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After two weeks of news blackout around Syrian government decision to import Lebanese bananas in exchange for its citrus products, (:http://bit.ly/2elJaM6), Agriculture minister, Akram Shehayeb, acknowledged yesterday the decision to trade Lebanese banana in exchange for Syrian citrus fruits, without disclosing further details, while noting that his Lebanese industry counterpart has negotiated with the Syrian authorities the decision which will enter into effect in the few coming hours. Moreover, NBN TV said yesterday that Syria’s deal to open its borders to Lebanese banana for 24 hours comes after efforts by Parliament Speaker, Nabih Berri, with the Syrian Ambassador to Lebanon. Meanwhile, the President of Lebanese Farmers’ Association, Antoine Howayek called off yesterday and until further notice the ‘Banana Farmers Day of Rage’ planned for today, Monday, while the vice chair of the South Farmers Gathering, Rida Fadel, confirmed that the freeze of the protests was only for 48 hours. In related news, Homs Customs Director, Mazen Makhluf, revealed last Saturday that the directorate has one day earlier confiscated a refrigerated truck loaded with nearly 22 tons of bananas smuggled from Lebanon. Makhluf said the truck is the second to be seized in the past 10 days, pointing out to the failure of smugglers’ attempts to obstruct the decision of the Syrian cabinet to import Lebanese bananas in exchange for Syrian citrus. (As Safir, Al Diyar, Al Mustaqbal, The Daily Star, L’Orient Le Jour, November 14, 2016)

 

Pursuant to the government decision on November 6 to compensate for wheat farmers losses, the minister of trade and economy, Alan Hakim, issued last week a directive asking wheat and barley growers to benefit from the support package for the 2017 season and clarifying the required documents to this effect. (for more on the ordinance: http://nna-leb.gov.lb/ar/show-news/253758/ ). On the other hand, Al Akhbar newspaper published a special feature on the local production of honey in line with the agriculture ministry estimates. There are some 6340 beekeepers in Lebanon, the newspaper wrote, who own nearly 274 thousand beehives and produce a maximum of 25% of the local demand (according to the last BLOM Bank monitor). As a result of climate change, honey production has dropped to 1920 tons in 2015 (USD 11 million), prompting Lebanon to import in the first 6 months of 2016 some 232 tons of honey (at USD 1.83 million), Al Akhbar noted. The majority of honey producers in the country are farmers who have no trademarks for their products, except for the leading trademarks, L’atelier du Miel, Mount Lebanon and Kaddum. The newspaper described the competition in the local market as timid for it does not meet domestic demand. Each farmer, the newspaper went on to say, boasts his own clientele, as most of the Lebanese opt to buy honey directly from the farmer, rendering it more expensive than a honey brand. In a similar vein, the Balamand University and the Chamber of Tripoli and North Lebanon organized last Thursday a‘National Olive Day’ in the district of Akkar in cooperation with the ministry of agriculture. Sideline activities included, an exhibition which showcased a variety of olive made products, and a workshop on the sensory evaluation methodology of olive oil and highlights on the principles of conservation agriculture in olive plantations. (L’Orient Le Jour, Al Diyar, Al Akhbar, November 8 and 11, 2016)

 

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Olive production in Hermel declines by 80%, amidst the mushrooming of cooperatives

Long list of agricultural demands awaiting the new cabinet

Minister of Industry calls on the new cabinet to support olive production, agriculture and industry generally

 

The labor ministry announced this week that it had received a letter from a leading local textile company notifying it of the decision to foreclose after 40 years in business and to subsequently lay off 42 of its Lebanese employees, and asked to consult with the ministry in this regard. The reasons for the forced closure, according to company owner, Mohamad Sinno, are purely economic, and it started with the outbreak of conflicts in the Arab region and the resulting flooding of the domestic markets with Turkish and Chinese goods. The ministry  mentioned another local company, 106-year old printing press which also asked to consult with it for the dismissal of 13 of its staff for the same reasons. The labor ministry also pointed out to many grievances it received from employees and workers who were arbitrarily laid off from their jobs. For the complete list of companies, kindly visit the following link: http://bit.ly/2g0DHL4. ;

On foreign workers, the ministry disclosed that it is tracking enterprises that recruit foreign laborers, namely Syrians. In this respect, it cited a number of complaints from medical doctors and patients at Bhanis Hospital claiming that the Lebanese dialect is barely being heard on the site as most nursing staff are now Syrians. Moreover, the ministry pointed out that its inspection team has recently seized 33 Syrian nationals working as nurse aides and in other occupations and has taken the appropriate penalties against the violating institutions. The ministry has also suspended the licenses of some 29 agencies recruiting domestic workers for violating rules. (Al Diyar, Al Akhbar, November 5 and 9, 2016)

 

In its edition of today, An Nahar newspaper referred to the failure the long negotiations with the Syria over the entry of Lebanese bananas into Syrian markets, without pointing out to contrary news that originated from Damascus (http://bit.ly/2elJaM6) . As such, agricultural unions, according to the newspaper, are resuming their protests demanding a solution before the month of January, which is the maximum period bananas can hold before going to waste. In this respect, southern banana growers sent an open letter to the president of the republic, house speaker and the director general of Hizbullah to intervene for opening the Syrian markets to their products. In the same vein, the Gathering of Farmers of the South held yesterday a meeting at the banana packaging center in Adloun, Tyre, in preparation for their planned demonstration on Monday, in which they are expected to block the Southern highway at Gaziyeh, in protest over the government’s inexcusable indifference.  Meanwhile, the agriculture minister, Akram Shehayeb, who denies the existence of any crisis, and who believes that the decision to close borders with Syria was in answer to persistent demands by different unions representing Lebanese farmers, as reported Al Akhbar on November 7, is still discussing with the Egyptian Consul in Beirut the possibility of exporting Lebanese apples. The Lebanese Army in the meantime, has begun an assessment survey of apple cultivated farmlands in line with a cabinet decree to compensate apple growers for loss of exports. (Al Mustaqbal, An Nahar, Al Diyar, November 10, 2016)

 

The tourism minister Michel Pharaon lauded the accomplishments of his ministry. Pharaon was speaking on Tuesday during his participation in the conference to promote so-called ‘Phoenicians Road’ held in London on the sideline of the International Tourism and Travel Exhibition. Pharaon stated that his ministry is anticipating much from the said project in both the touristic and cultural arenas. It should be noted, that the Phoenicians Road is a joint venture, launched back in February, 2015, by the Lebanese ministry of tourism and the United Nations World Tourism Organization. The project seeks to highlight designated cultural and archeological landmarks from the ancient Civilization in some 18 Mediterranean countries. In the same vein, the Nature Reserve of Shnaneer inaugurated new walking trails in a ceremony held on Tuesday at Mar Maroon Ruways Monastery. The Reserve committee’s president, Butros Abi Nasr, outlined in his address the objectives of the walking corridors, which are, 1) walking in nature away from pollution, and 2) activating the protocol signed between the Reserve and the Holy Spirit University-Kaslik to carry out scientific, environmental and biodiversity research after the entry to the woodlands of researchers was secured. (Al Mustaqbal, November 9 and 10, 2016 )

 

Nearly one year after the initial launch by the government of feasibility studies involving three new industrial zones in Lebanon, (namely in Baalbak, Turbol and Jaliliyah- Deir Mkhallis), that are part of a joint initiative between the United Nations Industrial Development Organization, UNIDO, and the industry ministry under the theme, ‘Relief of Syrian Refugees’, the industry minister Hussein Hajj Hassan disclosed that some USD 77 million are still needed to start implementation. Hajj Hassan  was speaking during a meeting with donors to finance the infrastructure of the three cities. And while UNIDO resident representative, Cristiano Bassini, said the development of industrial zones is a priority, along with the development of the food industries sector, and that the initiative also supports the competitiveness of small and medium enterprises, and contributes to the rationalization of energy consumption and boosts the livelihoods of the most vulnerable communities affected by the Syrian displacement crisis, Hajj Hassan, for his part, asked, “can we first secure jobs for the Lebanese people before the Syrian refugees as mandated by the international community?” It should be noted, that the estimated cost of the above project is USD 83.5 million; Britain has donated a sum of 500 thousand euros for the studies, in addition to a USD 7 million in soft loan for construction works, which leaves some USD 77 million still needed to begin implementation.

And according to the studies, the 3 projects, are expected to provide around 1925 jobs during the construction phase, and 27,000 thousand after the investment, as per the following:  Baalbak industrial zone 530 jobs during the construction phase, and 4 thousand after the investment,  in Torbol, 845 jobs during construction and 19 thousand after the investment phase, and in Jaliliya-Deir Mkhallis, 550 jobs during construction and about 4 thousand jobs after the investment period. (Al Diyar, Al Mustaqbal, Al Hayat, November 9, 2016)

 

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Foreign funding for Terbol Industrial Zone from relief aid to Syrian refugees!

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In its edition of Saturday, As Safir newspaper reported on a study undertaken by Information International on Lebanon’s summer festivities. The study, which showed a prolific season across the various Lebanese towns and villages with various performances, shows, plays, concerts and art as well as, artisan exhibitions, stressed the popularity of such events which generate an acceptable economic output amidst the significant recession in the country. The above survey, As Safir wrote, classified the festivals into three different categories: local, characterized by a limited audience from the town and its neighbourhood inhabitants; and national festivities, involving national bands and is attended by dozens of spectators from across the country, For its part international festivals (a handful in number), normally host local as well as, Arab and foreign bands and are attended by a larger audience from Lebanon and the world. The study pointed out that in the absence of a central authority and of coordination, administrators of similar events boast their private vision, hence tend to act independently, thus resulting in unnecessary and negative competition, which also leads to the fall in the number of guests, The study referred to several overlapping events in the summer 2016. As for the audience, the study estimated the total number of visitors at 215 thousand guests until the end of August, down by 5 thousand from last year. On financial returns, the study was not able to provide any clear figures however it pointed out that some of the festivals has insisted that they had zero-profit. Others even suffered losses due to the increasing costs, particularly involving the wages of foreign teams, and the considerable associated levies, which forced them to seek high interest bank loans that consumed most of the proceeds. (For more information about the study in Arabic, please check the link:  https://assafir.com/Article/1/516497 )( As Safir, November 5, 2016)

 

A number of news portals reported that the Syrian government agreed on the first of November to allow the import of Lebanese bananas in exchange for citrus fruits. Accordingly, Syria is ready to import one kilogram of Lebanese banana in exchange for five kilograms of Syrian citrus products. The agreement will apply as of the first of this month and until April of next year. On this matter, the president of the Lebanese Farmers Association, Antoine Howayek, reiterated, in an interview with Al Akhbar newspaper yesterday, the direct cause of the banana crisis which is the decision last April by agriculture minister, Akram Shehayeb to ban the entry into Lebanon of all made-in-Syria fruits and vegetables until February 2017. What is surprising though, is that neither the ministry nor any of the local media channels have referred to the recent Syrian decision. Al Akhbar, citing agriculture ministry sources, said that negotiations were underway between the two countries and that the Syrian side was responsive. Howayek also criticized government’s failure to deal with challenges facing agriculture, recalling his prognosis way back in 2007 of a tragic death of the banana sector. His warning, Howayek clarified, came after Syria decided to impose tariffs on all foreign banana imports, with the exception of Lebanese banana, in line with the Arab Free Trade Agreement that gave Lebanon a differential trade margin allowing it to compete in the Syrian market. Today, Howayek went on to say, the country produces nearly 250 thousand tons of banana annually, 60% of which are consumed locally and 40% are intended for export. The Syrian market, however, represented around 90% of the Lebanese banana estimated at 95 thousand tons and that is before the break of the Syria war, Howayek. Thereafter, the Lebanese government has struggled to find new external outlets, but to no avail with only Jordan importing 10 thousand tons per yea, a quantity which clearly does not compensate for the loss of the Syrian market, Howayek concluded. (Al Akbar, Al Diyar, November 7 and 8, 2016)

 

Previous related news: 

President of farmers' association slashes the Chamber of Commerce and demand a solution for the crisis of bananas exports to Syria

Recession in the banana sector following the closure of the Syrian market

Lebanese bananas banned from Syria shedding new lights on marketing difficulties

 

The Bank of Lebanon inaugurated yesterday its third annual international startups business accelerator conference at Forum De Beyrouth (http://bit.ly/2fBnb4U) under the theme ‘innovation: entrepreneurship inside the big companies and entrepreneurships in general’. Some 20 thousand participants from all over the world attended the biggest platform in the Middle East region which will last till November 5. The two leading guests at the conference were: the main speaker, Steve Weznyak , Apple founding partner and Toni Fadel, the Lebanese American inventor, Senior Vice President of the iPod division at Apple and founder of Nest- the hardware firm acquired in billions by Google in 2014.  The director of the Executive Office of the Central Bank (CBL) Governor pointed out in her opening address that the conference comes as part of the implementation of the Bank’s Circular No. 331 aimed at motivating banks on investment in startups. Riad Salameh, the Central Bank Governor for his part, underlined the essential role of knowledge-based economy in the future of Lebanon, stressing that the purpose of guarantees provided by Bank of Lebanon to commercial banks is to create a job generating sector that enhances the effectiveness and competitiveness of the national economy. Salameh revealed that the foreign assets of the Central Bank have achieved a record exceeding USD 40 billion, noting that the formation of a new cabinet will eventually attract foreign contribution and, hence, will reduce the cost of the Syrian refugee presence in the country (estimated at nearly 5% of the GDP). Following the opening session, a panel discussion was held during which Fadel shared his years of experience in startups and in the technology and knowledge sector. Fadel gave attendees tips and instructions about the stages of founding a business. In the same vein, the president of Beirut Merchants Association and chairof the Alumni Association of AUB, Nicola Shammas, commended the Bank of Lebanon Circular 331 which, he said, contributed to capital infusion (up to USD 500 million) in support of emerging companies. (Al Diyar, Al Mustaqbal, As Safir, An Nahar, November 4, 2016)

 

The president of the Lebanese Farmers Association, Antoine Howayek, described as ‘shameless’ the campaign launched last week by the Chamber of Commerce (c.f http://bit.ly/2fBGXNF), maintaining that a lot of problems in agriculture have been instigated by said chamber, its president and affiliated authorities. Howayek condemned the participation of the agriculture minister in the campaign instead of addressing the problem of the export of Lebanese banana to Syria and to deal with the repercussions of his past decision to halt the import of agricultural products from the neighboring country. Howayek revealed that in the past the Chambers and economic blocs have prevented all efforts to set up independent agricultural chambers as well as of a separate agricultural registry, hence depriving farmers from the benefits of health insurance, special electricity tariffs, other benefits and rights Such authorities, he added, also delayed the establishment of the National Bank for Agricultural Development, thus denying farmers access to soft loans to develop their farms, and encouraging the monopoly of big brokers and usurers. Howayek went on to say, that such attitude also prevented farmers from benefiting from a grace period required by the Arab Facilitation Agreement, resulting in the removal of customs taxes on subsidized Arab agricultural imports and prompting a fierce competition to made-in-Lebanon goods. This consequently led to the regression of agricultural seasons and an estimated USD 100 million in annual losses. Howayek further  criticized the coalition of chambers “which while contributing to annihilating the future of farmers and their livelihoods is now pretending to be their ally and advocate.” (Al Diyar, An Nahar, November 4, 2016)