
The surface of arable lands is estimated at 385 000 hectares, i.e. 37% of the total surface of the country. 266 000 hectares represent the cultivated area, but only 90 000 hectares are irrigated in a modern and optimal way, which constitutes one of the main problems of the sector. There were once irrigation plans, in one of the rare countries of the region that don’t lack water. But few dams were built, and irrigation methods are still elementary.
Other intrinsic problems look very much like those generally met in undeveloped countries: excessive or unscientific use of pesticides and fertilizers; insufficient training of farmers in a poorly educated rural environment; ignorance of the distribution and marketing networks or the specific demands of consumers; reduced exploitations in surface, which doesn’t allow the purchase of modern equipment.
It looks like a vicious circle where bank credits are also rare (1-2% of all credits) because cash-flow is never guaranteed, given the climatic risks. And, for the same reason, agricultural insurance is practically absent.
As far as foreign competition is concerned, the costs of production in Lebanon are penalizing, mainly with regards to the main direct competitors, Syria, Jordan and Egypt. Therefore, "agricultural calendars" were set up with these countries according to the crops dates and products. But smuggling through Syria limited their effects and, on the other hand, free trade agreements made the protection of the Lebanese production even more difficult.
Much worse, the massive subsidies granted to the agricultural sectors in different countries of the Arab region and Europe are weakening the competitiveness of the Lebanese production even more.
In view of this situation, Lebanese state subsidies have targeted for a long time, three crops only: tobacco, wheat and sugar beet.
More recently, a program under the name Export Plus is trying to generalize the subsidies, but only for exportation. According to this system, the state contributes in the transportation expenses of all agricultural exports, provided the goods match certain quality standards. In parallel, obtaining a credit becomes easier thanks to the subsidization of interest rates.
As far as varieties are concerned, olives, fruits and vegetables have always represented the leading products of Lebanese exportable production, given the comparative advantage that the local climate represents for these kinds of cultivations. But due to the above mentioned reasons, this advantage has become more and more eroded.
The most professional among those farmers are trying new products that seem to find their export markets like: red and exotic fruits, flowers, high quality olive oil, cherry tomatoes, iceberg salads, mushrooms, various vegetables cultivated in greenhouses etc. which confirms the widespread idea that the future of the Lebanese agriculture relies on high added value products.
Another succeeding market is food industry, including the production of juice, wine, alcohol, ethnic platters, etc. which are welcomed in the countries where Lebanese and Arab communities live.
We must add to this array of products the illicit crop of drugs (cannabis, hemp…) which had made the pleasure of the inhabitants of the Northern Bekaa for many decades before it was completely eradicated few years ago under the international pressure. Subsidies usually granted by international organizations in such cases to induce farmers to shift to other crops were not very generous.
As for livestock, goats constitute the main part of animal wealth, given the mountainous aspect of the country; but the industrial production of goat cheese, very appreciated in Europe, still needs more refining. Milk cows, on the other hand, are gaining in importance with the recent construction of new modern farms, given that the consumption of dairy products in Lebanon is very high.
Poultry farming (mainly chicken) is characterized by a very high professionalism, with two main producers, and hundreds of small farmers as well as a yearly production of 50 million chickens and 650 million eggs. The sector is relatively protected from foreign competition.
Apiculture sometimes constitutes an additional income for farmers. Lebanese honey is known for its good quality, even though its production cost is very high. There are around 120 000 beehives producing yearly 1 300 tones of honey.
The other animal productions are unimportant, whether it is about hunting (no big games) or more surprisingly about fishing. In fact, with a coast spreading over 220 kilometers, we would expect a better fish production, but this sector is still too primitive, on both equipment and manpower levels.
All in all, the Lebanese agriculture, like in many countries, is a permanent controversial issue because it concerns many pure economic subjects as well as a particular social fabric.