Syria's agriculture trade
Syria, Economics, 2/4/1999

Although agriculture as a whole has to be considered one of the success stories of Syria's economic development, the considerable progress made in the sector is under constant pressure from the country's population growth.

The production surplus of agricultural produce is affected by climate conditions, the level of prices and local market needs. Most farmers are very eager to improve quality and get better prices. In terms of quality, the bigger size of the fruits is to be considered the main feature.

Moreover, high output has set significant pressures on Syria's agricultural infrastructure. Due to the large volumes involved, storage and milling have presented a particular dilemma. While several new silos have been constructed and part of the harvest been sent to Lebanon for milling, inadequate local facilities continue to undermine the benefits of good harvests.

To address the problem, the government has allowed farmers to sell parts of their production on the free market. Similar constraints have slowed down the ginning of the cotton harvest, which reached record levels in 1997.

While good cereal and cotton harvests have largely been the results of positive weather conditions, the surge fruit and vegetable output in general, and citrus fruit in particular, is a direct outcome of market liberalization.

In view of current excess production, reasonable export potential exists. Self-sufficiency has been maintained in a number of areas, such as most cereals, vegetables and fruits, but other commodities like sugar, rice and maize seed continue to be imported on a large sale.

In terms of foreign trade, agricultural imports are estimated to account for around 17% of Syria's total imports. Agricultural exports have been on the rise for a number of years. Cotton and sheep as well as fruit and vegetables are the main commodities sold abroad. Traditionally, the Gulf and neighboring Lebanon have been the largest markets for Syrian agricultural products.

In the last two years cotton exports have accounted for between 4 and 5 percent of total exports; 5.1% of $990 million US in 1995; 4.2% of $997 million US in 1996.

Italy's textile industry is the largest buyer of local cotton, followed by Taiwan and Turkey. Concerning the agricultural policy pursued in Syria, the government since the early 1960's has continued with an intensive program to reform this sector.

The first step was limiting land property and distributing the confiscated plots to individual farmers. The second step came through establishing farmers' unions and cooperatives, the third step that the state sector was deeply involved in the massive irrigated projects, in the production of cash and industrial crops and in the wholesale and retail of several agricultural produce.

The state is still holding a strict monopoly on tobacco production and processing, potato seed import and collecting, grain and sugar beet collecting and processing while the import of herbicides, seeds, fertilizers is gradually abandoned to private sector.

Sinced 1987 the government has been gradually removing its traditionally strong control over the agricultural production process. Farmers were permitted to import a wide range of agricultural and transport machinery chemicals and seeds.

The government policy towards the agricultural sector during recent years was characterized by the following elements: Maintaining government control by setting prices, providing services, giving subsidies, providing cheap loan and loans in kind, regulating transport within Syria, controlling imports and exports, making specific regulations and excluding the private sector from specific agriculture sectors, the government has established tight control over the sector.

Government influence is seen in subsidizing agricultural inputs and subsequently subsiding essential food commodities. The pricing system in the government controlled part of the agriculture sector, therefore, does not reflect economic reality.

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