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Market of Meat in the Republic of Lebanon

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Market of Meat in the Republic of Lebanon 2010 MARKET OF MEAT IN THE REPUBLIC OF LEBANON Khoury Statistics and Studies 9/30/2010 2 Khoury Statistics and Studies October 12, 2010 M/s Embassy of Argentina Economic and Commercial Section 2nd floor, Résidence des Jardins 161 Sursock Street Mar Nicolas sector Beirut – Lebanon Sirs, With reference to your request about the Lebanese market of Meats, we hereby submit our response enclosing a market survey, dated on October 12, 2010, prepared by KHOURY STATISTICS AND STUDIES. We have welcomed the privilege of working for the Commercial Section of the Embassy of Argentina in Lebanon, and we remain at your disposal for any additional research on this subject. Respectfully, Lic. Miguel Khoury 2 3 TABLE OF CONTENTS Page I. INTRODUCTION...................................................................................................04 1. BACKGROUND OF THE STUDY……………………………………………………………………………………...……..04 2. METHODOLOGY………………………………………………………………………………………………………...……….05 3. MARGIN OF ERROR……………………………………………………………………………………………………………..05 4. PRODUCTS COVERED…………………………………………………………………………………………..………………06 . II. GENERAL ENVIRONMENT………………………………………………….………….….08 1. GENERAL INFORMATION……………………………………………………………………………………………….…. 08 2. GEOGRAPHICAL ENVIRONMENT………………………………………………………………………………………….10 3. POLITICAL ENVIRONMENT…………………………………………………………………………………………………..11 4. DEMOGRAPHIC ENVIRONMENT……………………………….………………………………………………….……..12 5. SOCIO‐ECONOMIC ENVIRONMENT……………………………………………………………………………………..14 6. BUSINESS ENVIRONMENT…………………………………………………….………………………………………….….18 III. LEGAL AND REGULATORY FRAMEWORK……………………………………………21 1. MAIN LAWS AND REGULATIONS……………………………………………………………..………………………….21 2. CUSTOM AND VAT RATES……………………………………………………………………………………………………30 IV. MARKET DESCRIPTION………………….…………………………………………………33 1. GENERAL VIEW ON MEATS OF LEBANON ……………………………………………………………………………33 2. LIVESTOCK ………………..……………………………………………………………………….……………………….………33 3. LEBANESE MEAT MARKET………………………………………………………………………………………..………...34 4. STATISTICS…………………………………………………………………………………………………………………………..35 5. MEAT PRODUCERS, IMPORTERS AND TRADERS IN LEBANON ……………………………………………..37 6. AVERAGE SELLING PRICES……………………………………………………………………………………………………38 7. REPORT ABOUT LEBANON’S MEAT INDUSTRY …………………………………………………………………….38 V. DATA BASE ………………….…………………………………………………………..………40 1. LEBANESE MEAT TRADERS WITH ARGENTINA……………………………………………………………...40 2. LEBANESE MEAT TRADERS………………………………………………………………………………………..….42 3. MEAT AND GAME, PROCESSED PRESERVED………………………………………………………………….53 4. MEAT SALTED DRIED OR SMOKED…………………………………………………………………………….….53 5. HAM AND SALAMI…………………………………………………………………………………………………….….55 6. CANNED MEAT………………………………………………………………………………………………………….….57 7. COCLUSION.......................................................................................................................59 3 4 I ‐ INTRODUCTION 1. BACKGROUND OF THE STUDY At the request of the Commercial Section in the Embassy of the Republic of Argentina in Beirut – Lebanon, KHOURY STATISTICS AND STUDIES has conducted a survey in relation with the Lebanese Meat market. The main objectives of the study are:* ‐ To provide a general overview of the prevailing demographic socio‐economic, and business environment in Lebanon. ‐ To describe the legal and regulatory framework governing the import and distribution of Meats in Lebanon. ‐ To identify main productions, importers and exporters of Meat in Lebanon. ‐ To provide detailed quantitative data on the above‐mentioned market, including data on value of local production, imports, exports, and market size. The study starts with brief information and data on the general environment prevailing in Lebanon including essential demographic and socio‐economic figures. The study proceeds with a description of main laws and regulations related to the Lebanese market of Meats products. The study subsequently provides a comprehensive description of the above‐mentioned market, and this includes information on main manufacturers, importers, exporters and distributors. Finally, the study provides data on the value of local production, imports and exports, and on market size. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ *This survey is to explore meat market in the Republic of Lebanon (RL). The purpose of this market survey is to find out feasibility of exporting frozen meat from Argentina to Lebanon by analyzing the existing situation in the Lebanese meat market. The objectives of the survey on meat market in Lebanon are as follows: • To find out the role of the meat market in the general industrial setup of RL. • To study the current state of the companies involved in meat processing in Lebanon. • To find out business opportunities for the export of Argentinian meat into the Lebanese market. • To give statistical information on Lebanon’s meat market. • To identify the business environment and understand the tax regime, foreign trade regulations, and foreign investment regulations. 4 5 2. METHODOLOGY For the purpose of the present study, KHOURY STATISTICS AND STUDIES has conducted a complete desk research in all available official public records, commercial records, reference documents, registries, publications, etc., for quantitative information on the Lebanese market of Meat products. This includes the following sources: ‐ Lebanese customs ‐ Chamber of Commerce, Industry & Agriculture in different Mohafazats (Beirut & Mount Lebanon, North Lebanon, South Lebanon, Bekaa) ‐ Association of Lebanese Industrialists ‐ Ministry of Agriculture. ‐Ministry of Economy. A complete research has been conducted also in all available legal references in order to verify main laws and regulations related to the import and distribution of the concerned products. KHOURY STATISTICS AND STUDIES has performed subsequently a comprehensive field research in order to identify main manufacturers, importers and exporters, in addition to main brands sold on the Lebanese market with their retail prices. All findings have been checked and validated with established enterprises operating on the Lebanese market of Meats products, as well as with independent professional sources. 3. MARGIN OF ERROR All efforts have been made in the present study in order to provide, as much as possible, accurate and reliable quantitative and qualitative information on the Lebanese market of Meats products. However, a margin of error of maximum 3% must be taken into consideration as far as value of local production; imports, exports and market size are concerned. 5 6 4. PRODUCTS COVERED The present market study covers the following products: ‐ Trading of meat & its kinds. ‐ Lebanese ranches, meat production and distribution. 6 7 7 8 II. GENERAL ENVIRONMENT 1. GENERAL INFORMATION All information, figures and data in this item correspond to the year 2008. Demographic and economic figures are estimates. General information Capital Beirut Area 10,452 km2 Official language Arabic Other languages English, French Currency Lebanese Pound (LBP) or (L.L.) Political status Independent Republic Political system Parliamentary democracy Legislative authority Elected parliament Executive authority President/Council of ministers Economic system Liberal market economy Geography Surface 10,452 km2 Coast length 210 km Maximum altitude 3,083 m Average temperature 20.7 °C Rainfall 688 mm Humidity rate 68% Demography Population 4,100,000 Annual growth rate 3% Number of households 910,000 Average household size 4.50 Life expectancy at birth 73 years Working population 1,230,000 Urban population 80% 8 9 Education Literacy rate 93% (Male), 85% (Female) Land use Arable land 207,060 ha o.w irrigated 60,047 ha Grazing 360,000 ha Forest & woodland 79,560 ha Other land 301,580 ha Total 1,045,200 ha Infrastructure Roads (paved) 7,200 km Railways Non functional, old, obsolete Airport (civil) Rafic Hariri International Airport Ports (commercial) Beirut, Tripoli, Saida Electricity 1,350 MW Economy Inflation rate 10% Exchange rate (LBP/$) 1,507.5 (year average) GDP $28,020 m GDP per capita $7,185 Real GDP growth rate 4.4% Exports $3,478,000,000 Imports $16,137,000,000 Trade balance ‐$12,659,000,000 (40.7% more than 2007) Balance of payments $3,461m (surplus) Budget deficit LBP 3,502bn Gross domestic debt LBP39,007 bn Net domestic debt LBP30,681 bn 9 10 Net total debt (public) LBP62,562 bn External debt $21,148 m Central Bank reserves $17,062 m Central Bank gold reserves $8,032 m Customer deposits in comm. banks LBP 99,908 bn Customer loans by commercial banks LBP 55,352 bn Beirut Stock Exchange market $9,323 m capitalization 1 year T‐bill yield 7.58% Overnight rate 3.5% 2. GEOGRAPHICAL ENVIRONMENT Lebanon is situated on the eastern side of the Mediterranean basin, between the 33°‐ 35° parallel (north) and the 35°‐37° parallel (east). Its frontiers (borders) are: ‐ Syria (with which it has a 375‐km long border) to the north and east ‐ Israel (with which it has an 80 – km. long border) to the south; ‐ The Mediterranean Sea (on which it has a 250‐km long coast) to the west. Lebanon has a surface of 10,452 sq. meters. It has a diversified geography, which is spread on: ‐ 2 large plains: The coastal plain and the famous Bekaa plain. ‐ 2 long mountain chains: Mount Lebanon (highest summit 3,083 m) and the Anti Liban chain (highest summit 2,814 m). Lebanon is rich in water. There are more than 15 rivers, the biggest of which, the Litani river, is 160 km. long. 10 11 The climate is pleasant and moderate, characterized by relatively smaller variations of temperature, long periods of sunshine (approx. 300 days/year) and relatively abundant
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