This study investigates the rationale behind the 2007 removal of the fodder subsidy in Jordan and the effects this had on livestock owners in the Northern Badia. Furthermore, it examines possible solutions for improving the efficiency of the sector as well as its sustainability. The government’s decision to lift the subsidy was due to the pressure of rising world cereal prices on the national budget deficit. Owners in the Northern Badia as a result had to sell off around half of their flock. Consequently, there has been a rise in disease among livestock as well as higher prices for consumers. The intention of the Jordanian government is to phase out much of the livestock sector and absorb livestock owners into other, more profitable sectors. This intention however, disregards the importance of the sector as it provides employment to the entire family and the necessary household consumption of livestock products for a poor stratum of society. Livestock represent the livelihoods of the Bedouin in the Badia and the nation’s cultural heritage. Moreover, livestock owners lack the skills to transition into other sectors. Therefore, this study examines possible solutions for sustaining the sector. Cooperatives, income diversification, rangeland management, domestic fodder production, human resource development and a reform of the sector’s infrastructure are suggestions put forth with the acknowledgement that future research is still required to understand how this sector can be efficiently developed.
Agricultural and Resource Economics | Public Policy | Social Welfare
Jetter, Christopher, "An Assessment of Subsidy Removal Effects on and Future Sustainability for Livestock Sector of in the Northern Jordanian Badia" (2008). Independent Study Project (ISP) Collection. Paper 7.