Lebanon

The Economic Crisis in Lebanon is Driving the Agricultural Sector Towards Further Collapse

The Economic Crisis in Lebanon is Driving the Agricultural Sector Towards Further Collapse

"I can no longer enjoy a plate of fattoush in this bitter economic crisis. Perhaps the poor in this country no longer have the right to enjoy the bounty of its land." This is how Simon began his words to "Wardna," considering that the struggle for daily sustenance has become threatened, with the purchase of vegetables and fruits reserved for the wealthy only. He continues: "A kilo of local onions is 140,000 Lebanese pounds, while a kilo of garlic is 160,000. As for tomatoes, it's a different story; I haven't tasted them since the dollar was at 70,000 LBP when a kilo was sold for 40,000 pounds. Not to mention the rising costs of arugula, parsley, mint, etc. The salad that once decorated our Lebanese table is no longer available."

Simon’s story reflects a significant part of the population who can no longer afford to buy vegetables and fruits from the markets. If they do, it will be "by the piece." How did we reach this situation, and how is the agricultural sector dealing with the current crisis? The cost of production is calculated in dollars, and the cry is loud. In a conversation with "Wardna," Ibrahim El-Tarshishi, head of the Farmers’ Union in Beqaa, confirms that the agricultural sector suffers from state neglect and the absence of officials, especially with the decline in the value of the pound.

He adds: "The agricultural sector is the most affected in this crisis because the cost of production is calculated in dollars, while products are sold in the markets in Lebanese pounds. What about farmers who have permanently abandoned this sector? This phase we are in leads us only to deterioration and decline. The main problem lies in the lack of government support."

He noted that the cries of agricultural sector employees are loud, and if they could resign, they wouldn’t hesitate at all, even though they only work two to three days a week. In response to a question about the responsibility of fruit and vegetable merchants in raising prices, El-Tarshishi said: "Prices are studied according to supply and demand; if there’s a surplus in production, prices drop, and vice versa, even if the dollar continues to rise."

El-Tarshishi attributed the massive rise in prices to three factors: first, climatic factors and lower temperatures, which reduce production; second, dollarization of prices due to the instability of the exchange rate; and third, the public’s increased purchasing ahead of Ramadan. Despite this, we depend on importing no less than seventy percent of agricultural products.

He continues: "The basic condition for reviving the agricultural sector in Lebanon is that we export a portion of it; otherwise, agriculture is finished and stagnation will prevail."

In the same context, the head of the Consumer Protection Department, Zuhair Barro, explains that price differences are a natural matter, and when the economy is free, prices will differ from one market to another. When asked if there are steps to monitor prices, he confirmed to "Wardna" that there is no oversight whatsoever. Prices are reduced in the presence of a productive, strong economy with competition instead of monopolies. Most importantly, there needs to be a state entity that instills reassurance, which is absent in Lebanon.

Regarding the dollarization of prices, he said: "We warned against dollarizing agricultural products earlier. Addressing this issue requires a comprehensive plan to support the agricultural and industrial sectors by the state and investing in them." Barro warned that in the absence of state investment in this sector, the fate of agriculture will face further collapses and added burdens on the Lebanese people.

Where is the relevant ministry in this reality? A source in the ministry, who requested anonymity, described the state of the sector as "very dismal," noting that thirty years ago, Lebanon could secure a significant part of its local consumption, reaching up to ninety percent. However, it has turned into a rentier country that imports more than eighty-five percent of its needs. The source emphasized that implementing the agricultural plan prepared by the ministry has become a national necessity, especially since fertilizers and veterinary vaccines that were locally produced have disappeared due to misguided economic policies, leading to production costs being much higher than in surrounding countries. This, along with the ministry being tied down with what can be described as a modest budget, has left a profound impact on the employees of the Ministry of Agriculture, just as it has on other public sectors.

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