Trust in Yemeni Products, Lost? [Archives:2000/49/Interview]

BY:Abdullah Abdulilah Salam
Factory, product and consumer are the major interrelated pillars in the market. Talking about one of them has to touch on the remainder. The theme of this report is the Yemeni consumer and how confident is he in local products. Queries related to the subject are centered on three axes: what makes Yemeni consumers lose trust in local products, what can be done to restore the lost trust and impact of GATT on Yemens industry.
Mr. Nooridin Thabet, Modern Company for Food Products executive manager, said Yemeni consumer thinks that any foreign product means quality, whereas most of foreign products are probably not having quality. However, the vibrant propaganda and support rendered by countries of those factories have made them win confidence of the Yemeni consumer. Press, radio and television advertisement industry has played the role of counter-propaganda against Yemeni industry in distorting reputation and destroying local products. Specialized exhibitions for local products associated with extensive media campaigns are not organized. I think that the government has a lot to do to support and encourage local products. For example, it can relieve taxes on imported raw materials used in producing local products. The government can make available necessary labs to examine raw materials, and thus make it easier for factories owners instead of sending samples abroad to be examined. Financial as well as moral support should be offered to local products when necessary to help them compete with foreign products and have access to international markets. It has to coordinate with local manufacturers to export their products in accordance with trade exchange agreements, taking into consideration size of Yemens purchases from these countries.
GATT, globalization system, economic and scientific groupings and emergence of giant establishments would make it very hard for our local products compete honorably with these firms. The reasons are mainly that foreign products costs would be cheaper because of their mass production, foreign products are financially and morally supported by their countries to invade external markets and are flooding markets by foreign products with tempting prices to destroy national industries. EU and US apply protectionism system to their products by imposing taxes and customs and limiting quantities allowed to be imported. We have to take into consideration the factor that Yemeni industry is still infantile compared to foreign industries. The state has thus to support and protect our industry and to emphasize that our country should get acceptable shares in trade exchange agreements.
Mr. Abdulrahim Radman, United Dairy and Food Industry Company Ltd GM, says  The main reasons making the Yemeni consumer lose trust in local products are absence of promotion awareness targeting him, extent of Yemeni product importance and its role in supporting Yemens economy. The image is quite opposite with regard to imported goods.
Most of the people are ignorant about the degree the local products are committed to world quality specification. Very many Yemeni factories have been keen on adopting systems aimed at improving quality of their products and are continuously following actual application of quality system and consequently got the world certificate of quality. It should be taken into consideration that obtaining such certificates is not possible without the products being conformity with specifications of ISO 9002 1994.
We assure the Yemeni consumer that local products are not less in quality than imported goods. All media should have a role in regaining the Yemeni citizens confidence in these products. Yemenis are invited to visit local factories to see by themselves how our products are manufactured and the extent of our commitment to world quality conditions.
As for GATTs effects local products, I think that this agreement would have a kind of effect on development and improvement of our national products.
Mr. Shawqi Ahmad Hayel, vice-chairman of Industrial administration in Hayel Saeed Group of companies said Yemeni consumer has not lost trust in Yemeni products. The proof is that Yemeni products are still accepted and desired by consumers. Despite that the mania for foreign goods is prevailing, local products are still widely approved by consumers.
However, smuggling foreign products into the country and opening the local market to foreign products without any rules and regulations will complicate things.
We can encourage local products through maintaining quality by manufacturers. The government has also to exercise restraints against flooding local market with foreign products. The government has to help local products compete with foreign products through effecting cuts in taxes and customs, reducing production cost. By this local products would not only compete with foreign products inside the country but also in international markets. At last, the media has to draw attention of the public to the importance of local products in supporting the economy of the country.
Many countries are competing to join WTO. Joining WTO has advantages and disadvantages. Of the negative effects are that most of this organization agreements are in favor of the rich countries which depend on strong economies with big capitals. These countries monopolize international production, possess modern technology and a strong data base of information not available to most of developing countries, leading to widening the gulf between the North and the South.
Of the advantages is that this organization agreements provide some privileges to the least developed countries and encourage them to re-consider their economic and administrative policies to match those of the WTO. Therefore, we should be very committed and careful when dealing with agreements concluded with WTO which can never be achieved unless the government pulls together with all sectors inside the country.
Abduh Mohammed al-Jaradi, manager of Bajel Complex for Food Industries said The Yemeni consumer has lost faith in some local products, especially when he finds that some similar foreign products are far better and cheaper. This is attributed to various reasons, one is absence of standard specifications defining the product quality in Yemen. Beside that is the absence of laws and legislations protecting such standards and deterring those who violate them. Moreover, the absence of government monitoring on factories and labs makes them work in the way they like.
Of the most crucial elements to restore trust in local products is to pass regulations and rules specifying producing and marketing any local product. That can be obtained through drawing up quality specifications of each local product supervised by concerned institutions such as universities, Consumer protection Society, Yemen Organization for Standardization and specifications, and seeking local and foreign expertise in this regard. Legislations defining these standards have to be enacted. The government can play its role in this field through intensifying monitor on imported raw material and examining them. Foreign products having quality specifications less than the local product must not be allowed in the Yemeni market. Encouraging factories to obtain ISO certificate is another essential factor to help produce a good quality product meeting the needs of consumers.
Mr. Mahdi Amin Sami, Industrial Office GM, Taiz, said Things are not as bad as indicated in the questions. There is a visible increase in Yemeni exports as many national companies obtained ISO. I believe that the Yemeni consumer has not lost trust in local products not necessitating any talk about the reasons.
Regarding the elements that may help spread local products are many. Some of these are the following:
1) Local products should keep maintaining quality specifications, specially at this time of strong competition with other foreign products flooding local markets.
2) Concerned authorities should
fight smuggling as it ruins a fair competition among products.
3) Encourage industries that are distinguished in the country, specially those depending on raw materials.
4) Reduce customs and taxes burdens on local products.
5) National industries should keep abreast of changes taking place in terms of backing up qualifying levels and administrative, technical and marketing skills so as to face challenges posed by the globalization and the open and free market policy.
6) Make available more infrastructure services such as roads, electricity, water and transportation. The industrial area adopted by the Ministry of Industry should have an affective role to play in this regard.
7) Launch national campaigns to develop awareness of consumers to the good level of local products and its privileges revealing the harms of smuggled products.
Regarding the effect of GATT on the Yemeni industry, this is a multi-faceted subject. There are lots of researches, studies and seminars that have dealt with this issue. However, we are still at the beginning and in course of time we will be more certain about the effects as the preparation period lasts from five to ten years, specially in developing countries including Yemen.



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