Aloe Vera Farming
Aloe Vera Farming
Business Model Description
Develop certified quality production system of Aloe Vera farming and processing
Expected Impact
Enhance sustainable agricultural practices and improve small farmers resilience with higher incomes and long-term employment opportunities
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Jordan: Countrywide
Sector Classification
Food and Beverage
Development need
Sustainability Development Report 2019: score of 45.4 on SDG 2 (Zero Hunger), of 92.2 on SDG 7 (Affordable and clean Energy), and of 94.8 on SDG 13 (Climate Action), with 'Challenges remaining' subscores prevalent across indicators (1).
Policy priority
In response to the challenges in the agriculture sector and food security, the government has developed the National Strategy for Agricultural Development 2020 – 2025 in addition to the National Water Strategy in line with the “Jordan 2025” (5).
Gender inequalities and marginalization issues
A small minority of women own agricultural lands in Jordan, most of which does not exceed an area of 2 hectares. Rural families headed by women tend to be among the poorest as they have fewer assets than male-headed families. (5b)
Investment opportunities introduction
The agricultural and agro-processing sector is an important contributor to the Jordanian economy. It produces 15-20% of GDP, accounts for 15.4% of total exports and is the third largest employer of about 15.3% of workforce and 52% of females in rural areas (2), (3).
Key bottlenecks introduction
The agriculture sector is one of the sectors that is vulnerable to several challenges like climate change and need to focus increasingly on water efficiency and climate change resistant plants. It consumes 456 million cubic metres of water per year (4).
Agricultural Products
Pipeline Opportunity
Aloe Vera Farming
Develop certified quality production system of Aloe Vera farming and processing
Business Case
Market Size and Environment
Global imports of 672 M tons of plant’s parts and 786 M tons of juices and vegetable extract in 2018
In 2018, global imports have recorded 672 M tons of plant’s parts and 786 M tons of juices and vegetable extracts. Export of Aloe juices and extracts have been around US$ 3 B (10).
Its cultivation is in demand due to its unending list of medicinal properties (11).
Indicative Return
> 25%
Investors in the sector achieve between 26% and 47% rate of return (7, 8, 9)
Investment Timeframe
Short Term (0–5 years)
Commercial yield is obtained in the second year of planting. The plant can be harvested a minimum four times in a year. The life of an Aloe plant is considered to be 12 years. (13)
Market Risks & Scale Obstacles
Market - Highly Regulated
Business - Supply Chain Constraints
Impact Case
Sustainable Development Need
Agriculture represents 15-20% of GDP and employs 15% of the workforce (52% women in rural areas). It is responsible for the consumption of over 65% of the water of an extremely water poor country and highly exposed to climate change.
Jordan needs water-efficient, climate change-resistant crops. Aloe vera is a drought-resistant, water efficient crop with global market potential. But, current production and processing laxacks size and professional food safety systems.
Expected Development Outcome
Lower agriculture's water consumption by switching to drought-resistant water effective crop and reduce impact of climate change
Improve productivity and yields by improving efficiency with standardized
Gender & Marginalisation
Increase employment opportunities for Jordanian, especially women (6).
Primary SDGs addressed
2.3.1 Volume of production per labour unit by classes of farming/pastoral/forestry enterprise size
2.4.1 Proportion of agricultural area under productive and sustainable agriculture
6.4.1 Change in water-use efficiency over time
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Impact Classification
What
The outcome is likely to be positive, resulting in long-term employment, and income generation for farmers - and processing plants
Who
Increase access of households, small and medium scale farmers and businesses to sustainable and profitable farming opportunities
Risk
While the model is proven, external factors, such as the need for substantial up-front capex, may limit the breadth of impact
Impact Thesis
Enhance sustainable agricultural practices and improve small farmers resilience with higher incomes and long-term employment opportunities
Enabling Environment
Policy Environment
The National Agriculture Strategy 2020 – 2025: emphasized the importance of diversification and investing in new strategic crops
National Climate Change Policy 2013 - 2020 on biodiversity and climate change: increase resilience and investing in drought resistant plants.
Financial Environment
Other incentives: Investment promotion law, 2014: provides incentives on income tax, the net income, all imported fixed assets and spare parts of fixed assets (6, 16)
Regulatory Environment
Legal requirements: Safety certification supported with laboratory tests is required for export purposes.
Compliance with quality and food safety management is required. (14)
Marketplace Participants
Government
Jordanian Exporters & Producers Association (JEPA), Ministry of Agriculture, Ministry of Planning and International Cooperation
Non-Profit
Italian Agency for Development Cooperation, Royal Academy for Nature Conservation
Target Locations
