase prices during Ramadan." MOIT has also expanded market surveillance and established new offices nationwide to receive complaints of unfair pricing. The GOJ is also using its commissary, the quasi-official Civil Consumers Institution, to influence market prices by importing live sheep from Syria or Sudan to meet Ramadan demand. Visit Amman's Classified Web Site at http://www.state.sgov.gov/p/nea/amman Beecroft