Other news

A delegation of carpet merchants in Lebanon grieved during a visit yesterday to the labor minister Sajaan Azzi the fierce competition by their Iranian counterparts who have no work permits or legal status, yet are supported by certain local factions. In a statement released yesterday, the ministry disclosed that Iranian carpet dealers have been active in the various Lebanese regions, with special presence in Greater Beirut area. As such, the ministry  has dispatched inspection squads to take the necessary penalty measures against violators. Nevertheless, the statement went on to say, limited sanctions did not deter illegal dealers, hence driving Lebanese carpet shop owners to close their businesses and sack their workers. Moreover, the statement added, a number of Iranian traders tend to operate under sham partnership contracts with Lebanese merchants just to have access to sell their goods, while they avoid recruiting Lebanese workers or allowing their employees to benefit from social security. (Al Akbar, Al Diyar, Al Mustaqbal, November 4, 2016)

 

Al Akhbar daily published a special feature on the subject with focus on olive farmers in Hermel in which it noted that this year’s harvest has recorded a drastic fall by nearly 80% compared to the previous season. Concerned parties attributed the dramatic situation mainly to climate change, in addition to growing smuggling and absence of marketing outlets. Farmers added that despite the ‘quality paradigm shift’ in the area’s olive farming and its manufacture of excellent virgin olive oil, according to French and Italian standards laboratories, the sector has not received proper attention from the government. To this effect, farmer Hussein Shamas told Al Akhbar reporter that the government has failed to secure market outlets for the local production as well to counter smuggling. He also noted that olive cultivation represents a substantial source of livelihood for hundreds of households in the region, while another olive grower, Ahmad Saheli, reported there are some 400 thousand different kinds of olive trees in Hermel alone. Al Akhbar also pointed out that many olive farmers in the area have boycotted the olive festival organized by the municipality in cooperation with Jihad al Binaa Agricultural Association, (c.f http://bit.ly/2eClPBN) and to stay away from useless ‘folkloric festivities’. In this respect, the director of the Regional Cooperative Union for Beqaa, Bassam Nasreddine, revealed that the government’s decision to purchase the olive oil was put into effect only once, in 2012, while reiterating the demand that the decision be systematically implemented. Furthermore, Nasreddine criticized the empty promises of the agriculture minister, which resulted in the creation of four new unproductive agricultural cooperatives, which raised their total number to 210 cooperatives, (80 cooperatives in Hermel only). He concluded by saying: “Instead of supporting active cooperatives, we see the emergence of new and poorly performing cooperatives; not a single market has been secured for our local production despite our repeated pleas to revive the role of the Directorate of Cooperatives whose basic function is external marketing.” (Al Akhbar, November 3, 2016)

 

The Afro- food sector has recorded an annual growth rate of 11% between the years 2012 and 2016, according to the ‘Investment opportunities in the food agricultural sector for 2016’ report published by the Investment Development Authority of Lebanon (IDAL). The report indicated that the sector accommodates the largest share of labor force in the industrial sector estimated at 21 thousand workers. In the details, bakeries make up nearly (23%) of the agri-food products, followed by sweets and confectionary (22%), dairies and cheeses (16%) and carbs (8%). During the past four years, the agri-food sector posted 25% growth rate with proceeds reaching USD 550 million, only last year. Bakeries and patisseries products make up 18% of the exports, followed by dairies, fruits and vegetables, olive oil and lastly, the alcoholic drinks, the report added. Moreover, around 65% of the exports of the sector are destined to Arab countries and 23% to Europe. In conclusion, IDAL pointed out to promising prospects in 5 sub-sectors within the agricultural food industry, and they are: olive oil, dairy products, nuts, dried fruits, in addition to wine and wine made products. The market value of the wine industry, according to IDAL always, stands at nearly USD41 million (covering some 40 wineries), noting that wine exports to Britain account for 32% of the total, France (17%) and USA (14%). (Al Akhbar, November 2, 2016)

 

The minister of industry, Dr. Hussein Hajj Hassan, disclosed that Lebanese exports to the European Union have risen to USD 300 million only (from $ USD 200 million in year 2000, according to the statistics of the ministry of Industry), while EU exports to Lebanon jumped from USD 2 billion to some  USD 5.8 billion during the past 14 years. This, Hajj Hassan concluded, points to a drastic imbalance in trade, as he called for the review of the partnership treaties with the EU in order to lift Lebanese exports. Hajj Hassan was speaking last Thursday during the fifth meeting of the Lebanese-EU sub-committee in charge of follow up of the Lebanese-EU Partnership Agreement, in the presence of Kristina Lassen, the EU ambassador, representatives of concerned Lebanese ministries and delegates of European embassies to Lebanon. During the meeting Hajj Hassan strongly reiterated his request for increased exports to the EU market, while Lassen expressed readiness to step up assistance in this direction, particularly regarding food industry exports. Furthermore, the industry minister criticized during his intervention the high administrative and regulatory barriers set by the EU on the Lebanese goods, especially those pertaining to the proviso of the country of origin, while his economy counterpart, Alan Hakim, described such EU barriers as unjustified, particularly in reference to the standards of packing and packaging. (L’Orient Le Jour, Al Diyar, Al Mustaqbal, October 27, 28, November 1 and 2, 2016)

 

Previous related news:

Hajj Hassan calls for easier EU procedures for Lebanese exports

 

 

With the onset of the Aoun’s new presidency term yesterday, a number of urgent files are in the wait for the new cabinet. The agricultural sector is facing many difficulties and recently has witnessed a significant regression, due to the recession of banana, citrus fruits, olives, potato, grapes, apples, wheat and other seasonal products, that resulted from the closure of land borders, declining exports, and the growing illicit trade across the Syrian border which have prompted farmers to stage sit-ins everywhere in Lebanon to demand protection and compensation. Major demands of the agricultural sector are the following: 

Meanwhile, banana and citrus farmers blocked last Saturday the coastal highway in Qasmieh, in protest against the currently deteriorating situation, in order to deplore the government’s neglect and to demand urgent actions for exporting their produces, bananas in particular. Protesters condemned what they termed as the erroneous restrictive measures decided by, Akram Shehayeb, Minister of Agriculture which provoked the retaliation of Syria who banned the flow of Lebanese exports through its territory. Similarly, the president of the Lebanese Farmers Association, Antoine Howayek, pointed out that the crisis of the citrus fruits sector. Meanwhile, Shehayeb and the president of the Chamber of Beirut and Mount Lebanon, Mohammad Shukeir, launched last Saturday the national campaign in support of Lebanese apples. During the launch event, Shehayeb underline his ministry’s efforts to find new export markets in Russia, Egypt and Arab Gulf countries, adding that the flow of exports has started. He then outlined the work plan of the compensation committees formed by the Army to assess damages which will carry out surveys under the supervision of the agriculture ministry. (Al Diyar, Al Mustaqbal, An Nahar, October 28, 27, 30, 31, 2016)

 

Previous related news: 

Banana, citrus, olive, potato and grapes all in recession after wheat, apple and 3arsal fruits

 

The minister of industry, Hussein Haj Hassan, drew attention to the anguish of olive growers suffering from a slump in their production as a result of increasing smuggling activity and the relinquishment by the government of the productive sectors of agriculture and industry. Haj Hassan was speaking during the olive and olive oil expo organized by Jihad al Binaa Agricultural Center in Hermel, Beqaa last Saturday. He called for the formation of a cabinet that shows genuine support to above sectors through the development of an appropriate recovery plan, which seeks to counter smuggling and foreign competition and find marketing outlets for domestic production. On the other hand, OLEA’s second annual olive oil festival was held in the town of Labaa, Jezzine, the South, on Saturday and Sunday, in support of the Lebanese olive cultivation and to promote rural tourism. The event created an opportunity for local Jezzine farmers to display their fresh produces, which also included traditional village goods, like soap, vinegar, apples, wine and organic products. 

(L’Orient Le Jour, Al Diyar, Octobre 29, 31, 2016)

 

Previous related news: 

Olive growers ride the wave of dissent, threatening to burn imported olive oil

 

The vice president of the Lebanese General Trade Union and head of Union of Tobacco Farmers, Hassan Faqih, announced on Saturday the start of purchase of the tobacco harvest season directly from southern and Beqaa farmers, and later to northern areas. Faqih pointed out that the purchase of last year’s production will kick off on Thursday, November 3, at 11 designated centers in the southern towns of Aita Chaab, Mais al Jabal, Aitroon, Nabatiyeh (2 locations), Srifa-Rmeish, Sidiqeen, Sawaneh and Tibnin, and in the presence of experts from the state-run Regie Libanaise Des Tabacs & Tombacs and representatives of the Syndicate who will facilitate the process. Faqih made clear that the average price of one kilogram stands at LBP 13 thousand, lamenting that this year did not carry new and more acceptable prices, yet, he added, “we are aware of the calamitous conditions of the agriculture sector in general, namely the agriculture of citrus fruits, banana, apples, cherries and olives.” He described the tobacco season in the South as excellent and boasts high quality, noting that the prices for the ‘excellent’ varieties would be between LBP 14,000- LBP 16,000. He also demanded an expansion to the farms and plantations, in the quantity of cultivated tobacco and the caliber of farmers. In conclusion, Faqih said that while Regie’s annual proceeds contribute considerably to the state treasury, the Speaker of the House Nabih Berri and the Finance Minister Ali Hassan Khalil should help tobacco growers increase the quantity of the planted crops. (Al Mustaqbal, Al Diyar, October 30 and 31, 2016)

 

The Economic Forum launched yesterday the Iqleem Fund for Development and Investment aimed at the creation of a model economic zone in the Iqleem al Kharrub which provides facilities to investors, tax exemptions and funds for projects. The launch took place in Beirut under the sponsorship of the Union of Lebanese Chambers in cooperation with the Investment Development Authority of Lebanon (IDAL), Bank Misr Liban (BML) and Beirut Arab University. The Forum’s president, Ahmad Mohyeddine Alaaddine, described the projected zone as unique in such that it will help in the restoration of a sustainable national relationship between the Lebanese emigrants and their homeland. He stressed that the purpose of the above fund is to establish a promising zone that attracts investments of various industries and young inspired initiatives, in addition to the creation of jobs and businesses and the employment of skilled labor, paving the way for a sustainable social and economic development in the area. For his part, the CEO of BML, Fadi Da3uk, pointed out that the partnership between the bank and the forum is an undertaking that involves the establishment of an economic city with the private sector in the Iqlim. The project, Da3uk added, shall prompt the launch of small and medium enterprises and boost the role of young entrepreneurs. IDAL president, Nabil Itani, likewise said the fund initiative, emanating from the Development and Innovation Fund, contributes to the economic and social growth of Iqlim al Kharrub which sustains competitive-bound economic dynamics. this, he added, will qualify the area to play a leading role in national economy if given the right conditions and capacities supported by vision and strategy. (Al Mustaqbal, October 18, 2016)

 

For the second year running, Lebanon participated in the biggest wine fair in Belgium, MEGAVINO, which opened last Friday in the capital Brussels from October 21 to 24. Some 21 producers from across Lebanon showcased their products which was made possible with the support the Lebanese Ambassador to Belgium, Rami Mortada and the special efforts of the organizing team, and with funding from the Beirut Chamber of Commerce, Industry and Agriculture. With Lebanon selected as the guest of honor for the year 2016, every visitor to the venue was handed a booklet with a cover page and opening article devoted to Lebanese wine. Ambassador Mortada inaugurated the Lebanese pavilion in the presence of the President of the Union Vinicole du Liban, Zafer Shawi, and a number of concerned dignitaries. During the opening ceremony, Mortada outlined the old tradition characterizing Lebanese wine and the development of its presence in European markets and around the world. Shawi, for his part, stressed the quality of the local wine which has demonstrated its excellence and ability to compete globally. (presently exported to 45 world countries). To close, Bart Verhoeven gave a presentation on the history of the Lebanese wine accompanied with the latest production statistics. (Al Diyar, October 25, 2016)

 

In its edition of October 25, Al Akhbar daily published a feature on the national tobacco industry, with special focus on the trademark, ‘Cedars’, that has seen a growing demand lately brought about by the war in neighboring Syria (c.f. http://bit.ly/2eIt8Zi). Comparing it to the trade exchange market, the newspaper drew attention to the fluctuating prices of one packet between one dealer and another!. The state-owned Regie Libanaise des Tabacs et Tombac, better known as Regie, Al Akhbar wrote, sells one box of ‘Cedars Silver’ to franchise owners at LBP 363 thousand. As such, the packet, originally priced at LBP 726, is sold in the market at nearly LBP 1250 or LBP 1500, by a LBP 524 difference, with net LBP 824 going to the pockets of black market dealers. The newspaper revealed that, sometimes in the same day, the price varies according to the the points of sale. One shop owner, Ali, told Al Akhbar reporter that 10% of traders who own sales licenses and boast relations with key distributors at the Regie, monopolize the market. He said that since licenses through the state-run company have been suspended for a long time, he, like other merchants, will try to get one through the black market. The newspaper concluded by stating that the illegal trade in cigarettes is taking place with the full knowledge of the Regie, and other official authorities, who prefer not to intervene and continue to boast about the growth in domestic consumption of the national product (43% share according to the latest Regie figures). (Al Akhbar, October 25, 2016)