News updates

As Safir newspaper published yesterday a feature on the Regie Libanaise des Tabacs & Tombacs based on an interview with its director of manufacturing and maintenance, engineer Salah Zeidan, who hailed the national role of the company in motivating and supporting local farmers. Zeidan said the Regie kicked off from Bekfaya and gradually expanded from an agricultural fiefdom controlling up to hundreds of acres to a an equal opportunities distributor growing licenses to farmers who cultivate their own land. At that point, the decision to develop the sector was taken in unison with the construction of the first plant in 1994 in Bekfaya, and then two others, the first in Hadath, built in 1997 and the second in Gazieh, built in 1998 and renovated this year. On the impact of the Regie strategy, Zeidan insisted that it was very successful. He noted that the Regie’s total disbursement to farmers during the last season amounted to some LBP 90 billion that were distributed to some 23-25 thousands household farmers. Production also has risen from 2,000 boxes per month in 1993 to 35 thousands presently. Furthermore, he noted that the yearly operational cycle dropped from 16 to 10 or 11 months, which Zeidan explained, meant less hardship for farmers. He disclosed that with the expansion and of the Hadath factory, the Regie is now transformed into a full-fledged national company, pumping significant amounts of money into public treasury through the Ministry of Finance, with proceeds for the year 2014 reaching LBP 790 billion. (As Safir, 14 August 2015)

The disease that has been ravaging Lebanon’s prickly pears since 7 years and inflicting heavy losses in production (down by 90%) has its grounds. It first flared up in the southern villages close to the borders with Occupied Palestine carried by a virus which crossed from the other side of the wired wall, according to farmers claim. The bug was transmitted by an Israeli settler who used to work at a dyehouse and who has imported a special aid material from Argentina that contained this virus; the latter got out of control and spread in the Galilee region and then deep into the Lebanese borders. The problem was further exacerbated by the government’s total disregard of this agricultural disaster as well as by the snow storm and blizzard that hit the country during the past winter. One farmer, Abu Hassan Kadri complained to As Safir newspaper that prickly pears are headed to extinction as growers of these crops are not ready anymore to risk their resources in this business. Another farmer, Hussam Harfoush, said that his prickly pear orchard in Al Hasbani River basin has miraculously survived the disease after using special pesticides once a week. He went on to say that such a treatment is useful if applied on a national scale and in collaboration with the Ministries of Agriculture and Environment. According to data collected by agricultural cooperatives in the area and as explained by Nuhad Abu Hamdan from the Cooperative for Arid Farming and Seedlings, prickly pear production has witnessed a sharp decline this year. In the past five years, villages in Hasbaya and Arkoub districts produced some 10 thousand tons of prickly pears that were sold in the retail domestic markets at LBP 20-25 thousand per 100 pieces, whereas this year, production will barely reach 600-700 tons. (As Safir, 12 August 2015)

Hardships are continuously quelling Lebanese farmers who are no longer sure how to market their harvests and provide for their subsistence. The summer, with its unprecedented high temperatures, has added to their present troubles, harshly affecting their production, the last of which was the destruction of thousands of birds and chicken. Commenting on the general dire situation after the closure of the Syrian-Jordanian borders, the President of the Maritime Transport Agents in Lebanon, Hassan Jarudi, disclosed to the Al Hayat newspaper that only one large vessel carrying trucks loaded with goods has actually departed from the Tripoli heading to Aqaba Port in Jordan. He noted that this modest achievement came as a result of a private initiative by exporters. Furthermore, Jarudi added that the success of the newly-opened Tripoli sea route depends on the ability of exporters to assemble some 60 to 70 trucks for each two-way trip. The President of the Lebanese Farmers’ Association Antoine Howayek told the newspaper that the sea export traffic is still modest noting that nearly 50% of exports were re-channeled to domestic consumption instead of Arab GCC markets, regrettably thus pushing down prices as well as a the waste of some the extra supply. Similarly, the board director of the development of exports at the Lebanese Industrialists Association, Munir Bisat, revealed to Al Mustaqbal daily that sea export via vessels is still cheaper than land. However, Bisat added that time remains a disadvantage for goods heading by seat towards Jordan and Saudi Arabia by sea compared to the land route. On the other hand, news of potato harvesting in West and Central Bekaa and Rashaya indicates a promising season despite the recent climatic, political and economic unfavorable factors. Potato harvest in the Beqaa fields is in full swing with tens of Syrian farm workers who toil to provide for their daily subsistence under the hot skies. In this respect, Engineer Gilbert Abu Monsef, pointed out that the price of potato in the Gulf markets has improved as a result of the faltering season of European potatoes. He said the potato domestic market is normal and sea export is running smoothly unlike that of other agricultural products. (Al Hayat, Al Mustaqbal, 9 and 10 August 2015)

Al Hayat daily interviewed a number of small farmers of Beqaa, which includes some 250 acres of irrigated land and 150 thousand acres of rain-fed or dry land, in attempt to shed some light on key problems that largely continue to impede the development of the agricultural sector. One of the key problems which most farmers agree on is the monopoly of middlemen who control the domestic marketing and export of agricultural harvests. In this respect, farmer Hassan Haidar refereed to the well-established cartel of traders who buy agricultural products directly from the field at very cheap prices and then transport to wholesale markets where they are sold to distributors at much higher prices when compared to the original prices. Farmers noted that dealers often attribute low prices to poor quality, and falsely claim that imported goods which are dumped into the domestic markets are of a better quality. These farmers refuted the general claim of merchants but did acknowledge some shortcomings in the quality of their products and some weakness in knowledge resulting from inadequate agricultural extension services and the absence of support from public institutions. Al Hayat also pointed out to the drop in the number of Syrian workforce by 50-60% because of the tightened measures recently imposed by the Lebanese government. Furthermore, the newspaper indicated that small farmers will not benefit much from the recent government decision to subsidize maritime exports. Rather, it said, the main challenges for those small farmers is first finding enough labor to help with the harvest and then the setting of favorable price for their products. According to the latest comprehensive agricultural survey conducted back in 2010, Al Hayat noted that 75% of land-owning farmers do not benefit from any kind of social security. Over and above, farmers are constantly and desperately trying to develop their enterprise through using the latest technologies. For that they are heavily depended on funding from commercial banks. This has generated an additional problem, which is their inability to repay their debts. (Al Hayat, 6 August 2015)

The President of the Chamber of Commerce, Agriculture and Industry in the North, Tawfik Dabbussi, personally supervised the departure of trucks loaded with goods via huge vessels from the Port of Tripoli in the north. Commenting on this issue, Dabbussi told Al Diyar newspaper that the private sector has proven once more that it is still the catalyst of economic activities in the country despite the paralysis of government institutions. Asked about the cost of maritime transport, he confirmed that it is bound to increase adding that the cabinet has approved financial subsidies to cover the additional cost. He disclosed that the first vessel will leave the Port of Tripoli today and will head towards Aqaba (Jordan) and Adana (Turkey), pointing that the Tripoli port is well-equipped to become a key passage for exports. For his part, the vessel contractor, Mohamad Yussef, told the newspaper that one vessel can carry up to 64 trucks with their drivers. (Al Diyar, 6 August 2015)

The Rene Moawwad Foundation (RMF) launched last Monday its initiative entitled ‘Towards Sustainable Energy Consumption in Select Local Communities of Northern Lebanon’. The EU-funded project targets the towns of Ardeh, Harf Ardeh, Beit Awkar and Beit Obeid in Zgharta and aims at promoting awareness on optimizing the use of energy. Ardeh mayor George Naoum stressed in his opening words his municipality’s technical and human capacity support of the project in the following aspects: retrofit 800 street lights with energy-efficient  ‘LED’ bulbs; support the local authority in the solar power lighting of six main areas within the municipality range; select 300 underprivileged households to receive energy packages and supervise the installation of hot water solar systems; protect houses against bad weather conditions and provide them with LED light bulbs and water efficient systems; and finally help the municipality in designing and constructing an eco-friendly and energy efficient municipality house. In this respect, RMF CEO, Michel Moawwad, criticized centralization in the administration of people’s affairs stating that it has proved futile, especially in Lebanon. He pointed to the living example of the current waste management crisis. This, he said, is another indication of the need for a full-scale decentralized system that gives local authorities wider powers, while encouraging transparency and accountability as well as promoting real development in all parts of Lebanon. (Al Mustaqbal, 4 August 2015)

The Ministry of Economy and Trade said in a statement that the start of the collection of the wheat harvest, at the set prices, and the settlement of payments to farmers, depend on decisions made on the decisions to be made by Cabinet’s and based on the Ministry’s proposal. The statement was issued after farmers’ protests that were echoed by various media channels highlighting their demand for speeding the process. The Ministry said it has forwarded the matter to the Council of Ministers’ Presidency early last February ahead of the normal time schedule followed in the previous years. The ministry confirmed it will start implementing the decision of the cabinet as soon as it is passed. (As Safir, August 4, 2015)

Apparently, plans to support the export of agricultural and industrial products by sea planned for August 1st is faltering, preventing the sea exporting of nearly 150 thousand tons of goods and putting at risk the entire agricultural season. The President of the Investment Development Authority of Lebanon (IDAL) Nabil Itani informed Al Mustaqbal newspaper that the recently approved Cabinet decree aiming at supporting exports was not signed yet and hence IDAL cannot kick off work for lack of funds. The Cabinet has earlier agreed to subsidize some provide a financial subsidy of LBP 21 billion to support additional cost of maritime export. Informed sources told the newspaper that decrees to become effective normally require the signatures of the president of the republic, the prime minister and the concerned minister, but in the prevailing situation of presidency vacuum, the PM and the concerned minister need to sign along with 18 other ministers, that constitute two thirds of the council of ministers. Any delay in implementing the above mechanism undoubtedly will have negative impact on the agricultural, Itani explained, pointing that IDAL is presently preparing a study on anticipated losses to the national economy, particularly in the agricultural and industrial sectors, as a result of the delay. He also referred to individual efforts by some large farmers and exporters who are preparing for the transport of their goods by sea through sea containers that are destined to Arab countries. He indicated that the first sea container vessel will leave the Port of Tripoli next Monday. (Al Mustaqbal, 31 July 2015)