The economic crisis has affected all sectors in Lebanon, and agriculture has certainly not been spared. With the escalating costs of energy and inputs and the impossibility of keeping up with the prices of products, working the land is becoming complicated. In Anjar, in the Bekaa, farmers and small-scale market gardeners are trying to maintain their activity.
In the fields, employees are at work. Some are harvesting the fruits and vegetables, while others are sorting and packing them. In just a few hours, the products will be delivered to customers and nearby markets.
In the middle of summer, the farmers of Anjar, a small, lush village in the Bekaa with a significant Armenian community, are working hard. However, the mood is not festive, and the looks are serious. The economic crisis, which has plagued Lebanon since 2019, and the Covid-19 pandemic have severely impacted their business.
Reconsider one’s working methods
” It’s becoming very difficult to be a farmer,” laments Hagop Kosheyan. “The Lebanese pound keeps depreciating against the dollar, so all prices are skyrocketing. We can hardly pay our bills.” To increase his income, this market gardener has been compelled to reconsider his working methods: less employees and less seed cultivation. Production has been limited to a few herbs and vegetables, such as cucumbers and tomatoes. These vegetables are particularly useful to produce molasses, which is sold to restaurants and consumers.
In Lebanon, before the crisis, about 90% of farmers used pesticides and phytosanitary products. The only problem is that all these inputs are imported in dollars. “No one can afford them anymore, and they have become far too expensive,” explains Antoine Howayek, president of the Lebanese Farmers Association, who highlights another concern. “Before 2019, Lebanese farmers reimbursed the companies for the seeds they had purchased, only after the harvest, not before,” he said. “Now they must pay immediately. Many do not have the necessary funds and many of them have been driven out of business in the past two years”.
Berge Tumberian is one of them. This farmer from Anjar was compelled to almost stop his business completely. “It was impossible for us to raise our prices without losing our customers,” he says. However, all our expenses have exploded, whether in terms of fertilizers, manure, or labor. I had to stop growing vegetables. I used to produce some wine for my family and friends. Recently, I have started selling it.”
A sluggish internal market
“Under current circumstances, one has to sell huge quantities of fruits and vegetables at a very low price in order to buy small quantities of pesticides,” explains Howayek. This is not sustainable. Particularly, since consumption has fallen sharply in the country.” While no official statistics are available, the union estimates that sales of agricultural products have fallen by 50 to 60% since the beginning of the economic crisis.
However, exports are holding steady. They were 370,000 tons in 2021 against about 350,000 tons before 2019. “There is still the problem with Saudi Arabia, which ceased, since last season, to import our citrus fruits,” deplores Howayek. “Lebanon found itself with 17,000 tons on its plate, which has greatly reduced prices locally”.
Even those who have decided to go chemical-free struggle to make ends meet. Boghos Chapalian has converted his plantation to organic farming long ago and plans to continue doing it. “But, if the situation is not getting any better, I’ll have to close down my business,” he admits. “Fuel and electricity prices have become exorbitant, and now our debts are piling up”.
Declining production
In Lebanese agriculture, fossil fuels serve multiple purposes. They are used, of course, to power vehicles and generators and to produce the electricity needed to operate equipment. Fuel oil, for instance, is essential for irrigation. “With the explosion in prices, farmers are buying less and therefore seeing their production drop,” explains Howayek.
However, not everything is gloomy. Some people manage to seize opportunities. For several years, Varouj Bakkalian has been raising worms to produce natural, chemical-free compost. In Lebanon, the vermicompost market is hardly existent, and this attracts many customers.
“Household waste, leaves, animal droppings, fruits and vegetables, eggshells… worms eat everything that is compostable. They produce the best possible organic fertilizer. And since it doesn’t cost much to produce, we can keep our prices affordable for farmers,” says Bakkalian.
An exceptional case
A situation that has allowed Bakkalian’s firm to be relatively spared from the crisis. “We are the only ones in Lebanon with such a large vermicompost farm,” he adds. “We have plenty of customers and sufficient funds to withstand tough times”.
Yet, this firm remains an exceptional case. According to the Lebanese Farmers’ Association, bankruptcies are expected to continue, if not increase.
According to World Bank statistics, the contribution of agriculture to the national GDP has risen from 3% in 2019 to 9% in 2020. Deceiving numbers, says Howayek. “The activity has certainly not increased. With the crisis, the other sectors simply produce less. Which, mechanically, has boosted the share of the agricultural sector,” he concludes.
