The Proposed Method of Risk Analysis and Profit Estimation for Exporters of Vegetables and Fruits from Jordan

Abstract

This paper aims at developing an effective method of risk analysis and estimating export profitability of vegetables and fruits from Jordan, as a case study. The method analyzes the marketing chain between the farm gate and the first receiver at destination market. Through this process exporter may reduces the risks of the export shipment. The impact of these risks is identified in the Export Analysis Table (EAT) for Agri-business, which seeks to develop three items of marketing information including, an estimate of produce cost, selling price in destination market and additional marketing costs between the farm and first receiver in destination market. The EAT is an online tool that enables the exporter to evaluate the profitability of his shipment, who is just needed to enter the quantities of vegetables and fruits decided to be export by type of product, the expected sales and purchase prices of the products into the EAT, which directly presents the scenario of operating margin along the marketing chain and in destination markets. The EAT is an effective method to describe and guide the exporter to update and to standardize with the marketing chain requirements. Numerous products of vegetables and fruits usually export to Arab Gulf or Europe Union Markets could utilize the EAT. EAT gives a flash picture of the profitable of the export products, depending on the range of costs and sales prices given by product in each market. The EAT is intended to help the Agri-business analyze for fresh produce such as fruits and vegetables maximize export opportunities from Jordan.

Key words: EAT; Export; Marketing chain; Cost; Fruit; Vegetable; Profit; Risk; Price