The Modern Flour Mills and
Macaroni Factories Company located in Amman, Jordan, specializes in flour,
pasta, snack foods, and breakfast cereals. Established in 1949, the company
began its operations as a flour mill and sold three products to a limited
clientele within Amman. Today, the company produces 55 products, which reach
consumers domestically and internationally.
Through the years
the company had developed a name for itself in the Middle East, however it was
time to expand sales to other portions of the world. Mr. Tuma Yaghnam,
CEO of the Modern Flour Mills and Macaroni Factories Company, decided to
explore opportunities in the United States. Knowing that the product had to
meet certain specifications and regulations, he sent samples to a personal
contact of his in the United States who forwarded the samples to the United
States Food and Drug Administration (FDA) for testing and approval.
After the company’s
products received FDA approval, the next step for the company was to find a U.S.
company interested in purchasing their products. While in Boston, Massachusetts
for a personal visit, Mr. Yaghnam frequented an Arab grocery store where he
purchased produce and other grocery items. He felt like he was at home since he
recognized most of the products in the store. This sparked an idea in his mind-
his company could export their products to Arab markets in the United States
since Arabs from the Middle East are familiar with the Modern Flour Mills
products. They would want to buy a product from their homeland. Mr. Yaghnam
talked to the owner of the grocery store about this opportunity and the owner
was able to supply Mr. Yaghnam with a list of companies who import ethnic
foods. Using this list, Modern Flour Mills developed a relationship with owners
of Arab markets in United States cities with large Arab populations,
particularly Detroit, Chicago, and Boston. The Modern Flour Mills started
exporting a limited amount of their products to the United States in 1994-5,
totaling $5,000.00. The company is
still using this extensive list to pursue additional sales and plans to submit
their products to FDA in the near future for renewal.
With the signing of the
United States Jordan Free Trade Agreement, the Modern Flour Mills
saw this as an additional opportunity to penetrate the United States market. “I
was aware of the United States Jordan Free Trade Agreement as it was
developing,” stated Mr. Yaghnam. He heard about the potential of an agreement
in the local news and followed its development. In March 2002,
representatives from the Modern Flour Mills and the Jordan United States
Business Partnership (JUSBP) visited the United States in search of exporting
opportunities, to develop ideas to modify their current products, and to explore
potential new products, which may be appealing to United States consumers. The
group met with United States marketing consultants to brainstorm and obtain
potential buyers of their products. The meetings
produced possible bulk purchases and a joint venture with an American
ingredients company. Modern Flour Mills is still developing these leads today.
Modern Flour Mills
desires to operate at its peak potential levels and realizes that this
can only be accomplished through growth. The company envisions growth through
capturing “the element of regional economics.” In order to attain their goal,
the Modern Flour Mills seeks to gain investors from the United States. Mr.
Yaghnam would like to have United States companies use their plant for final
production. “We have the facilities and infrastructure in place. Our company
could be used as a basis for making products for United States companies.” Mr.
Yaghnam clearly envisions his company as being the “arm for United States
producers of similar products in the Middle East.”
The Modern Flour
Mills and Macaroni Factories recognizes that Jordan’s accession to the
World Trade Organization and the United States Jordan Free Trade Agreement will
open “new horizons for Jordanian manufacturers and create excellent
opportunities for well-prepared companies.” Modern Flour Mills is one of these
well-prepared companies and is ready to pursue all avenues to success.
Modern Flour Mills
and Macaroni Factories-a steadfast establishment and an ideal partner in the
Middle East.