University of BalamandFaculty Of SciencesDepartment of Environmental Sciences

Course: Environmental Economics And Development – EVSC 239

“Redefining the True Cost of Pine Nuts in Lebanon” Presented by: Cherine Akkari & Jeanette Al- Chami

Presented to: Dr. Rania Masri

Outline History

Main Objective

Methodology

Expected Results

Conclusion

Documentary

Introduction Pine forests: The 2nd dominant types of forests after oak. Pine forests: 17,200 ha of the surface area of Lebanon. Types on pine forests in Lebanon: • Umbrella (or Stone) Pine- Pinus pinea • Calabrian Pine- Pinus brutia • Aleppo Pine- Pinus halepensis Stone Pine The most dominant species Native to the Mediterranean region (southern Europe), north Africa & the Levant Main countries: Spain, Portugal, Italy, Tunisia & Turkey Brought to Lebanon during the Phoenician time.

Stone Pine Extends from sea level to an altitude of 1,500m Metn, Baabda, Jezzine & north Lebanon (few) Flowers in the late spring Produces hard cones in the summer Produces soft shelled seeds as a result of a single mutation The estimated production of edible pine nuts is 600 tonne

annually, which provides an income of about US$13 million.

Mostly used in food and sweet production

Main Objective

• The main aim of this project is to find out if the price of pine nuts is based on all the costs and benefits and if not, what is the correct price that should be given.

• We will be basing our project on the pine trees in Mount Lebanon, where they present the majority of pine nut production.

Main Objective (Cont…):We had to study:• The environmental costs and benefits that result from this

production. • if these costs are affecting the social, and the economic aspects of

the community, workers, owners, farmers and the government.• What are the actions that the government took and is taking to

help improve this production, taxes, discounts, availability of needed supplies for the production of pine nuts, and has it provided the farmers and continues to provide them with the fertilizers, medication for diseased trees, and damage costs and control of forest fires.

• if the government provides the workers and farmers with the necessary health care and insurance, even if the workers are not Lebanese.

Methodology:• On April 16, we conducted our field visit to Salima, in

Mount Lebanon and we met with the representative of all the pine nut farmers in Lebanon. We asked him all the questions that we needed to get answers on.

• We have visited a pine nut production site in Al- Koura, Beshmezzine. We got some answers from there, but since Pine nut production is most dominate in the Mount Lebanon region we prefer to take our target site there. We also tried to compare the answers that we got from both pine nut owners.

• We combined all the information that we collected from these visits in our expected results.

Methodology (Continued)• We conducted a lot of research to answer the

questions that need research. These questions concerned Governmental aspects, Legislation, Externalities, and the Market price. We were able to get some information on the market price and what it depends on but we also needed to research more about it, so we did. Answers to all of these questions are presented in our expected results.

• After this we still had to do more research on these matters and get answers that are accurate and that are from the Ministry of Agriculture Research Department.

ResultsMatters we wanted to find in our results:• Price of pine nuts, constant, increases and why –

depending on what..• Private/ public land • Workers: wages, health care, life styles, what they

do, how are they paid...• Fertilizers used, natural resource management..• Forest fires, diseases, environmentally friendly ways

of harvesting...

Result (continued): Interview

• He has farmers and workers in the working domain of collecting, separating and producing pine nuts.

• He started the interview by saying that in Lebanon, we have around 526-530owners of pine trees and responsible for the production of pine nuts. He stated that pine Trees are the most preferable types of trees to be found on the Lebanese grounds and that these trees have a lot of advantages concerning health and the climate. These trees are also considered as filters for the air and for nature.

Discussion:• Most production comes from the Mount Lebanon

area, especially from Rass el Metn. Within the Jezzine cluster

• According to the 2010 data by the Ministry of Agriculture, one kilo of pine nuts cost $37 which is equivalent to 52,500 L.L. Today in 2011and according to the Ministry of Agricultures data again, one kilo now costs $43 which is now equivalent to 65, 000 L.L. This shows increase of $6 just in one year. This also depends on the market place. Certain villages that do not produce pine nuts will have to pay more to buy it.

Discussion (Continued):Total Economic Valuation

Use Value

Direct Use Value

Comsumptive Non Consumptive

Indirect Use Value Option Value

Bequest Value

Non-Use Value

Exsistance Value

Externalities:1. Economic Externalities: including market price

approach, human capital approach, orrortunity costs, cost of illness approach, Willingness to pay, Willingness to accept.

2. Social Externalities: Local worker/ Labor, Cultural heritage, Machinery, Acceptance by the local community.

Discussion (Continued):

3. Environmental Externalities:a. Soil Pollution and Water Pollution (fertilizer) (–ve)b. Air pollution (Machinery) (–ve)c. Contribute to GHGs ( –ve)d. Maintaining Conservation and preservation (+ ve)e. Biofuel use (+ ve)

Discussion (Continued):

Discussion (Continued)

• Taking into consideration the labour cost, valuation cost we believe that even though these matters can not be priced, we can still place a certain number to resemble these costs.

• We find that the final price of the pine nuts should be:• $20.3/ton * Numbers of tons of pine nuts * Total

Surface area pine forest + value of externalities (1.25*number of tons)

Conclusion:• The production should be encouraged to maintain the heritage of

Lebanon. • Losing the production from pine nuts will be like losing a part of the

Lebanese cultural heritage, especially for those people who depend on such kind of production for their livelihoods.

• Unfortunately, the production of pine nuts is threatening the livelihoods of the farmers that are engaged in the production of pine nuts.

• This is due to the lack of support from the Lebanese government. • As a solution, the Lebanese government should support the production

of pine nuts through putting incentives, internalizing the externalities into the cost of pine nuts, and putting subsidies to encourage exporting pine nuts through the government. This will enable including such kind of production in the GDP, which will make the Lebanese economy much better and more active.

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Haven: ECONOMIC GROWTH CENTER - YALE UNIVERSITY.• Mr Talih MASRI, M. C. (2005). Wood and non-wood forest product losses after fire events in three typical

Mediterranean Forests- Lebanese Case Study. • N.A. (2005). GLOBAL FOREST RESOURCES, GLOBAL FOREST RESOURCES - LEBANON. Rome: Forestry Department,

Food and Agriculture Organization of the United Nations.• Nakhle, E. M. (July 2010). Lebanon: Real GDP Growth Analysis. Lebanon: IMF Resident Representative Office in

Lebanon.• Natali, S. M. (29 July 2008). Effects of elevated carbon dioxide and nitrogen fertilization on nitrate reductase activity

in sweetgum and loblolly pine trees in two temperate forests. Springer Science.• Nehme, M. E. (June 2010). Pine Nuts Cluster Development Plan . Lebanon: USAID.• Ovando, P. (23 October 2009). Landowner benefits from replacing Eucalyptus stands withStone pine plantations in

Huelva, Spain. Buenos Aires, Argentina: World Forestry Congress.• Pagiola, S. (October 2004). Assessing the Economic Value of Ecosystem Conservation . THE WORLD BANK

ENVIRONMENT DEPARTMENT.• Shimizu, T. (2006). Methodology and case studies on linkages between poverty and forestry. FOOD AND

AGRICULTURE ORGANIZATION OF THE UNITED NATIONS.•

Thank You for u time………