WATER INNOVATION TECHNOLOGIES

WATER INNOVATION TECHNOLOGIES

AN ASSESSMENT OF THE AGRICULTURE PRIVATE

SECTOR TO IDENTIFY NEW MARKET ACTORS

December 2019

This assessment was prepared by International Water Management Institute (IWMI) under the

United States Agency for International Development Water Innovation Technologies (WIT)

project.

An assessment of the agriculture private sector to identify new market actors 2

WATER INNOVATION TECHNOLOGIES

AN ASSESSMENT OF THE AGRICULTURE PRIVATE SECTOR

TO IDENTIFY NEW MARKET ACTORS

DECEMBER 2019

WATER INNOVATION TECHNOLOGIES PROJECT

Mercy Corps

Seventh Circle, 3 Tabasheer street, Building No.8,

P.O.Box 830684, Amman 11183 Jordan.

Phone: (+962) 6 554 8570/1/2, Fax: (+962) 6 554 8573

Email: [email protected]

www.mercycorps.org

This assessment was prepared by:

The International Water Management Institute (IWMI)

Level 3, 7 Abed El-Hady Saleh st., Off Nile street,

Giza, Cairo – Egypt.

www.iwmi.cgiar.org

This document was prepared for Mercy Corps by the International Water Management

Institute under the United States Agency for International Development Water Innovations

Technologies (WIT) Project under Contract No. AID-278-A-17-0002

mailto:[email protected]

http://www.mercycorps.org/

http://www.iwmi.cgiar.org/


CONTENTS

1. EXECUTIVE SUMMARY 4

2. BACKGROUND 5

3. OBJECTIVE OF THE BRIEF ASSESSMENT 5

4. METHODOLOGY 5

4.1. SUPPLIERS’ ANALYSIS – CASE STUDIES: 8

4.2. RETAILERS’ ANALYSIS – CASE STUDIES: 32

5. SUMMARY FINDINGS 38

6. RECOMMENDED SUPPLIERS 40

7. RECOMMENDATIONS AND THE WAY FORWARD 44

LIST OF TABLES

TABLE 1: SUPPLIER IDENTIFIED IN THE FARMS SURVEY DONE BY ICBA ...................... 6

TABLE 2: SUPPLIERS INTERVIEWED BY IWMI ........................................................................... 7

TABLE 3: SUPPLIERS’ SELECTION CRITERIA ............................................................................ 40

TABLE 4: SUPPLIERS’ SELECTION DETAILED RESULTS ...................................................... 42

LIST OF FIGURES

FIGURE 1: SWOT ANALYSIS OF ALJABALI..................... Error! Bookmark not defined.

FIGURE 2: SWOT ANALYSIS OF AL-KARAMA & BARADA ............................................... 12

FIGURE 3: SWOT ANALYSIS OF AL-KARAMA & BARADA ................................................. 14

FIGURE 4: SWOT ANALYSIS OF UNIVERSAL .......................................................................... 16

FIGURE 5: SWOT ANALYSIS OF ALWASAEL .......................................................................... 18

FIGURE 6: SWOT ANALYSIS OF ALSHIRAA ............................................................................ 20

FIGURE 7: SWOT ANALYSIS OF ALJUMAIRA .......................................................................... 22

FIGURE 8: SWOT ANALYSIS OF ALKURDI .............................................................................. 24

FIGURE 9: SWOT ANALYSIS OF RAMA..................................................................................... 26

FIGURE 10: SWOT ANALYSIS OF THE AGRICULTURAL RESEARCH COMPANY ...... 28

FIGURE 11: SWOT ANALYSIS OF SIKAYAT ALKHAYRAT .................................................. 30

FIGURE 12: SWOT ANALYSIS OF ARZAQ ............................................................................... 32

FIGURE 13: SWOT ANALYSIS OF ALZBEDI ............................................................................. 34

FIGURE 14: SWOT ANALYSIS OF FARMER FOUNDATION ............................................... 35

FIGURE 15: SWOT ANALYSIS OF ALSHAWABKA ................................................................. 36

FIGURE 16: SWOT ANALYSIS OF AQILI ................................................................................... 38


1. EXECUTIVE SUMMARY

This report was prepared by the International Water Management Institute (IWMI) for the

Water Innovation Technologies (WIT) Project as part of the work plan for FY20. The report

presents the findings of the rapid survey activity that was conducted by IWMI to identify more

potential irrigation systems suppliers from the agriculture private sector in Jordan. The WIT

Project proposes to expand collaboration with the proposed suppliers and increase the reach

out of water saving technologies (WST) and practices to more farmers and thus achieve the

project target of water savings.

The identification of suppliers is primarily based on ICBA’s farms survey which was conducted

in 2018 with farmers from Azraq and Mafraq and identified suppliers who have market share in

Mafraq and Azraq. IWMI further identified additional suppliers through word of mouth from

the first group of suppliers and WIT Project teams.

Nearly all retailers in target areas were interviewed due to the limited number of retailers in

Mafraq and Azraq.

The survey was conducted through personal interviews with key people for the different

suppliers, to understand the range of irrigation products and services provided by the suppliers

and their willingness to collaborate with the project. The results were analysed and suppliers

were ranked based on a criteria that was co-developed by IWMI and the Mercy Corps

Agriculture Team. The main findings are summarized below.

Willingness to partner with the WIT Project

The findings of this study indicate that all interviewed suppliers are willing to collaborate with

the WIT Project. However, not all of them have experience in WST. Furthermore, the vast

majority of the suppliers don’t provide advisory services because farmers do not usually ask for

these services. After sales services are provided based on farmers’ request and usually over the

phone, unless otherwise needed.

The need for options to reduce the cost of Water saving technologies

One of the findings from the suppliers’ point of view, which is the main barrier for farmers to

adopt WST, is the high cost involved. It is therefore important to work on financial solutions to

make these technologies more affordable and enhance the adoption of WST.

Capacity Development opportunities for suppliers

There is a need to train the suppliers on different aspects such as WST marketing,

communication skills, technical training in relation to irrigation systems and irrigation advisory

services. The findings also suggest that the current focus of these suppliers is irrigation systems

sales only, rather than focusing on providing full services to farmers such as the design of

irrigation systems or irrigation advisory services. However, there is a couple of suppliers who

may have more potential to provide designs and irrigation advisory due to their experience in

similar projects or because they have full time irrigation engineers.


Suitability Ranking of Suppliers

IWMI has ranked suppliers based on their suitability to partner with the WIT Project. Since the

ranking was based on a very brief survey we strongly recommend that Mercy Corps further

conducts due diligence process on the highly ranked suppliers. It is essential for the WIT

project to hold more in depth discussions with the suppliers to understand their motives and

potential, and to come up to a mutual agreement on the type of collaboration that is suitable to

the supplier and to the project.

2. Background

The Water Innovation Technologies (WIT) project, is a five year, USAID funded project that

aims at saving 18.5 Mm3 from groundwater resources in Jordan by 2022. Savings are expected

to come from the agriculture sector and the household sector. However, due to the fact that

water consumed in the agriculture sector is far more than that consumed at the household

level, 85% of water savings are expected from the agriculture sector.

The project is following a Market Systems Development (MSD) approach in which the project

is working with the market actors to promote water saving technologies among farmers in

Mafraq governorate and Azraq district instead of directly dealing with farmers. This approach

would underpin the sustainability ambition as once business relationships are built and

strengthened between big suppliers in Amman and retailers in Mafraq and Azraq, water saving

technologies would be available readily to farmers in target areas and under affordable finance

themes beyond the project life span.

3. Objective of the Brief Assessment

The objective of this assessment is to identify more market actors in the agriculture

private sector in Jordan, and carrying out an initial analysis of their strengths, weaknesses,

opportunities and threats that are essential for WIT implementation plan in FY20.

As part of the activities in the fourth year of the project (FY20), IWMI has been requested

by the Agriculture Team to undertake a quick assessment of the major irrigation systems

for suppliers/manufacturers in Amman, and retailers in Mafraq and Azraq. The aim of this

activity is to understand the range of products and services provided by these suppliers in

relation to irrigation, their current business collaboration with other suppliers in the

market and willingness to collaborate with the WIT Project. The ultimate goal is to

expand collaboration with more suppliers in the market and increase the reach of

suppliers and water saving technologies to more farmers and achieve the project’s target

of water savings. This review will recommend potential partners for the WIT Project to

partner with.

4. Methodology:

The study conducted interviews with selected suppliers, using previously prepared survey

questions were conducted to collect information from the suppliers. Suppliers in Amman were

selected based on the findings of farms survey that was conducted by ICBA early in 2018. The


findings of the ICBA survey showed that there are 16 major suppliers of irrigation systems who

provide irrigation products to farmers in Mafraq and Azraq with the majority of them have

market share in the two locations and a few have market share in either in Mafraq or Azraq

(Table 1). The majority of these suppliers have factories/offices in Amman. However, to ensure

that the survey covers as many respondents as possible of major suppliers of irrigation systems

and services, additional number of suppliers in Amman were selected and also interviewed. On

the other hand, retailers in Mafraq and Azraq were selected based on ICBA survey, in addition

to other retailers who were identified by ICBA influencer in Mafraq and Azraq. The interviewed

suppliers are presented in (Table 2).

The respondents were all key individuals within their company to be able to answer all sets of

questions. IWMI developed the survey questions in close consultation with the Agriculture

Team, Access to Finance Team, Institutional Strengthening Team and a WIT business consultant

to ensure the questions provide the project with all required information that will inform the

implementation of the project in FY20. Annex 1 shows the final set of questions that were used

for the research survey. The face to face interviews were conducted in October and

November 2019 for about three weeks. Follow-up questions and clarifications for some

respondents were conducted over the personal interviews.

The Table below show suppliers identified by ICBA in the farms survey that was conducted

earlier in the project:

Table 1: supplier identified in the farms survey done by ICBA

Supplier name Location Current status (November

2019)

Aljabali Mafraq and Azraq Active

Universal Azraq Active

Israa Mafraq and Azraq Active – the focus is waste

and water big pipes –

irrigation pipes are of less

focus

Karama Mafraq and Azraq Active

Alkurdi Azraq Active

Alwasael Mafraq and Azraq Active

Alhuda Azraq Closed

Mada Mafraq and Azraq Active

Alsghier Azraq Closed

Alshahbaa Azraq Closed

Alshiraa Azraq Active

Mais Mafraq and Azraq Active


Alarabia Mafraq and Azraq Active

Shdefat Mafraq Not active, sells only input

supplies

NDICO Mafraq Active

Rama Mafraq Active

Table 2: Suppliers Interviewed by IWMI

Suppliers

identified in

ICBA survey

Location Interview status Additional suppliers

interviewed by IWMI

Alarabia Amman Interviewed by IWMI Farmer foundation –

Mafraq

Shdefat Mafraq Interviewed by IWMI Zbedi – Mafraq

Mais Amman Interviewed by WIT/business

consultant

Agriculture Research

Company – Amman

Aljabali Amman Interviewed by IWMI Aljumaira – Amman

Rama Zarqa Interviewed by IWMI Shawabka – Mafraq

Alkarama Amman Interviewed by IWMI

Arzaq - Irbid Amman Interviewed by IWMI

Mada Amman Interviewed by IWMI

Universal Amman Interviewed by IWMI

Alkurdi Amman Interviewed by IWMI

Alshiraa Amman Interviewed by IWMI

INDICO Amman Interviewed by WIT/business

consultant


4.1. Suppliers’ analysis – case studies:

4.1.1. Al-Jabali:

Brief background

This is a major supplier of irrigation systems, located in Amman. The company was established

in 1990 by Ghazi Al-Jabali and currently managed by Firas Ghazi Al-Jabali. There are two pipe

factories under this company which are located in Yadodeh and Kastal in Amman.

Sales and after sales services

The company has been manufacturing glass reinforced (GR) pipes for both vegetables and tree

crops since 1990 with a production capacity of 22000 pack/year. About 80% of produced pipes

are sold in Jordan with part of them sold in Mafraq for farms with areas up to 600 dunums (60

ha), while up to 20% of their products are exported to some African countries and Iraq.

Besides manufacturing GR pipes, the company also sells emitters including viro-jet and pressure

compensating (PC) emitters that they usually purchase from local and international suppliers

(suppliers in Europe). The company also sells other irrigation supplementary parts such as

accessories, filtration systems and fertigation systems.

The company provides a wide range of irrigation services including irrigation systems design,

evaluation, commissioning, installation coupled with the selection of suitable filtration systems

and pumps. Furthermore, the company sometimes, based on demand, provide irrigation

problem solving services including problems related to the design of the network and irrigation

advisory. The responsible staff usually collect all relevant information that is essential before

selling irrigation systems such as cultivated areas, crop type, distance between plants, water

source capacity verbally, and they sometime conduct field visits to verify this information if

required. The staff is usually able to advise the farmer on the best filtration system that is

suitable for the farm conditions and they help the farmer in selecting a suitable pump, however,

when it comes to purchasing or fixing the pump, they usually refer the farmer to the

manufacturer/trader of the pump. The company also provides after sales services to the

customers. These services are limited to solving technical problems that may emerge after

installing the system.

The main challenge to increasing their sales is the price competition between locally produced

and imported irrigation systems and parts (including emitters), therefore, there is a need to

enhance the marketing strategy for such products. Products imported from outside are usually

more expensive than locally produced products, therefore, good marketing strategy could

enhance farmers’ perception of the value of these products and thus increase the adoption

Advisory services

The company does not provide irrigation advisory services such as irrigation scheduling,

however, they provide solutions that help the farmer reduce water application through mulch,

shading nets and ponds lining material. The majority of the company’s customers don’t ask for

advisory services except for a few customers who require a design and commissioning of the

irrigation systems especially those who establish new farms. In this case the company usually

hires independent irrigation design engineers. The company showed willingness to provide

advisory services if trained staff is available.


Supply Chain

The company manufactures GR pipes and sell them inside and outside the country. However,

they buy the emitters from local companies such as Al-Wasael and the Agricultural Research

Company, and they import PC emitters from Spain. The company believes there is no any

items other than what they sell in their shop, however, they are willing to promote water

saving technologies that the project would support.

The company indicated that the main barrier to adopt water saving technologies is the high

cost, and from their point of view, the adoption of water saving technologies could be

enhanced if these technologies are offered at lower prices and if agriculture exports increase.

This would lead to the recovery of the agriculture market and ultimately enhance their sales.

Future Perspective and willingness to collaborate with WIT

The company has established business relationships with other suppliers in the market such as

Al-Wasael and the Agriculture Research Company, and they are willing to collaborate with

other suppliers in the market and with the WIT project. The desired type of collaboration

would be through enhancing their production lines to manufacture products with better quality.

Institutional Strengthening & access to finance

The company’s market share was initially about 30% of the total GR pipes sold in Jordan mainly

for vegetable crops and the average number of their customers in the high season is around 10

customers per day. However, in the last three years, their sales have halved to 15% due to the

decline in the agriculture market. The company’s payment terms include cash and instalments

with checks or drafts as collaterals. The flexibility in their payment terms and their good

reputation has helped them maintain their presence in the market. However, this has also

created a one million Jordanian Dinar of bad debt.

A SWOT analysis was conducted for Al-Jabali based on the interview conducted by IWMI

(Figure 1).

Strengths:

High Quality of the product

Good reputation (farmers)?

Well known in Mafraq

Provides after sales services

Willing to provide advisory services

Flexible payment terms

Sells water saving solutions/products such as

PC shading nets and mulching

Weaknesses:

No qualified staff to provide advisory

service

Manufacturing machines are old

No clear marketing strategy for water

saving technologies

Sells GR systems mainly, doesn’t have

big record in selling PC emitters.

Low debt recovery (1m)

Opportunities:

Could be a good player in Mafraq

Willingness to provide advisory services if

supported with qualified staff

Threats:

Competition on prices with other

suppliers

SWOT


4.1.2. Al-Karama and Barada:

Background

These are two major companies specialized in irrigation systems, located in Amman and

owned by the same person, Mr. Mamoun Nakkar. He is also the manager of both

companies and he has more than 35 years’ experience in the field of irrigation

technologies. The first company (Karama) was established in 1983.

Sales and After Sales Services

The company manufactures GR pipes for both vegetables and tree crops with a

production capacity of up to 25 tons per day, in addition to a wide range of high flow

emitters such as (viro jet, small sprinklers) and PC emitters with a capacity that reaches

one million pieces per month.

About 65% of manufactured pipes are sold in Jordan with part of them sold in Mafraq

and Azraq for farms with areas up to 4000 dunums, while 35% of their products are

exported to other countries including Morocco and Yemen. They also sell to other shops and companies in Jordan and according to the owner, they have the biggest sales

record of irrigation systems in Jordan, this include sales inside and outside the country.

The company provides a wide range of irrigation services including irrigation systems

design, evaluation, commissioning, installation in addition to the selection of suitable

filtration systems and pumps. Furthermore, they provide irrigation problem solving

services including problems related to the design of the network and irrigation advisory.

On the other hand, the company also sells other irrigation supplementary parts such as

accessories, filtration systems and fertigation systems and they help the farmer in the

selection of best filtration system based on water tests that they usually do if requested

by the farmer.

The responsible staff usually collects information that is essential before selling irrigation

systems. The information includes cultivated areas, crop type, distance between plants,

water source, water quality, soil type and air quality through field visits. They also

provide the best possible irrigation design and services to ensure there will not be any

issues after installation. They believe that a good design with quality material and good

installation services would minimize after sales issues. They sometimes provide

irrigation problem solving services to projects handled by other irrigation companies.

They have long experience in this field.

On the other hand, when it comes to water saving technologies, the company doesn’t

recommend promoting PC systems as they believe it is risky due to deteriorating water

quality in Jordan. They prefer to promote good irrigation design solutions to enhance

water use efficiency at farm level. However, delivering such water saving solutions

would require supporting their staff with required training and logistics support

(transportation to the farms). As per the owner’s records and knowledge of the market,

the company’s market share is 50% of all sold pipes and emitters in Jordan, and the

average number of customers in the high season is (1000-2000) customers per month.


Advisory Services

The company usually provides advisory services if requested by farmers, however they

think the demand for this kind of services is low, and this includes irrigation scheduling.

Instead, they sell products that help in reducing water application such as mulch and

shading nets. The company is willing to provide more advisory services if they receive

training in communication skills with farmers, this is due to the fact that when it comes

to advisory services, convincing the farmer of using less water is difficult. Irrigation at

farms is influenced by inherited irrigation practices which implies applying more water

to ensure profitable produce. In such a case they recommend automated irrigation

systems and they usually hire good consultants to automate the network based on farm

conditions and weather maps.

Supply Chain

All irrigation systems sold by the company are manufactured by them. However, the

sometimes purchase accessories and filtration systems from either inside or outside the

country. They think that there is no demand on any other products and they believe

that the high cost of water saving technologies is the main barrier that holds back

farmers from adopting these technologies. More adoption will require reducing the cost

of these technologies and through working closely with the Chamber of Trade and Industry to set standards and specifications for irrigation parts, mainly emitters.

The company is interested in promoting fast production lines for inline-GR pipes. They

also believe that farmers would be interested in advanced/optimized irrigation systems

with good irrigation management tips and advisory services; however, this should be

done through establishing demo sites that are accessible to farmers to see the

technologies of their results, or can be done by providing free samples to farmers to

test the technology.

Future perspective and willingness to collaborate with the project

The company is willing to collaborate with other suppliers in the market and the WIT

project and they are open to discuss the type of collaboration further. They have past

successful collaboration with donor funded projects (USAID).


The company’s payment terms include mainly cash and instalments for old customers

only. They require checks as collaterals and they had past experience in selling irrigation systems through the Islamic bank. The bad debt is almost 1 million JD.

A SWOT analysis was conducted for Al-Karama and Barada based on the interview

conducted by IWMI (Figure 2).


Figure 1: SWOT analysis of Al-Karama & Barada

Strengths:

Good Quality products

Fast production line


and Azraq

Manufacture PC

emitters

Provides after sales

services

Willing to provide

advisory services

Sells water saving

solutions/products

such as PC, shading

nets and mulching

Willing to provide

optimized irrigation

design to save water

International

experience in irrigation

services

Experience with

donor-funded projects

Qualified irrigation

consultants

Clear marketing

strategy for water

saving technologies in

case of collaboration

with the project

They have a shop in

Azraq

Weaknesses:

They believe PC is

not suitable for

Jordan, however, the

can provide other

water saving

solutions (such as

optimized design)

No flexibility in

payment terms

Opportunities:

Could be a good player in Azraq

Willingness to provide advisory

services if supported with training

Willingness to provide optimized

irrigation systems design

Threats:

The declining profit in the

AG would affect their

business.

Low debt recovery (1 mil)

SWOT


4.1.3. Mada

Background

The Mada Company is located in Amman – Sahab.Mr. Naser Yousef Fadda owns and manages

Mada which specializes in manufacturing irrigation pipes, fittings and accessories. Mada was

established in 1995.

Sales and After Sales

The company manufactures GR pipes for tree and vegetables crops with a capacity that reaches

220 packs/day in addition to manufacturing the inline GR emitters, fittings and accessories.

Generally, Mada sells 90% of their products inside Jordan to farms with areas of up to 6000

dunums and export 10% to other countries. Internal sales have decreased by 50% in the last

three years while exports has decreased by 75% in the same period of time. The company

doesn’t sell PC emitters, filters or fertigation systems. They don’t provide other irrigation

services such as irrigation problem solving or the design, evaluation or installation of irrigation

systems. However, if such services are requested by farmers, they usually hire independent

irrigation consultants to take over such tasks. They collect information on crop type, distance

between trees and desired emitter flow before they sell irrigation systems. They also advise the

farmers on the best irrigation system that is suitable to his farm conditions, best filtration

systems based on the water source and irrigation system; however, they don’t have expertise

in pump selection.

After sales services are essential to maintain the company’s reputation, therefore, they follow

up with farmers to ensure the system is working well and they provide a 3 year warranty for

laterals in case of manufacturing defaults. The company believes that creating more demand on

inline and online GR pipes can increase their sales. The owner couldn’t provide an estimation of

his market share; however, he indicated that the average number of customers in the high

season is 15-20 customers daily.

Irrigation Advisory Services

The company doesn’t provide advisory services to farmers. They rather sell products that help

farmers reduce water application such as mulch and shading nets. They sometimes provide

irrigation systems design services based on farmer request, however, the demand on such

services is low. They are willing to provide irrigation advisory services if there a demand.

However, this case they will need to hire trained staff and to consider the cost of farm visits.

Supply Chain

The company sells products manufactured by them. However, they also purchase some

products from other local companies such as Al-Wasael. They are not interested in promoting

other technologies due to the decline in the agricultural business and the fact that farmers may

be hesitant to purchase water saving technologies due to the high cost. Providing these

technologies at lower prices would increase the adoption of water saving technologies.

Future perspectives and willingness to collaborate with the WIT project

The company is willing to collaborate with other suppliers in the market (mainly Al-Wasael)

and the WIT project and they are open to discuss the type of collaboration further.



The company’s payment terms include cash and instalments. They require checks and drafts

and their bad debt is almost 700,000 JD.

A SWOT analysis was conducted for Mada based on the interview conducted by IWMI (Figure

3).

Figure 2: SWOT analysis of Al-Karama & Barada

Strengths:


and Azraq


services (Warranty and

follow up over phone)

Willing to collaborate

with other suppliers

and WIT

Good knowledge in

irrigation system

selection, filters

selection

Flexibility in payment

terms

Weaknesses:

Experienced in

manufacturing and

sales, no experience

in irrigation design or

advisory.

Doesn’t sell PC

No clear marketing

strategy

Not interested in

promoting other

water saving

technologies due to

the high cost

Opportunities:

Willingness to provide advisory

services if supported with training

of their staff

Willingness to collaborate with

other market actors and WIT

Threats:


AG business would affect

their business.

Low debt recovery (700K)

SWOT


4.1.4. Universal

Background

This is a major supplier of irrigation systems, located in Amman – Sahab Industrial City. The

company was established in 2000 by Mr. Khaleel Radi Al-Bash and currently managed by Mr.

Ismaiel Abo-Gharaibah. The company is specialized in manufacturing irrigation systems (pipes

and emitters).

Sales and After Sales Services

The company manufactures irrigation pipes including GR and oval pipes with a capacity that

reaches 400 tons per month. About 40% of these pipes are sold in Jordan while 60% are

exported to 30 different countries including Iraq. They also manufacture pipes production lines

with a capacity of 4-5 machines per year. There has been no change in the internal sales over

the last five years, however, exports decreased by 5% during the same period.

The company sells PC emitters, filters, fertigation systems and irrigation fittings. They also

provide a wide range of irrigation services such as design and evaluation of irrigation systems

and irrigation problem solving including problems related to irrigation technologies or advisory.

They have an established irrigation design department and they collect sufficient information

from the farmer before selling irrigation systems in order to provide suitable design (if

required) and suitable filtration systems and pump selection. They also provide after sales

services that covers solving any problems after installing the system. Improving these services

will require training their staff on solving on-farm common irrigation problems. Their market

share is between 20-30% and the average number of their customers is around 100 customer

per month in the high season.


The company currently doesn’t provide irrigation advisory services such as irrigation systems

design and maintenance except for some of their customers who ask to provide a detailed

irrigation system design. However, they provide products that help farmers reduce water

application such as mulch and shading nets. They believe that there is no demand on irrigation

advisory services because farmers trust irrigation practices commonly used (over irrigation)

rather than suppliers’ advice.

Supply Chain

The company sells pipes they manufacture; however, they import inline and online emitters

from Europe. They are interested in promoting new technologies such as sub-surface irrigation.

However, such a technology will require training farmers on how to use and maintain it. As the

cost of water saving technologies is high, increasing the adoption of such technologies would

require reducing the price. They believe that farmers would be interested in water saving

technologies coupled with good advisory services, and this will ultimately improve the

company’s sales.

Future Perspectives and Willingness to Collaborate With the WIT Project

The company is willing to collaborate with other suppliers in the market and the WIT project and they are open to discuss the type of collaboration further.



The majority of the company’s sales are to other suppliers/retailers. Their payment terms

include cash and debt (instalments) and they require checks as collaterals. Bad debt is almost

15% of their sales.

SWOT analysis was conducted for Universal based on the interview conducted by IWMI

(Figure 4).

Figure 3: SWOT analysis of Universal

Strengths:


Fast production line


and Azraq

Wide variety of

irrigation parts

(emitters and fittings)


services and willing to

provide advisory

services

Sells water saving

solutions/products

such as PC, shading

nets and mulch

Stable business (no

decrease in internal

sales in the last three

years)

They have permanent

irrigation design

engineers

Big part of their sales is

to other

suppliers/retailers


Weaknesses:

They don’t provide

advisory services

Currently focusing on

business

opportunities outside

Jordan

Opportunities:

Willingness to provide

advisory services if

supported with training

Open to new – water

saving technologies

Threats:



their business.

High energy cost for

manufacturing

High Taxes

SWOT


Strengths: irrigation ‘spare’ parts?

Alwasael

Background

This is a major supplier of irrigation systems located in Amman. The company was established

in 1985 by Mr. Mustafa Asaad who has more than 30 years’ experience in the field of irrigation.

The company is mainly specialized in manufacturing high quality irrigation systems fittings and

accessories (Rain A brand). They also sell other irrigation products such as pipes and emitters.


The company sells irrigation fittings and accessories that they manufacture, in addition to selling

GR pipes and emitters including PC which they usually import or purchase from local suppliers.

Their customers have farms of areas of more than 1000 dunums. They also sell filters and

fertigation systems in addition to electrical valves. They provide other irrigation services such

as design and installation of irrigation systems and irrigation problem solving. They also advise

the farmer on the best irrigation system that is suitable to the farm conditions and the best

filtration system based on farm conditions. From the company’s point of view, there is no

demand on after sales services as they usually provide high standard sales services. They believe

that their market share is almost 80% as they sell products to other companies and they have

more than 1200 different items in their shop.

Advisory Services

The company doesn’t provide irrigation scheduling services; however, they provide irrigation

systems maintenance services in addition to selling products that help farmers reduce water

application such as mulch and shading nets. The company has two permanent site engineers

who are responsible for irrigation system design and following up with farmers on post

installation issues. However, the company believes that working in advisory services is not

feasible currently due to the low demand for such services. If this changes in the future, the

company will need to hire specialized staff to take over such tasks.

Supply Chain

The company sells GR pipes imported from Al-Wasael Factory in Saudi Arabia. They also import other irrigation systems parts from Taiwan, The United States, China and Greece. The

main barrier that prevents farmers from adopting water saving technologies is the high cost and

the influence of traditional irrigation habits. In order to increase the adoption of such

technologies, it would require reducing the cost and providing free samples to farmers to try

the new technologies and realize the benefits.

Future Perspectives and Willingness to Collaborate with the WIT Project

The company has already established business relationship with other companies such as Rain

Bird, and they are willing to collaborate with other companies and with the WIT project. The

preferred type of collaboration can be through cost-sharing. They have past experience

working with donor funded projects (Through the Ministry of Agriculture and GIZ), however,

it was limited to selling irrigation systems.


Access to Finance

Their payment terms include cash (80% of sales) and instalments (20% of sales) and they

require checks as collaterals. Bad debt is almost 1% of their sales.

A SWOT analysis was conducted for Alwasael based on the interview conducted by IWMI

(Figure 5).

Figure 4: SWOT analysis of Alwasael

Strengths:



and Azraq

Provides good sales

services

Willing to provide

advisory services

Sells water saving

solutions/products

such as PC, shading

nets and mulching

Strong relationships

with international

suppliers

Experience with


They have qualified

irrigation engineers

Clear marketing

strategy for water



with the project

Large market share

Weaknesses:

No after sales

services (as they

provide strong sales

services)

No advisory services

Inflexible payment

terms.

Opportunities:

Could be a good player in

Mafraq and Azraq

Willingness to provide

advisory services if

supported with training

Threats:



their business.

SWOT


4.1.5. Al-Shiraa’

Background

This is a company located in Amman – Wehdat area. It is owned and managed by Mr. Mahed

Al-Sosan and specialized in manufacturing irrigation pipes, emitters and fittings. The company

was established in 1979.

Sales and After Sales Service

The company manufactures GR pipes for tree and vegetables crops, viro-jet and PC emitters in

addition to fittings and accessories. Generally, the company sells almost 100% of their products

within Jordan to farmers with areas of up to 400 dunums; however, sales have decreased by

75% in the last three years.

The company provides other services such as irrigation systems design, evaluation, installation

and irrigation problem solving including technical problems and irrigation advisory related

problems. They collect sufficient information from farms before selling the systems such as

area, crop type, the water source and they advise the farmer on the best irrigation system that

is suitable to his farm conditions, best filtration systems based on the water source and

irrigation system, and suitable pump. They also provide after sales services if requested by the

farmer, and this includes following up and solving post installation problems. Their market share

is 15% and their average number of customers in the high season is 15-20 customers daily.


The company provides irrigation advisory services such as irrigation scheduling if requested by

farmers and they sell other products that help farmers reduce water application such as mulch

and shading nets. They are also interested in promoting other water saving technologies such as water boxes.

Supply Chain

The company mainly sells products that they manufacture. However, they also purchase some

products from other local companies to complement their products. They are interested in

promoting inline PC irrigation systems and automatic filters. They believe that the high cost of

water saving technologies would prevent farmers from adopting these technologies. More

adoption requires decreasing the cost of such technologies and providing good irrigation

advisory tips.


The company is willing to collaborate with other suppliers in the market, however, they have

already business collaboration with Al-Wasael, and they purchase inline-PC systems and some

irrigation fittings from them. They are willing to collaborate with the WIT project and open to

discuss the preferred type of collaboration with the project. They have previous experience

working with the Ministry of Agriculture and The Hashemite Fund for Development of Jordan

Badia.

Access to Finance

The company’s payment terms include cash only and they don’t have bad debt. They don’t sell

any item though banks.


A SWOT analysis was conducted for Alshiraa based on the interview conducted by IWMI

(Figure 6).

Figure 5: SWOT analysis of Alshiraa

Strengths:



and Azraq


services and advisory

services (if requested

by farmers)

Sells water saving

solutions/products

such as PC, shading

nets and mulching

Experience with


Clear marketing

strategy for water



with the project

Weaknesses:

Inflexible payment

terms.

Opportunities:

Could be a good player in Mafraq

and Azraq

Willingness to promote new

water saving technologies if the

receive a training n marketing

Threats:



their business.

SWOT


4.1.6. Al-Jumaira

Background

This is a company located in Amman – Makkah Street, owned and managed by Mr. Sae’d

Kashoua’ since 1989 and specialized in landscapes and input supplies. However, the company

also involved in some high profile projects (Ayla Oasis) and has established business

relationships with irrigation companies outside such as Netafim from which they import part of

their products. They don’t work currently with big farmers in Mafraq and Azraq, however, they have an irrigation design department with strong staff and more than 20 years’ experience in

irrigation design.


The company sells GR pipes and PC emitters (from Netafim, SAB and Adritec) and irrigation

fittings and accessories from Valenti. They also sell filtration systems (from Universal) and

fertigation systems (from Netafim). The company provides other services such as irrigation

systems design, evaluation, installation and irrigation problem solving including technical

problems and irrigation advisory related problems. They collect sufficient information from

farms before selling the systems such as area, crop type, soil type, the water source and they

have the capacity and knowledge to advise the farmer on the best irrigation system that is

suitable to his farm conditions, best filtration systems based on the water source and irrigation

system, and suitable pump. However, it is essential to emphasize that all these services are

currently provided to either landscape projects or small/high profile farms.

They also provide after sales services if requested to ensure the system is working up to the

expected standards after installation. The company doesn’t work currently in Azraq and

Mafraq, however, they are interested in providing advisory services in such areas and this would

require training their irrigation staff on such services. The company’s sales decreased by 80%

than the last year due to the downturn in agriculture business.


The company is willing to provide irrigation advisory services such as irrigation scheduling and

irrigation systems maintenance if requested by farmers and they sell other products that help

farmers reduce water application such as mulch and shading nets.

Supply Chain

The company sells products imported from outside (Netafim products) and products

manufactured locally (Universal products), however, they are interested in promoting

automated irrigation systems and weather stations that help in optimizing irrigation scheduling.

They believe that the high cost of water saving technologies would prevent farmers from adopting these technologies. In addition to the common belief that applying more water would

guarantee better produce which is considered one of the major challenges to promoting water

saving technologies.


The company is willing to collaborate with other suppliers in the market; however, they have

already business collaboration with Netafim and Universal. They are willing to collaborate with

the WIT project if the collaboration increases their sales and they are mainly interested in

providing automated irrigation systems coupled with irrigation advisory.

Access to Finance


The company’s payment terms include cash only and they don’t have bad debt. They don’t sell

any item through banks.

A SWOT analysis was conducted for ALjumaira based on the interview conducted by IWMI

(Figure 7).

Figure 6: SWOT analysis of Aljumaira

Strengths:



services

Sells water saving

solutions/products

such as PC, shading

nets and mulching

Strong business

relationship with

international suppliers

Established irrigation

design department

Weaknesses:

Inflexible payment

terms.

No market share in

Mafraq and Azraq.

High price

Ca be considered as

irrigation design and

advisory provider

only – no potential

contribution to sales

Opportunities:

Could be a provider of

irrigation design and advisory

is supported with good

training

Willingness to promote new

water saving technologies

Threats:



their business.

His products are probably

very expensive

SWOT


4.1.7. Al-Kurdi (Robou’ Alwareef)

Background

This is a company located in Amman – Wehdat area, owned and managed by Mr. Haytham Safi

Alkurdi. The company was established in 1977 and specialized in manufacturing irrigation pipes,

high flow emitters and irrigation fittings.


The company manufactures GR pipes (up to 200 mm diameter) with a capacity of 1 ton per

day, viro-jet emitters in addition to fittings and accessories. Generally, the company sells only

5% of their products inside Jordan to farms with areas of up to 600 dunums and they export

the rest, however, exports has decreased by 60% in the last three years. The company also

owns another factory in Saudi Arabia with higher production capacity. The company sells filters

and fertigation systems purchased from local suppliers. They provide other services such as

irrigation systems design, evaluation, installation and irrigation problem solving including

technical problems and irrigation advisory related problems. They collect sufficient information

from farms before selling the systems such as area, crop type, the water source, pump capacity

and they advise the farmer on the best irrigation system that is suitable to his farm conditions,

best filtration systems based on the water source and irrigation system, and suitable pump.

They also provide after sales services if requested by the farmer to solve any post installation

problem. Their market share is 20% and their average number of customers in the high season

is 50-60 customers (in the full season).


The company doesn’t provides irrigation advisory services such as irrigation scheduling,

however, they sell other products that help farmers reduce water application such as mulch

and shading nets. They believe there is no demand on irrigation advisory services. Their

customers usually ask for technical information about the maximum allowable pressure for

pipes and suitable pumps.

Supply Chain

The company sells its own brand of products. They are interested in promoting PC systems

and improve the pipes row material quality in order to manufacture foldable irrigation pipes.

They believe that the high cost of water saving technologies and the common belief of applying

more water for better produce would prevent farmers from adopting these technologies. More

adoption requires decreasing the cost of these technologies and providing samples to farmers

to test the technology or establishing demo sites.


The company is willing to collaborate with other suppliers in the market and with the WIT

project and discuss the preferred type of collaboration with the project. However, they don’t

have previous experience working with donor funded projects.


Access to Finance

The company’s payment terms include cash for exports and seasonal payments for farmers

inside Jordan. They require checks and drafts as collaterals. Their bad debt is almost 200,000

JD.

A SWOT analysis was conducted for Alkurdi based in the interview conducted by IWMI (Figure

8).

Figure 7: SWOT analysis of Alkurdi

Strengths:



services

Sells water saving

solutions/ shading nets

and mulching


services

Interested in

promoting water

saving technologies

(mainly PC)

Clear marketing

strategy in case of

collaboration with the

project


Weaknesses:

Doesn’t provide

irrigation advisory

services and he

believes there is no

demand on such

services

Opportunities:

Willingness to promote

new water saving

technologies

Threats:



their business.

SWOT


4.1.8. Rama

Background

This is a company located in Zarqa – Duty Free Area, owned by Ms. Maha Alshaka’a and

partners and manager by Mr. Thaer Alnimr. The company was established in 1984 and

specialized in agriculture machinery, central pivot and sprinkler irrigation systems.


The company is famous for manufacturing agriculture machinery. They also sell central pivot,

sprinkler irrigation systems and fertigation systems. However, they don’t sell other irrigation

systems or filters.


The company doesn’t provides irrigation advisory services such as irrigation scheduling,

however, they sell other products that help farmers reduce water application such as mulch

and shading nets.

Supply Chain

The company doesn’t sell irrigation systems other than central pivot and sprinkler irrigation

systems. However, they are interested in promoting water saving technologies that may be

supported by the project.



project and discuss the preferred type of collaboration with the project. They have previous

experience working with donor funded projects through The International Centre for

Agricultural Research in The Dry Lands (ICARDA).

Access to Finance

The company’s payment terms include cash only and they don’t have bad debts.

A SWOT analysis was conducted for Rama based on the interview that was conducted by

IWMI (Figure 9).


Figure 8: SWOT analysis of Rama

4.1.9. The Agriculture Research Company

Background

This is a supplier of irrigation systems located in Amman - Yadodeh. The company was

established in 2000 by Mr. Mohamad Salameh Omar who has more than 20 year experience in

the field of irrigation and managed by Mr. Alaa Mohammad Abdulhai. The company is

specialized in selling irrigation systems and some input products (fertilizers and pesticides)

Strengths:


and Azraq

Sells only pipes on

request

Sells mulch and shading

nets

Weaknesses:

Doesn’t provide

irrigation services

including sales, after

sales and advisory

Opportunities:

Willingness to promote

new water saving

technologies and very

well known in WIT areas

Threats:



their business and high tax

SWOT



The company sells irrigation systems including GR pipes, emitters and fittings, filters and

fertigation systems to farms with areas up to 100 dunums. They also provide irrigation services

such as design and installation of irrigation systems and irrigation problem solving. They also

advise the farmer on the best irrigation system that is suitable to the farm conditions and the

best filtration system based on farm conditions. The average number of customers is 2-4 per

day.

Advisory Services

The company provides irrigation advisory services if requested by farmers including irrigation

scheduling and irrigation systems maintenance. They also sell other products that help farmers

reduce water application such as mulch and shading nets. However, the demand on such

services is low.

Supply Chain

The company purchases their products from the local market. They are not interested in

promoting other technologies as they had a factory in the past which is currently closed due to

the declining irrigation systems market. However, the company is still open to the idea of

promoting water saving technologies. From their point of view, the high cost would prevent

farmers from adopting water saving technologies, therefore, reducing the cost would increase

adoption rate.


The company purchases their products from the local market and they usually deal with

suppliers who provide less prices. They are willing to collaborate with the project and open to

discussing the specifics further.

Access to Finance

Their payment terms include cash and instalments, and they require checks as collaterals. Bad

debt is almost 40,000 JDs and they don’t sell irrigation systems through banks.

A SWOT analysis was conducted for The Agricultural Research Company (see Figure 10).


Figure 9: SWOT analysis of the Agricultural Research Company

4.1.10. Sikayat Al-Khayrat

Background

This is a supplier of irrigation systems located in Amman – Baqa’a. The company was

established in 2014 by Mr. Ammar Bakkar and partners. The company is managed by Mr.

Ammar who has more than 14 years of experience in irrigation.


The company manufactures irrigation systems including GR pipes with a capacity of 150 pack

per day and emitters (2-40 l/hr flow). About 90% of their products are exported to other

Middle East and North Africa (MENA) countries. They also sell filters and fertigation systems

Strengths:

Provide sales, after

sales and advisory

services


nets


Weaknesses:

Doesn’t have market

share in Mafraq and

Azraq, he works

more in Amman and

Madaba

Hesitant to promote

water saving

technologies

Opportunities:

Open to discuss


project.

Threats:




SWOT


which they purchase from the local market. The company provides other irrigation services

such as design and installation of irrigation systems and irrigation problem solving. They also

advise the farmer on the best irrigation system that is suitable to the farm conditions and the

best filtration system based on farm conditions. The average number of customers is 40 per

month. They don’t work in Mafraq and Azraq. Their major customers are located in Ramtha

and Jordan Valley. They estimate that their market share is 5%.

Advisory Services

The company provide irrigation advisory services if requested by farmers including irrigation

scheduling and irrigation systems maintenance. However, the demand on such services is low.

Supply Chain

The company sells products manufactured by them, and they also sell other products that they

obtain from the local market (such as Universal products). They are interested in promoting

tape pipes which are foldable, cheap and the pack could reach 2000m length. They believe that

the fear of change and the common belief of applying more water are the main barriers that

prevent farmers from adopting water saving technologies. Adoption can be enhanced by

providing samples to farmers to try the new systems and by establishing demo-sites.



project. They are interested in enhancing their sales and marketing capacities through training

to be able to promote new technologies. They have experience in working on projects similar

to WIT in Syria. The company was a full time irrigation technologies and service provider for a

5 year project in Syria that aimed at upgrading the whole irrigation systems in Homs

governorate to advanced irrigation systems. Their scope of work included promoting advanced

irrigation systems, irrigation design and advisory services.

Access to Finance

Their payment terms include cash and instalments, and they require checks and drafts as

collaterals. Bad debt is almost 100,000 JDs and they don’t sell irrigation systems through bank

financing.

A SWOT analysis was conducted for Sikayat Alkhayrat based on the interview that was



Figure 10: SWOT analysis of Sikayat Alkhayrat

4.1.11. Arzaq

Background

This is a supplier of irrigation systems located in Irbid – Cyber City. The company was

established in 2010 by Mr. Husam Abu Mukh. The company is also managed by the owner who

has 26 years’ experience in manufacturing and irrigation design.


The company sells irrigation systems including GR pipes, PC emitters, viro-jet, sprinkler

systems and irrigation fittings and accessories to farms with areas up to 70 dunums. They

import these products from other companies in Italy and Spain and they are an official

distributer for Netafim products. They also sell filters and fertigation systems. The company

provide other irrigation services such as design and installation of irrigation systems and

irrigation problem solving. They also advise the farmer on the best irrigation system that is

suitable to the farm conditions and the best filtration system based on farm conditions. Their

after sales services include a 1 year warranty and they have a small market share in Mafraq

while they don’t work in Azraq. Their average number of irrigation projects is 20 in the high

season.

Strengths:


sales

Provides advisory

services


nets


Have past experience

in similar projects

Clear marketing

strategy

Weaknesses:

Doesn’t have market

share in Mafraq and

Azraq, he works in

Ramtha and Valley

Opportunities:

Open to discuss


project.

Can be a provider of


advisory

Threats:




SWOT


Advisory Services

The company provide irrigation advisory services including irrigation scheduling and irrigation

systems maintenance. They also sell products that help farmers reduce water application such

as mulch and shading nets.

Supply Chain

The company is an official agent for Netafim products. They also sell emitters imported from

Italy. They are interested in promoting any water saving technology (such as sub-surface

irrigation). They believe that the high cost may prevent farmers from adopting such

technologies. However, a good marketing training would help them increase their marketing

capacities and thus convince farmers to purchase these technologies.



project. A clear scope of work would motivate them to collaborate with the project. Their

previous experience includes working on irrigation research projects with universities which

enhanced their technical capacities.

Access to Finance

Their payment terms include mainly cash and seasonal payments rarely, and they require checks

as collaterals. Bad debt is almost 1million JDs and they sell irrigation systems through banks for

big irrigation projects only (not individual farmers).

A SWOT analysis was conducted for Arzaq based on the interview that was conducted by

IWMI (Figure 12).


Figure 11: SWOT analysis of Arzaq

4.2. Retailers’ analysis – case studies:

4.2.1. Retailers in Mafraq

4.2.1.1. Alzbedi

Background

This is a retailer located in Mafraq. The company was established in 1988 by Mr. Abdalla

Alsarhan and who currently manages it.


The company sells irrigation systems including GR pipes, PC emitters, viro-jet, irrigation fittings

and accessories to farms in Mafraq with areas of 200 dunums. They also sell filters and simple

fertigation systems and small pumps. The company provide other irrigation services such as

design and installation of irrigation systems and irrigation problem solving. They also advise the

farmer on the best irrigation system that is suitable to the farm conditions and the best

filtration system based on farm conditions. Their after sales services is limited to warranties on

manufacturing faults as there is no demand on after sales services in the area. Their coverage

Strengths:

High quality irrigation

parts


sales and advisory

services


nets


Have past experience

in irrigation projects

and research projects

Clear marketing

strategy

Weaknesses:

Small market share in

Mafraq

No market share in

Azraq

Low debt recovery

(1M)

Opportunities:

Can provide high quality

irrigation parts

Can be a provider of


advisory

Threats:



their business

SWOT


area is more than 50% of farms in Mafraq and their average number of customers is no less

than 50 customers per day in the high season.

Advisory Services

The company doesn’t provide irrigation advisory services such as irrigation scheduling as there

is no demand for such services. However, when their customers ask questions related to

irrigation advisory, they are able to answer them, but this doesn’t include providing advisory at

farms.

Supply Chain

The company obtain irrigation parts from Amman (mainly Alwasael and Mais). They are

interested in promoting hydroponic systems and advanced fertigation systems. They believe

that farmers are influenced by inherited irrigation practices that implies applying more water,

therefore, it is difficult to convince them in adopting water saving technologies.



project. Their objective would be entering Azraq irrigation market.

Access to Finance

Their payment terms include cash and seasonal payments (20% of the sales only), and they

don’t require collateral. Bad debt is almost 30,000 JDs and they don’t sell irrigation systems

through banks. The company believes that farmers prefer to purchase irrigation systems from

Amman as the price is lower from the source.

A SWOT analysis was conducted for Alzbedi based on the interview that was conducted by

IWMI (Figure 13).


Figure 12: SWOT analysis of Alzbedi

4.2.1.2. Farmer Foundation

Background

This is a retailer located in Mafraq. The company was established in 1989 by Mr. Taha Abu

Mousa and currently managed by Mr. Mohammad Saif.



and accessories to farms in Mafraq with areas of 100 dunums. They don’t sell filters or

fertigation systems. The company provides irrigation systems design services rarely, however

they don’t provide other services such as installation of irrigation systems, irrigation problem

solving or after sales services as there is no demand on such services. Their market share is

20% in Mafraq and the average number of customers is 5 per day in the high season.

Advisory Services

The company doesn’t provide irrigation advisory services at farm level, however, they answer

any questions related to irrigation advisory at their shop as they don’t have field staff.

Strengths:

Main retailer in Mafraq


sales and advisory

services if requested


nets


Have business

relationships with

suppliers in Amman

Wide variety of

irrigation parts

Weaknesses:

Not interested in

promoting water

saving technologies

due to their high cost

- Farmers usually ask

for products of lower

prices.

Opportunities:

Willingness to be part of

the project if trained to

convince farmers of the

benefits of water saving

technologies

Threats:



their business

SWOT


Supply Chain

The company obtain irrigation parts from Amman (Adritech, Universal and Alwasael). They

believe the high cost prevents farmers from adopting water saving technologies. Reducing the

cost would enhance the adoption.


The company is willing to collaborate with other suppliers in the market (Mais and INDICO)

and with the WIT project.

Access to Finance

Their payment terms include cash only. Bad debt is almost 100,000 JDs and they don’t sell

irrigation systems through banks. The company believes that farmers prefer to purchase

irrigation systems from Amman as the price is lower from the source.

A SWOT analysis was conducted for the Farmers Foundation based on the interview that was


Figure 13: SWOT analysis of Farmer foundation

Strengths:


sales and advisory

services if requested


nets

Have expertise in

irrigation design

Have established

business relationship

with suppliers in

Amman

Weaknesses:

Inflexible payment

terms

No after sales or

advisory services

Low debt recovery

Opportunities:

Willingness to be part of

the project if trained to



technologies

Threats:



their business

SWOT


4.2.1.3. Alshawabka

Background

This is a retailer located in Mafraq. The company was established in 2014 by a hydrogeologist

called Fayez Alshawabka.


The company is mainly specialized in metal fittings and connections relevant to the pumps,

pumps and water wells maintenance. They sell GR pipes on request and some types of emitters

including viro jet.

Advisory Services

The company doesn’t provide irrigation advisory services. Their work is limited to pumps

trouble shooting and maintenance.

Supply Chain

The company obtain irrigation parts from Amman (Alwasael). They believe the high cost

prevents farmers from adopting water saving technologies. Reducing the cost and providing

access to finance would enhance the adoption.



project through providing samples of water saving technologies in their shop.

Access to Finance

Their payment terms include cash and seasonal payments. Bad debt is almost 15k JDs and they

don’t sell any products through banks.

A SWOT analysis was conducted for Alshawabka based on the interview that was conducted

by IWMI (Figure 15).

Figure 14: SWOT analysis of Alshawabka

Strengths:

Sells pipes and emitters

Weaknesses:

His main market is pumps,

assemblies and wells

maintenance

Opportunities:

Can be part of the

project if trained to



technologies

Threats:



their business

SWOT


4.2.1.4. Alshdefat

This retailer is located in Mafraq. Despite being identified as one of the major retailers in

Mafraq in the findings of farms surveys that was done by ICBA in 2018, this supplier currently

doesn’t sell irrigation parts. He stopped working in irrigation systems one year ago due to low

demand.

4.2.1.5. Zayed Alkhair

This is a retailer located in Mafraq; he doesn’t sell irrigation parts currently due to the low

demand.

4.2.2. Retailers in Azraq

4.2.2.1. Al-aqili:

Background

This is a retailer located in Azraq. The company was established in 1994 by Mr. Abdalla Aqili

who currently manages it.



and accessories to farms in Azraq with areas of 1000 dunums. They also sell filters and simple

fertigation systems. However, these sales decreased by 90% in the last three years. The

company provide other irrigation services such as design and installation of irrigation systems and irrigation problem solving, however, the demand for such services is low. The company

sees that providing the farmer with well-designed irrigation system based on his farm

conditions and water source capacity would limit the need for after sales services. In case of

any after sales problem, the owner usually solves it over phone. The owner couldn’t provide an

estimation of his market share in Azraq, however, he indicated that his sales have decreased by

90% in the last three years.

Advisory Services

The owner provides irrigation advisory services such irrigation scheduling and the farmers who

usually ask for such services. However, this is limited to questions over the phone or in the

shop; such services do not require farm visits. The owner is interested in learning more about

water saving practices at the farm level as the majority of farmers in Mafraq are keen to save

water and energy.

Supply Chain

The owner obtains irrigation system parts from Amman (he prefers lower prices). He is

interested in promoting better quality irrigation fittings, however, the demand in Azraq is on

low price items, and therefore, items with higher prices may not be profitable.



project.


Access to Finance

The payment terms include cash only. Bad debt is almost 50k JDs and the owner doesn’t sell

irrigation systems through banks.

A SWOT analysis was conducted for Aqili based on the interview that was conducted by IWMI

(Figure 16).

Figure 15: SWOT analysis of Aqili

4.2.2.2. Alkarama:

This is a retailer located in Azraq. The owner in the company’s headquarters in Amman was

interviewed. See section 4.1.2. for more details.

5. Summary findings

A total of 17 suppliers and retailers were interviewed in October and November 2019. There

was also additional 5 big suppliers (Mais, INDICO, Rain Bird, Green Tech, Alarabia), however,

these 5 suppliers were interviewed by the Mercy Corps business consultant during the same

period, and therefore, IWMI did not interview them. Collected information was analysed and a

SWOT analysis was conducted for each supplier. The findings of the analysis suggest the

following:

1. The majority of interviewed suppliers have experience in irrigation systems including

manufacturing and sales experience. This excludes a number of suppliers who are not

mainly specialized in irrigation systems, rather other agricultural products such as input

suppliers and agricultural machinery. These suppliers are:

Strengths:

Sells pipes, emitters and

fittings

Well known in Azraq

Provides after sales and

advisory services

Weaknesses:

High price

Opportunities:

Can be part of the project

if trained to convince

farmers of the benefits of

water saving technologies

Threats:



their business

SWOT


Rama: this is a factory specialized in agriculture machinery. As this supplier was

identified by ICBA as a source of irrigation systems in Mafraq. IWMI interviewed

the supplier and he confirmed provides irrigation systems / mainly pipes and

central pivot.

Farmer’s Foundation: this is retailer located in Mafraq. He mainly sells input

suppliers, however, he also sells pipes and emitters, and therefore he was

interviewed by IWMI as he is already based in one of the target areas.

The Agricultural Research Company: this is a supplier located in Amman. He was

identified by one of the interviewed suppliers and he mainly sells input supplies.

This supplier also sells pipes and emitters, therefore, he was interviewed by

IWMI.

Al-jumaira: this is a supplier located in Amman and specialized in landscaping and

input suppliers. This supplier also sells pipes and emitters and he has permanent

irrigation design engineer with 20 years’ experience, therefore he was

interviewed by IWMI.

2. As each supplier was asked to estimate his market share, these estimations may not be

accurate due to potential exaggeration from suppliers’ side. Market share can be better

understood from ICBA’s farmers’ survey report, 2018 as it was estimated based on

interviews with a large sample of farmers.

3. Not all suppliers have experience in “Water Saving Technologies, WDT” such as PC

emitters. However, all of them sell other water saving solutions such as mulch and

shading nets.

4. All suppliers are willing to collaborate with other suppliers in the market.

5. All suppliers provide after sales services if requested by the farmer. However, in the

most of cases this is done verbally over phone.

6. The majority of suppliers believe that there is no demand on advisory services.

However, all of them are willing to provide these services if requested by farmers.

7. There is a common belief that there is no demand on WST due to their high cost.

8. Some suppliers said that if WST will be promoted, there is a need to give farmers free

samples and establish demo sites to test and show the impact of technologies. These

suppliers were defined as suppliers with clear marketing strategy of WST. This group

includes Wasael, Karam, Alshiraa, Aljumaira, Alkurdi, Sikayat Alkhayrat and Arzaq.

9. Some suppliers has working experience with donor funded projects such as Wasael,

Karama, Universal, Shiraa, Sikayat Alkhyrat and Arzaq. One of the suppliers has experience working on international irrigation projects such as Karama.

10. Manufacturers of irrigation pipes and emitters have huge bad debts. These suppliers

currently don’t have good Access to Finance options to avoid creating more bad debts.

Smaller suppliers have more flexible payment terms.

11. As the survey reflects suppliers’ evaluation of their businesses, IWMI will collect

feedback from farmers on each of the suppliers. However, for the final selection of the

suppliers it is recommended that Mercy Corps / AG team hold further discussions with

each of the suppliers for more accurate selection process.

12. There are suppliers who have more potential to provide technical irrigation support and

advisory services such as Sikayat Alkhayrat who has experience in a similar project in

Syria and Aljumaira who has an established irrigation design department.


6. Recommended suppliers

IWMI, in consultation with the AG team, developed a selection criteria to rank the suppliers.

The selection criteria is in line with the project direction and needs. The table below (Table 3)

shows the selection criteria:

Table 3: Suppliers’ selection criteria

Draft suppliers' evaluation matrix Scoring

0=poor/low/not provided

1=Good/normal

2=Excellent

Company background

Experience in irrigation systems

Market share in Jordan

Working experience in WST

Clear marketing strategy of WST

Business collaboration with other local

suppliers

Business collaboration with international

suppliers

Sub total

Sales, after sales and advisory

Advise farmers on best irrigation systems

Able and capable to design different irrigation

systems (they have irrigation engineers or the

use consultant irrigation engineers)

Able to advises Farmers on irrigation filtration

systems based on water quality

After sales services

Able to respond to farmers advisory requests

such as irrigation scheduling

Sub total

IS and A2F

Flexibility in payment terms

Presence of bad debt level

Presence of marketing tools

Sub total

Willingness to partner with WIT

Past experience with development

interventions

Willingness to collaborate with WIT

Farmers feedback (out of 30)

Sub total

GRAND TOTAL

Recommendation (Based on traffic light

system after ranking)


The selection criteria was applied to the suppliers in Amman to recommend the best of them.

For the retailers, the selection was not applied as there is a limited number of retailers in target

area. IWMI recommends to consider all interviewed retailers to ensure WST are available in

target areas. For the selection detailed ranking results see (Table 4).

Below is a list of the interviewed suppliers ranked from the most recommended to the least

recommended based on their score:

1- Alwasael

2- Karama

3- Universal and Arzaq

4- Aljabali and Alshiraa

5- Sikayat Alkhayrat

6- Aljumaira

7- Alkurdi and Mada

8- Agricultural Research Company


Table 4: Suppliers’ selection detailed results

Company background Al-Wasael Al-Jabali Karama Mada Universal Al-shiraa AL-Jumaira Alkur

di

Rama AG research

company

Sikayat

Alkhayrat

Arzaq

Experience in irrigation systems 2 2 2 2 2 2 2 2 1 1 1 1

Market share in Jordan 2 1 2 1 1 1 0 1 0 0 0 1

Working experience in WST 2 1 2 0 1 1 1 0 0 0 1 1

Clear marketing strategy of WST 1 0 1 0 0 1 1 1 0 0 1 1

Business collaboration with other local suppliers 1 1 1 1 1 1 1 0 1 1 1 1

Business collaboration with international

suppliers

1 1 1 0 1 0 1 1 1 0 0 1

Sub total 9 6 9 4 6 6 6 5 3 2 4 6

Sales, after sales and advisory

Advise farmers on best irrigation systems 1 1 1 1 1 1 0 1 0 1 1 1

Able and capable to design different irrigation

systems (they have irrigation engineers or the use

consultant irrigation engineers)

2 1 2 1 2 1 2 1 0 1 1 1

Able to advises Farmers on irrigation filtration

systems based on water quality

1 1 1 1 1 1 1 1 0 1 1 1

After sales services 1 1 1 1 1 1 1 1 1 1 1 1

Able to respond to farmers advisory requests

such as irrigation scheduling

1 1 1 0 0 1 0 0 0 1 1 1

Sub total 6 5 6 4 5 5 4 4 1 5 5 5

IS and A2F

Flexibility in payment terms 0 1 0 1 1 0 0 1 0 1 1 1

Presence of bad debt level 2 0 0 0 0 2 2 1 2 0 0 0

Presence of marketing tools 1 1 1 1 1 1 1 1 1 0 1 1

Sub total 3 2 1 2 2 1 1 1 1 1 2 2

Willingness to partner with WIT

Past experience with development interventions 1 0 2 0 1 1 0 0 0 0 1 1


Willingness to collaborate with WIT 1 1 1 1 1 1 1 1 1 1 1 1

Farmers feedback (out of 30)

Sub total 2 1 3 1 2 2 1 1 1 1 2 2

GRAND TOTAL 20 14 19 11 15 14 12 11 6 9 13 15


7. Recommendations and the way forward

Willingness to partner with the WIT Project

There is good will to collaborate with the WIT Project. The findings of this study indicates that

all interviewed suppliers are willing to collaborate with the WIT Project. However, not all of

them have experience in WST. Furthermore, the vast majority of the suppliers don’t provide

advisory services because farmers do not usually ask for these services. After sales services are

provided based on farmers’ request and usually over the phone, unless otherwise needed.

The need for options to reduce the cost of Water Saving Technologies

One of the findings from the suppliers’ point of view, which is the main barrier for farmers to

adopt WST is the high cost involved. It is therefore important to work on financial solutions to

enhance the adoption of WST. This is an area where Access to Finance to bridge the gap for

increased access to water saving technologies.

Capacity Development opportunities for suppliers

There is a need to train the suppliers on different aspects such as WST marketing,

communication skills, technical training in relation to irrigation systems and irrigation advisory

services. The findings also suggest that the current focus of these suppliers is irrigation systems

sales only, rather than focusing on providing full services to farmers such as the design of

irrigation systems or irrigation advisory services. However, there is a couple of suppliers who

may have more potential to provide designs and irrigation advisory due to their experience in

similar project or because they have full time irrigation engineers.

Suitability Ranking of Suppliers

IWMI has ranked suppliers based on their suitability to partner with the WIT Project. Since the

ranking was based on a very brief survey, we strongly recommend that Mercy Corps further

conducts due diligence process on the highly ranked suppliers. It is essential for the WIT

project to hold more in depth discussions with the suppliers to understand their motives and

potential, and to come up to a mutual agreement on the type of collaboration that is suitable to

the supplier and to the project.

Conclusion

We believe that the highly ranked suppliers have great potential to contribute towards the

success of the WIT Project after due diligence has been conducted. Additional information on

farmer perceptions will also further validate the self-evaluation provided by the interviewed

suppliers and some retailers. Engaging additional agricultural suppliers will enhance both the

success and the sustainability of the WIT Project through a market systems development

approach.

WATER INNOVATION TECHNOLOGIES

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