[Analytical study of the economic sector dairy industry in Jordan and Syria]

Dairy products are a key source for the food that contains the basic micronutrients human beings need for their physical constitution; these include proteins, fats, saccharides, minerals and vitamins. Milk products are also an important input in relevant manufacturing industries. A large segment of the traditional producers in this sector relies on dairies for their earnings and livelihoods, as well as for many job opportunities. The dairy cattle gain their importance as a main source of milk in both of the Hashemite Kingdom of Jordan) and the Arab Republic of Syria. Quantities of liquid milk production have increased in this sector over the past years and are hence being given due emphasis to make the two countries self-sufficient in this respect. This study is meant to conduct an overall analysis of the two dairy sectors in Jordan and Syria through examining the dairy cattle's milk production and dairying, with a focus on marketing and consumption. The dairy production function has been estimated by using the Cobb-Douglas functional form of production functions. The survey also aims at estimating the cost per one kilogram of raw cow's milk and the relevant marketing margin, in addition to estimating the costs of the production and marketing of the dairy products – processed milk, yoghurt, labneh and cheese, as well as the marketing margins and the marketing efficiency. To estimate the quantities of the processed dairy products being offered across the two countries, the transportation model is used for this purpose. Future projections for offered and consumed pure milk and processed dairy products in Jordan and Syria are also estimated for the period 2000 – 2020, along with price elasticity and the comparative advantage for these products. Obstacles, problems and future prospects of the dairy sectors in both states have also been identified and data collection has been made through questionnaires especially designed for the purpose of attaining all the above-mentioned goals. The results of the analysis of the 'dairy production function' show the labour input and capital input are significant (P 0.050). 'Returns to scale' are also measured and reveal that the dairy industry is still in its infancy in both countries, with a potential to increase inputs and yield higher outputs. The production cost per 1 kilogram of cattle's milk and its marketing margin appear to be higher in Jordan compared to Syria. The analysis also shows that the duration of the drought season, product lifetime and the feeding quantities are common factors, which influence the production of cow's milk across these two nations. The results of the survey indicate that the costs of processing and marketing of dairy products are higher in Jordan than in Syria, with more efficient Syrian marketing dairy product capacities vis-à-vis the Jordanian. The study's outcome further displays a sort of micro-integration between the two states in terms of the afore-mentioned products. While Jordanians rely on Syrians to replenish the shortage they have in cheese, Syrians depend on Jordanians to partially meet the deficit in fat oil and butter; Syria imports these two products from other countries due to low Jordanian surplus. Meanwhile, both countries have surpluses and exports of yoghurt products. In fact, Jordan exports of yoghurt are limited to Gulf Cooperation Council's countries, while Syria's exports are targeted to Jordan among other countries. On estimating the revealed comparative advantage (RCA), it is found that Jordan enjoys an RCA in cheese while Syria has an RCA in various yoghurts, butter and fat oil. Price elasticity of supply and elasticity of demand is also assessed for dairy products, with elastic supply and demand in terms of fresh milk and cheese and an inelastic activity for yoghurt in Jordan. Compared to Syria, such estimates show inelastic of the supply and demand sides for the surveyed products. The study proposes that all the problems and obstacles that encounter the dairy industry in Jordan and Syria should be addressed, particularly the high prices of animal feed, which constitutes a burden on producers. In the meantime, the survey recommends that the transport cost needs to be reduced as to shipping fees and border duties across the two nations. Moreover, animal-related agricultural extension, in the area of dairy cattle, should be activated; extension-oriented courses targeting relevant producers should be held to familiarize them on how to handle the factors that would augment production. The study further proposes a mechanism for control over the marketplace – offering low-quality products at less than actual cost, and that access to information on export marketplaces needs to be made available to help promote dairy products. Finally, the survey proposes that a database with improved information dissemination should be established at the agencies involved in the dairy industry.