Industrial Pilot Plant for North Lebanon

TOKTEN

An Agro-Industrial Pilot Plant for North Lebanon

By Souraya El Yaman, PhD

April 15, 2009


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CONTENTS

Page

1. INTRODUCTION ............................................................................................... 4

2. A MAPPING OF AGROINDUSTRIAL PRODUCTION IN LEBANON ............ 6

2.1. TOTAL LEBANON .............................................................................................. 6

2.1.1. Crop Production ....................................................................................... 6

2.1.3. Agro-Industrial Production ..................................................................... 10

2.1.5. Trade in Agro-industrial Products ........................................................... 12

2.1.6. Organic Farming .................................................................................... 15

2.2. GOVERNORATES (MOHAFAZATS) .................................................................... 16

2.2.1. Agricultural Areas .................................................................................. 17

2.2.2. Agricultural Labour Force ...................................................................... 18

2.2.3. Crop Production ..................................................................................... 19

2.3. NORTH LEBANON............................................................................................ 20


2.3.2. Crop Production ..................................................................................... 22

2.4. AKKAR ......................................................................................................... 23


2.4.2. Major Agricultural Produce .................................................................... 25

3. AGRO-INDUSTRIAL LINKS WITH EUROPE ................................................ 25

3.1. LEBANON-EU27 TRADE IN AGRO-INDUSTRIAL PRODUCTS ............................... 25

3.2. PROBLEMS LIMITING EXPORT EXPANSION IN EUROPE ..................................... 28

3.3. AGRO-INDUSTRIAL CONSUMPTION IN EUROPE ................................................. 28

3.4. DEMAND FOR ORGANICS IN EUROPE ................................................................ 30


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4. MARKET ACCESS TO EUROPE .................................................................... 32

4.1. PRESERVING AUTENTICITY.............................................................................. 32

4.2. ENSURING QUALITY AND SAFETY.................................................................... 34

4.3. PACKAIGNG AND LABELLING .......................................................................... 35

5. POTENTIAL AGRO-INDUSRIAL PRODUCTION IN AKKAR ...................... 36

6. THE PILOT PLANT: STRUCTURE & OPERATIONS .................................... 38

7. RECOMMENDATIONS ................................................................................... 40

8. ANNEXE - GLOSSARY OF ACRONYMS AND TERMS ............................... 41

9. BIBLIOGRAPHY .............................................................................................. 46

10. DATA SOURCES ............................................................................................. 48


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1. Introduction Agriculture in Lebanon has long been suffering from structural problems that have affected its productivity, its growth and, as a result, its capacity to generate employment opportunities. Low productivity in the sector is attributed to several factors, mainly the absence of appropriate reforms; the lack of compliance with international safety standards and quality measures; unskilled labour; and inadequate credit supply. Furthermore, increased competition - on both the national and international level - from rival imports on the basis of cost comparative advantage exacerbates the problem and renders the issue of addressing the deficiencies associated with Lebanese agricultural production an absolute priority.

Both Lebanese agricultural and agro-industrial produce is under-represented in European markets which boast more quality-perceptive consumers who value product characteristics such as distinguished taste, authenticity (through the use of traditional processes), organic production, and general presentation. The weak presence of Lebanese agricultural production in European outlets is linked mainly to a competitive disadvantage resulting from shortfalls in land and sea transport facilities as well as failures to meet required quality measures and standards as set out by the European governments.

The Association Agreement (AA) signed between Lebanon and Europe in 2002 places exceptions on the full liberalization process of agricultural products, shielding certain high-value, sensitive products in the EU from external competition. In addition, Europe’s Common Agricultural Policy (CAP) which, despite the recent reforms, still provides direct subsidies to farmers thereby discouraging price competition and hindering the growth of agricultural export markets in Lebanon. Also, agriculture is facing competition from neighbouring countries benefiting from the same trade agreement with the EU, lower production costs, and larger economies of scale.

The latter suggests that agro-industrial production may present itself as a key for the development of the agricultural sector via freer access to markets in the EU and increased returns in the form of higher added value as provided by the processing of raw agricultural inputs. It therefore opens windows of opportunity for local farmers to indirectly meet foreign demand for high-quality Lebanese products made from local agricultural produce in poor rural areas like Akkar in the North of Lebanon.

Akkar is among the poorest districts (Qadaa) of Lebanon: a recent UNDP study1 showed that in 2004, 45%2 of the families in Akkar are deprived and face serious poverty. It is mainly an agricultural district with an estimated rural population of 80%, the highest in Lebanon. There are three principal physiographic zones in Akkar: the plain, the mid-elevation plateau, and the mountains (Al Jourd) which rise to the tallest peak of Lebanon, the Quornet al Sawda. The plain is endowed with rich, fertile soils and generous water

1 “Mapping of Living Conditions in Lebanon between 1995 & 2004”, UNDP, 2007. 2 down from 61% in 1995.


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resources. The coast is characterized by small scale fishing and vegetable production which constitute a major source of income for locals.

Strengthening the export potential of the agro-industrial sector through the establishment of a pilot plant in Lebanon (more specifically, in Akkar) is prone to yield multi-faceted benefits: it will spur growth in rural areas, result in job creation, enhance the productivity of farmers and processing units alike, ensure a yearly sustainable harvest, and yield a horizontal spill-over effect that could span farmers and firms involved in the production of similar or different products across Lebanon. From the creation of wealth emanating from increased Lebanon-EU trade, environmental benefits may follow like an increase in productive efficiency that could translate into a lesser use of natural resources (water, energy,…etc).

As a step in the direction of supporting Lebanon’s trade competitiveness in the agro-industrial sector, this project lays the foundation work for the development of a pilot plant that can promote Lebanese agro-industrial exports in the EU market. The study will provide an analysis of the various steps involved in the set up of the plant. These include 1) a mapping of the general agricultural and agro-industrial potential a) in Lebanon, b) in the six Governorates (Mohafazats), c) in North Lebanon and d) in Akkar ; 2) the identification of a list of valued-added agro-industrial products that could be processed in the plant; 3) an analysis of the general market access requirements governing the entry of foods to the European agro-industrial market; 4) a presentation of the different marketing channels that could promote for high quality Lebanese products complying with internationally recognized safety standards; 5) an illustration of the success story of LEBOLIVE as a case in point of a model product benefiting from acclaimed safety and quality standards; 6) an examination of incentives that could be offered to farmers to induce efficient collaboration and sustainable harvest; and finally 7) a design of the general operational structure of the plant.


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2. A Mapping of Agro-industrial Production in Lebanon

2.2. Total Lebanon

According to the most recent agricultural survey3, the total agricultural land in Lebanon spanned around 277,169 hectares, of which nearly 49 percent is under irrigation. The available agricultural land resources are thus very limited, considering that Lebanon has a population of more than 4.6 million. Agriculture in Lebanon has evolved from traditional less profitable cereals to high-value fruit and vegetable production.

Agriculture has achieved a real annual growth rate of 2.2 percent. This was driven by a healthy rate of export growth (8 percent per annum between 1996 and 2004) and an expansion of the area under irrigation (from 67,000 to 135,000 hectares between 1986 and 2004). The total number of farmers exceeds 200,000, most of whom (approximately 73 percent) have less than 1 hectare but still use 19 percent of the cultivated land. In marginal areas like in the south of Lebanon, Akkar in the North and Baalbeck in the Bekaa, the population relies mainly on agricultural activity. Although the majority of farmers in Lebanon are men, women farmers constitute an average 9 percent of the total farmers. Women are involved mainly in the production of dairy products, food preserves and subsistence farming.

2.2.1. Crop Production

Lebanon’s major crop categories are cereals, pulses, vegetables, industrial crops, fruit trees and olives4. Three types of production account for over 70 percent of the cultivated agricultural area (henceforth referred to as AA). Fruit trees occupy, by far, the largest area, representing 30 percent of the total agricultural land used. These are followed subsequently by cereals (25 percent), olive trees (21 percent) and vegetables (15 percent). The remaining 9 percent of agricultural land is occupied by industrial crops, mainly tobacco (5 percent) and other small crops (4 percent).

3 “Agriculture in Lebanon: 2006 and 2007”, Ministry of Agriculture (MOA), 2008. 4 The Annex to this report exposes a detailed description of each category.


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Figure 1.

Source: MOA

As mentioned above, approximately 49 percent of the agricultural land in Lebanon is under irrigation, and this concerns all crops at variable rates. Irrigation consumes approximately 64 percent of the total water supply and is used mainly to grow high-value crops for the local and export markets.

Table 1 illustrates the dependence of the major crop groups on water supply through irrigation. The most dependent on artificial waters are vegetables with 87 percent of total harvest grown on irrigated lands. The percentage of irrigated land varies between 35 and 69 percent for such enterprises as cereals and pulses (leguminous crops) and industrial crops. Irrigated fruit trees account for 66 percent of their categories. Different irrigation systems are used for various crops, ranging from furrow, sprinkler and pivot to drip irrigation. However, water-use efficiency remains very low. Olives are rainfall dependent occupying only 6% of irrigated lands.

Table 1. Distribution of Irrigated, Rain-fed & Preservation Areas by Crop Type in 2007

(%) Irrigated Rain-fed Preserved

Cereals 45% 55% 0%

Pulses 59% 40% 1%

Vegetables 87% 3% 10%

Industrial Crops 35% 65% 0%

Fruit Trees 69% 31% 0%

Olives 6% 94% 0%

Other trees 13% 87% 0%

Other Crops 72% 20% 8%

TOTAL 49% 49% 2%

Source: MOA


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Figure 2.

Source: MOA

High value crops generally refer to non-staple agricultural crops such as vegetables, fruits, flowers, ornamentals, condiments and spices. Most high value agricultural crops are those known to have a higher net return per hectare of land than staples or other widely grown crops. They therefore generally have a monetary value higher than staple crops (like wheat, rice and barley) in emerging and expanding global markets. High value crops and products present an ideal opportunity for the farmers in the poor rural areas of Lebanon (namely, Akkar) to increase their income by participation in commodity value chains, provided there is effective vertical coordination to ensure that supply is in relative balance with demand.

An important crop production indicator is the yield per hectare of cultivated land. Fruit vegetables boast the highest turnover rate of all harvest, yielding 44 tonnes per cultivated hectare. They are followed by leafy vegetables and tubers with yields in 2007 reaching 29 and 25 tonnes, respectively.

Olive yield is generally low (around 1 tonne per hectare) and this is due to a typical trend in olive farming in Lebanon where a high production year is followed by a low production one. Alternate bearing and production is a common characteristic of non-irrigated olive trees, such as the ones in Lebanon (94% of olive trees are rain fed). This is an inherent character of the Lebanese olive tree that is affected by varying climate conditions. This fluctuation is also due to lack of care given to local orchards, misuse of fertilizers and shortage of proper irrigation. Olive yields vary from one region to another in Lebanon: the yield measured in kilograms per tree stood at 22.8, 14.5, 6.9, 6.3, and 6.3


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in North Lebanon, Mount Lebanon, Bekaa, South Lebanon and Nabatiyeh, respectively. This is associated to different cultural practices and harvesting techniques.

Table 2. Crop Productivity (Yield per Hectare) in 2007

Column1 Production

(Thousand Tonnes) AA

(Thousand Hectares) Yield

(Tonnes per Hectare)

Cereals 392 70 6

Pulses 38 7 5

Vegetables 1301 42 31

Leafy Vegetable 149 5 29

Fruit Vegetable 573 13 44

Tubers 578 23 25

Fruit Trees 980 77 13

Olive 76 59 1

Other Cultures 6 7 1

Source: Ministry of Agriculture

Figure 3.

Source: MOA


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2.2.3. Agro-industrial Production

Table 3. depicts production indicators in the food products and beverages sector by industries classified according to the ISIC system:

Table 3. Indicators for the Agro-Industrial Sector in Lebanon

ISIC Code – Designation Number of Firms

Workers Production

(Thousand USD) Added value

(Thousand USD)

15 - Manufacturing of food products and beverages

4,482 26,389 1,011,313 432,793

1511 - Manufacturing of meat products

38 1,118 53,807 36,823

1512 - of fish products 33 171 6,866 3,836

1513 - of fruits and vegetables products

160 1,226 73,942 19,929

1514 - of oils 307 1,044 20,493 11,745

1521 - of dairy products 117 679 10,387 2,671

1524 - of margarine 5 26 126 97

1526 - of ice creams 58 387 13,551 8,787

1527 - of yogurt 25 221 5,878 1,580

1529 - of other dairy products

12 90 8,424 3,360

1531 - of grain products 182 1,329 184,316 87,140

1533 - of animal feed 3 104 18,813 10,129

1541 - of bakery and pastry products

2,163 9,154 172,438 64,744

1542 - of sugar 34 149 609 147

1543 - of cocoa, chocolate and sweets

1,007 5,581 154,526 57,416

1544 - of pastes 18 82 1,237 314

1549 - of other food products

141 1,704 93,523 37,414

1551 - of spirituous beverages

59 308 6,489 3,627

1552 - of wine and cider 2 88 5,372 3,072

1553 - of alcoholic beverages with malt

3 251 21,747 11,995

1554 - of mineral water and non-alcoholic beverages

115 2,677 158,769 67,967

Source: MOI, Industrial census – 1995


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According to the 1998 industrial census, the food and beverage industries sector represents almost 20 percent of the total industrial units, 25 percent of the added value and 23 percent of the industrial workforce. The agro-food output is estimated at 1 billion USD, generated by a total of 4,500 firms employing a total of 26,000 employees.

Industries of the bakery and pastry products are the most important in number (48%) followed by the chocolate and sweets industries (22%). Firms operating in the alcoholic beverage industry (1%) are few, but given their number they are characterized by significantly high value added.

Figure 4.

Source: MOI, Industrial Census – 1995

Three industries employ more than 60 percent of the workers in the food and beverage industry. These are: the industry for bakery and pastry products (35 percent), the industry for chocolates and sweets (21 percent), the industry for mineral water and non-alcoholic beverages like fruit and vegetable juices (10 percent).


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Figure 5.

Source: CCIABML - MOI, Industrial Census – 1995

2.1.5. Trade in Agro-industrial Products

Lebanon experienced a rising trend in the value of both exports and imports of agro-industrial products. Over the 1999-2007 period, the value of total exports grew at an average rate of 15 percent. The average growth rate of import values, over the same period, was less pronounced reaching only 7 percent. In 2007, Lebanon witnessed a significant trade expansion as imports and exports of agro-industrial products rose by 39 and 27 percent, respectively.


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Figure 6.

Source: MOA

In 2007, vegetables and food preparations constituted the lion’s share of total Lebanese agro-industrial exports (27%). Beverages, spirits and vinegar products ranked second representing 17 percent of total exports, followed by manufactured tobacco (13%) and preparations of cereals, flour, starch and milk (9 percent).

Figure 7.

Source: UN COMTRADE Database


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The export value of vegetable and food preparations from Lebanon has been on a constant upward trend reaching a peak of 68 million USD in 2007 thereby realizing a fourfold increase from its 1997 value. Exports in products pertaining to the beverages spirits and vinegar agro-industry experienced a similar trend with accelerated growth rates averaging at 21 percent over the 1997-2007 period. Tobacco exports went through significant export fluctuations. These wide annual fluctuations reflect weather impacts on yield as tobacco is an industrial crop that is mainly rainfed like 65 percent of Lebanon’s industrial crops.

Exports in fats and oils have also increased over that period but to a lesser extent accomplishing an average growth rate of 12 percent. Three main agro-industrial products experienced a major drop in 2007. These are products of the milling industry (-78%), vegetable plaiting materials (-93%) and lac, gums and raisins (-50%).

Figure 8.


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2.1.6. Organic Farming

Organic Farming is a holistic farming system that aims at producing food preserving biodiversity, conserving soil life and quality and protecting the environment and human health. Operators adopting this farming system follow its principles described by the International Federation for Organic Agriculture Movement (IFOAM).

More specifically, organic cultivation entails:

- The use of cover crops, green manures, animal manures and crop rotations to fertilize the soil, maximize biological activity and maintain long-term soil health;

- The use of biological control, crop rotations and other techniques to manage weeds, insects and diseases;

- An emphasis on biodiversity of the agricultural system and the surrounding environment;

and

- Using rotational grazing and mixed forage pastures for livestock operations and alternative health care for animal wellbeing.

Agro-industry is a prosperous sector in Lebanon, but most of the raw material is imported. According to a 2001 MOAN study, the main agro-industries that are using local ingredients and that can give a potential organic product are:

- Olive oil: organic oil production is done in the same unit that extracts conventional olive oil. There are 485 units and scattered all over the country (50% in the North), especially in the main producing areas are: Koura, Zgharta, Batrun, Akkar, Hasbaya, Marjayoun, Bent-Jbeil, Tyr, Chouf.

- Wheat: grinding wheat produces Borghul, and drying a mixture of the precedent with yogurt produces Kishk. Both products are homemade or produced by small-scale industries. These industries are mainly found in the Bekaa. It was quoted that only few farmers produce organic Borghul and Kishk.

- Carob Molasses extracted from carob pods in small extraction units are found mainly in Batrun, Jbeil, Metn, Chouf and Tyr areas.

- Grapevine: although vinegar, molasses, arak and wine are produced on small scale, there are 84 factories that produce most of the alcoholic drinks (wine and arak) mainly in the Bekaa valley (Zahle, West Bekaa and Rachaya) and Mount Lebanon (Keserwan and Metn), but no organic products are mentioned. Lebanese wine is famous worldwide and 40% of the production is exported (more than three million bottles). Most of the vineyards producing wine and arak, are grown without using synthesized chemicals or fertilizers.


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- Fruit juices, jams and Syrups, many are produced but very few can be considered organic (e.g. sugar free blackberry jam). Others are produced by using conventional sugar (e.g. mulberry syrup, apple juice, apple, quince jam and apricot jam).

Statistical Data on organic farming in Lebanon is lacking. Also, information on farm price is not available for all organic crops. The MOAN study indicates that there are 17 different organic farms scattered across Lebanon, representing only 1 percent of all farms and occupying a total agricultural surface of 250 hectares.

Table 4. Land Under Organic Management and Number of Organic Farms in Lebanon (2001)

Year Organic Farms % of all Farms Organic Hectares % of Agricultural Area

2001 17 1% 250 3% Source: “ Organic Agriculture in the Mediterranean Area”, MOAN, 2001

Growing such speciality crops as organic crops may assure the survival of small farmers in Akkar who cannot produce the large volumes required by importers. A number of fruits and vegetables have been identified by SRI as high value export crops that could be economically produced without the use of agricultural chemicals taking advantage of this growing niche market.

2.2. Governorates

The most important agricultural zones are located in the Bekaa and North Lebanon Governorates and cover 67% of the total agricultural land. Lebanon could be divided into five major agricultural zones:

- The lowland plains: in the central and southern plains from the South till Jbeil, the main crops are vegetables, citrus, banana trees and greenhouses plantations. On the Northern side, olive is the main crop present in the Koura-Zgharta sector, while in Minieh-Akkar vegetables, cereals, tobacco, potatoes and fruit trees are planted.

- The upland plains: in the dry plains covering the fertile Central and Southern part of Bekaa, the main crops are mainly vines, apples, vegetables, tobacco, cereals and potatoes. The arid upland plains, situated in the Northern Bekaa, are planted with cereals, forages, vegetables and fruit trees mainly apricots.

-The lowland mountains: include mountains below 800 meters from Batroun till Minieh and the Akkar plain in the North, cropped with a variety of fruit trees and vegetables.

- The upland mountains: in the wet part located on the western chain (Mont-Liban) where altitude is above 800 meters, the main crops are vegetables and fruit trees mainly apples. The arid upland mountains, located on the eastern chain (Anti-Liban) are cropped with fruit trees mainly cherries and apricots.

- The dry hills: in the South are planted with olive and tobacco.


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2.2.1. Agricultural Areas

With 39 percent of the nation’s agricultural area, the Bekaa Valley has the largest acreage of agricultural land in Lebanon. The North is second to Bekaa, with 29 percent of the agricultural land, followed by Mount Lebanon, the South and Nabatiyeh with 12, 11 and 9 percent, respectively.

Table 5. Distribution of Irrigated Areas(Hectares) by Governorate in 2007

Governorate Agricultural Area Agricultural Area % of

Total Area Irrigated Area % of Agricultural Area

Mount Lebanon 3,362 12% 49%

North Lebanon 80,519 29% 45%

Bekaa 107,734 39% 66%

South Lebanon 30,472 11% 42%

Nabatiyeh 24,819 9% 2%

Total Lebanon 277,169 100% 49%

Source: MOA

Figure 9.

Source: MOA

Except for the governorate of Nabatiyeh, where the percentage of irrigated land does not exceed 5 percent, irrigated lands in the other Governorates goes over 40 percent (66 percent in Bekaa, 46 percent in South and Mount Lebanon and 45 percent in North).


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Figure 10.

Source: MOA

2.2.2. Agricultural Labour Force

The agriculture and agro-food sectors play an important role in the Lebanese economy (about 12% of GDP), employing not less than 12 % of the total labour force.

31 percent of the total number of farmers in Lebanon operates in North Lebanon. The Bekaa and South Lebanon each attract 29 and 15 percent of the total agricultural labour force, respectively. Women are involved mainly in the production of dairy products, food preserves and subsistence farming.

Income derived from agricultural activity accounts for only 6.3 percent of total income in North Lebanon. According to a CAS survey dated back to 1997, the base salary for workers engaged in agriculture in that Governorate is around $255 USD per month. Farmers work, on average, eight months a year. Small farmers who own their own land earn about $500 USD per month.

Table 6. Distribution of Labour force (aged betw. 15 & 64) Working in Agriculture by Governorate

In 2004 Beirut Mount

Lebanon North

Lebanon Bekaa

South Lebanon

Nabatieh Total

Lebanon

Agriculture 0 8,019 21,248 19,828 10,371 9,869 69,335

As % of total workers in Governorate/Total Lebanon

0 1.7 11.3 17.6 10.5 18.5 6.5

Source: Living Conditions of Households, UNDP, 2006


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Figure 11.

Source: Living Conditions of Households, UNDP, 2006


Cereal cultures are mainly grown found in the Bekaa Valley and occupy 40 percent of the total Agricultural Area (AA) in that Governorate. Cereal cultivation accounts for 25 and 20 percent of The production of pulses (also referred to as legumes) is intensive in both the Bekka and North Lebanon with cultivated areas representing around 3 and 2 percent of the total AA, respectively.

Table 7. AA (Hectares) Used for Major Crops by Governorate in 2007

Crop Type Mount

Lebanon North

Lebanon Bekaa South

Lebanon Nabatiyeh

Cereals 0 16,016 43,173 4,178 6,267

Pulses 423 1,692 3,736 212 987

Vegetables 2,918 13,758 24,182 417 417

Industrial Crops 97 1,932 2,414 1,642 3,573

Fruit Trees 14,640 21,574 26,197 13,098 1,541

Olives 9,962 24,612 2,344 9,962 11,720

Other Trees 5,335 433 793 649 0

Other Crops 250 502 4,895 314 314

Source: MOA


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Figure 12.

Source: MOA

2.3. North Lebanon


Over 60 percent of the cultivated agricultural areas in North Lebanon have a surface area of less than 40 dounoums which are in turn exploited by more than 90 percent of all agricultural holdings.


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Figure 13.

Source: MOA, Agricultural Census, 1999

Figure 14.



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There are four main crops in the Northern Governorate together occupying more than 75% of the cultivated Agricultural Area (AA). Olive production is the most prevalent agricultural activity in North Lebanon covering 30 percent of the cultivation area in that Governorate. Olive varieties include Soury (10% of AA), Baladi (40%), Ayrouni (5%), Chamy (40%) and Samakmaki (5%). Fruit trees, cereals and vegetable are also abundant and occupy 27, 20 and 17 percent of cultivated lands, respectively.

Figure 15.

Source: MOA

Cereals are cultivated over large surface areas in North Lebanon: 18 percent of agricultural lands with areas larger than 500 dounoums are dedicated to the production of cereals, respectively. Fruit trees are often cultivated over surfaces ranging between 1 and 40 dounoums. Vegetables and pulses are mostly grown over smaller lands.

Olive production is distributed more or less equally over AAs of all magnitudes ranging from less than 1 to over 500 dounoums. This is an indicator for the abundance of olive trees in the North, ease of harvest, and the traditional affinity of the local population with the cultivation of olives.


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Figure 16.


2.4. Akkar

Agriculture is the main economic activity in Akkar. A significant part of the local population is directly and indirectly involved in agricultural activities. Some 21.9 percent of the male population and 27.3 percent of the female working force participate in agriculture but despite the fact that most families engage in agricultural activities, these do not represent the primary source of household income: 30 percent of the households listed agriculture as a source of income and 11 percent listed animal husbandry.

Field studies conducted on different regions in Akkar in 2006 show variations in family dependency on agriculture. For example, in Al-Sahl, agriculture accounts for 46.6 percent of family income compared to 28.3 percent in Drayb al-Awsat. The consistent decline in productivity of agriculture has made this activity less lucrative. Farmers thus seek additional employment in other economic sectors in order to support their families.


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Akkar is rich in water resources, having numerous springs and huge underground lakes, such as in Joumeh. Thanks to the abundance of water, an average of 45 percent of all agricultural areas depends on irrigation. Artificial application of water is mostly used for the agricultural areas between 200 and 500 dounoums.

Table 8. Share of Irrigated in Total AA by Size (Dounoum) in Akkar (1999) Dounoums Total AA Irrigated Areas Irrigated/Total AA

no AA 0 0 0%

less than 1 823 429 52%

from 1 to 2 2,665 1,209 45%

from 2 to 5 13,785 5,576 40%

from 5 to 10 31,604 12,489 40%

from 10 to 20 63,284 27,556 44%

from 20 to 40 86,289 38,528 45%

from 40 to 60 45,452 20,033 44%

from 60 to 80 29,166 11,803 40%

from 80 to 100 18,111 8,343 46%

from 100 to 150 25,442 12,129 48%

from 150 to 200 13,119 6,445 49%

from 200 to 500 20,470 12,105 59%

over 500 12,305 6,598 54% Source: MOA, Agricultural Census, 1999

Figure 17.



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2.4.2. Major Agricultural Produce

Official statistics on detailed crop production is lacking. There is also a shortage of detailed official data on the involvement of the local labour force in the different agricultural crop productions. Based on the various studies carried out on this district, the list of major crop productions could is tabulated as follows:

Table 9. Main Agricultural Produce in Akkar

Citrus (oranges, lemons, mandarins and grapefruits)

Olives

Tobacco

Cereals

Vegetables

Source: CCIABML

3. The Agro-industrial Sector in Europe .

3.1. Lebanon-EU27 Trade in Agro-industrial Products

Following from the entry into force of the Association Agreement (AA) with the EU in 2007, no new import duty or tax having an equivalent effect will be introduced in the industrial product exchanges between the EU and Lebanon. The products originating in Lebanon are immediately admitted duty-free. Also, Lebanon was granted a 5-year grace period after which tariff rates start to decrease in a uniform way, and on a gradual basis until they reach 0% by year 2012.

The main agro-industrial products exported to the EU27 in 2008 include preparation of wine of fresh grapes (HS2204) (26%), prepared or preserved fruits and nuts (HS2008) (16%); prepared or preserved vegetables (HS2005) (14%) and mineral waters (HS2202) (10%).

In 2008, imports of HS III products from Lebanon totalled $454,000. Sweden, France and the United Kingdom were the leading importers of Lebanese fats and oils (HS III) in 2008. Together they formed more than 60% of all Lebanese exports to the EU27 in this category. Cyprus and Romania accounted for 13 and 11 percent of exports.


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Figure 18.


HS Code Commodity Description

1509 Olive oil and its fractions, whether or not refined, but not chemically modified 1704 Sugar confectionery (including white chocolate), not containing cocoa 1806 Chocolate and other food preparations containing cocoa

1905 Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products

2001 Vegetables, fruit, nuts and other edible parts of plants, prepared or preserved by vinegar or acetic acid

2005 Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 20.06

2007 Jams, fruit jellies, marmalades, fruit or nut purée and fruit or nut pastes, obtained by cooking, whether or not containing added sugar or other sweetening matter

2008 Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included

2009 Fruit juices (including grape must) and vegetable juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter

2103 Sauces and preparations therefore; mixed condiments and mixed seasonings; mustard flour and meal and prepared mustard

2106 Food preparations not elsewhere specified or included

2202 Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured, and other non-alcoholic beverages, not including fruit or vegetable juices of heading 20.09

2204 Wine of fresh grapes

2208 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 % vol; spirits, liqueurs and other spirituous beverages

2403 Other manufactured tobacco and manufactured tobacco substitutes; ‘homogenised’ or ‘reconstituted’ tobacco; tobacco extracts and essences


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Figure 19.


In 2008, the western European countries represented the major importers of Lebanese prepared foodstuffs, beverages and tobacco (HS16 – HS24): Germany (22%), the United Kingdom (21%), France (20%) and Sweden (12%).

Figure 20.



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3.2. Problems Limiting Export Expansion to Europe

Even though industrial and agro-industrial exports to the EU are not subject to trade barriers (with the exception of some quotas imposed on certain goods like olive oil), they face non-trade barriers impeding their ability to be competitive and in conformity with EU standards. Those non-trade barriers fall under two main categories: standard and quality requirements as well as administrative procedures. These impose substantial barrier to Lebanese exports especially that the Lebanese agro-industrial sector is mainly composed of small and medium enterprises that do not have the capacity to undergo such administrative procedures or react quickly to regular and ad hoc EU guidelines.

In addition to non-trade barriers affecting negatively the industrial sector, trade competition with rival products entering the EU market is forcing major transformation in the industrial structure of Lebanon. Some agro-food sub sectors appear to be uncompetitive in the European market whereas others seem to be able to adapt faster and thus retain and even increase their market share. The agro-food industries are still being able to exploit their comparative advantage and grow in the face of trade liberalization and globalization.

3.3. Agro-industrial Consumption in Europe

Table 10. EU-15 Agro-Industrial Consumption (tonnes)

Item Description

Item FAO Code

1995 1996 1997 1998 1999 2000 2001 2002 2003 % growth 1995-2003

Alcoholic Beverages 2924 43,900,712 43,466,140 44,143,473 43,434,839 43,721,323 43,229,748 42,987,377 42,274,743 42,498,229 -3.2

Beer 2656 29,232,196 28,717,990 29,259,899 28,603,843 28,724,614 28,924,266 28,437,822 27,936,695 27,820,494 -4.8

Vegetable Oils 2914 7,193,453 7,435,716 7,591,659 7,488,398 7,503,565 7,651,458 7,619,016 7,547,695 7,486,015 4.1

Olive Oil 2580 1,456,711 1,466,338 1,528,642 1,568,994 1,585,304 1,629,396 1,659,023 1,649,574 1,680,055 15.3

Sunflowerseed Oil 2573 1,560,977 1,594,968 1,731,734 1,544,534 1,638,600 1,737,049 1,672,957 1,632,101 1,641,476 5.2

Soyabean Oil 2571 1,435,815 1,466,807 1,236,395 1,256,427 1,147,682 1,109,811 1,318,179 1,270,653 1,447,801 0.8

Beverages, Alcoholic 2658 1,234,041 1,255,193 1,373,561 1,361,186 1,427,942 1,420,780 1,433,079 1,452,464 1,413,455 14.5

Beverages, Fermented 2657 861,266 813,331 754,473 681,353 675,065 606,895 615,070 609,140 512,822 -40.5

Coconut Oil 2578 280,919 211,454 284,802 267,495 236,816 147,024 385,235 360,388 380,957 35.6

Maize Germ Oil 2582 227,865 240,026 258,369 269,536 219,392 219,070 200,993 227,926 220,181 -3.4

Groundnut Oil 2572 193,577 181,307 184,906 169,811 169,524 171,134 178,168 186,652 173,404 -10.4

Infant Food 2680 44,107 42,626 46,294 67,964 71,725 78,006 87,576 67,897 76,677 73.8

Palmkernel Oil 2576 63,724 50,899 47,137 21,319 35,313 43,104 48,362 55,400 37,596 -41.0

Cottonseed Oil 2575 34,828 40,446 37,732 42,991 37,129 33,864 33,031 33,620 29,809 -14.4

Sesameseed Oil 2579 13,424 15,652 14,887 15,434 15,612 16,884 19,326 21,246 21,352 59.1

Source: FAOSTAT

3.4. Demand for Organics in Europe

In the EU organic agriculture accounts on average for about 2 % of the value of total agricultural output. The estimated share of organic products in total food sales also amounts to about 2 %. Estimates of the size of the organic food market in Europe in 2003 vary between 10 and 11 billion USD. Most of the sales are in the countries of the European Union (EU), with Switzerland following at a distance with a market estimated at 750 million USD in 2003. Some organic foods are sold in Norway and Iceland, while consumption of organic products has just started in some Eastern European countries (e.g. Hungary, Slovenia and the Czech Republic). However, sales in these markets are almost negligible in comparison with the EU.

The EU market for certified organic fruit and vegetables was estimated at 1.7 billion USD in 2002, accounting for between 15 and 20 percent of total retail sales of organic products. It is a very dynamic market that has enjoyed rapid growth in the late 1990s. Citrus fruit is the most important organic fruit category. Orange comes before banana as the most consumed organic fruit in the EU. No data is available for the sales value of organic fresh citrus. However, it is be estimated that they represent between 5 and 7 percent of fresh organic produce sales, i.e. between 70 and 100 million USD. In terms of volumes, it is estimated that the EU consumed over 130,000 tonnes of certified organic citrus in 2000. This figure does not take into account organic citrus fruit that was not certified, which may represent one third of EU organic citrus output.

Consumption of organic citrus is still low compared to the 6.7 million tonnes of fresh citrus consumed in the EU on average. Some important constraints that need to be addressed are the frequently poor quality and the short shelf life of organic citrus, inadequate packaging, and inefficiency in the marketing chain of organic fresh fruit.

Table 11. EU27 Organic Food Sales in 2003

Member Country Value of Total Organic

Sales (million USD) Share of Organics in Total

Food Sales (%)

UK 1,700 1.8

Germany 3,000 2.0

Italy 1,000 1.3

France 1,250 1.3

Netherlands 450 1.3

Belgium 225 1.3

Austria 350 2.3

Switzerland 750 3.5

Denmark 350 2.5

Sweden 375 1.5

Total Europe 11,000 2.0

Source: European Action Plan for Organic Food and Farming, 2004


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Figure 21.


Figure 22.



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4. Market Access to Europe Standards are of increasing strategic importance in accessing the European market and can make the difference between being able to participate and not being able to participate in it. Since Lebanese agro-industrial producers generally have substantial difficulties adapting to many of the standards, their implementation must be carefully undergone so as to prevent them from becoming a barrier to trade. Standards can pertain to either outcomes or processes:

- the former are the characteristics the product is expected to have when it reaches a certain point in the agro-industrial chain (e.g., the maximum amount of pesticide residue permitted when apples are purchased from a grower by a processor).

- the latter concern any of the processes in the agro-industrial chain (production of the raw product, processing into intermediate or final goods, marketing, etc.). Standards specify the characteristics that the processes are expected to have, in order to produce certain outcomes (e.g., an organically grown apple, HACCP standards for meat that is safe to consume, or ethical standards relevant to the production or sourcing process, such as worker health/safety or environmental contamination).

Standards can pertain to various characteristics of a product: (1) quality (e.g., appearance, cleanliness, taste), (2) safety (e.g., pesticide or artificial hormone residue), and (3) "authenticity" (guarantee of geographical origin or use of a traditional process)

4.1. Preserving Authenticity

Agricultural products typically have qualities that derive from their place of production, are influenced by specific local factors, such as climate and soil and production methods. Whether a sign functions as a GI is a matter of national law and consumer perception.

The Geographical Indication (GI) product is a product bought along with the image of the geographical area: the landscape, the way people talk, dress, and behave. Olive Oil Koura, Olive Oil Akkar, Olive Oil Hasbaya, Olive Oil Zgharta and Olive Oil Tyre are well differentiated. Each has its own geographical characteristic.

GIs play an increasingly important role in a globalized world economy where food markets are more and more internationalized. They offer to producers a useful marketing tool as their products’ obtain market recognition and a higher price. Lack of adequate protection for GIs is not only detrimental to producers as it affects the reputation of their products and may nullify the investments made to build up and maintain this reputation, but also to consumers who are deceived as to the quality standard and the origin that they expect.


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GIs can play a significant role in the rural development of a rural area such as Akkar as they are likely to increase the revenues of farmers and contribute to employment. Further, GIs are also often linked to non-commercial considerations, such as the protection and transfer of particular production knowledge, the protection of the environment and landscapes.

A 2006 IDEAS study compiled a list of products that could be marketed as GIs in the different geographical areas across Lebanon. These are:

Table 12. Preliminary Database of Potential GI Products Product Class District

Olive Oil Koura

Hasbaya

Zgharta

Akkar

Batroun

Bint Jbeil

Marjayoun

Olive Tyr

Sour

Cucumber Kahaleh

Peach Baalbek

Apples Mayrouba

Akoura

Mont Liban

Shouf

Laclouk

Peach (white) Bikfaya (babcop variety)

Water Melon Adloun

Banana Damour

Melon Baraachite

Cherries Fourzol

Kfardebian

Aarsal

Shammouti Orange South Lebanon

Baladi/ Bizri Orange Akkar

Honey from the high mountains

Jabal Cheikh

Kornat Al Sawada

Jabal Sannine

Niha

Chebaa

Honey Iklim Attoufah


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Jezzine

Jbeil

Kesrwan

Cactus ‘Ibba

Figs Kafra

Onion Bekaa

Potato Akkar

Bekaa

Orange Flower Water Saida

Tyre

Jezzine

Kalamoun

Maghdouché

Rose Water Kasr Nebba

Niha

Damas

Medicinal Plants Aarsal

Alcoholic Beverages

Wine Ksara

Kefraya

Fakra

Bekaa Valley

Arak Kefraya

Fakra

Ksara

4.2. Ensuring Quality and Safety

A food safety standard is usually expressed as maximum permissible levels (MPL) of contaminants, whose presence in excess of permissible levels in ingested foods, can lead to sickness or death. Food safety standards protect the health and well-being of consumers of products, deemed to be susceptible to contamination by biological, chemical and physical hazards. These standards also provide evidence that a system exists for the control of the safety of foods sold locally or exported. The sanitary and phitytosanitary (SPS) agreement of the WTO allows countries to set their own standards, but stipulates that regulations must be based on scientific principles, and that the measures should be applied only to the extent necessary to protect human, animal and or plant life or health. National standards stricter than international standards should be scientifically justified. Member countries are encouraged to base their national SPS measures on international standards, guidelines and recommendations where they exist.


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For food safety, the World Trade Organization (WTO) has delegated the development of international SPS standards to the technical organization, the Codex Alimentarius Commission (CAC). Codex is responsible for promoting and protecting the health of consumers, and for fair food trade practices, through the establishment of their food safety standards (Codex standards). The Codex mandate is also to develop these worldwide standards, based on scientific principles, through discussion by member countries. Therefore, as a prospective member of the WTO, Lebanon is expected to harmonise national and regional food safety standards with Codex standards in the import and export of food products, and to adopt the WTO approach to food safety. The national Lebanese institution responsible for setting standards in Lebanon is LIBNOR, which is a full of member of the International Standards Organization (ISO). Hazard Analysis and Critical Control Point (HACCP) has been adopted by Codex as the international food safety standard for the food processing industry. The EU countries require that food processing industries apply HACCP. Exporters to the EU must implement a HACCP plan or system, in order to gain access to this market. The rapid change in food processing and handling technology has given continuous rise to new food safety considerations that Lebanese agro-industrial producers should adhere to. The food processing industry in Lebanon has been slow to adopt the HACCP system, not only due to the costs involved and a shortage of expertise in developing and auditing HACCP plans, but also because adoption is not required by law locally and regionally. Since HACCP standards are developed internationally, they differ from one country to another, ISO 22000 on Food Safety Management Requirements has been developed to harmonize all these individual standards together. If a Lebanese organization operating in the food chain needs to demonstrate its ability of controlling food safety hazards including meeting prerequisite programmes (hygiene and good manufacturing practices – GMP) and HACCP standards, ISO2200 would be the way to go.

4.3. Packaging and Labelling Another important aspect of standardization relates to the information presented to the consumer. In this case it is not the product itself, but rather its description that must conform to a particular standard. A UNIDO study outlined that most of the export constraints faced by Lebanese agro-industrial exporters are related to labelling issues, other issues related to food composition, and type of packaging. Environmental issues are also relevant but not at the same extent. Lebanese traders must comply with extra food labelling systems, health marks and Quantitative Ingredient Declarations (QUIDs), for goods that will be consumed in the European Union (EU).

UNIDO’s MACLE programme was set up to help Lebanese companies with the branding and labelling of their products to comply with the international quality standards. A product of this initiative is a packaging centre, LibanPack, which was founded in November 2008. The main objective of the packaging centre is to increase the


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competitiveness of Lebanese products in export markets through the improvement of packaging, and to ensure conformity with international standards for packaging and labelling.

LibanPack would become a national central point for all economic operators concerned with packaging, including manufacturers, users, converters, suppliers, designers, testing institutions, packaging specialists, providers of training and educational programs and students.

MACLE’s recommendation for ideal olive oil packaging is the use of the bottle that is not fully transparent. Dark glass bottles are preferred, or at least those with blue tinting. Package sophistication is commensurate with the grade of olive oil. Using an expensive bottle to market a medium quality oil is not recommended. Vignette labelling explaining the real quality and origin of the oil is a good way to promote quality awareness.

5. Potential Agro-industrial Production in Akkar

From what has preceded, agriculture in Akkar boasts a great potential, and if given a positive revival shock by setting an agro-industrial pilot plant, large economic as well as social benefits will accrue.

The idea is to start a small-scale production facility that deals with the processing of a pilot agricultural crop in Akkar. Based on the aforementioned statistical analysis and the productive capacity of land in that district, four important dimensions are adopted to identify the targeted agriculture product:

- the intensity and productivity of the crop;

- the potential for organic farming;

- the possible candidacy for GI protection;

and

- the demand-driven absorption capacity of the European market.

Two agricultural products in Akkar meet the above criteria: olives and citrus (notably, oranges). Olives could be processed into a high grade extra virgin olive oil and oranges could be turned into jams, juices, fruit jellies, and marmalades or processed into sophisticated infant food (the organic form of which is under high demand in the EU).

There is an intensive concentration of citrus orchards in the Akkar plains which depend heavily on irrigation water that is naturally facilitated via the abundance of water resources in the Northern district. Fruit trees in Lebanon including citrus boast a relatively high yield standing at 12.7 tonnes per hectare. The Baladi (or Bizri) variety of oranges widely grown in Akkar is veering toward extinction and is a strong candidate for


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GI protection in Lebanon. Also, the oranges of Akkar could constitute a great potential for organic certification as the bulk of organic citrus juice in the world consists of orange juice while juices of other organic citrus products are almost negligible. Lastly, Lebanon’s major exports to the EU27 in agro-industrial products comprise fruit juices (HS2009 - 2%) in addition to jams and fruit jellies (HS2007 – 2%).

EU Imports of orange-based foods and beverages from Lebanon recorded a total value of $16,826 with the major importer being Sweden.

Table 13. Major EU importers of Orange-Based food/Beverages from Lebanon in 2008 Period

Trade Flow Reporter Partner Code Trade Value

2008 Import Sweden Lebanon 200791 8,467


2008 Import Belgium Lebanon 200911 1,199

2008 Import Belgium Lebanon 200791 347

2008 Import Belgium Lebanon 200830 277

2008 Import Denmark Lebanon 200791 70

2009 Import EU27 Lebanon 16,826

Source: COMTRADE

Numerous studies have been conducted on the olive oil sector in Lebanon and its export potential to Europe. Olives in Akkar are indeed on the list of potentially GI protected goods in Lebanon. They are cultivated on vast areas in Akkar but are characterized by low productivity (yield stood at 1.2 tonnes per hectare) as a result of the alternate bearing and production of rain fed trees. Olive tree yields are the highest in North Lebanon (22.8 kg per tree). This is partly due to the good agricultural practices (GAP) applied by some of the most prominent producers of olive oil in Zgharta and Batroun. The productivity of olive trees in Akkar could be enhanced by the use of irrigation systems. In 1998, there were as many as 29,302 olive famers in North Lebanon (GAR, 1999), representing around 51% of total farmers in this Governorate. Furthermore, 50% of the 485 mills found in Lebanon in 2002 were located in North Lebanon. Akkar olive growers could benefit from the success stories of the many extension services and cooperatives that sprang in the neighbouring districts of Zgharta and Batroun5. The increased production of extra virgin olive oil is essential for Lebanese oil to be competitive in the EU market. Exports of olive oil represented 2 percent of the total value of agro-industrial exports to the EU27.

5 The Rene Moawad Foundation was able to introduce high quality Lebanese extra virgin olive oil from Batroun villages in the collection of Oliviers & Co., one of the most prestigious and sophisticated olive oil markets worldwide.


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Table 14. Major EU Virgin Olive Oil Importers from Lebanon in 2008 Period

Trade Flow Reporter Partner

HS Code

Trade Value


2008 Import France Lebanon 150910 89,883

2008 Import Cyprus Lebanon 150910 50,745

2008 Import United Kingdom Lebanon 150910 49,085

2008 Import Germany Lebanon 150910 20,000

2008 Import Romania Lebanon 150910 15,069

2008 Import Belgium Lebanon 150910 10,391

2008 Import Austria Lebanon 150910 649

TOTAL Import EU27 Lebanon 150910 345,433

Source: COMTRADE

Olive oil production seems to contribute more in added value to raw material. Its harvest is less costly (less dependence on water usage) and the processing is easily undertaken. The choice of olive oil in particular was mainly based on the eligibility criteria stated previously in the methodology. Indeed this sector plays a strategic trade role in the Lebanese economy. The olive oil sector has important repercussions in terms of poverty reduction, employment generation, migration, magnitude of trade, and growth potential among other things. Environmentally, the sector’s certain role in defining rural landscapes is met with the challenge of dealing with solid and wastewater generation and disposal.

A big portion of its market is export-oriented and within the export market the EU is a major trading partner. Lebanon can export - duty-free- up to 1,000 tons of extra virgin olive oil and still impose a 70% tariff rate on EU olive oil imports. Total exports to Europe reached $345,433 in 2008 with Sweden being the top importer.

6. The Pilot Plant: Structure and Operations

The envisioned pilot plant has a developmental objective in the form of creating jobs and reducing poverty in the Akkar area through the channel of developing virgin olive oil that competes in the EU market on the basis of quality. This necessitates the adoption of a specific credit structure and production line.

The facility should be equipped with various processing equipment necessary for the entire process of product development: from research, experimentation with recipe formulation, shelf-life, sensory evaluation analysis, quality control & improvements, verification of food safety to testing, packaging and marketing.


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In addition to providing a modern two-phase automatic milling service, the plant should be able to:

- Arrange for the participation of the greatest number of small and medium sized olive farms in the supply of raw harvest.

- Hire experts to offer training and extension workshops on Good Agricultural Practices (GAP) to participating farmers. These should target factors influencing the quality of oil such as organic farming, separation of tree-picked olives from olives gathered from the ground, storage conditions at the olive farm, and the cooperation between the mill and the farmer such that the waiting time at the mill prior to processing is less than 24 hours.

- Apply Good Manufacturing Practices (GMP), local & international standards as well as specifications related to olive oil production (Libnor, EU, Codex Alimentarius).

- Implement management systems (HACCP, ISO 22000, ISO 9001)

- Conform to EU standards in the bottling and labelling process (MACLE, ELCIM).

- Develop marketing channels to Europe through the participation in international fairs and tasting competitions.

The pilot plant should be financed mainly by two major sources: the public issue of stocks and incentive loans from the government extended attached to the condition that procurement of olives is done from local farmers in Akkar.


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7. Recommendations

The pilot plant should achieve the following goals:

• Promoting sustainability at the harvesting level.

• Encouraging local value addition to agricultural primary produce in Akkar.

• Encouraging the branding of Akkar’s olive oil produce in order to market a product that could be perceived as “unique” or “distinct” and better target niche markets in the EU27. These could be attained by encouraging good agricultural and manufacturing practices, applying organic farming methods, and conforming to quality and safety regulations.

• Increasing employment in rural areas and contributing to the reversal of rural-to-urban population flows.


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8. Annex – Glossary of Acronyms and Terms In the context of this report the following abbreviations, acronyms and terms have the meaning indicated.

AA Agricultural Area or Cultivated Agricultural Area. It refers to:

(a) arable land - land under temporary crops (double-cropped areas are counted only once), temporary meadows for mowing or pasture, land under market and kitchen gardens and land temporarily fallow (less than five years).

(b) permanent crops - land cultivated with crops that occupy the land for long periods and need not be replanted after each harvest, such as cocoa, coffee and rubber; this category includes land under flowering shrubs, fruit trees, nut trees and vines, but excludes land under trees grown for wood or timber; and

(c) permanent pastures - land used permanently (five years or more) for herbaceous forage crops, either cultivated or growing wild (wild prairie or grazing land).

Agricultural Holding An economic unit of agricultural production under single management comprising all livestock kept and all land used wholly or partly for agricultural production purposes. Single management may be exercised by an individual or household, jointly by two or more individuals or households, by a clan or tribe, or by a juridical person such as a corporation, cooperative or government agency.

The holding's land may consist of one or more agricultural parcels, located in one or more separate areas or in one or more territorial or administrative divisions, providing the parcels share the same production means utilized by the holding, such as labour, farm buildings, machinery or draught animals. The requirement of sharing the same production means utilized by the holding, such as labour, farm buildings, machinery or draught animals should be fulfilled to a degree to justify the consideration of various parcels as components of one economic unit.


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Agricultural Parcel A portion of real property, including, but not limited to, cropland, grazing land and animal feeding operation (AFO) used by an owner/operator for carrying out a specific agricultural operation. Roads, vehicle or equipment traffic areas, and facilities, on or adjacent to the cropland or AFO are part of the agricultural parcel.

CCIABML The Chamber of Commerce, Industry and Agriculture of Beirut & Mount Lebanon

Cereals Includes wheat (HS10.1), maize (HS 10.05), barley (HS10.03), rice (10.06), rye in the grain (HS 10.02) and others (HS 10.08-10.07).

COICOP Classification of Individual Consumption According to Purpose.

Crop Yield Harvested production per unit of harvested area for crop products.

EU European Union

Fruit Trees - Fruits Includes citrus, apple, stone and tropical fruits in addition to strawberry, carobs and almonds.

Fruit Vegetables Refers to sweet/hot pepper (HS 7.09.60), cucumber (HS 7.07, HS 7.11.40), eggplant (HS 7.09.30), courgettes (HS 7.09.90.20), tomato (HS 7.02), water melon (HS 8.07.11 – HS 8.07.19) and others (HS 7.09.20, HS 7.09.90.90 – HSS 7.10.90 – HS 7.10.90 – HS 7.11.90).

HACCP Hazard Analysis and Critical Control Point. A specific food safety program to identify contamination risks and actions to prevent exposure to such risks.

HICP Harmonized Indices of Consumer Prices (2005=100)

HS The Harmonized Commodity Description and Coding System

HS Section III Products Includes fats and oils (HS 15)

HS Section IV Products Includes prepared foodstuffs, beverages and tobacco (HS16 – HS24).

Label Any written, printed or graphic representation that is present on a product, accompanies the product, or is displayed near the product.


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Leafy Vegetable Refers to lettuce (HS 7.05.19 – HS 7.05.11), cabbage (HS 7.04.90 – HS 7.04.20), spinach (HS 7.09.70 – HS 7.10.30), broccoli (HS 7.04.10), artichokes (7.09.10) and others (HS 7.09.40 – HS 7.09.90 – HS 7.10.80).

MACLE Market Access and Compliance for Lebanese Exports

MOA Ministry of Agriculture

MOAN Mediterranean Organic Agriculture Network

MOI Ministry of Industry

NACE Statistical Classification of Economic Activities in the European Community

Organic Product A product which has been produced, processed, and/or handled in compliance with the IFOAM Basic Standards.

Protected Geographical Indications (PGI)

Indications which identify a good as originating in the territory of a Member or a region or locality in that territory, where a given quality, reputation or other characteristic of the good is essentially attributable to its geographical origin (Article 22.1 of the TRIPS Agreement).

Protected Denominations of Origin (PDO)

Covers agricultural products and foodstuffs closely linked to the geographical area. At least one of the stages of production, processing or preparation takes place in the area

Tubers Includes potatoes (HS 7.01.10 – HS 7.01.90 – HS 7.10.10 – HS 7.14.20), onions (HS 7.03.10.10 – 7.03.10.90 – HS 7.11.10 – HS 7.12.20), garlic (HS 7.06.10), carrots (HS 7.06.10), mushrooms (HS 7.09.51 – HS 7.09.52 – HS 7.12.30) and others (HS 7.06.90.10 – HS 7.06.90 – HS 7.12.90 – HS 7.14.90.90 – HS 7.14.90.10 – HS 7.06.90.90).

Traditional Specialty Guaranteed (TSG)

Highlights traditional character, either in the composition or means of production


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Extra virgin olive oil EC Definition: Superior-category olive oil obtained directly from olives and solely by mechanical means.

Codex Definition: Is the oil obtained from the fruit of the olive tree solely by mechanical or other physical means under conditions, particularly thermal conditions, that do not lead to alterations in the oil, and which have not undergone any treatment other than washing, decanting, centrifuging and filtration.

Composition and quality factor according to Codex: virgin olive oil with a free acidity, expressed as oleic acid, of not more than 0.8 grams per 100 grams and whose other characteristics correspond to those laid down for this category in the CODEX STAN33-1981.

Virgin olive oil EC Definition: Olive oil obtained directly from olives and solely by mechanical means

Codex Definition: Is the oil obtained from the fruit of the olive tree solely by mechanical or other physical means under conditions, particularly thermal conditions, that do not lead to alterations in the oil, and which have not undergone any treatment other than washing, decanting, centrifuging and filtration

Composition and quality factor according to Codex: virgin olive oil with a free acidity, expressed as oleic acid, of not more than 2.0 grams per 100 grams and whose other haracteristics correspond to those laid down for this category and whose other characteristics correspond to those laid down for this category in the CODEX STAN33-1981.

Olive oil oil obtained solely from the fruit of the olive tree (Olea europaea L.), to the exclusionof oils obtained using solvents or re-esterification processes and of any mixture with oils of other kinds.

Composition and quality factor according to Codex: oil consisting of a blend of refined olive oil and virgin olive oils suitable for human consumption. It has a free acidity, expressed as oleic acid, of not more than 1 gram per 100 grams and whose other characteristics correspond to those laid down for this category in the CODEX STAN33-1981.


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Organic Agriculture Organic agriculture is a management system that enhances biodiversity, biological cycles, and soil biological activity to produce healthy plants and animals and foster human and environmental health. The use of synthetic chemicals, genetically modified organisms, and ionizing radiation is prohibited.

Organic Certification Organic certification verifies compliance with the standards of an accredited certification organization. It combines good organic production and handling practices and an audit trail that ensures the integrity of products from the farm to the consumer.

Other Trees Pine nut and brazil nut trees in addition to other nut trees and dates.

Pulses (Legumes) Includes dried kidney beans (HS 7.13.31 – HS7.13.32- HS 7.13.33), dried broad and horse beans (HS 7.13.50), lentils (HS 7.13.40), chickpeas (HS 7.13.20), peas (HS 7.10.21 – HS 7.13.10 – HS 7.08.10), beans (HS 7.08.20 – HS 7.10.22), broad beans (HS 7.08.90.10) and other (HS 7.08.90.90 – HS 7.10.29 – HS 7.13.39 – HS 7.13.90).

SRI Stanford Research Institute

EU European Union (the 27 member-states)

EU-Lebanon Association Agreement

Euro-Mediterranean Agreement establishing an association between the EU and its member-states, of the one part, and the Republic of the Lebanon, of the other part, of 2002.

Industrial Crops Includes tobacco and sugar beat

Irrigated Areas Refers to the areas equipped to provide water to crops. These include areas equipped for full or partial control irrigation, spate irrigation areas, and equipped wetland or inland valley bottoms.

ISIC International Standard Industrial Classification of all Economic Activities

UNDP United Nations Development Program

UNIDO United Nations Industrial Development Organization


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9. Bibliography

Agricultural Production

“Damage and Early Recovery Needs Assessment of Agriculture, Fisheries and Forestry”, FAO, November 2006

Market Access

“Food Quality Issues: understanding HACCP and other quality management techniques”, FAO, 2000

“Understanding Grades and Standards and how to apply them”, FAO, 2000

Organic Foods

“European Action Plan for Organic Food and Farming”, Commission of the European Communities (CEE) - Working Document, 10 June 2004

“Organic Agriculture in the Mediterranean Area”, Mediterranean Organic Agriculture Network (MOAN), 2001.

“The World of Organic Agriculture: Statistics and Prospects - 2003”, International Federation of Organic Agriculture Movements (IFOAM), 2003.

“Market Outlook for Organic Foods in the European Union”, Stanford Research Institute (SRI), 2003.

“World Markets for Citrus and Citrus Juices: Current Market Situation and Medium-term Prospects”, Food and Agriculture Organization (FAO), May 2003.

Organic Agriculture: Sustainability, Markets, and Policies, OECD, Paris, 2003, p. 185–186.

“World Markets for Organic Fruits and Vegetables”, Institute of Food and Agricultural Sciences (IFAS), University of Florida, 2004.

“Report on Organic Agriculture in the Mediterranean Area”, Centre International de Hautes Etudes Agronomiques Méditerranéennes (CIHEAM), Bari, Options Méditerranéennes, Series B: Studies and Research # 40, 2002.

Olive Oil :

“Lebanon: Integrated Assessment of the Association Agreement with the EU: with a focus on the olive oil sector”, UNEP

“Appraisal of the olive oil Market Chain in Lebanon”, SRI, 2004.


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“Marketing Study for olive, olive oil and apple in Lebanon”, MOA and FAO, 2007.

Packaging and Labelling:

“UNIDO MACLE Project: Packaging and Label Assessment of Six Lebanese Food Categories”, UNIDO – MACLE.

“Market Access and Labelling Assessment for Lebanese Products for Export”, UNIDO – MACLE, November 2007.

“Packaging Industry in Lebanon – An Overview”, UNIDO – MACLE, Sept. 2007.

Traditional Lebanese Foods:

“From 'Akkar to 'Amel: Lebanon's Slow Food trail”, Sami Abdul Rahman & Rami Zurayk, Slow Food Beirut, 2008.

“Inventory Products Potentially Eligible for PDOs and PGIs in Lebanon”, MOET, 2007.

“Proposal for the protection of Geographical indication in Lebanon”, IDEAS Centre, Feb. 2005

Other:

“Forgotten Akkar: Socio-Economic Reality of the Akkar Region”, Mada Association, January 2008.


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10. Sources of Data

Organic Products

Organic Certification and Market Development in Lebanon PROJECT IN MOET LibanCert: http://www.libancert.com/ Association of Lebanese Organic Agriculture (ALOA) EC Regulation: http://eurlex.europa.eu/LexUriServ/site/en/oj/2007/l_189/l_18920070720en00010023.pdf Istituto Agronomico Mediterraneo Bari (MAIB): http://www.iamb.it/iamb2005/programmi/home.php?id=51&idarea=6 the International Centre for Advanced Mediterranean Agronomic Studies (CIHEAM): http://www.ciheam.org/ IFOAM: http://www.ifoam.org/

Other Marks:

GLOBALPGAP: http://www.globalgap.org/cms/front_content.php?idcat=2 FairTrade : http://www.fairtrade.org.uk/what_is_fairtrade/fairtrade_certification_and_the_fairtrade_mark/the_fairtrade_mark.aspx

Packaging and Labelling:

MACLE (for labeling and packaging) http://www.unido.org/index.php?id=6383

Research Centres:

Information International: http://www.information-international.com/aboutus.php SRI: http://www.inmadevelopment.org/SRI/about.asp Lebanese Agriculture Research Institute - LARI (MOA): http://www.lari.gov.lb/History-&-Mission.html LCPS : http://www.lcps-lebanon.org/studies.asp

Technical/Financial Support :

Kafalat:


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http://www.kafalat.com.lb/ ELCIM The Investment Development Authority of Lebanon (IDAL)à Export-plus and agro-plus programs

GI: Ministry of Agriculture (MOA): www.agriculture.gov.lb EU Food Quality Website with Access to PGI/PDO/TSG Listings: http://ec.europa.eu/agriculture/quality/

Statistics:

Ministry of Agriculture: http://www.agriculture.gov.lb/english_file/index_stat_e.htm FAOSTAT: http://faostat.fao.org/DesktopModules/Admin/Logon.aspx?tabID=0 Taric Database: http://ec.europa.eu/taxation_customs/dds/tarhome_en.htm World Population Prospects: http://esa.un.org/unpp/index.asp?panel=2 OASIS: http://www.fda.gov/ora/oasis/ora_oasis_ref.html RAMON: http://ec.europa.eu/eurostat/ramon/index.cfm?TargetUrl=DSP_PUB_WELC Organic Farming- Eurostat: http://www.organic-europe.net/europe_eu/statistics-eurostat.asp#tables Business Databank at opportunities.com.lb: http://www.opportunities.com.lb/Lebanon/bhb/default.asp Mapping Living Conditions in Lebanon - UNDP: http://www.undp.org.lb/programme/pro-poor/poverty/povertyinlebanon/molc/main.html UNDP: www.undp.org.lb Agri-View: www.agriview.com/markets/ EUROSTAT: www.ec.europa.eu/eurostat EUROPA - EU Agricultural commodity and food prices http://ec.europa.eu/agriculture/analysis/markets/foodprices/index_en.htm http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1996,45323734&_dad=portal&_schema=PORTAL&screen=welcomeref&open=/prc/prc_hicp&language=en&product=EU_MASTER_prices&root=EU_MASTER_prices&scrollto=94 HMAPS: http://www.lari.gov.lb/LARIStationsDepartments/FanarStation/Fanarlaboratory/MedicinalPlantUnit/tabid/86/Default.aspx


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http://www.undp.org.lb/ProjectFactSheet/projectDetail.cfm?projectId=133 Constraint to Export Expansion in Europe – EUROPA: http://ec.europa.eu/food/resources/publications_en.htm#controls Import Refusal Reports by US FDA – OASIS: http://www.fda.gov/ora/oasis/ora_oasis_ref.html

Industrial Pilot Plant for North Lebanon

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