The Lebanese agricultural sector has been crippled by the lack of funds available to farmers and the scant attention given to training and education as urbanization increases. Neglect of this sector has proven to be an obstacle to the improvement of the social and economic betterment of many people living below the poverty line. Moreover, liberalization policies that are not backed by training schemes have actually worsened the status of farmers.
Farming in context
In 1995, the agricultural sector contributed to 12.4 percent of Lebanon’s Gross Domestic Product (GDP), which dropped significantly to 5.2 percent by 2008. Being able to claim self-sufficiency only in poultry production, Lebanon depends greatly on foreign aid and exports. It is no coincidence that the highest levels of poverty in Lebanon are in the same areas as those with the highest levels of agricultural production. These areas include North Lebanon, the Bekaa Valley and South Lebanon. Moreover, Lebanon has a high income inequality. Increased agricultural efficiency would enhance equity and minimize income disparities.
This concern needs to be taken into consideration given the efforts the Lebanese government is putting into entering the global economy and liberalizing its trade. Attempts to enter the World Trade Organization (WTO) and several other signed agreements will lead to the removal of trade barriers to imports. Behind this liberalization lays a threat to unsubsidized Lebanese farmers, who will have to carry the burden of low prices in order to compete with the products flowing out of countries where farmers are subsidized. Currency exchange rates represent a further burden. All of this indicates that a significant increase in agricultural productivity is needed; especially since Lebanon imports more agricultural goods than it exports.
Lack of capacity within the Ministry of Agriculture and increased urbanization are also blocking the growth of agricultural production. However, low export rates are mainly attributed to the low quality of products, which does not meet the standards of foreign importing countries. Although Europe is the prime destination for Lebanese exports, the producers are unable to meet the high quality standards European countries set due to high costs of production, inefficient institutional quality control or lack of knowledge and training. Moreover, Lebanon has lagged behind in the realm of technological development due to the various political disturbances and the marginalization of the agricultural sector within the successive governmental economic policies.
It is odd that these setbacks exist as Lebanon has the highest proportion of cultivable land in the Arab world, at almost 25 percent. Mismanagement comprises a great obstacle to growth. Farms tend to be small in size and there is very little attention given to the field. About 66 percent of farmers have second, nonagricultural jobs. Moreover, lack of cooperation and collaboration between farmers reduces efficiency.
Lebanon has high potential in the field of organic farming, however, the same obstacles stand in the way. Essentially, there is lack of knowledge and confusion over the definition of organic food, allowing people to confuse locally produced products with organic ones. Training local farmers to become organic growers will be a great challenge. Hence, it is essential that three aspects of the agricultural field be enhanced in order to improve the sector. These are human capital, information systems and financial support.
Policies to grow the agriculture sector
The Ministry of Agriculture can play a large role in enhancing the productivity, marketability, and efficiency of the agricultural sector in Lebanon. Primarily, it must conduct market-based research to identify the most convenient export countries for Lebanese products. In addition, it must learn the standards and requirements relevant to each country. Accordingly, the farmers must be advised to specialize in the products that have a comparative advantage in the global market place. A shift to value-added products — in addition to sufficient training in the fields of manufacturing, product differentiation, quality control, health and safety — will surely improve the agricultural sector’s overall wellbeing.
Contributed by the Youth Economic Forum
