AGRICULTURE COOPERATIVES WORKSHOP OF OIC MEMBER

COUNTRIES AND STUDY VISITS IN TURKEY

WHICH IS ORGANIZED UNDER THE PROJECT 2014- TURAGRIC-065

“Establishment of Database, Network Connection and Web pages

of Smallholders/ Family Farmer’s Agricultural Cooperatives between COMCEC

Member States” funded by COMCEC

General Status of Agriculture Sector in Lebanon

Agriculture plays an important role in the national economy It contributes to a small but stable part of the economy Agriculture represents 4 percent of Lebanon’s Gross

Domestic Product (2011) It accounts for less than 1 percent of total government

spending It employs 6 percent of the labor force (2009) Agriculture contributes up to 25 percent of the labor force

in some rural areas accounting for more than 80 percent of their local GDP

Through its three interrelated dimensions (economic, social and environmental), the agricultural sector plays a vital role in the management of natural resources and contributes to sustainable development

Ministry of Agriculture Strategic Plan 2015-2019

The Ministry of Agriculture (MoA) launched its Strategic Plan for the years 2015-2019. The strategy defines eight courses of action:

Improve food safety and quality of locally produced and imported products

Increase productivity and competitiveness of the Lebanese agricultural products

Improve the good governance and sustainable use of natural resources

Strengthening agricultural extension and education Strengthening agricultural research and laboratories Development of the cooperative sector and mutual funds Development of the Ministry of Agriculture capacities Responding to climate change impacts

Utilized Agricultural Area

The total agriculture land area is estimated at 332 000 hectares (based on Agricultural Census of 2010/11)

The total cultivated area is of 231 000 hectares (almost half 113 000 ha are irrigated), with an average land holding size of 1.36 ha (1.23 ha for irrigated holdings)

Land use in Lebanon has gradually shifted from production systems based on cereals towards high value-added crops (mainly fruits and vegetables)

General profile of agriculture producers

The number of agricultural holders reached a total of 170 000 with an average age of 52 years old (based on the Agricultural Census of 2010/11). About 50 percent of the holders rely on agriculture as their primary source of income

The total number of holdings with livestock (cattle, sheep, goats) reached 15 800 holders representing 9 percent of the total holders

Agricultural labor in Lebanon (based on Agricultural Census 2010/11)

Number of farmers (holders) 169 512 (8.6% females)

Average age of farmers 52 years (55 for females)

Number of permanent family agricultural labor

165 600

Number of seasonal family agricultural labor

239 000

Number of hired permanent agricultural labor

51 050

Major Agri-food products produced

Cereals cover more than 44 percent of the total area under temporary crops (of which two-thirds are cultivated with wheat and 25 percent barley)

Area under vegetable production accounts for 36 percent of the total area under temporary crops;

42 percent for leafy vegetables and other vegetables

40 percent tuber crops (with more than 70 percent of the tuber crops cultivated with potatoes)

9.5 percent for industrial crops

Area under greenhouses and permanent crops

Area under greenhouses extends over a total of 3 800 hectares (2 percent of the total cropland area)

It includes modern and traditional greenhouses as well as tunnels

More than 88 percent of the area under greenhouses is cultivated with vegetable production

The total cultivated area under fruit tree production is of 126 thousands hectares:

Olives 43% Stone fruits 17% Pome fruits 11% Citrus and Grapes 8% each

Agricultural holdings with livestock

The total number of cattle reached 68 568 distributed over a total of 10 410 holders with an average of 7 cattle heads per holder

The number of sheep and goats is estimated at 669 206 of which around 288 462 are raised in mixed sheep and goat flocks (146 079 sheep and 142 383 goats)

The number of holdings with sheep and goats reached 2 170 holders

Major Agri-food products)imported and exported)

 

Lebanon is a major food importer with local production satisfying only 20 percent of local consumption. In 2014, Lebanon total agricultural and food imports amounted to USD 3 600 million (18 percent of total imports)

Agricultural and food exports were valued at USD 780 million (24 percent of total exports) in the same year

Main exported agri-food products include fruits (apples, banana, grapes, cherries, citrus…) and vegetables and tubers (potato, tomato…). Exports of processed food products contribute up to 60 percent of the total agri-food exports

Main imported food products include cereals (mainly wheat), dairy products, vegetable oils, fruits and vegetables, meat and sugar

Status of Agriculture Cooperatives

In Lebanon, cooperatives in general and agriculture and food processing in particular, play an important but limited role in the development of the local economy compared to other countries.

Cooperatives in Lebanon differ in their level of activity and success, some are very distinct and active leader cooperatives contributing effectively to the country's economic development while others declined.

The reason behind the partial decline of the cooperative sector in Lebanon is due to several factors.

Weakness of the Cooperative Sector in Lebanon

Problems associated with the agricultural cooperative sector include: The general economic situation, which affects the

purchasing power of the individual and drives him/her to buy the low-priced item, and not the best or intended.

The high cost of production due to high price of raw material and labor.

The failure of having a competitive advantage in price and quality of the products resulting from consumer diversion to the East Asian markets.

Lack of a clear and effective national marketing plan which forced cooperatives to produce on demand or to refer to seasonal production.

Products of the Lebanese Agricultural Cooperatives

Most cooperative association in Lebanon can be considered more or less active and productive, each based on the objectives of its establishment.

Agricultural and food processing produce include fruits (apples , stone fruits, grapes, avocado, kiwi and citric fruits) and vegetables (organic farming, legumes, olives and potatoes) or animal products (meat, eggs and honey).

Service, consumer and marketing cooperatives deliver services such as: agricultural extension, technical training, marketing services, irrigation, construction of agricultural roads, and all kinds of services that aim to improve production and reduce the cost of this production on farmers.

Volume of Production of Lebanese Agricultural Cooperatives

Main problems affecting the agricultural cooperative sector include the lack of trust between members and the capacity of the cooperatives to market their crops.

This is caused by the following: Prevailing cultural problems whereby each member considers

his/her product superior in quality. Lack of awareness on the benefits of marketing products

through cooperatives which may lead eventually to opening up new markets and building trust towards specific products.

Mismanagement at the level of the cooperatives, buying products from members at lower prices then selling them at much higher prices locally or in foreign markets.

Limited access to extension services leading to poor quality not fit for export.

Types of Agricultural Cooperatives

At the level of agricultural cooperatives, there are four main types:

Cooperatives operating at full capacity and reaching their targets (10% of total).

Cooperatives trying to operate at full capacity to reach their targets (30%).

Cooperatives partly reaching their targets (20%).

Cooperatives that did not succeed in meeting their targets due to financial or technical problems or conflicts among members leading to dissolution of the cooperatives (40%).

Types of Food-Processing Cooperatives

At the level of agro-processed cooperatives, there are three main types:

1. Cooperatives operating based on market demand (50%) but not at full capacity.

2. Cooperatives operating on a seasonal basis (35%) but not at full capacity.

3. Cooperatives that have a specific line of products (15%) that operate at full capacity.

Cooperatives Operating Based on Market Demand (50%)

These cooperatives cannot operate at full capacity due to the following reasons:

Lack of human and financial resources. Lack of needed equipment. Loss of trust in markets, and no storage

facilities. Weakness in project management as well as

marketing and financial planning.

Cooperatives Operating on a Seasonal Basis (35%)

These cooperatives cannot operate at full capacity due to the following reasons:

Purchasing their raw products at lower prices only during the production season.

Operating with medium-size equipment. Having limited access to markets. Satisfied with slow progress, not willing to take

risks.

Cooperatives With a specific line of production (15%)

These cooperatives operate at full capacity and are characterized by the following: Good marketing and financial plans. Having access to new markets thus able to

export. Enjoying high technical skills leading to better

quality products. Operating with modern equipment. Able to secure the demanded quantities of

production, these cooperatives rely on storage.

Organizational Structure of Agricultural Cooperatives

A cooperative is a non profit organization formed by at least 10 members that agree to work on a common project in order to improve their socio-economic status.

Cooperatives are organized as follows:

A Board of Directors that comprises 3-5 or 7 members elected by the general assembly for a 2-3 year-term. The board of directors conducts the affairs of the cooperative according to the prevailing laws and regulations.

A Supervisory Committee composed of 3 members elected by the general assembly for a 2-3 year-term. Their role is to oversee the functioning of the board of directors and submit regular reports to the general assembly.

The general assembly includes all members of the cooperative. It is the highest authority of the cooperative that manage their affairs.

Conclusion

In Lebanon, the cooperative sector still faces many challenges thus the need for greater support targeting the sector.

The type of assistance required for the development of the cooperative sector may include:

Exchange of experiences and field visits. Funding development projects with special emphasis

on agricultural extension and technical training. Providing direct support to agricultural cooperatives to

help them develop their projects and achieving their objectives.

Thank you

Lebanese Ministry of Agriculture -General Directorate of Agriculture

General Directorate of Cooperatives