Page 34 - AA 2022 YEAR BOOK

Lebanon

PLANTING OF 2022 WINTER CEREAL CROPS ONGOING

UNDER FAVOURABLE WEATHER CONDITIONS

Sowing of the 2022 winter cereal crops ing a subsidized exchange rate of LBP cast at 2 million tonnes, about 10 percent
was completed in early January. Precipi- 3 900/USD (compared to LBP 8 000/USD below average. Wheat is sourced mostly
tation amounts in November 2021 were in the parallel market in mid July 2020). from the Black Sea region.
below average, but abundant rainfall, al- However, farmers did not benefit from
most three times the average, in the first this agreement as the length of the ad- Discussions are still underway on re-
decade of December followed by aver- ministrative process, requiring approv- building the port facilities in Beirut that
age rainfall amounts since then suffi- als by the Ministry of Agriculture and the were destroyed by an explosion in Au-
ciently replenished soil moisture. Farm- Ministry of Economy and Trade before gust 2020, including the bulk terminal
ers continue to cope with the impacts of the BdL could release the transfers of US and the main grain silo. In December
the economic crisis. dollars at a subsidized rate, was causing 2021, grains that remained in the silo af-
substantial delays in placing orders. ter the explosion were deemed unfit for
The country’s landscape limits the food or feed use and are being compos-
domestic cereal production. Although The shortage of fuel, following the ted or turned into fire pellets.
weather conditions were relatively fa- withdrawal of the subsidized foreign
vourable, the total 2021 cereal pro- exchange, had also a negative impact Food insecurity rising as
duction is estimated at about 134 000 on mechanized agricultural operations
tonnes, about 15 percent below the five as well as access to markets. Farmers economic environment worsens
year average and similar to the 2020 appear to have marketed their produc-
harvest that was already constrained by tion, particularly perishable fruits and The already worrisome economic con-
the economic crisis. vegetables, close to their farms instead ditions, with increasing unemployment,
of more lucrative urban markets. While poverty and skyrocketing inflation rates,
Crisis hampers economy, most of agricultural inputs are paid in US have further worsened. According to
the World Bank, the country’s Gross do-
dollars, sales of agricultural products re-
including agricultural sector main denominated in Lebanese pounds, mestic product (GDP) plummeted from
with ongoing currency depreciation about USD 55 billion in 2018 to a project-
While weather conditions have been erasing any gains. Limited purchasing ed USD 20.5 billion in 2021, while real
favourable for farming activities in the power of the population has capped the GDP per capita fell by 37.1 percent. The
past two years, the impact of the eco- increases of retail prices. unemployment rate, officially estimated
nomic crisis hinders farmers’ ability to at 11.4 percent in 2019, has risen and is
produce. Many farmers, particularly the now reckoned to be at over 40 percent
smaller ones, used to carry out farming Below-average cereal of the workforce. More than 60 percent
as a secondary activity, especially in re- import requirement forecast of the country’s young people are unem-
gions with more economic opportuni- ployed. The exchange rate reached new
ties. As incomes from other economic Domestic cereal production covers, records: as of early January 2022, USD 1
sectors, including the public one, dwin- on average, less than 20 percent of the was selling for LBP 29 000, while the of-
dle, reliance on agriculture has grown. consumption needs and the country de- ficial exchange rate remains LBP 1 507/
Quality inputs remain out of the reach of pends heavily on imports. In the 2021/22 USD. The reserves of foreign currency
many farmers who have often adopted marketing year (July/June), the cereal held by the BdL decreased from USD 32
low input intensive production. Despite import requirements, mainly common billion in 2019 to USD 12.5 billion in De-
the environmental benefits due to de- wheat for human consumption and maize cember 2021.
creasing use of chemicals, production to feed livestock and poultry, are fore-
and returns are often not sufficient.
Seeds, fertilizers and plant protection Production (tonnes) of some agricultural commodities in Lebanon (2019-2020)
material are available on the market, al-
beit at high prices. As most agricultural Item Value Flag Value Flag
inputs are imported, the continuing cur- Eggs, hen, in shell 39838 Im 42227 Im
rency depreciation on the parallel mar- Eggs, hen, in shell 796769 Im 844540 Im
ket increases their cost in the national Fat, cattle 1149 Im 1062 Im
currency. Sharp increases of interna- Fat, goats 99 Im 96 Im
tional prices of fertilizers, denominated Fat, sheep 1271 Im 1072 Im
in US dollars in the second half of 2021, Hides, cattle, fresh 4980 Im 4604 Im
were magnified by currency devalua- Honey, natural 1424 Im 1356 Im
tion. Reports indicate that, compared to Meat, cattle 47886 Im 44265 Im
the previous years, more agricultural in- Meat, chicken 128087 Im 126010 Im
puts are now sourced from cheaper ori- Meat, goat 3179 Im 3070 Im
gins, such as India or Turkey. However, Meat, sheep 5295 Im 4466 Im
most farmers lack the adequate liquidity Milk, whole fresh cow 350000 F 322102 Im
to purchase inputs as the seasonal credit
offered by input traders, which was used Milk, whole fresh goat 28968 Im 29157 Im
until the onset of the financial crisis in Milk, whole fresh sheep 20246 Im 19759 Im
October 2019, is now non-existent. Offals, edible, cattle 4980 Im 4604 Im
Offals, edible, goats 430 Im 416 Im
In 2020 and part of 2021, the agree- Offals, sheep,edible 741 Im 625 Im
ment between the government and the Skins, goat, fresh 503 Im 486 Im
Banque du Liban (BdL) allowed traders Skins, sheep, fresh 932 Im 786 Im
of raw materials, including feed and ag- Wool, greasy 2530 Im 2520 Im
ricultural inputs, to finance imports us-
Im: FAO data based on imputation methodology | F : FAO estimate | Source: FAO Statistical Division 2021
32 Arab Agriculture 2022