Page 34 - AA 2023 Year Book Website

Lebanon

PLANTING OF 2023 WINTER CEREAL CROPS

TO START SHORTLY

Planting of the 2023 winter cereal imported ones resulting in reduced in- higher share than reported in previous
crops, the largest share of which is wheat put application, or substituting with lo- rounds conducted in late 2021 and April
in Beqaa Valley, will take place between cally produced inputs of lower quality, 2022.
late October and early December after leading to lower marketable production
seasonal rainfall replenishes soil mois- and incomes.
ture.
Most farmers lack liquidity. Seasonal
Harvesting of the 2022 winter cereal credit provided to farmers by input im-
crops was completed in July. Although porters and sellers, has not been avail-
the season was marked by an uneven able since October 2019. Up to 2021, an
temporal distribution of rainfall, weather arrangement between the government
conditions were generally favourable and the Banque du Liban (BdL) allowed
for crop development. However, low ap- traders of raw materials, including feed
plication of inputs due to their high pric- and agricultural inputs, to finance im-
es constrained yields. ports using a subsidized exchange rate
of LBP 3 900/USD, although the alloca-
Domestic cereal production is con- tion often experienced delays. Since
fined by landscape and climatic condi- October 2019, input traders require
tions. Total 2022 cereal production is es- payments in cash on hard currency, or
timated at about 134 000 tonnes, about converted into Lebanese pounds using
10 percent below the five year average a parallel exchange rate, at which they
and similar to the 2020 and 2021 har- purchase United States dollars to cover
the cost of fresh imports. Since the sec-
ond half of 2021, sharp increases of in- Slightly below average cereal
ternational prices of fertilizers denomi-
nated in United States dollars have been import requirement forecast
magnified by currency devaluation.
Domestic cereal production covers, on
Although fuel is available, it often re- average, less than 20 percent of the con-
mains out of reach, particularly follow- sumption needs and the country relies
ing the withdrawal of subsidized foreign heavily on imports. In the 2022/23 mar-
exchange. Agricultural operations do keting year (July/June), the cereal import
not appear to have suffered significantly requirements, mainly common wheat for
as mechanization is often substituted by human consumption and maize to feed
labour due to lack of employment op- livestock and poultry, are forecast at 1.9
portunities elsewhere. However, market- million tonnes, about 10 percent below
vests that were already affected by the ing of agricultural production, particu- average.
economic crisis. larly of perishable fruits and vegetables,
appears to have moved closer to farms, Wheat has traditionally been sourced
Crisis continues to impede yielding lower prices than more lucra- mostly from the Black Sea Region to
economy, including tive, but more distant, urban markets. take advantage of geographical proxim-
ity. During the past four years, average
While most of the imported agricultural
agricultural sector inputs are paid in United States dollars, wheat imports from Ukraine and the
sales of agricultural products remain Russian Federation were about 55 and
Farmers, like the rest of the economy, denominated in Lebanese pounds, with 30 percent, respectively, of the total im-
continue to cope with the impacts of pro- ongoing currency depreciation erasing ports. Combined with macroeconomic
tracted financial and economic crisis. any gains. Limited purchasing power of challenges and lack of sufficient stor-
Seeds, fuel, fertilizers, plant protection the population has capped the increases age capacity following the explosion in
materials, feed and other agricultural of retail prices. August 2020 in Beirut that destroyed the
inputs are available on markets in rela- The FAO/Data in Emergency Monitor- main silo, disruptions to global export
tively adequate quantities similar to the ing (DIEM) survey of agricultural house- flows related to the war in Ukraine and
previous three seasons that were already holds carried out in July and August related global price increases led to a
hampered by the ongoing crisis. How- 2022, indicated that over 80 percent of rapid decline of the already meagre in
ever, access to agricultural inputs, most the crop producers faced some produc- country stocks. At the end of March 2022,
of which are imported, continue to be tion difficulties, with the most frequent the in country stocks of wheat were suf-
constrained by their high prices. Small being access to fertilizers (72 percent), ficient to cover not more than one month
and medium sized farmers relying only pesticides (59 percent) and labour (43 of consumption needs. Lack of storage
on farming income, without any supple- percent). High food and fuel prices were capacity requires smaller shipments,
mentary off farm income, have been the most common shocks cited (90 per- which are comparatively more expen-
particularly affected by the high prices cent and 87 percent, respectively) by sive to ship.
of inputs, particularly more expensive surveyed households, a significantly

32 Arab Agriculture 2023