Proposed Strategic Guidelines for the ART GOLD Lebanon Programme

(January 2008)

Annex 1

Value Chains, Basic Interventions, Supports

Value Chains, Basic Interventions, Supports - 1 Index

Value chains 8. Olive 8.1. Products and processes 105 1. Biodiversity 8.2. Strategic considerations 106 1.1. Background 4 8.3. The ART GOLD support 108 1.2. North Lebanon 10 1.3. South Lebanon 11 9. Textile Fabrics and Clothes 1.4. Hypothesis of a strategy for North L. 12 9.1. Products and sectors 110 1.5. Hyp. of a strategy for South L. and other Areas 17 9.2. Strategic considerations 114 1.6. The ART GOLD support 17 9.3. The ART GOLD support 116

2. Boatyards 10. Typical Handicraft 2.1. The sector and the boat 20 10.1. The ART GOLD support 118 2.2. Strategic considerations 21 2.3. The ART GOLD support 22 11. Wine 11.1. The ART GOLD support 120 3. Fishing 3.1. The ART GOLD support 24 Basic interventions 4. Fruit and Vegetables 4.1. FV and connected value chains 26 12. Basic Interventions 4.2. Processes and products 28 12.1. Energy management 123 4.3. Strategic considerations 40 12.2. Water management 125 4.4. The proposal for strategic guidelines 49 12.3. Waste management 127 4.5. The ART GOLD support 54

5. Honey Supports 5.1. Honey and connected value chains 58 5.2. Conditions, processes and products 59 13. Territorial Information Systems 5.3. Strategic considerations 68 13.1. Territory as a system 131 5.4. The proposal for strategic guidelines 73 13.2. The ISTD 132 5.5. The ART GOLD support 76 13.3. ISTD design specifications 138

6. Medical and Aromatic Plants 14. Local Tourist Systems 6.1. The ART GOLD support 81 14.1. Tourism and development 142 14.2. Strategic dynamics 143 7. Milk 14.3. Operation 145 7.1. Milk and connected value chains 83 7.2. Cheese and yogurt production 84 7.3. Strategic considerations 91 7.4. The proposal for strategic guidelines 96 7.5. The ART GOLD support 100

Value Chains, Basic Interventions, Supports - 2 Value Chains

Value Chains, Basic Interventions, Supports - 3

BIODIVERSITY

Characteristics, constrains and opportunities, hypothesis of strategic guidelines and supports for the sustainable use of biodiversity as a resource for socio-economic development

• Focus Groups (see att. N.2): o NLe FG n.2, 26/09/07.

• Field Reconnaissance: Akkar, 09/10/07. Sources of information: o

• Desk Analysis.

• Other activities: o Meeting with Mada Association, Beirut, 05/10/07.

1. Biodiversity

1.1. Background

1.1.1 Geo - Demographical elements

Geographical introduction

Lebanon lies between latitudes N33°03' - N34°45' and longitudes E35°05' - E36°30'; it is almost a “rectangle”, with average sides of 180 km and 57 km and whose S – N axis is about 30° oriented.

Surface area: 10,202 km2 Pres. Population: 4,005,025 Av. Density: 393 inhabit./ km2

Value Chains, Basic Interventions, Supports - 4 Administrative elements

Lebanon is administratively divided in 6 Mohafazas (“Governatorates”): North Lebanon, Mount Lebanon, Beirut (corresponding with Beirut City), South Lebanon, Nabatiyeh and Bekaa. Each Governatorate is divided in qadaas, or cazas (“Regions”).

Demographical considerations

Lebanon occupies the 25th place (on 236) in the world, in terms of density of population. High anthropization is not a favourable condition for the existence of high levels of biodiversity heritage, but Lebanese demographical conditions, very heterogeneous, deserve a more careful analysis.

The following tables, in which population data are presumptive and interpolated among those recorded by (2000) the database of Lebanese CDR (Council for Development and Reconstruction) and by (2001) the “Lebanon State of the Environment Report” (Lebanese Ministry of Environment/LEDO), could contribute to give an idea about the state of the anthropization of Lebanese territory.

Surf. area Density Mohafaza Capital % Population % (km2) (inhabit./ km2) North Lebanon Tripoli 2,025 19.85 807,204 20.15 398.62 Mount Lebanon Baabda 1,968 19.28 1,507,559 37.64 766.03 Beirut Beirut 20 0.20 403,337 10.07 20,166.85 South Lebanon Saida 930 9.12 472,105 11.79 507.64 Nabatiyeh Nabatiyeh 1,098 10.76 275,372 6,88 250.79 Bekaa Zahleh 4,161 40.79 539,448 13.47 129,64 Total 10,202 100 4,005,025 100 393.00

Table 1: Demographical macro-properties of the Mohafazas

Surf. area % % Density City Population (km2) (Country) (Country) (inhabit./ km2) Tripoli 8.0 0.08 220,000 5.49 27,500.00 Saida 3.3 0.03 80,000 2.00 24,242.42 Beirut 20.0 0.20 403,337 10.07 20,166.85 Tyre 3.1 0.03 48,000 1.20 15,483.87 st Beirut Suburbs (1 crown) 70.0 0.69 900,000 22.47 12,857.14 Zahleh 4,1 0.04 52,000 1.30 12,682.93 Tyre Suburbs 6.7 0.07 69,000 1.72 10,298.51 Lebanon average urban density 9,296.30 Baalbek 5.5 0.05 50,000 1.25 9,090.91 Zahleh Suburbs 7.8 0.08 65,000 1.62 8,333.33 Saida Suburbs 12.1 0.12 86,000 2.15 7,107.44 Jbail 2.0 0.02 14,000 0.35 7,000.00 Tripoli Suburbs 15.0 0.15 102,000 2.55 6,800.00 Nabatiyeh 3.5 0.03 22,000 0.55 6,285.71 th Beirut Suburbs (10 crown) 80,0 0.78 300,000 7,49 3,750.00 Baalbek Suburbs 3.9 0.04 14,000 0.35 3,589.74 Jbail Suburbs 11.6 0.11 37,000 0.92 3,189.66 Nabatiyeh Suburbs 11.5 0.11 30,000 0.75 2,608.70 Lebanon average density 393.00 Total 268.1 2.63 2,492,337 62.23 9,296.30

Table 2: Demographical macro-properties of the most important Lebanese urban areas

Value Chains, Basic Interventions, Supports - 5 These tables show evidence that: • all urban areas lie above the line of Lebanese average density, • most of the cities lies above the line of Lebanese average urban density, • all the cities are more anthropized than their suburbs, • a very small fraction of Lebanese surface (2.63%) includes more than 62% of Lebanese population. Consequently, it could be said that average density of population in “rural” (“not urban”) areas (accounting more than 97% of the Country) amounts to about 150 inhabitants/ km2.

A comparative approach (see the following Table3) could also be more useful to understand the conditions of Lebanese urban areas. The three greatest Italian Cities, with their more and less populated areas, have been chosen as the basis of comparison (Italy, 301,338 km2, 59,206,382 inhabitants): 2 • Rome (1,285.3 km , 2,823,201 inhabitants), and its Municipalities VI and XX, 2 • Milan (181.8 km , 1,304,263 inhabitants), and its Zones 2 and 5, 2 • Naples (117.3 km , 1,005,500 inhabitants), and its Municipalities 2 and 8.

Surf. area Density City Population (km2) (inhabit./ km2) Tripoli 8.0 220,000 27,500.00 Saida 3.3 80,000 24,242.42 Beirut 20.0 403,337 20,166.85 Naples (Italy), Municipality 2 4,6 91,536 19,889.13 Rome (Italy), Municipality VI 7.9 129,039 16,334.05 Tyre 3.1 48,000 15,483.87 Beirut Suburbs (1st crown) 70.0 900,000 12,857.14 Zahleh 4,1 52,000 12,682.93 Milan (Italy), Zone 2 12.6 137,559 10,917.38 Tyre Suburbs 6.7 69,000 10,298.51 Lebanon average urban density 9,296.30 Baalbek 5.5 50,000 9,090.91 Naples (Italy) 117.3 1,004,500 8,563.51 Zahleh Suburbs 7.8 65,000 8,333.33 Milan (Italy) 181.8 1,304,263 7,174.16 Saida Suburbs 12.1 86,000 7,107.44 Jbail 2.0 14,000 7,000.00 Tripoli Suburbs 15.0 102,000 6,800.00 Nabatiyeh 3.5 22,000 6,285.71 Naples (Italy), Municipality 8 17.5 92,616 5,292.34 Milan (Italy), Zone 5 29.9 119,953 4,011.81 Beirut Suburbs (10th crown) 80.0 300,000 3,750.00 Baalbek Suburbs 3.9 14,000 3,589.74 Jbail Suburbs 11.6 37,000 3,189.66 Nabatiyeh Suburbs 11.5 30,000 2,608.70 Rome (Italy) 1,285.3 2,823,201 2,196.53 Rome (Italy), Municipality XX 186.7 149,910 802.95 Lebanon average density 393.00 Italy average density 196.48

Table 3

The table shows that: • all the Lebanese urban areas have a density of population higher than the smallest and average values of Rome, • most of the Lebanese urban anthropization is comparable to the Italian one, • three Lebanese cities are more densely populated than Municipality 2 of Naples, which is the most anthropized area of the Italian sample: Beirut (+ 1.40%), Saida (+ 21.89%) and Tripoli (+ 38.27%).

Thanks to the above showed tables, it can be said that, at least, Tripoli, Saida, Beirut and its first crown, Tyre and its suburbs and Zahleh are “urban habitats” areas, although they are different from each other. In many cases, their needs of public services and material or not – material infrastructures (of “European kind”) are not sufficiently satisfied.

Value Chains, Basic Interventions, Supports - 6 A deeper analysis could highlight a very significant danger of losing also “physical” spaces for a minimum level of biodiversity’s survival, because of an excessive anthropization and a misuse of the agricultural Lebanese territory. The following table is ordered by increasing density of population of rural areas (but it should be better calling those ones “not urban” areas):

Population Surface (km2) Density (inhabit./ km2) Mohafaza total urban rural total urban rural total urban rural Bekaa 539,448 181,000 358,448 4,161.0 21.3 4,139.7 129,64 8,497.65 86.59 Mount Lebanon 1,507,559 1,251,000 256,559 1,968.0 163.6 1,804.4 766.03 7,646.70 142.19 Nabatiyeh 275,372 52,000 223,372 1,098.0 15.0 1,083.0 250.79 3466.67 206.25 South Lebanon 472,105 283,000 189,105 930.0 25.2 904.8 507.64 11,230.16 209.00 North Lebanon 807,204 322,000 485,204 2,025.0 23.0 2,002.0 398.62 14,000.00 242.36 Beirut 403,337 403,337 0 20.0 20.0 0 20,166.85 20,166.85 - Total 4,005,025 2,492,337 1,512,688 10,202.00 268.1 9,933.9

Table 4

The lowest density belongs to Bekaa, but in this Mohafaza a very large space is occupied by semi – desert and not organic cultivated areas, that cannot be characterized by high levels of biodiversity. In the other Mohafazas strong human presence is a threat for natural environment.

Improving and increasing the protection of Lebanese biodiversity “oasis” (as those were detected, until now, during action-research activities) is, therefore, an urgent need to be satisfied.

1.1.2 The habitats and their distribution

Geomorphologic regions

There are five geomorphologic regions in Lebanon (CDR/ECODIT-IAURIF, 1997):

• Coastal zone, 250 km long, included the shoreline and continental shelf, the coastal plains and the foothills of Mount Lebanon up to elevations of 250 meters.

• Mount Lebanon range, about 160 km long and 25-40 km wide, includes middle and high elevation zones above 250 meters. It rises from Akkar in the North and extends South to the hills of Jabal Amel. Mount Lebanon peaks at 3,088 meters at Kornet es-Saouda in the north.

• Bekaa plain, a land depression separating the Mount Lebanon and Anti- Lebanon ranges. It comprises an 8- 12 km wide fertile corridor and is about 120 km from North to South. The Beqaa plain is drained by the Aassi River from the North and by the Litani River from the South.

• Anti-Lebanon range, extends across the Lebanese- Syrian borders. It peaks at 2,600 meters (Tallat Moussa). Slopes are generally more gentle compared to Mount Lebanon. The southern sections of he Anti- Lebanon range include Jabal el Sheikh (Mount Hermon), which intercepts rainwater and redistributes water into at least three main watersheds across Lebanon, Syria and Palestine.

• South Lebanon, an elevated plateau that extends a short distance inland from the western shores of South Lebanon to the Mount Hermon foothills in the East. This region is intersected by many seasonal streams flowing from west to east and discharging into the Mediterranean Sea.

Value Chains, Basic Interventions, Supports - 7 The marked climatic variability over short distances (due to the presence of two mountain ranges which run perpendicularly to the direction of the path of the atmospheric circulation) partially account for the wide diversity of ecosystems within this limited land area; it also should be remarked that in a very small area (10,202 km2), altitudes (and, consequently, micro-climates) vary (not in a continuous way, but with alternating ranges, valleys and peaks) from the sea level (at the coastal line) up to 3,087 m (Jabal al Makmal).

However, the above regions encompass the following identified habitats (Ramadan-Jaradi & Ramadan- Jaradi, 1999).

• Islands: three protected islets (Ramkine, Sanani and Palm) at 5.5 km off Tripoli, in the north; they occupy 5 km2, and consist of rocky shores and sand beaches, with scattered low bushes, scrubs and annual herbs.

• Coasts: the continental shore extends for about 250 km; river mouths and coastal mudflats are included in this habitat type. Cliffs and sandy or shingle beaches are frequent on all coasts. Heavy demographic pressure has resulted in the disappearance of most coastal plants.

• Urban areas: include parks and private gardens. One of the chief characteristics of urban habitat is the large number of exotic plants such as Casuarina, palms, agaves and many species of acacia.

• Coastal plain: usually narrow, but non-existent in places where the mountains rise directly from the sea. Only the Akkar plain, north of Tripoli, and Tyre plain in the south possess the characteristics of a wild plain, with little grazed grassland. In most areas there is cultivation, eucalyptus woodland, fruit orchards and pine plantations.

• Maquis: the climax vegetation of the Lower Mediterranean zone is maquis with Quercus, Sarcopterium, Terebinthus, Ceratonia, Laurus and other low trees, with stands of Clematis, Smilax, Lonicera and Asparagus. It is still found locally, principally in inaccessible areas (ravines).

• Garrigue: excepting the coastal plain, much of the Lower Mediterranean zone is semi-open to open garrigue woodland.

• Olive groves: usually on terraced slopes in the Lower Mediterranean and lower parts of the Middle Mediterranean zones.

• Pine forests: forest blocks (principally of Pinus brutia and Pinus pinea) extend throughout the Lower, Middle and Upper Mediterranean zones.

• Oak forests: these comprise Quercus calliprinus in the Lower Mediterranean zone; Quercus calliprinus and Quercus infectoria in the Middle Mediterranean zone; Quercus calliprinus, Quercus infectoria and Quercus cerris in the Upper Mediterranean zone; and some Quercus cedorum and Quercus brantii look in the Cedar zone.

• Cedar forests: this habitat - consisting of Cedrus libani trees - is now known from just 12 limited stands from north Lebanon to Arz Maasser Al Chouf, and totals only around17 km2.

• Fir forests: Abies cilicica also occurs in the Cedar zone in north Lebanon, from Qammouha to its southern limit at Ehden.

• Tragacanth: represented by stony and rocky hills in the Subalpine and Alpine zones with scattered low, rounded or flat spiny semi-shrubs such as Vicia, Erodium, Astragalus, Onobrychis and Acantholimon, interspersed at lower levels with stands of Berberis and Phlomis. Scattered stands of Juniperus excelsa still occur in Subalpine areas.

• Anti-Lebanon hills: relatively arid uplands which receive considerably less rainfall than corresponding altitudes in west Lebanon.

• River valleys: the Lebanon range, particularly on its west side, and the Bekaa are bisected by rivers and streams with their own peculiar vegetation: Nerium oleander, Platanus orientalis, Rhododendron ponticum and Drosera rotundifolia among others. The softness of the limestone has allowed even small rivers to create impressive valleys, in some places with near-vertical sides.

• Orchards: found throughout the country; on the coast bananas, loquat (Eriobotrya japonica) and citrus are the most frequent; below 800 meters, the hills have extensive olive groves (treated separately), mid- altitudes have peaches and apricots, and higher areas cherry, apple and pear plantations.

• Cultivation: cereals are farmed in Akkar and Tyre plains, and vegetable cultivation is practiced throughout the country, particularly in the Bekaa valley and its fringes.

Value Chains, Basic Interventions, Supports - 8 • Semi-desert: limited to a small area of the Hermel, north Beqaa, where rainfall, partially inhibited by the high mountains, is just 250 mm per year. It is a direct extension of the Syrian Desert via the Homs depression. Among the typical plants are Artemisia, Hammada, Salsola, Achillea, Scorzonera and Gymnarrhenea (found once in a dry place).

2 • Aammiq wetland: Aammiq wetland (2.80 km ), 7 km south-west of Qabb Elias in the Beqaa valley, at around 860 metres is inundated in winter, but in summer only two small areas of open water remain. The wettest area is composed of a mosaic of Juncus and Phragmites-Typha reedbeds. The area is traversed by Riachi stream, which on its raised banks, supports an avenue of Fraxinus syriaca.

• Inland waters: with the exception of Aammiq, the following are included within this habitat type: Qaraoun lake, Tanayel and Yammouneh ponds, Anjar channels, and springs, streams, rivers and fishponds, which are usually fringed with riverine or marshy vegetation.

1.1.3 A strategic need

Identified areas

During action-research activities, the following areas have been taken into consideration for their remarkable potential to integrate biodiversity safeguard and territorial development (and, consequently, to induce “sustainable” development):

• North Lebanon: o “Qammoua Natural Park” (Akkar – Donniyeh, Cedar and Fir Forests habitats), o Tannourine Cedars Forest Nature Reserve (Cedar Forest habitat), o Palm Island Nature Reserve (Islands habitat);

• South Lebanon: o Tyre Coast Nature Reserve (habitat of the Coasts), o El Mansouri Beach (habitat of the Coasts).

Protection and human development

The following descriptions of the areas will highlight that they are primary sites and sources of biodiversity, and very attractive places. Therefore, the protection of those areas from anthropic aggression (see 1.1.1) is necessary to • improve the general quality of Lebanese natural environment, because they are places of reproduction for many animal genotypes and vegetable germ plasms, • gain sustainable productive areas, that could produce high added – value goods (especially in the case of the so-called “Qammoua Natural Park”), • promote significant tourism activities.

The Law for the Protection of the Environment (Law 444, 8/8/2002) represents the general framework for the protection of the environment in Lebanon. Articles 47-48 call for the protection and sustainable use of biodiversity, the establishment of nature reserves and for regulating access to genetic resources. This framework allows to consider territorial ecosystems with high biodiversity as main components of a sustainable development in Lebanon, and one of the strategic pillar of the ART GOLD Programme, because of their competitive potential in adding economic value to their rural products and tourism activities: ecosystem protection activities, if integrated with adequate economic dynamic, can increase jobs and income, and can provide concrete responses to the critical living conditions of many rural families.

Although the Lebanese situation remains still critical for international tourism attractiveness, however the following considerations suggest to carry out tourism plans, to be ready when, hopefully soon, Lebanon will can show its attractive image to the world: • there is much to do for realising effective tourism development, in terms of building social capital, awareness and capacity, and prepare infrastructure and governance, • tourism activities are already going on in smaller scale, but involving national population, Diaspora, and also foreign people and their families temporary living in Lebanon.

Value Chains, Basic Interventions, Supports - 9

1.2. North Lebanon

1.2.1 Akkar - Donniyeh

Geographical location

Subtended area by Al Jord and Al Joumeh Unions of Municipalities and the Municipalities of Kobayat, Akkar Al Atika, Fnaidek, Hrar (all in Akkar) and Bkarsouna (in Donniyeh) is characterised by a high level of biodiversity.

Competitiveness factors

This area is free from population centres, and it is characterized by a large variety of micro – climates (from hill level to that of more than 2000 m in altitude), and by a high level of biodiversity, determined by:

• the existence of many wild vegetable species (including cedars, oaks – a type that is unique to the Middle East - pine trees, junipers, medical and aromatic plants, etc.),

• the presence of wild fauna (rabbits, partridges and other permanent birds),

• being a transit place for many species of migratory birds.

Qammoua, a site in that Area, is called the “Mediterranean Highlands”. The common local perception is the Area is a “pristine, genuine and wholesome land”. The following elements are reasons of added value and competitive advantage, in potential terms, for the general territorial competitiveness of the Area and its neighbourhood::

• environment: o presence of exceptionally beautiful natural landscapes, o richness of water, thanks to the presence of many springs and rivers, o presence of natural caves;

• traces of past human activities: o presence of ruins, going back to the Roman imperial age, o presence of old water mills, o presence of an old graveyard of historical value, o traces of a Silk value chain (mulberry trees, ruins of old small silk factories) now left behind, but not forgotten (a Museum of Silk has been established), o traces of a particular Wool value chain, aimed at carpet production;

• resources due to present human activities: o Fruit and Vegetables value chain, o Milk value chain (Shanklish cheese is typical), o Honey value chain, involving projects now in progress, o a castle with a tower in a panoramic place, o some restaurants, o ideal environment for ecological tourism, trekking, horse trekking, camping, etc., o cultural activities, in the neighbourhood: § Cafés and Clubs, § a traditional yearly festival, § a Museum of Traditions, § a Theatre (that was the first Cinema in Akkar, now managed by a local author and actor).

Drawbacks

Qammoua’s neighbourhoods are considered among the poorest and most depressed areas in the Country; their urban condition must be considered of a very low level, and surely not suitable for tourism activities.

1.2.2 The Tannourine Cedars Forest Nature Reserve

Geographic location

Value Chains, Basic Interventions, Supports - 10 The Tannourine Cedars Forest Nature Reserve was created in 1999. It is located in El Batroun qadaa, on the mountains of Jabal Mar Moroune and Jabal es Sair, between the villages of Hadeth el Joube and Tannourine Tahta, and covers 85 hectares of a 200 hectares forest.

Competitiveness factors

The Reserve is managed by the Tannourine Cedar Forest Nature Reserve Committee, under the supervision of the Ministry of Environment.

The Reserve competitiveness factors are due to:

• It is a very rich ecosystem, o as one of the largest and most dense Lebanese cedar forests (70000 trees, of which 90% cedars, some of which between 1000 and 2000 years old), also with pine trees, cypresses, firs, poplars, o with the presence of predatory birds (eagles, owls) but also robins, etc. and wild animals like hyenas, boars, bats, snakes, etc.

• it is rich in internal bodies of water, having more then 100 springs of fresh water,

• it is rich in exceptionally beautiful natural landscape,

• it is naturally protected from excessive and irresponsible tourism, thanks to its natural topography and land morphology.

1.2.3 Palm Island Nature Reserve

Geographic location

The Palm Islands Nature Reserve was established in 1992, on the homonym archipelago (total surface of 5 km2) formed by the islands of Palm (Nakhl), Sanani and Ramkine (Fanar), 6 nm NW off Tripoli’s shore. The Reserve is composed of three islands and 500 m of surrounding sea.

Competitiveness factors

The Reserve is managed by the Palm Islands Nature Reserve Committee, under the supervision of the Ministry of Environment. The site is included in the “Mediterranean Specially Protected Areas” (ASPIM), according to the Convention of Barcelona.

The archipelago is formed by Lebanon’s only true islands; its biodiversity heritage is of global significance, and is characterised by:

• being a sighting place for nun seals,

• being a breeding site of o the endangered Loggerhead Turtle (Caretta Caretta), whose number of nests grew from 3 (1997) to 31 (1999), o many species of sea birds,

• being a transit and resting place for about 160 different species of migratory birds (herons, ducks, wading birds, etc., some of which are endangered).

The islands are also rich in beach flora and medicinal plants, and their coastal waters have an abundance of fish, sea sponges, and other kinds of sea life. Parts of the Reserve are open for swimming and snorkeling.

Drawbacks

The islands are regularly polluted by oil that is dumped and garbage both from the urban area of Tripoli and tourist boats. As a consequence of the bombing of the generating station in Jiyyeh (during the war of July 2007), the islands were effected by a “black tide” of oil.

1.3. South Lebanon

1.3.1 Tyre Coast Natural Reserve

Geographic location

Value Chains, Basic Interventions, Supports - 11 The Tyre Coast Nature Reserve was created in 1998 on the coast of Tyre (Sour).

Competitiveness factors

The Reserve is managed by the Tyre Coast Nature Reserve Committee, under the supervision of the Ministry of Environment. The Area is recognised as a “wetland of international importance” by the Ramsar Convention on Wetlands, and

• before the above-mentioned “black tide”, was one of the best preserved sandy shores in Lebanon,

• is rich in fresh water artesian wells, which have been there since the Phoenician age, and which are linked to the hydraulic infrastructures of the Roman age (archaeological areas of Port of Sour and Al Bass),

• is a breeding site of o the endangered Loggerhead Turtle (Caretta Caretta), o Green Turtle (Chelonia Mydas),

• is rich in wetland plants and marsh birds.

The Reserve’s seashore can be explored also by snorkeling or SCUBA diving.

Drawbacks

As a consequence of the bombing of the generating station in Jiyyeh (during the war of July 2007), the Reserve was effected by a “black tide” of oil.”.

1.3.2 El Mansouri Beach

Geographic location

The beach is located in El Mansouri Bay, about 15 km south of Tyre.

Competitiveness factors

The beach is a breeding site for the endangered Loggerhead Turtle (Caretta Caretta) and Green Turtle (Chelonia Mydas).

Drawbacks

As a consequence of the bombing of the generating station in Jiyyeh (during the war of July 2007), the beach was effected by a “black tide” of oil.

1.4. Hypothesis of a strategy for North Lebanon

1.4.1 A Local Tourist System

A proposal of a strategic target

A very important part of a development strategy for North Lebanon is pursuing sustainable development through enhancing rural productive activities, and tourism activities, compatible with environment protection.

A Local Tourist System (probably the most effective organisational tool existing for Tourism, see chap. 14) can be established in North Lebanon, thanks to existence of many favourable conditions, that can be summarized in the following consideration: in a very small area (2,000 km2, almost a rectangle with average sides of 40 km and 50 km), a very rich heritage of attractive resources as islands, sea shore and sea – related activities (seamanship, underwater and fishing tourism), but also hills and high mountains, biodiversity and artistic handicraft, open spaces for sports and camping and cultural activities, typical food and historical heritage, etc., can be found and enjoyed.

This System should be based on • a comprehensive knowledge, development and management of local attractive resources of any kind (attractiveness sub-system),

Value Chains, Basic Interventions, Supports - 12 • a comprehensive knowledge, development and quality management of local rural productive activities (production sub-system), • the availability of an effective hospitality sub-system (hotels, restaurant, bed & breakfast, agro-tourism receptivity, etc.), • the availability of an effective sub-system of services for tourism.

The optimization, and the integrated implementation of this system should include: • monitoring and promoting the improvement of general territorial quality (energy, water and waste management, urban planning and maintenance, public services, etc.), • optimizing the interactions among attractive resources, rural productions, hospitality and tourism services.

This strategy can reveal itself as extremely important for providing alternative sources of jobs and income in one of the poorest area of the Country, and can have a tremendous social impact.

According to the main lines of a Local Tourist System, identified northern “biodiversity tank” can be managed as follows.

1.4.2 “Qammoua Natural Park”

A Protected Area

Local Actors (among which Administrative Authorities) and many local citizens are already at work, thanks to the help of “Mada” (a civic Association of Beirut) to establish a Protected Area in Qammoua and its neighbourhoods. This Area can be the initial nucleus of the northern Local Tourist System.

Obstacles

In order to achieve that target coherently with the optimized approach of the System, the following main obstacles were identified (through the FG, or discussed during Field Reconnaissance in Akkar on 09/10/07 with Local Administration Representatives): • uncertainty about juridical and administrative management for establishing a Protected Area; • no definition of the Area’s borders and partition (A, B, C, D spaces); • lack of necessary know – how to manage a protected Area; • lack of a common and comprehensive knowledge about o local biodiversity, o existing or possible local productive activities, o existing local real estate and its conditions; • lack of an integrated tourism plan • lack of services for creating and supporting productive activities, and skills for carrying them out; • lack of skills for adequate restoration of local real estate; • lack of territorial marketing capacities. Furthermore, the uncertainty about the overall stability of the Country and its effects on the possibility of attracting international tourists suggested of starting financial investments on productive activities, infrastructural interventions and urban and material re-qualification of population centres.

A proposal of strategic guidelines

The strategic guidelines should, therefore, regard • research and education, • effective and efficient collective management, • tourism planning • basic infrastructures, • promotion and support to the human and economic activities, • territorial marketing, and are described as follows.

♦ Research and education. It includes: o the production of a common, comprehensive and continuously evolving knowledge regarding local biodiversity, real estate, productive activities, o environmental education for the citizens.

Value Chains, Basic Interventions, Supports - 13 ♦ Collective planning and management. It includes: o the formulation of the Protected Area’s borders, partition, strategic (governance) and operative (government) planning and management, according to the strategic goal of carrying out effective and integrated sustainable development, o the identification of juridical and administrative avenues for establishing a Protected Area, consistent with available laws in force, o the promotion of new local civil society associations, o the promotion and implementation of related value chains, regarding tourism, natural agro-food, handicrafts, and others with competitive sustainable potential.

♦ Basic Infrastructures. It includes: o the design and implementation of recovery and restoration of small population centres, according to local traditional building rules, and to make the area more attractive and strengthen its guest accommodation sector, o the feasibility assessment, design, and implementation of the energy, water and waste territorial systems.

♦ Promotion and support to human and economic activities. It consists in the design and the implementation of a system for delivering services for human and economic development: o continuous territorial animation, connected to research and education activities, o skill and job training (mainly in the field of durable and organic farming, hand crafting activities, tourism activities), o enterprise creation, o entrepreneurial training, o access to credit and finance, o business services, o marketing support o support to local cultural production.

♦ Territorial marketing. It includes: o the definition of the marketing targets for each one of the existing value chains in the area, within a comprehensive North Lebanon sustainable development plan, o the organisation of a territorial brand, o the definition of the marketing strategy, including internal and external marketing.

Thematic Systems, Areas, Sectors, Chains involved

The following table shows in a simplified way, all the Thematic Areas, Sectors and Chains that need to be involved in order to accomplish the strategic goal of establishing a Protected Area in Qammoua.

Value Chains, Basic Interventions, Supports - 14

Systems Areas Sectors Key Elements

Ground • Energy Management • Waste Management Underground • Water Management Environment Internal Waters • Legislative Production • National Government regulations Biological Factors • Local Governments

State • Fruit and Vegetables • Honey Admin. – Inst. Union of Municipalities • Milk • Olive Municipalities • Typical Handicraft Productions • Agro-food • Textile and clothes Primary • Recovery and Restoration

Economic • Tourism Human Activities • Marketing Secondary • Services for economic development

Tertiary • Civic Representation

Social Representation • Historical and Archaeological Research • Biological Research Education and Research • Naturalistic Research • Job Training Cultural Environmental Education Mgmt. of Cultural Her. • • Historical and cultural heritage

Table 5: Thematic Systems, Areas, Sectors, Chains involved

Value Chains, Basic Interventions, Supports - 15 Simplified Flow Diagram of the Interactions

The following diagrams shows, in a simplified way, all activities, sectors and value chains to be involved in order to accomplish the strategic goal of establishing a Protected Area in Qammoua.

Fruit and Vegetables Energy Management

Honey Legislative Production Biomass Energy Local Government Milk

Civic Representation Olive

Protected Marketing Area Culture Textile and clothes

Biological Research

Typical Handicraft Prod.

Naturalistic Research

Tourism Environmental Educ.

Water Management Recovery and Restor. Waste Management

Job Training

An Integrated Territorial Project

The intention of Local actors of proceeding towards the establishment of a Protected Area, through a shared designing process must be supported by ART GOLD Lebanon Programme. It could be realised by designing an Integrated Territorial Project included in the North Lebanon Local Development Programme and interacting with it, in order to ensure optimized links with • other components of Northern Local Tourist System to be established (attractive resources, productions, hospitality, services), and especially with other high-biodiversity sites (Palm Islands, Tannourine Cedars Forest, etc.), • national strategies for tourism, improvement of natural resources, etc.

Shared designing process of “Qammoua Natural Park”, therefore, should be implemented inside a geographically and functionally partition of North Lebanon Local Partnership.

1.4.3 Other areas

Proposed strategic guidelines

Both Palm Islands Nature Reserve and Tannourine Cedars Forest Nature Reserve were identified during Desk Analysis. Further analysis (Local Reconnaissance, FGs and meetings with appropriate local Actors, etc.) is needed, to realise a common assessment of the strategic insertion of those sites into the North Lebanon Development Programme, as main components of Local Tourist System.

Value Chains, Basic Interventions, Supports - 16

1.5. Hypothesis of a strategy for South Lebanon and other Areas

1.5.1 Local Tourist Systems

A proposal of a strategic target

The target of pursuing sustainable development through enhancing • rural productive activities, and • tourism activities compatible with environment protection is also strategically valuable for South Lebanon and Bekaa. Therefore, a Local Tourist System, integrated in the Local Development Programme, should be established for each rural Area of the ART GOLD Lebanon Programme.

Proposed strategic guidelines

Also in this case, biodiversity must occupy a relevant place among attractive resources. In South Lebanon, both Tyre Coast Natural Reserve and El Mansouri Beach were identified during Desk Analysis; consequently, further analysis (Local Reconnaissance, FGs and meetings with appropriate local Actors, etc.) is needed • to realise a common assessment of the strategic introduction of those sites into the North Lebanon Development Programme, as main attractive components of a Local Tourist System, • to focus a shared point of view about System’s design specifications.

Adequate activities should be started in Bekaa to create a Local Tourist System in the Area.

1.6. The ART GOLD support

In conclusion, the ART GOLD Lebanon Programme can provide the supports to the valorisation of the biodiversity in Lebanon (to be considered integrated in the Local Strategic Programmes) listed in the following tables. Table 6 shows the comprehensive support for the overall duration of the Programme Table 7 shows the initial support, foreseen for a period of 3-5 months, as start up operations.

Action plans should be established and agreed within the Area Local Partnerships and the National Coordination Committee for carrying on the above mentioned activities, and they will be part of the annual AGL Programme action plans, supported by ART IS LED.

Value Chains, Basic Interventions, Supports - 17

TABLE 6: ART GOLD LEBANON OVERALL SUPPORT TO THE VALORISATION OF THE BIODIVERSITY

Area Site Issue Activities

Area Staff activities, to be continued by the LEDA, when established:

Research and • Support to the production of a common, comprehensive and continuously evolving knowledge regarding local biodiversity, real education estate, productive and cultural activities, attractive local heritage.

• Promotion of the environmental education for the citizens.

Area Staff activities (inside Local Partnership work), to be continued by the LEDA, when established:

• Support to the shared designing activity: o formulation of the Protected Area’s borders, partition, strategic Collective planning (governance) and operative (government) planning and and management management; o identification of juridical and administrative tools and avenues for establishing a Protected Area.

• Promotion of new local civil society associations.

Through Decentralised Cooperation:

• Design and implementation of recovery and restoration of small Basic Infrastructures population centres, according to local traditional building rules.

• Feasibility assessment, design, and implementation of the energy, water and waste territorial systems. Area Staff activities, to be continued by the LEDA:

• Design and implementation of a system for delivering services for “Qammoua human and economic development: o continuous territorial animation, aimed at identifying research, Natural Park” training and education needs, o enterprise creation, Promotion and o entrepreneurial training, support to human o access to credit and finance, and economic o business services, activities o marketing support o support to local cultural production.

Through Decentralised Cooperation and/or Lebanese Training Structures:

• Skill and job training (mainly in the field of durable and organic farming, hand crafting activities, tourism activities). Area Staff activities, to be continued by the LEDA, when established:

• Definition of the marketing targets for each one of the existing value chains in the Area. Territorial marketing • Organisation of a territorial brand, • Definition of the marketing strategy, including internal and external marketing. Area Staff activities (inside Local Partnership work), to be continued by the LEDA, when established:

• Support to the shared designing activity of a Local Tourist System, strategically connecting the following sub-systems: Tourism planning o Attractors, o Hospitality, o Production, o Services.

• Support to the design of a Local Tourism Plan. Area Staff activities (inside Local Partnership work),to be continued by the LEDA, when established:

• Local Reconnaissances, FGs and meetings with appropriate local Other sites Action-research Actors, etc.), aimed at the strategic initiatives for o Palm Islands, o Tannourine Cedars Forest into the North Lebanon Development Programme.

Value Chains, Basic Interventions, Supports - 18

Area Staff activities (inside Local Partnership work), to be continued by the LEDA, when established:

• Local Reconnaissances, FGs and meetings with appropriate local Action-research Actors, etc.), aimed at the strategic initiatives for o Tyre Nature Reserve, o El Mansouri Beach South - into the South Lebanon Development Programme. Lebanon According with the action-research findings, implementation of development strategies regarding • Sensitiveness and awareness Implementation • Collective planning and management • Promotion and support to human and economic activities • Territorial Marketing • Tourism Planning Area Staff activities (inside Local Partnership work), to be continued by the LEDA, when established: Action-research • Identification of biodiversity heritage of the Area. According with the action-research findings, implementation of Bekaa - development strategies regarding • Sensitiveness and awareness Implementation • Collective planning and management • Promotion and support to human and economic activities • Territorial Marketing • Tourism Planning

TABLE 7: PROPOSAL OF THE ART GOLD LEBANON INITIAL ACTIONS (3-5 MONTHS) TO SUPPORT THE VALORISATION OF THE BIODIVERSITY SUPPORT TO THE NETWORKS Strategic expected result In the Areas: Actions: Information aimed at promoting the value of Lebanese biodiversity; Environmental education. Improvement of the environmental Beneficiaries: Citizens and rural producers of North Lebanon, South Lebanon, education and sensitiveness. Bekaa. Implementation: Information and education activities carried on by local civic Associations Action: action-research (FGs, in the field, desk) Beneficiary: Local Partnerships of North Lebanon, South Lebanon, Bekaa Knowledge of the Lebanese biodiversity Period: from January on heritage Implementation: Area Staff activities (inside Local Partnerships work), supported by IS-LED, the AGL LED international expert and the LED ART GOLD area specialists Action: Territorial Integrated Project to support shared designing and establishment of “Qammoua Natural Park” (see Table 6) Beneficiaries: Local Administrations, Citizens and rural Actors of the interested Establishment of region (Akkar – Donniyeh, North Lebanon). “Qammoua Natural Park” Implementation: Area Staff activities (inside Local Partnerships work), supported by IS-LED, the AGL LED international expert and the LED ART GOLD area specialists Action: Support to the shared designing activity of a Local Tourist System in North Lebanon, strategically connecting Attractors, Hospitality, Production, Services. Establishment of North Lebanon Beneficiaries: all the Actors of North Lebanon Local Tourist System Implementation: Area Staff activities (inside Local Partnerships work), supported by IS-LED, the AGL LED international expert and the LED ART GOLD area specialists

Value Chains, Basic Interventions, Supports - 19

BOATYARDS

Characteristics and strategic opportunities for artisanal shipbuilding activities

• Field Reconnaissance: Sources of information: o South Lebanon, 02/10/07.

• Desk Analysis.

2. Shipbuilding activities

2.1. The sector and the boat

2.1.1 The Sector

An artisanal sector

Some small handcrafted boatyards were visited and appreciated during the field reconnaissance in the port of Tyre (South Lebanon, 02/10/07). Their existence is strictly connected to local fishing activities, and contributes to a spontaneous “optimization” of local sea-related activities, as it happens in all Mediterranean fishing ports.

A “Sea macro chain” to be identified

Beyond their importance for the fishing value chain, the productions of these small boatyards, mainly consisting of the flouka, typical Lebanese boat, can provide good strategic support for Water-Tourism development, either fishing or diving.

As for Fishing-Tourism, tourists are taken aboard on fishing boats, allowed to “work” with the fishermen and, aboard or on terra firma, cook and eat the fish they catch.

As for Underwater-Tourism, snorkel and SCUBA diving tourists go by boat to immersion areas, as they already do with the support of several Lebanese Diving Centres.

Future results of ART GOLD action-research activities will able to detect and identify the existence and the characteristics of a “Sea macro-chain”, from boatyards to small fishing and tourist activities.

2.1.2 The “flouka”

A typical Lebanese fishing boat

The flouka is the most popular small and medium-small boat for fishing activities in Lebanon. Unlike its Egyptian namesake, which sails in the Nile, and its Moroccan counterpart, the Lebanese flouka is a sea-going vessel.

It has the following characteristics: • Made of wood, mainly pine and fir; • length from around 4 m and longer • equipped with an inboard diesel engine of 30 HP or more, and tanks ensuring at least an autonomy of 4 hours, • often equipped with a mast, having only structural and functional purposes (it is not a sailing boat).

Other equipment

The flouka is generally equipped with ordinary navigational equipment (electric plant for lights and pumps, other manual services) and fishing equipment, among which a manual or electric fishnet pulley is often present.

The “archetype”

Value Chains, Basic Interventions, Supports - 20 The design, characteristics and properties of the flouka recall the archetype of the “small handcrafted Mediterranean fishing boat”, which is widespread from Gibraltar to Lebanon, from the Gulf of Trieste to the Gulf of Sirte.

Common elements existing among different boats belonging to different seafaring traditions are: • bulkheads and stringers wooden all-bearing structure, • simple wooden planking, calked with pitch.

In Italy, for example, two Italian boats similar to the flouka belong to a kind called gozzo: • Gozzo sorrentino (from Sorrento, famous tourist place of the Campania region, near Naples), • Gozzo ligure (from the Liguria region).

Prices

The Italian gozzo is a very expansive boat. A wooden gozzo, with similar structural characteristics to a small flouka (but with a better finish and equipment), may cost around € 30,000 ($42,000).

Fibreglass production started many years ago to offer a cheaper version of these boats, although not so valuable as the former one. Its price varies from €10,000 to 15,000 ($14,000 - $21,000), while the assessed price of a basic motorized flouka on the local market is around $5,000, and without any doubt it is a much more competitive product, because of its materials and its traditional value.

2.1.3 Detected geographical distributions

The production of the flouka has been identified in the port of Tyre, in South Lebanon.

Small boatyards producing the flouka can be found also in the north, in Tripoli and Al Mina, according to the North Lebanon LED Consultant, but the action-research schedule in North was not able to dedicate sufficient time to this sector

The introduction of small boatyard activities in the coastal area of Dahyeh (BSS) could significantly contribute to the development of this area.

2.2. Strategic considerations

2.2.1 The evolution of tourist boatyards

Wooden boats in the world

The difference between wooden and fibreglass boats is evident, in terms of price, maintenance costs, and needed know-how; but also in terms of added value. Therefore, when, in the 70s, cheaper fibreglass products conquered western leisure markets, a significant part of the customers, probably the most expert and, in some cases, the richest, remained faithful to wooden boats. Even Italian gozzo producers, at the beginning selling it as a fishing boat, recognised a new market niche, and it became a “high range” boat. Care for details and equipment quality improved, and it acquired the status of “a real boat”. Since then it has consolidated its position on the luxury boat market (amateurs and rich people). Furthermore, handcraft know-how related to the production of wooden boats is much appreciated throughout the world, because of the high value of the products, and its growing rarity, as it belongs to a traditional heritage of old people.

2.2.2 Market dynamic

• Domestic market:

The prospects of the flouka on domestic market shall be further assessed. Action-research in each area should, therefore, focus on this issue, first of all through the descriptions and the analysis of a potential Lebanese demand/offer ratio.

Value Chains, Basic Interventions, Supports - 21 • Foreign markets:

The international wooden boat market is very permeable, and the Italian gozzo or Turkish “caicco” are good examples. The improvement of flouka details and equipments should be pursued in order increase its competitive potential.

2.2.3 Development prospects

The flouka is a very typical Lebanese product with a very significant competitive advantage, due to its quality, traditional heritage, and costs. Furthermore, it has a strategic value, because it contributes to the competitive development of the fishing and water-tourism value chains (see table 1), which need more, safer, and better equipped floukas.

Product Strategic Value Competitive advantage

Very important support for • High added value due to o the quality of raw materials, • Fishing activities, o traditional productive know-how, Flouka Water Tourism (Fishing Tourism, Underwater o cultural issues. • Tourism) activities. • Low price, compared to international competitors

Table 1: strategic value and competitive advantage of the boatyards value chain

Flouka development prospects are, therefore, very promising. Nevertheless the strategy for supporting them depends on factors (which action-research did not have the chance or time to explore) such as domestic market demand, main constrains, feasibility, in terms of availability of raw materials and economic sustainability, need of services.

This could be part of the subsequect AGL plan of action.

2.3. The ART GOLD support

It is not possible to identify at this stage what overall support the ART GOLD Lebanon shall provide to this resource for its competitive and sustainable development for the duration of the programme. This will depend on the outcome of the analysis of the following: • national market demand, • constraints and critical development problems, • current status of the value chains (in terms of production flows needed to produce and sell the boats, and interactions with other value chains), • needs assessment to enhance sustainable and competitive development and to improve value chain organisation, productive performance, services, quality, and marketing.

This analysis, carried out through an action-research methodology, shall be part of the initial ART GOLD Lebanon support to the value chain, having a duration of 2 months. It is envisaged that this action-research will continue in the next annual ART GOLD Lebanon operational plan, as illustrated in the following table 2.

Value Chains, Basic Interventions, Supports - 22 TABLE 2: PROPOSAL FOR ART GOLD LEBANON INITIAL ACTIONS (2 MONTHS) TO SUPPORT THE BOATYARD VALUE CHAIN

ACTION-RESEARCH Expected strategic result Area level National level Actions: organisation of Focus Groups including all the Actors currently working in the Boatyard value chain, and other institutions

Analysis of domestic and international with potential for intervention (universities, market demands, constraints and municipalities, other governmental bodies, critical development problems of the etc.). current status of the value chains (in Beneficiaries: Actors in the Boatyard value terms of productive flows needed to chain in South Lebanon, North Lebanon, and produce and sell the boats, and Dahyeh. interactions with other value chains) Implementation: 2 months work by AGL LED area specialists, using the methodology learned through the previous ART IS LED

mission, coordinated by an AGL international LED expert, and distance assistance from ART IS LED. Action: International IS LED technical

Needs analysis to enhance sustainable assistance. and competitive development and Beneficiary: Actors in the Boatyard value chain in South Lebanon, North Lebanon and improve value chain organisation, productive performance, services, Dahyeh, Universities, Chambers of quality, and marketing Commerce, national Government. Implementation: 1 week mission in Lebanon, supported by an AGL LED international expert and LED area specialists. Action: International IS LED technical assistance

Beneficiary: Actors in the Boatyard value chain in South Lebanon, North Lebanon, and National Government Dahyeh, Universities, Chambers of Definition of strategic guidelines Commerce.

Implementation: Desk assessment, discussions with the AGL National Coordination Committee and Area Local Partnerships.

Value Chains, Basic Interventions, Supports - 23

FISHING

Characteristics and strategic opportunities

• Focus Groups (see ann. 2): o SLe FG n.7, 02/10/07.

Field Reconnaissance: Sources of information: • o South Lebanon, 02/10/07, o South Lebanon, 03/10/07.

• Desk Analysis.

3. Fishing activities

3.1. The ART GOLD support

3.1.1 Action-research

The results of above mentioned FG are available in annex 2, page 53.

It is not possible to identify, at this stage, what overall support the ART GOLD Lebanon shall provide to this resource for its competitive and sustainable development for the duration of the programme. This will depend on the outcome of the analysis of the following: • national and international market demands of fresh fish and preserved (dried, in brine, in oil, frozen) fish, • constraints and critical development problems, • current status of the value chains (in terms of needed production flows, and interactions with other value chains), • needs assessment to enhance sustainable and competitive development and to improve value chain organisation, productive performance, services, quality, and marketing.

This analysis, carried out through an action-research methodology, shall be part of the initial ART GOLD Lebanon support to the value chain, having a duration of 2 months. It is envisaged that this action-research will continue in the next annual ART GOLD Lebanon operational plan, as illustrated in the following table 1.

Value Chains, Basic Interventions, Supports - 24 TABLE 1: PROPOSAL FOR ART GOLD LEBANON INITIAL ACTIONS (2 MONTHS) TO SUPPORT THE FISHING VALUE CHAIN

ACTION-RESEARCH Expected strategic result Area level National level Actions: organisation of “Focus Groups” including all the actors currently working in the fishing value chain: • fishermen, • fish breeders, • food processers, Analysis of national and international • distributors, market demand, constraints and critical and other institutions with potential for development problems of the current intervention (Universities, Municipalities, other status of the value chains (in terms of governmental bodies, associations, creation of new enterprises, needed syndicates, etc.). productive flows and interactions with Beneficiaries: Potential and actual Actors of other value chains) the Fishing value chain in Dahyeh (BSS), National Government North Lebanon, South Lebanon.

Implementation: 2 months work by AGL LED area specialists, using the methodology learned through the previous ART IS LED

mission, coordinated by an AGL international LED expert, and distance assistance from ART IS LED. Action: International IS LED technical

assistance Needs analysis to enhance sustainable and competitive development and Beneficiary: Potential and actual Actors of the Fishing value chain in Dahyeh (BSS), improve value chain organisation, National Government productive performance, services, North Lebanon, South Lebanon, Universities, quality, and marketing Chambers of Commerce. Implementation: 1 week mission in Lebanon, supported by an AGL LED international expert and LED area specialists Action: International IS LED technical assistance

Beneficiary: Potential and actual Actors of the Fishing value chain in Dahyeh (BSS), National Government North Lebanon, South Lebanon, Universities, Definition of strategic guidelines Chambers of Commerce.

Implementation: Desk assessment, discussions with the AGL National Coordination Committee and Area Local Partnerships.

Value Chains, Basic Interventions, Supports - 25

FRUIT AND VEGETABLES

Characteristics, constrains and opportunities, hypothesis of strategic guidelines and support

• Focus Groups (see att. N.2): o Bek FG n.1, 10/09/07, o Bek FG n.2, 10/09/07, o Bek FG n.8, 21/09/07, o NLe FG n.1, 25/09/07, o NLe FG n.3, 26/09/07, o SLe FG n.1, 13/09/07, Sources of information: o SLe FG n.4, 01/10/07

• Field Reconnaissances: o Bekaa, 04/10/07, o Bekaa, 05/10/07, o North Lebanon, 08/10/07, o North Lebanon, 09/10/07, o South Lebanon, 03/10/07.

• Desk Analysis.

4. The Fruit and Vegetables Value Chain

4.1. FV and connected value chains

4.1.1 Sectors’ material interactions

The following chart outlines, in a simplified way, standard material interactions of the main sectors involved in the FV value chain with each other, and with other value chains. The FV can be considered a macro-chain of value, because often the same actors produce and sell different kinds of goods and supply. Of course each product (for instance apple, figs, cabbage or eggplant) could generate its specific value chain, but many (in research, commercialization, transportation, and various inputs) will coincide.

Value Chains, Basic Interventions, Supports - 26 Fresh products Refrigerators

Farming Food processing

Dried products Gathering

Jam Biodiversity

Juice

Olive Packages Production Distribution Molasses

Chemical Production Fructose

Water Management Sauce

Energy Management Vinegar

Waste Management Ready dishes

Other elements referred to the immaterial interactions complete the value chains, as for instance quality control, various services (from training to finance), marketing, equipment maintenance, etc.

4.1.2 Thematic Systems, Areas, Sectors, Chains involved

The following Table 1 summarises the main sectors involved in the honey value chain.

Value Chains, Basic Interventions, Supports - 27

Systems Areas Sectors Other involved Chains Ground Environment Biological Factors

Municipalities • Land planning activities. Admin. – Inst. Public Services • Chambers of Commerce. Financial • Credit. Primary • Farming • FV preserves • Packages Production • Energy Management Secondary • Chemical Production: Waste Management o Pesticides, • o Synthesis Products, • Water Management o Food Chemistry. • Transportation. Human Activities Economic • Distribution. • Marketing. Tertiary • Business Services. • Consulting Services: o Quality Certification, o Organic Certification, o Food Safety. Representation • Ass.of Productive Sectors, • Labour Unions. Welfare • Services for Employment. Education and Cultural • Food research Research • Job training

Table 1: Sectors involved in the FV Value Chain

4.2. Processes and products

4.2.1 Fresh products

During action-research activity, the following fresh products have been identified.

Fresh fruit

• Almonds Last available data (2005) record a Lebanese production of almonds amounting to 27,500 tons.

In North Lebanon (qadaas of Donniyeh and Akkar) the following varieties of almond have been identified: o Hilwani (Freak, when peeled), produced at altitudes under 600 m, near the seashore, in amounts of about 500 tons/year, often used as an ingredient in mezze, o Shakushi (meanings “hammer”), used as basic ingredient for sugared almond (Italian confetto).

• Apples

Last available data (2005) record a Lebanese production of apples amounting to 140,000 tons, and put this fruit in the third place (after citrus and bananas) of the ranking of the most exported Lebanese fruits.

In the North, apart from the “international” Red Delicious variety, there are three varieties of common apple: storable, not storable and domestic (the latter is of low quality). Then, there are the Pom - described as quince - and the Saify, produced also in Bekaa.

• Bananas

Last available data (2005) record a Lebanese production of bananas of 72 000 tons, all substantially obtained in the South, and put this fruit in second place in the ranking of the most exported Lebanese fruits. Bananas are the only Lebanese product exported to Syria, which collects an amount of 60% of the production.

Value Chains, Basic Interventions, Supports - 28 In the opinion of the local producers, hard work on a typical characterization of the Lebanese banana is needed. The Lebanese banana is a “ready” product of excellent quality, and deserves to be characterized as a “speciality”, though it is not an endogenous plant.

The typical Southern Lebanese banana is small and has a delicious taste and flavour.

Banana farming does not need chemical pesticides, but no organic fertilizers are used.

• Berries.

Berries (wild soft fruit, raspberry, blackberry, strawberry, mulberry) are both cultivated and gathered in the rural lands of Bekaa and North Lebanon. They are harvested by hand picking, and sold fresh, or used in the production of jams and juices.

Blackberry juice is also used to produce molasses.

• Carobs.

The carob (Ceratonia siliqua) has been appreciated since the age of ancient Egypt, when it was eaten. It is also used as a common sweetener. The hieroglyph meaning “sweet” (nedjem) was a carob. In fact, carob is a very rich source of sugar, used before sugarcane and sugar beet became widely available.

Nowadays, the carob is eaten dried in all Mediterranean areas, and its juice is drunk on the Islamic holiday of Ramadan. There are also many examples of its use as a cocoa surrogate for the production of chocolate. It is also used as fodder, to feed livestock.

A very important use of the carob is in the production of carob molasses.

The carob has been identified in Bekaa, North Lebanon and South Lebanon.

• Citrus

Citrus fruits (orange, lemon, mandarin, bergamot, and citron) are present in the North and in the South. Last available data (2005) record a Lebanese production of 339,000 tons of citrus fruit, of which around 60% is exported abroad, mainly in the Gulf. This amount significantly decreased 15 years ago, when exports amounted to 300,000 tons, because of strong competition from competitor countries.

Lebanese citrus fruit has very good organoleptic properties, surely better than many others. Lebanese citrus fruits are internationally considered as “ready” products of excellent quality and deserve to be characterized as “specialities”.

One citrus fruit, the citron (Citrus medica L., cedro, in Italian), deserves more attention.

The citron The citron is not a common citrus fruit, like the lemon or orange. While the most popular citrus species are peeled in order to consume its pulpy and juicy segments, the citron's pulp is very dry with little value compared to the orange. Moreover, its main content is the thick white rind which adheres to the segments, and cannot be separated from them easily. From ancient through medieval times, the citron was used mainly for the fragrance of its outer peel or for medicine derived from it, which was used against seasickness, pulmonary troubles, intestinal ailments, and other disorders. The most important part of the citron is, in fact, the peel which is a fairly important article in international trade. The fruits are halved, depulped, immersed in seawater or ordinary salt water to ferment for about 40 days, the brine being changed every 2 weeks; rinsed, put in denser brine in wooden barrels for storage and for export. After partial de-salting and boiling to soften the peel, it is candied in a strong sugar solution. The candied peel is sun-dried or put in jars for future use. Candying is done mainly in England, France and the United States. The candied peel is widely employed in the food industry, especially as an ingredient in fruit cake, plum pudding, buns, sweet rolls and candy. Today there is a growing market for the citron in the United States, because of the valuable soluble fibre which is found in its thick rind, also called albedo.

• Figs

The fig is a basic ingredient of many Lebanese processed specialities. Figs have been identified in the North, South and Bekaa.

• Grapes

Value Chains, Basic Interventions, Supports - 29 Last available data (2005) record a Lebanese production of grapes (both table grapes and wine grapes) amounting to 110,000 tons.

In the North, local varieties of table grapes are the Madkushi and, in the Northern mountains, Murwahi (very sugary), Tarwira, Bakhury, Asmi. In recent years, American seedless varieties have been introduced to satisfy the demands of Gulf Countries (mainly Kuwait).

In Bekaa, the production of table grapes is substantially differentiated from wine grapes: in the qadaa of West Bekaa wine grapes are produced, while Rashaya produces table grapes. The production of exogenous seedless varieties of table grapes is becoming the most widespread. Also many other varieties produced in the area are not endogenous. These varieties have been chosen because of their good organoleptic properties: good taste, appealing colours (from dark pink to reddish), big size of the grape, but they are globalized products. They are cultivated at very high altitudes, up to 1,200 m, their favour enhanced by the low humidity environment. The entire production is sold, mostly abroad.

During action-research, in a field reconnaissance in Rashaya, a very delicious kind of table grape, declared as local (baladi) by local producers (also producing international varieties), has been identified.

The productive surplus of table grapes, and also particularly sugary local varieties of it, are used in Bekaa to produce molasses.

• Melons

Last available data (2005) record a Lebanese production of melons amounting to 10,000 tons.

The Cantaloupe type of melon (Cucumis melo reticulatus) has been identified in South Lebanon, and is potentially very competitive.

The Cantaloupe

It can be considered as an original product of Western Asia, because its germ plasma probably comes from Armenia. The cantaloupe has been recognized as an excellent kind of fruit for a long time. Its name comes from the town of Cantalupo in Sabina, near Tivoli (Rome, Italy), where it was abundantly cultivated in the XVIII century, from seeds brought from Armenia, but Christopher Columbus already had introduced it to the New World, as an excellent plant, in 1494.

The Cantaloupe is usually eaten fresh, or as a salad, or as a dessert, with ice cream or custard. Prosciutto e melone (Ham and Cantaloupe) as a starter is famous worldwide. It is a very healthy fruit, being a source of polyphenol antioxidants, able to provide important benefits to the cardiovascular and immune systems; it also contains provitamin C and beta carotene (and so vitamin A). One cup of cantaloupe is just 56 calories, but provides 103.2% of the daily needs of vitamin A and 112.5% of the daily requirements of vitamin C. It also contains vitamin B3, B6, fibres, folate, reduces the risks of cataract, and prevents cancer and oxygen-based damage to cells.

Its farming process is based on small water utilization and a massive help from atmospheric humidity, which condenses during changes of temperature (sunset, night, sunrise). In fact, it was decided to farm the Cantaloupe because, for a long time, water has been scarce in the South, and this product needs little water. For commercial plantings, the United States Department of Agriculture recommends at least one hive of honeybees per 4,000 m² of cultivated land, for pollination. Good pollination is essential, not only for the number of fruits produced, but also for the sugar content of these fruits. Fruit comes from either male or female plants; the female cantaloupe is said to be sweeter than the male.

Farming the Cantaloupe requires 3 months work (from June to August) for 1 or 2 people before the harvest (once a year). Consequently, the Cantaloupe is more productive than tobacco (which is being replaced), which needs 12 months of work for a whole family. Cantaloupe is also more appreciated than tobacco by the markets: a tobacco harvest earns $1,500 from the government, while the Cantaloupe harvest, sold on the market, earns $3,000. It was pointed out that, in the South, there is no critical mass of producers. Therefore this product o has a relevant market only in the qadaa of Bint Jbeil, o is just sold fresh, and is not processed to produce, for instance, Cantaloupe jam or juice.

• Prickly pears

Value Chains, Basic Interventions, Supports - 30 The prickly pear (Opuntia ficus-indica, also called cactus in Lebanon, fico d’India in Italian) has been identified in the South.

Thanks to its extraordinary capacity to grow also in conditions of scarce water, prickly pear is a plant very rich in potentialities for agricultural activities of arid lands. It has a remarkable nourishing power, being rich in calcium, phosphorus and vitamin C; consequently, it has an antioxidant effect.

It is eaten fresh, or used to produce juice, liquors, jellies, jams, sweeteners. Also the leaves of the plant (called shovels) can be eaten fresh, in brine, pickled, sugared, or used to make jam. The leaves are also used as forage.

This plant is also used in cosmetic industry, in order to produce wetting creams, soap, shampoos, lipstick.

Many Mediterranean regions (for instance Sicily, in Italy) promoted the certification of their cultivars of prickly pear as traditional products. This campaign of acknowledgment increased consumer knowledge of this kind of fruit, too often undervalued, promoted it, and made its price significantly grow. Also Lebanese prickly pear, benefiting from this promotion, can be proposed as a quality product of the Mediterranean area.

• Other kinds of fruit

o Apricots Last available data (2005) record a Lebanese production of apricots amounting to 32,000 tons. In the North, the variety Im Hussein is unique to the qadaa of Donniyeh. There are also Surani, Shatwi (“winter”, late) and Shahrani (also in Akkar) varieties.

o Avocados The avocado was introduced. It has been identified both in the North and in the South.

o Cherries The common cherry has been identified in Bekaa.

o Chestnuts The chestnut has been identified in the North.

o Kiwi The kiwi, an introduced fruit, has been identified in the North.

o Mango The mango, an introduced fruit, has been identified in the South.

o Peaches Last available data (2005) record a Lebanese production of peaches amounting to 25,000 tons. In the North, apart from the Nectarine, an Italian variety, typical varieties of peach are Abi (August variety), Mawardi and Phutwi. The latter is a late variety (September), and can be stored in a refrigerator for 3 weeks. The common peach has been identified in Bekaa, North Lebanon, and South Lebanon.

o Pears Last available data (2005) record a Lebanese production of pears amounting to 32,000 tons. In Bekaa and North Lebanon, apart from the common pear, the variety identified is Kouchie. Also in the South the common pear has been identified.

o Pomegranates The common pomegranate has been identified in Bekaa.

o Walnuts The walnut has been identified in the North.

Fresh vegetables

• Cucumber

In the North, baladi (“local”) cucumber has a unique taste, which is less strong than greenhouse products. When coming from organic production (without using chemical fertilizers and pesticides), it is harder, more flavoured and stays fresh longer. It is produced in the highlands of qadaa.

The common cucumber has been identified in Bekaa, North Lebanon, South Lebanon.

Value Chains, Basic Interventions, Supports - 31 • Mallow (of the marshes)

The mallow (Althaea officinalis, in Italian malvavischio or bismalva) is a plant of the order of Malvaceae, grown in marsh areas (therefore the name, often, of “marshmallow”). And marshmallow is also the name of the sweet produced from this plant, hereinafter described.

The marshmallow has been identified in the North.

• Mulukhiya

Mulukhiya (Corchorus olitorius) is the Arabic name for Tossa Jute, a plant known because of its use as a secondary source of dark jute, a fiber crop used in the textile sector. Other names for it are Melokiyah or, in English, Jew’s mallow.

It is a leafy summer vegetable that is common around the world and extremely popular throughout the Middle East. Only the leaves are edible. When the plant is young enough to be eaten, it recalls spinach, a tasty but less mucilaginous (when cooked) surrogate of it.

The most famous recipe for the mulukhiya is an Egyptian one, used in a traditional soup going back to the age of pharaohs (also portrayed in tomb paintings) and eaten also today. It is prepared with good meat or vegetable stock, onion, lemon juice, cardamom and ta’liya (garlic fried with salt and coriander in cooking oil). . Other dishes (not only Egyptian) are the mulukhiya burani, where the leaves are cooked and served whole with beef cubes, and mulukhiya bil-samak, with fish. They can be considered “baladi” around all the Middle East.

The nutritional value of this vegetable plant is excellent. A low calorie food (43-58 calories/100 g) contains calcium, phosphorus, iron, sodium, potassium, beta-carotene, thiamine, riboflavin, niacin and ascorbic acid. Its folic acid content is substantially higher than other folacin-rich vegetables.

The mulukhiya is available fresh, dry, and frozen.

Production and processing of mulukhiya have been identified in Bekaa.

• Salad vegetables

In the North, the local variety of Hooded Lettuce is a very valuable salad vegetable. It is exported in large quantity to Persian Gulf Countries, and also to the Ukraine, Romania and Bulgaria. In Akkar, the production of Long White Radish (here called Rahba) has been also identified.

The production of ordinary salad vegetables has been identified in Bekaa, North Lebanon and South Lebanon.

• Other kinds of vegetables

o Cabbage The production of the common cabbage has been identified in the North (Akkar).

o Carrot The production of the common carrot has been identified in Bekaa, North Lebanon, South Lebanon.

o Eggplant The production of the common eggplant has been identified in Bekaa, North Lebanon, South Lebanon.

o Onion In the North (Akkar), a local variety of onion, called Shadra, has been identified. The common onion has been identified in Bekaa, North Lebanon, South Lebanon.

o Peanut In the North (Akkar), the production of the peanut has been identified.

o Pepper The production of sweet and hot peppers has been identified in Bekaa, North Lebanon and South Lebanon.

o Potato The production of potatoes has been identified in Bekaa, North Lebanon and South Lebanon.

o Pumpkin The production of common pumpkin has been identified in Bekaa and North Lebanon.

Value Chains, Basic Interventions, Supports - 32 o Tomato In the North, the varieties of tomato called Kahaliya, Mawardiya and Baladi (“local”) are just marketed locally. Their quality is due to the fact that they are produced on the mountains in the open air and, therefore, not in greenhouses. The common tomato has been identified also in Bekaa, North Lebanon, South Lebanon.

4.2.2 Processed products

The following products can be considered of very good organoleptic quality. In many cases they are also certified as organic. HACCP certified products were not found during action-research, nevertheless the products were ranked good, safe and healthy by analysis conducted by Lebanese Universities.

Many products are packaged in glass jars.

Apart from common processes, many of the following products are also produced through steam processes of cooking, or without using gluten, for people affected by celiac disease.

Dried products

• dried almonds (Bekaa) • dried apricots (Bekaa) • dried broad beans (Bekaa) • dried figs (Bekaa, North Lebanon) • dried figs with peanuts (North Lebanon) • dried mulukhiya (Bekaa) • dried pine nuts (Bekaa) • dried sesame (Bekaa) • dried tomatoes (Bekaa)

Jams, compotes and sweet preserves

• apple jam (Bekaa) • apple jam (slivers) (Bekaa, North Lebanon) • apricot compote (North Lebanon) • apricot jam (Bekaa, North Lebanon) • apricot preserve (whole) (North Lebanon) • blackberry jam (Bekaa) • bitter orange (marmalade) (North Lebanon) • carrot jam (Bekaa) • cherry jam (Bekaa) • cherry compote (North Lebanon) • date jam (Bekaa) • eggplant jam (Bekaa) • fig jam (North Lebanon) • fig preserve (North Lebanon) • grapes jam (Bekaa, North Lebanon) • mulberry jam (Bekaa) • orange jam (Bekaa) • peach jam (Bekaa) • peach compote (North Lebanon) • pear jam (pieces) (North Lebanon) • pumpkin jam (pieces) (Bekaa, North Lebanon) • pumpkin jam (slivers) (North Lebanon) • quince jam (sfarjal) (Bekaa) • strawberry jam (Bekaa) • strawberry preserve (whole) (North Lebanon) • strawberry preserve (ground) (North Lebanon) • tomato jam (Bekaa) • wild soft fruits jam (Bekaa)

Value Chains, Basic Interventions, Supports - 33 (Common preparation of a compote is a cooked dish of fresh or dried fruits, simmered whole or in pieces in a sugar syrup)

Juices

• apple (Bekaa) • apricot nectar (Bekaa) • apricot (concentrate) (North Lebanon) • berry (concentrate) (North Lebanon) • bitter orange (concentrate) (North Lebanon) • blackberry (Bekaa) • carob (Bekaa) • cherry (Bekaa) • fig (Bekaa) • grapes (Bekaa) • grapes (concentrate) (North Lebanon) • lemon (concentrate) (Bekaa, North Lebanon) • mint (concentrate) (Bekaa) • mulberry (concentrate) (Bekaa) • orange (Bekaa) • orange (concentrate) (Bekaa) • peach nectar (Bekaa) • pomegranate (Bekaa) • pomegranate (concentrate) (North Lebanon) • pumpkin (Bekaa) • raspberry (Bekaa) • rose (concentrate) (North Lebanon) • strawberry (concentrate) (Bekaa, North Lebanon) • tomato (salty juice) (Bekaa)

Molasses

Molasses are obtained from the crystallization of sugar contained in the juice of many kinds of fruit. Two parallel processes of crystallization and condensation are carried out by boiling the juice. The final product is similar to honey.

The following kinds of molasses have been identified in Bekaa: • blackberry, • carob, • grapes.

For the production of grape molasses there are special kinds of grape, but also the production surplus of table grape is put to use. The must obtained by squeezing the grapes is mixed with a special kind of soil. The precipitation of this solution takes away a good percentage of acidity from the fruit juice.

Also blackberry juice is obtaining by squeezing the fruit.

Carob juice is obtained by an extraction process.

To bring must, or carob or blackberry juice to the boil, it is put inside pots warmed up by diesel burners, located under the floor of the plants. The exhaust from the burners and part of the flames escape at the side of the plant, and so their energy is lost. The boiling phase, which, as mentioned above, is characterized by very low energy efficiency, is the most expensive in the process, as it takes 40 or 50 minutes for each 100 kg of juice.

Value Chains, Basic Interventions, Supports - 34 Molasses have a very low content of calories for a sweetener:

100 g of: calories:

fructose (*) 400 (*)fructose has a higher sweetener capability than sugar; aspartame (**) 400 therefore, in order to obtain the same results, less quantity of fructose is needed. white sugar 400 (**) aspartame (a synthetic product) has a higher sweetener cane sugar 360 capability than sugar; therefore, in order to obtain same results, half the quantity of aspartame is needed. maple syrup 250

molasses 235

Table 2: Comparison of the caloric contents of some sweeteners

They are also excellent iron supplements; therefore, they are used for diets, by women during their menstruation period, and are very appreciated worldwide by sportsmen.

When used instead of sugar in cake baking, the final product is softer.

Lebanese molasses are much appreciated as sweeteners in Middle Eastern and Gulf Countries.

Fructose

Fructose is produced in Bekaa from blackberry.

Sauces

• Tomato sauces

Many kinds of tomato sauce are produced in Bekaa and North Lebanon.

• Ketchup

The production of ketchup has been identified in Bekaa and North Lebanon.

Vinegar

The following kinds of vinegar have been identified: • apple (Bekaa, North Lebanon) • grape (Bekaa, North Lebanon)

Ready dishes, specialities and other preserves

• Apple jelly

This product has been identified in Bekaa and North Lebanon.

• Apples stuffed with almonds (sweet preserve)

This product has been identified in North Lebanon.

• Baladura

The baladura, a sweet tomato jam with nuts, has been identified as a speciality of Akkar (North Lebanon).

• Carrot and lemon jam

This product has been identified in North Lebanon.

• Dried fig jams

Dried figs are also used in order to produce: o dried fig jam, (Bekaa, North Lebanon) o dried fig jam with almond and sesame, (North Lebanon) o dried fig jam with walnuts. (North Lebanon)

Value Chains, Basic Interventions, Supports - 35 • Eggplant stuffed with almonds

This product has been identified in North Lebanon.

• Eggplant with oil

This product has been identified in Bekaa.

• Grape leaves

Preserved grape leaves are the basic ingredient of many Lebanese dishes. The production of preserved grape leaves has been identified in Bekaa and North Lebanon.

• Marshmallows

Marshmallows are small, soft, white cylinders of natural sugar obtained from the mallow of the marshes, mentioned above. They are eaten burned with fire and inserted, with a small piece of chocolate, between two cookies: when squeezed, they become jelly-like.

Something like marshmallows already existed in 2000 B.C. in Egypt. In the 19th Century they were popular in France, but the production process was very slow. They have been popular in the United States since 1948, when Alex Doumak invented their present, easier production process. Nowadays, marshmallows are known worldwide.

The production of marshmallows has been identified in the North (Akkar).

• Pears with almonds

A sweet preserve of pears stuffed with almonds has been identified in the North (Akkar).

• Pickled with Oil, Walnuts & Garlic:

The following products have been detected in North Lebanon: o pickled string beans, o pickled stuffed eggplant, o pickled stuffed hot peppers, o pickled stuffed sweet peppers, o pickled green oregano in oil, o pickled oregano, olives, carrots & hot peppers.

• Pickled with water, salt and vinegar:

The following products have been detected in North Lebanon: o cucumber, o hot pepper, o mixed vegetables (carrots, cauliflower, string beans, hot & sweet pepper), o turnips.

• Tomato paste

The production of tomato paste has been identified in Bekaa and North Lebanon.

Value Chains, Basic Interventions, Supports - 36 4.2.3 Detected geographical distributions

In the following table products are listed according to their geographical distribution.

Activities, varieties, products Bekaa Dahyeh (BSS) North Lebanon South Lebanon Fresh fruit Almonds Hilwani - - X - Shakushi - - X - Apples baladi - - X - Red Delicious - - X - Pom - - X - Saify X - X - Apricots Im Hussein - - X - Shahrani - - X - Shatwi - - X - Surani - - X - Bananas banana - - - X Berries blackberry X - X - mulberry X - X - raspberry X - X - strawberry X - X - wild soft fruit X - X - Carobs carob X - X X Cherries cherry X - - - Chestnuts chestnut - - X - Citrus bergamot - - X X citron - - X X lemon - - X X mandarin - - X X orange - - X X Figs fig X - X X Grapes (table) baladi X - - - Asmi - - X - Bakhury - - X - Madkushi - - X - Murwahi - - X - seedless (imported varieties) X - X - Tarwira - - X - Melons Cantaloupe - - - X Peaches Abi - - X - common peach X - X X Mawardi - - X - Nectarine - - X - Phutwi - - X -

Value Chains, Basic Interventions, Supports - 37

Pears common pear X - X X Kouchie X - X - Pomegranates pomegranate X - - - Prickly pears prickly pear - - - X Fresh vegetables Cabbages common cabbage - - X - Carrots common carrot X - X X Cucumber baladi - - X - common cucumber X - X X Eggplants common eggplant X - X X “Mallows” Marsh Mallow - - X - Tossa jute (Jew’s mallow) X - - - Onions common onion X - X X Shadra - - X - Peanuts peanut - - X - Peppers hot peppers X X - X sweet peppers X X - X Potatoes common potato X - X X Pumpkins common pumpkin X - X - Salad Vegetables Hooded Lettuce (local variety) - - X - Long White Radish (Rahba) - - X - ordinary salad vegetables - - X - Tomatoes baladi - - X - common tomato X - X X Kahaliya - - X - Mawardiya - - X - Processed products Dried products almonds X - - - apricots X - - - broad beans X - - - figs X - X - figs with peanuts - - X - mulukhiya (Jew’s mallow) X - - - pine nuts X - - - sesame X - - - tomatoes X - - -

Value Chains, Basic Interventions, Supports - 38

Jams apples X - - - apples (slivers) X - X - apricots X - X - blackberries X - - - bitter orange (marmalade) - - X - carrots X - - - cherries X - - - dates X - - - eggplants X - - - figs - - X - grapes X - X - mulberries X - - - oranges X - - - peaches X - - - pears (pieces) - - X - pumpkins (pieces) X - X - pumpkins (slivers) - - X - quinces (sfarjal) X - - - strawberries X - - - tomatoes X - - - wild soft fruits X - - - Compotes apricots - - X - cherries - - X - peaches - - X - Other sweet preserves apricots (whole) - - X - figs - - X - strawberries (whole) - - X - strawberries (ground) - - X - Juices apples X - - - apricots X - - - apricots (concentrate) - - X - berries (concentrate) - - X - bitter orange (concentrate) - - X - blackberries carob X - - - cherries X - - - figs X - - - grapes X - - - grapes (concentrate) - - X - lemons (concentrate) X - X - mint (concentrate) X - - - mulberries X - - - oranges X - - - oranges (concentrate) X - - - peach X - - - pomegranates X - - - pomegranates (concentrate) - - X - pumpkins X - - - raspberries X - - - rose (concentrate) - - X - strawberries (concentrate) X - X - tomato (salty juice) X - - -

Value Chains, Basic Interventions, Supports - 39

Molasses blackberry X - - - carob X - - - grapes X - - - Fructose fructose from blackberry X - - - Sauces tomato X - X - ketchup X - X - Vinegars from apples X - X - from grapes X - X - Oil preserves eggplants with oil X - - - Pickled with oil, walnuts and garlic string beans - - X - eggplants (stuffed) - - X - hot peppers (stuffed) - - X - sweet peppers (stuffed) - - X - green oregano - - X - oregano, olives, carrots and hot peppers - - X - Pickled with water, salt and vinegar cucumbers - - X - hot peppers - - X - mixed vegetables - - X - turnips - - X - Other specialities apple jelly X - X - apples stuffed with almonds - - X - baladura - - X - carrot & lemon jam - - X - dried fig jam X - X - dried fig jam with almonds and sesame - - X - dried fig jam with walnuts - - X - eggplants stuffed with almonds - - X - grape leaves X - X - marshmallows - - X - pears with almonds - - X - tomato paste X - X -

Table 3: Products of the FV value chain identified in ART GOLD Lebanon Areas

4.3. Strategic considerations

4.3.1 Domestic needs and trade balance

During the 1985-1999 period (ESCWA data), the value of Lebanon's exports amounted to a fifth of the value of its imports. In 1994, agricultural products accounted for 8% of Lebanon's GDP ($9,200,000,000), whereas in 1997, food and beverage products accounted for about 20% of the total value of Lebanese exports ($642,000,000) In 1997, about 20% of the total value of Lebanese imports ($7,455,000,000 was spent on food, live animals, beverages, tobacco, and animal and vegetable oil and fats.

In more recent years, the conditions of the FV component of the Lebanese agricultural trade balance can be roughly represented by the following table (data from FAO):

Value Chains, Basic Interventions, Supports - 40 year FV Export (E), ($) FV Import (I), ($) E/I

2002 57,100,000 336,000,000 0.170

2003 65,000,000 383,500,000 0.169

Table 4: Lebanese FV import and export values in 2002 and 2003

Therefore, during the 2002-2003 two year period, the quantity of fruit and vegetables exported amounted to around 17% of imports.

The following table (data from Italian Institute of Foreign Trade - ICE and Istituto Geografico De Agostini - Italy) outlines that from 2004 to 2006, while general balance of trade continuously improved, food (in which FV products are included) the trade balance suffered a slowdown in improvements:

Year Export (E), ($) Import (I), ($) E/I Food export ($) (FE) Food import ($) (FI) FE/FI 2004 1,746,000,000 9,397,000,000 0.186 148,000,000 527,000,000 0.280 2005 2,337,000,000 9,633,000,000 0.243 191,000,000 530,000,000 0.360 2006 2,814,000,000 9,647,000,000 0.292 187,000,000 534,000,000 0.35

Table 5: Lebanese general trade balance from 2004 to 2006

From 2003 to 2007, Lebanon, because of instability, had an unbalanced economic situation, with alternate periods of heavy recession and strong growth:

year GDP ($) GDP growth rate world ranking 2003 19.300.000.000 - 103 2004 17.820.000.000 - 7.67 % 109 2005 18.830.000.000 + 5.67 % 111 2006 22,780,000,000 + 20.98 % 110 2007 (*) 22,020,000,000 - 3.34 % 111

Table 6: Lebanese GDP from 2003 to 2007 (*) estimated

Furthermore, the contribution of agriculture to the GDP decreased from 7.3%, in 2000 to 6.5%, in 2005 (data from World Bank).

Some conclusions can be deduced from above outlined data. In a chaotic, not strategic, unstable economical context, food production and, consequently, the production of the FV value chain had to satisfy: • a domestic demand, which is largely greater than the possibilities of the value chain supply, • the traditional export demand (mainly citrus, bananas, apples), in order to maintain the contribution to national income.

4.3.2 Market dynamics and costs

Regarding costs and market dynamics, the following issues have been pointed out.

The markets

• Domestic market:

o The domestic market seems to prefer exogenous fresh products (table grapes, peaches) products, whose quality (in terms of added values and organoleptic properties) is lower and prices are higher than endogenous ones;

o local fresh productions are sold mainly on local markets. Many small rural producers think they could sell fresh products on the Beirut market, if better supported.

Value Chains, Basic Interventions, Supports - 41 o many food processors use their own brands;

o all fresh and preserved productions are sold, also because on little scale;

o the lack of productive knowledge and available machineries constrain improvement in market growth and competitiveness.

In conclusion, significant opportunities exist for the FV value chain producers of ART GOLD Lebanon areas for increasing their production, jobs and incomes by increasing their share of the domestic markets.

• Foreign markets:

o some Lebanese products are already known by Gulf and African markets. Nevertheless this is due more to the Lebanese diaspora than to their specific differential competitiveness. In fact they belong to “international” varieties and their Lebanese added value is poor (for example, seedless varieties of table grapes);

o existing Lebanese added values of some already exported products, such as citrus fruits or bananas, are not sufficiently valorised;

o international market space for FV products is very promising, when differential high quality, health and safety standards are achieved;

o the organoleptic properties of the products in the Lebanese FV value chain are generally of a good level, and can be appreciated by foreign (especially European) consumers; the lack of quality certifications (ISO) and safety (HACCP) is an obstacle for export toward the EU.

o the most valuable products of the Lebanese FV value chain (not only certified, processed and preserved products, but also citrus fruits and, mainly, bananas) are substantially unknown to western (EU and USA) markets;

o many Lebanese certified food processors export unbranded products to the EU; suppliers of European companies branding these products.

In conclusion, significant opportunities exist for increasing exportations of some of the FV value chain products, due to current export experience and several potentialities linked to differential competitive advantages.

4.3.3 Development prospects

FV value chain development prospects are linked to two typologies of products:

• strategic value products • products with competitive advantage

Strategic value products

These are products characterised by: • high production volumes, • importance for the Lebanese cuisine, • contribution to the food processing industry.

These products have a big chance of increasing their markets, especially at the national or Arab level. If adequately supported in terms of improving organisation, consumer education, and distribution mechanisms, they could improve national trade balance, and increase jobs and income.

The products so far identified by action-research are described in the following table 7a and all of them are characterised by significant production volumes.

Value Chains, Basic Interventions, Supports - 42

Product Strategic Value Fresh fruit

Almond Important ingredient in many traditional foods, important for Lebanese cuisine.

Natural sweetener. Carob Used in molasses production.

Fig Raw material for many kinds of processed food, important for Lebanese cuisine.

Melon (mainly Very nourishing and healthy food.

Cantaloupe) Excellent crop for semiarid areas. Very nourishing and healthy food.

Prickly pear Excellent crop for semiarid areas.

Raw material for food processing.

Fresh vegetables

All fresh Important ingredient in many traditional foods, important for Lebanese cuisine.

vegetables Raw material for food processing.

Dried products

All dried Very nourishing and healthy food.

products Raw material for food processing.

Sweeteners

Fructose Very healthy products (excellent for diets). Molasses

Table 7a: FV strategic value products

Products with competitive advantage

These are products characterised by: • significant foreign market shares, • typical Lebanese specificities.

These products will have long term competitiveness, due to their differential value, if adequately valorised and promoted, by improving value chain organisation, brand policy and market strategy, also in view of the Arabic and Mediterranean common market prospects.

They could, once they become recognised as good, drive the other FV value chain products in foreign markets, exploiting the generally already known brand.

The products so far identified by action-research are described in the following table 7b.

Value Chains, Basic Interventions, Supports - 43

Product Competitive advantage Fresh fruit

Produced in large quantities. Exported in significant quantities (third place in Lebanese export ranking). Apple The quince is considered a valuable product. Red Delicious apples are a very common product, requested by the international market.

Produced in large quantities. Banana Recognized and appreciated on foreign markets (second place in Lebanese export ranking). Original and delicious taste and flavour.

Recognized and appreciated on foreign markets. Mulberry is a rare and appreciated product. Often gathered in unpolluted areas. Berries Often handpicked. Can be frozen. Blackberries are used in molasses production.

Produced in large quantities. Recognized and appreciated on foreign markets (first place in Lebanese export ranking). Citrus Sources of essential oil. Original taste and flavour.

Original taste and flavour. Grapes Used in molasses production. Seedless varieties are a very common product, requested by international markets.

Sweet preserves

Fruit jams Original and delicious quality products. Vegetable jams Original composition (density, piece-sized components). Compotes Others Juices

Fruit juices Original and delicious quality products, when 100% composed by natural fruits and vegetables Vegetable juices

Pickled products

Products with oil Original and delicious quality products.

Other specialities

Table 7b: FV products with competitive advantage

Value Chains, Basic Interventions, Supports - 44

4.3.4 Obstacles

Nevertheless many significant obstacles constrain improvements in competitiveness and represent a serious risk of future market losses. The major obstacles are: • the introduction of exogenous kinds and varieties of product, • environmental unsustainability, • the weakness of the value chain, • the weakness of quality certification and control.

Exogenous kinds and varieties of product.

The ART IS-LED action-research, confirmed the FV’s spontaneous strategy is oriented towards obtaining massive production of common, low quality products. Common, exogenous, “international” kinds, varieties and cultivars of fruit and vegetables, and also some processed products, are progressively replacing traditional and local ones, also changing processes and territorial dynamics.

As has happened in many parts of the world, a significant number of Lebanese farmers introduced foreign kinds and cultivars, instead of working on improving and valorising endogenous products and varieties. Those products aren’t “the best”, in terms of quality and they were chosen because of current production “trends”, established by strong international producers, who are dangerous competitors for Lebanese production.

There are many examples of these products.

• The Red Delicious variety of apple

This cultivar of apple can be found mainly in North Lebanon. It is the most widely grown apple in the world, red with darker red streaks, and five "points" on the bottom. This variety of apple became increasingly popular until the 1990s, when overproduction began to degrade the quality and when better storage and transportation techniques (not applied to Lebanese varieties) made other varieties more available. Recently, this apple is considered bland, and it is derided for its excessive sweetness, and its relatively simple flavour, if compared to other apple varieties. Consequently, the Red Delicious apple has become an example of low quality product, managed by strong international organisations potentially threatening also Lebanese domestic market.

• The Nectarine variety of peach

Also in the North, the Italian Nectarine cultivar of peach (coming from the Emilia–Romagna region) is replacing the local variety, which is considered of better taste but not recognized by adequate pricing by the domestic, uneducated market. The direct competitor, the Italian nectarine, is the only one recognized by the European Union as a TGI (Typical Geographic Indication) product. The “Lebanese Nectarine” could be exported to the EU only as a “no-name clone”, and sold at a lower price than the analogous Italian variety; furthermore, it can survive in other foreign markets only if it can provide adequate competitive advantages.

Italian food is famous throughout the world. A misunderstood intention of improving quality by creating “Italian-like products” induced, in many countries and also in Lebanon, the trend of replacing local resources by introducing Italian cultivars (the Nectarine, but also, for instance, Italian olive trees). Time, energy and resources dedicated to these not reliable products (not just Italian-like, as, for example, also a very strange “Moussaka” has been identified) would be better spent on improving the quality and competitiveness of typical Lebanese products.

• Other kinds of introduced fruit

In North Lebanon a process of massive introduction of the kiwi has also been identified. This fruit is apparently considered very valuable on Middle Eastern and Gulf markets. The market metabolism of this fruit is very particular: it tends to dampen down, first of all because of a progressive decrease in prices, due to the very easy possibilities of increasing production and to changes in consumer taste, being regarded as a “trendy fruit”. In Europe, for instance, the replacement of many local productions through the introduction of the kiwi didn’t turn out to be a good investment. A relatively fast decrease in kiwi prices pushed European producers to re-introduce traditional crops.

Value Chains, Basic Interventions, Supports - 45 Therefore, also the progressive introduction of the mango (in the South) and the avocado (both in the North and the South) should be monitored and correctly managed, in order to prevent unsustainable (in the long term) overproduction to the detriment of typical and/or stable products, such as citrus fruits or bananas.

The market’s transient changes threaten typical productions. So, a correct selection of germ plasmas should be implemented. The management of germ plasmas strictly involves FV traders. The availability of seeds, in fact, is often ensured by FV traders, who should be sensitized in order to promote more quality productions both among the farmers and on the markets.

Environmental unsustainability.

The competitiveness of the FV value chain is strictly dependant on the existence of the following factors.

• Territorial biodiversity

High levels of biodiversity mean diversified productions and many natural raw materials (from wild fruits to medical and aromatic plants and spices) for food processing,

• Not polluted lands.

A massive use of chemical fertilizers and pesticides has been introduced to support the growth of farmed areas, already poor in nutritive substances because of the introduction of exogenous, “more specialized” (and, therefore, more delicate) varieties. The result is progressive self-pollution that is damaging also other value chains, such as honey and milk.

• Availability of energy and water

The following issues represent added costs: o the purchase (diesel oil), management and maintenance of private electric generators to satisfy production energy needs during the frequent breakdowns of the national electricity network, o the purchase, management and maintenance of private water purification plants to make the mains water drinkable, to satisfy production needs for water;

• Availability of data regarding the situation of natural lands.

Monitoring activities and sensitivity (towards rural and natural ecosystems dynamics, the ability to protect and improve quality, knowledge of and respect for sustainable conditions in development programs and processes) are really scarce, in Lebanon, and this has a negative impact on development options.

This situation shows an urgent and generalized need for: • Action for the re-forestation and re-naturalization of rural areas, maximising the potential of Lebanese biodiversity, • Promotion of a more sustainable culture of farming, based on reducing the use of chemical substances and, as much as possible, introducing organic processes.

Weakness of the value chain

In Lebanon, the FV value chain is very weak.

Many places are characterized by the absence of food processing activities, and therefore the farmers can only refer to local fresh product markets. Likewise, in some other places, food processors are forced to buy raw material from other areas, because of the scarceness of local production.

The value chain needs: • adequate machinery, to increase quantity, • more adequately equipped refrigerators, for effective sale planning, • a more effective transportation system, • a solution to the high level of fragmentation of the land property, • better services mainly in transportation, marketing, innovation, and credit, • support for creating new agricultural or agro-food enterprises.

Weakness of quality certification and control

In many cases, quality control is “accomplished” by farmers and food processers themselves by • checking raw materials at the start up of productive processes, according to experience,

Value Chains, Basic Interventions, Supports - 46 • evaluating the organoleptic properties of the products at the end of the processes.

This very empiric procedure, obviously, does not constitute a “quality certification”.

A Lebanese company, “LibanCert”, an Inspection and Certification body operates with Lebanese Staff, and provides organic certification services (ISO 14001). LibanCert is a limited liability company, registered with the Lebanese government under the no. 100 50 49, and it also provides certification services according to the rules of general quality (ISO) and food safety (HACCP).

4.3.5 A strategic proposal

Agro-food products can significantly help improve the Lebanese commercial balance, either competing with imported goods in the domestic market or increasing the export rate.

The goods produced in AGL areas are generally all sold in the domestic market (local and national) and this represents a promising prospect for increasing quotas, provided that value chain organisation, consumers’ education and quality and safety standards are improved.

Natural and unpolluted (free from additives or dangerous or just adulterating substances) production is generally highly appreciated by all the markets of the world. In many cases the organoleptic and nutritional qualities, and typicality of good (in some cases excellent) Lebanese agro-food products represent an excellent potential for sustainable competitive advantage in international markets, provided that they are certified for general quality and safety, and produced in sufficient quantities.

A development strategy could, then, follow the following main guidelines.

• With regard to products targeting domestic markets: o increase productivity and production, o improve quality and safety properties.

• With regard to products targeting international markets: o increase productivity and production, o improve quality and safety properties, o valorise (mainly through a Lebanese Brand policy) Lebanese typicalities and prerogatives.

4.3.6 Obstacles and critical areas

Obstacles and Critical Problem Areas

The following table shows the main obstacles to be faced and overcome in order to give effectiveness to the intrinsic potential competitive advantage of the Lebanese FV value chain, and to pursue strategic targets.

Value Chains, Basic Interventions, Supports - 47

Obstacles Bekaa Dahyeh (BSS) North Lebanon South Lebanon Farming Activities Agricultural mismanagement X - X X Expensive tools, machinery, raw materials X - X X Lack of prod. - proc. quality rules (ISO) X - X X Lack of quality control process (ISO) X - X X Lack of food safety rules (HACCP) X - X X Lack of well equipped refrigerators X - X X High fragmentation of land property X - X X Services Lack of widespread good practices X - X X Weak support to ISO rules introduction X - X X Lack of training in ISO rules management X - X X Low support for HACCP rules introduction X - X X Lack of training in HACCP rules management X - X X Lack of an effective transportation system Lack of targeted finance and credit X - X X Weak job training Food processing Activities Lack of effective energy management X - X X Lack of effective water management X - X X Lack of effective waste management X - X X Lack of adequate machinery X - X X Lack of prod. - proc. quality rules (ISO) X - X X Lack of quality control process (ISO) X - X X Lack of food safety rules (HACCP) X - X X Services Weak support for ISO rules introduction X - X X Lack of training in ISO rules management X - X X Low support for HACCP rules introduction X - X X Lack of training in HACCP rules management X - X X Lack of an effective transportation system Weak job training X - X X Lack of targeted finance and credit X - X X Marketing internal marketing Lack of chain optimisation (total quality rules) X - X X Lack of food education for consumers X - X X external marketing Lack of branding X - X X Weak distribution X - X X Lack of promotion and communication X - X X

Table 8: Obstacles to the development of the Lebanese FV value chain

(-): not identified, until now

The critical areas, therefore, can be identified as the following. a. Productivity and Production Costs

In order to improve productivity and reduce production costs, the following actions are needed:

a.1) Organisation of the FV value chain, that could - reduce operative and transactional costs among stakeholders, and recover lost gains, - establish scale and scope economies, - boost competitiveness because of improved market power;

Value Chains, Basic Interventions, Supports - 48 a.2) Applied research for innovations and the introduction of good practices that should - produce and spread innovative know – how, - adequately identify new crops;

a.3) Production increase by - promoting and supporting the creation of new productive plants (farms and factories), - introducing sustainable innovations in know – how and technologies;

a.4) Energy management to obtain cheaper and more stable energy supply;

a.5) Water management to - get easier and cheaper drinking water supply for product processing, - safeguard ecosystems and biodiversity

a.6) Waste management to safeguard ecosystems and biodiversity b. Safety and quality management and control

In order to improve food safety and product – process quality, the following actions are needed:

b.1) introduction of certified quality standards, management and control (ISO), to be applied to all the actors in the chain;

b.2) introduction of certified food safety rules and control (HACCP), to be applied to all the actors in the chain;

b.3) promotion of certified organic product lines; c. Marketing and Distribution System

In order to improve the effectiveness of marketing and the efficiency of the distribution system, the following actions are needed:

c.1) promoting applied researches on the bio – chemical and nutritional characteristics of Lebanese FV value chain products;

c.2) promoting consumer food campaigns;

c.3) creating and promoting a national quality brand of FV value chain products, by defining a progressively growing body of products, their characteristics and prerogatives, their standards;

c.4) establishing a national distribution and sale system;

c.5) establishing an adequate national (internal and external) marketing system.

c.6) establishing an international distribution and sale system;

c.7) establishing an international marketing system, to o analyse foreign markets, o elaborate and carry out marketing strategies on “target” foreign markets.

4.4 The proposal for strategic guidelines

The analysis of the products of the FV value chain and the considerations about their competitiveness and obstacle areas highlight the following needs: • making available, in an optimized way, sufficient quantities of really good fresh and processed products, • achieving the conditions to certify their quality and safety, • identifying their nutritional, historical, cultural, territorial, etc. added values, • identifying the most adequate foreign markets, • promoting their image on domestic and foreign markets, by adequately communicating their quality, safety and added values, • creating effective distribution and selling organizations.

The proposed strategic guidelines for developing a sustainable long term competitive FV value chain are, therefore, the following: • the creation of a network system among all the actors involved in the value chain, • the improvement of production performances, • the improvement of food quality and safety, • the design and implementation of actions improve positioning on domestic and international markets.

Value Chains, Basic Interventions, Supports - 49

4.4.1 The network system

Optimisation needs

The Lebanese FV value chain is made up of a large number of micro or small enterprises. Nevertheless this high number of SMEs, currently very fragmentised, can become a competitive system, if managed as an “optimised network system”, through the value chain concept. This implies each component element in the network (enterprises or institutional actors) shall: • share reliable strategic targets, which should inspire the design of the network, • know, understand and cooperate with each other, • organise a “consistent system of interaction among suitable organisations”, • organise support for necessary material and non-material resources, • monitor the processes by feedback, to verify the quantity of used resources, which should be as small as possible, and the level of the accomplishment of their strategic target.

Currently a real Lebanese FV value chain does not exist, and small, weakly organised local networks operate just on “very local” markets.

The main component of a new strategy for improving the FV value chain performance should be, therefore, the establishment of a structured and organised value chain network system, aimed at • establishing “critical masses” for production, sales and services, in order to ensure adequate and standardised levels of quality, quantity, support, and to achieve stronger “strategic and market power”, • providing a shared and efficient answer to resource needs (energy, water, research, support, marketing), • establishing a feedback–based monitoring system, to correct and adapt processes and performances to changing markets and technological trends

National and local networks

Lebanon is a small country and the characteristics and competitive advantage of the FV value chain are more or less the same for each area of the Programme: Lebanon can be considered, for the FV products, an integrated productive system.

A strategy for developing the above-mentioned system comprehensively should rely, therefore, on:

• a national network (national fruit and vegetables consortium), involving public and private institutions and entities, in order to gather a critical mass of resources, establish common standards, and optimise strategic services (commercialisation, marketing, quality and food safety control, etc.),

• Area networks (area sector associations), such as local versions of the national network, representing local sector interests and problems, with the aim of implementing national strategies, monitoring their implementation, detecting needs, problems or new kinds of resources, and maximising local values.

The local network: area sector associations

An area sector association, locally a) represents a “critical mass” of actors, and it is its operative arm; b) is the local sensor of the National FV Consortium, for monitoring the state of the local value chain, and it is the local actuator of the best practices and actions (which should be introduced in local development programmes); c) is a natural interlocutor with other sectors and thematic areas; d) is a fundamental member of the LEDA (Local Economic Development Agency), and of the Local Area Partnership to decide and support local targets for all value chains involving its sector (for instance, farming activities are also involved in other value chains); e) is the main co - actuator (within the LEDA, where it exists) of the local development programme; f) supports producers and promotes their image (by promoting trademarks, territorial brands, etc.).

The national network: National FV Consortium

The National FV Consortium, largely shared, should be established at the national level; it is a network open to all enterprises in the FV value chain.

Value Chains, Basic Interventions, Supports - 50 The consortium’s functions should include: a) identifying and monitoring the chain’s national and local conditions, also by using area sector associations as sensors; b) promoting research and testing activities, aimed at detecting food properties and best production practices, by involving universities and research centres; c) promoting and managing marketing strategies, and the Lebanese FV Brand. d) sharing best practices with the areas, thanks to the intermediation of area sector associations; e) supporting producers to implment best practices, by using area sector associations as actuators; f) identifying typical local varieties of products • whose production has to be protected, promoted and supported, • whose standards have to be established and certified by brands; g) detecting, promoting and supporting the full-scale introduction, as far as possible, of worldwide certifiable standards of: • safety, to be sure that the produce is safe for consumers’ health, according to EFSA (European Food Safety Authority) rules, and starting from widespread introduction of HACCP (Hazard Analysis and Critical Control Point) procedures, • quality, to ensure that the products are “the best” (in terms of nutritional and organoleptic properties) that can be obtained from the best processes (effectiveness and efficiency of production, packaging, distribution, promotion, etc.), according to ISO 9001, • organicity, to obtain products without using chemical substances, according to ISO 14001; h) managing internal marketing activities, according to total quality rules, and therefore • considering that relations among producers of different chains are of the “supplier–customer” kind, • optimising those relations, provided the satisfaction of the final user (the consumer) depends on the satisfaction of intermediate users; i) managing external marketing activities and therefore • in Lebanon and abroad, creating a favourable market environment for Lebanese products, thanks to an optimisation of prices and an effective promotion, which is based on the communication of real food characteristics and consumer education about food, • managing product promotion abroad and the most direct distribution as possible (to ensure the best gain to the “national side” of trading chain).

The establishment of interacting National FV Consortium and Area Sector Associations should help to • solve the current local state of disorganisation, and prevent future ones (because a feed–back controlled system is created), • spontaneously increase local and national chain’s production in Lebanon, • increase domestic and international market shares (thanks to an appropriate national management of external marketing and brand), • reduce production costs and, consequently, make available additional financial resources per unit of sold product, to manage innovative production processes that have been introduced (more expensive than the old ones), • increase employment (by increasing jobs opportunities) in the FV value chain.

4.4.2 Network actions

The following actions should be carried on through the established networks.

Improvement of performance and productivity a) increasing the production of fresh and processed products, by fostering productivity and promoting new businesses within the value chain, b) improving energy, water, and waste management systems, c) introducing innovative technologies and practices, in accordance with national and international experience and know how, d) optimising transactions between value chain actors, in accordance with the rules agreed within the established networks, e) improving entrepreneurial and professional capacities.

Value Chains, Basic Interventions, Supports - 51 Improvement of food quality and security a) establishing standardised rules and protocols, b) setting up laboratories for quality control and food security management, c) training all value chain actors on quality and food security d) improving current applied action research (through universities and LARI) for continuous innovation opportunities.

Marketing

• Domestic market positioning, by: a) designing and implementing internal and external marketing strategies, b) establishing product certification, in accordance with ISO and HACCP standards, c) training marketing experts, d) implementing a food education campaign, e) organising an effective national distribution system,

• International market positioning, by: f) monitoring foreign market opportunities, also thanks to the help of the Lebanese diaspora, g) establishing FV national brands starting from products with competitive advantage, based on an adequate communication of the product’s intrinsic qualities (nutritional and organoleptic properties, “cultural” and historical added values, etc.), addressed to foreign consumers, h) designing a distribution system, ending as close as possible to foreign consumers, i) organising sales promotion, j) training international marketing agents.

4.4.3 A control system

Marketing and Control

The following chart outlines how a “Main Control System” (established inside the National FV Consortium), feedback based, can control FV value chain activity, thanks to the flow of information and controls running on appropriate internal and external marketing channels.

Biodiversity Area Sector Associations

Farming Gathering Internal Chemical Production marketing

Main Control Food processing Refrigerators System

Package Production Distribution External marketing

Olive

Final consumer

Information Flows Control Flows

Interactions with infrastructural networks

Value Chains, Basic Interventions, Supports - 52

The following diagram outlines an ordinary control system for interactions in the honey value chain with infrastructural networks.

Energy Management

Water Management

Main FV value chain Control System

Control Flows

Information Flows Waste Management

Value Chains, Basic Interventions, Supports - 53 4.5. The ART GOLD support

The ART GOLD Programme in Lebanon should provide the following support to the FV value chain, at the local, national, and international level, to contribute to the implementation of the abovementioned strategic guidelines.

Action plans should be established and agreed within the Area Local Partnerships and the National Coordination Committee for carrying out the abovementioned activities, and it will part of the annual ART GOLD Lebanon Programme action plans, supported by ART IS LED.

A proposal for ART GOLD support to the FV value chain is illustrated in tables 9 (overall support) and 10 (initial support for the first 3-5 months).

TABLE 9: ART GOLD LEBANON SUPPORT TO THE FV CHAIN Activities Issue Area level National level

o Technical assistance for establishing local networks composition, rules, strategies, and organisation o Technical assistance for establishing a national network, composition, rules, The network o Capacity building o Links between networks and LEDAs strategies, and organisation system o In-depth continuous action-research to improve o Capacity building economic dynamics and valorise local Lebanese typicality and potential

o Assessment and technical assistance for entrepreneurship, technology, processes and products, both for products with competitive advantage, and for strategic value products through specialised experts Entrepreneurial and professional capacity building o Assessment and technical assistance to Improvement of Assistance for the formulation and execution of o o universities and LARI for enhancing productive projects regarding waste, water, and energy system, applied research activities, and facilitating through decentralised cooperation performances links with similar international structures o Organisation of the LEDA for targeted and continuous financial and non-financial support o Assessment and technical assistance to universities and LARI for enhancing applied research activities, and facilitating links with international similar structures o Technical assistance for the establishment of the national quality and food security o Assistance for design and implementation of projects system and its procedures and protocols regarding laboratories for quality control, through Assistance for the design and Quality o decentralised cooperation implementation of projects regarding food o Capacity building security laboratories, and monitoring, through decentralised cooperation o Capacity building o Support to elaborate marketing strategies and instruments o Establishment of a Lebanese Brand, at o Support to establish links between local networks first for products with competitive and the national network advantage Marketing o Capacity building o Training of marketing experts and o Promotion of territorial brands international marketing agents o Facilitating links with international partners for international market positioning o National campaigns for food education

Value Chains, Basic Interventions, Supports - 54 TABLE 10: PROPOSAL OF ART GOLD LEBANON ACTIONS TO SUPPORT THE FV CHAIN IN A FIRST PHASE (3-5 MONTHS) SUPPORT TO NETWORKS Expected strategic result Area level National level Actions: International IS LED expert for stimulating and supporting local and national actors to build, take advantage and manage collective-based networks, and to establish optimization between area sector associations and the National FV Consortium Local and national networks for value chain promotion Beneficiaries: Actors in the FV value chain in South Lebanon, Bekaa, and North Lebanon (breeders, dairy producers, university, chamber of commerce, etc). Implementation: 2 missions of 2 weeks each in Lebanon, establishment of a promoting group, assistance and follow up by LED ART GOLD specialists Action: Training session of 1 week on value chain consortium best practices Beneficiary: FV value chain actors in South Lebanon, Bekaa, and North Networks’ Actors capacities in Lebanon (farmers, food processers, university, chamber of commerce, etc), managing them improved Lebanese government, and national associations of entrepreneurs and farmers. Implementation: Preparation TOR’s and realisation of 1 week mission of an expert institution in Lebanon within the IS LED action plan, assistance and follow up by the LED ART GOLD specialists Action: International IS-LED Action: International IS LED technical technical assistance to assistance to set up a LEDA establish an agreement with a national financial institution Beneficiaries: Private and public actors in the ART GOLD Lebanon Programme, including farmers, industrial entrepreneurs and their Beneficiaries: Population in Links between networks and future associations, NGOs, chamber of commerce, the ART GOLD Lebanon area, LEDAs identified research centres, incubators, business especially the most centres, banks and other financial institutions disadvantaged groups at the local level, municipalities, and union of municipalities Implementation: 3 missions of 2 weeks each in Lebanon, assistance by LED ART GOLD specialists, national ART GOLD staff, UNDP CO, assistance and follow up by LED ART GOLD specialists. Desk assessment Action: International assistance to established local networks, to look at new local economic potentialities and opportunities, in addition to the ones already detected In-depth continuous action-research to improve economic dynamics and Beneficiaries: Members of local networks in valorise local Lebanese typicality and ART GOLD LEBANON areas potential Implementation: International IS LED expert in a 2-week mission to Lebanon, assistance and follow up by LED ART GOLD specialists. Desk assessment

Value Chains, Basic Interventions, Supports - 55

IMPROVEMENT OF PRODUCTIVE PERFORMANCE Expected strategic result Area level National level Action: Assessment by an international expert Assessment and technical on techniques asset of FV –related Sharing of results assistance for entrepreneurship, production technology, processes and Beneficiary: Entrepreneurs of the FV value chain in South Lebanon, Bekaa, and North products, including capacity Lebanon building for production with competitive advantage Implementation preparation of TORs and 4-week mission by an international expert within IS LED assistance, assistance and follow up by ART GOLD LED specialists Action: Engagement of decentralised cooperation in formulating and implementing projects Beneficiaries: Population in ART GOLD

Assistance in the formulation and LEBANON areas execution of projects regarding waste, water, and energy system, Implementation: Field and distance IS LED assistance in formulating the projects: • missions of 2 weeks each in Lebanon for training Lebanese partners in formulating decentralised cooperation projects; • IS LED contacts and follow up in Europe to engage appropriate partners; Assistance and follow up by ART GOLD staff.

Action: Engagement of decentralised cooperation in formulating and realising the Assessment and technical projects assistance to universities and LARI to enhance applied Beneficiaries: Lebanese academic structures and research centres research activities, and facilitate Implementation: Distance and field IS LED assistance (during one of the above links with similar international mentioned missions) in formulating the projects. structures IS LED contacts and follow up in Europe to engage appropriate partners. Assistance and follow up by LED ART GOLD specialist.

IMPROVEMENT OF PRODUCT QUALITY

Expected strategic result Area level National level

Action: Engagement of decentralised cooperation in formulating the projects Assistance in the design and implementation of projects regarding Beneficiaries: Lebanese Academic structures and research centres laboratories for quality control, food Implementation: Distance and field IS LED assistance (during one of the above security, and monitoring, through mentioned missions) in formulating the projects. decentralised cooperation IS LED contacts and follow up in Europe to engage appropriate partners. Assistance and follow up by LED ART GOLD specialist Actions: Engagement of decentralised cooperation in conducting a feasibility Technical assistance in setting up the study national quality and food security Beneficiary: The National FV system and its procedures and Consortium protocols Implementation: Distance and field IS LED assistance (during one of the above mentioned missions) in formulating the projects. IS LED contacts and follow up in Europe to engage appropriate partners. Assistance and follow up by LED ART GOLD specialist

Value Chains, Basic Interventions, Supports - 56

MARKETING Expected strategic result Area level National level

Action: Technical sssistance and 1 training session by an international - expert on possible marketing strategies for Lebanese FV products. Support to elaborate marketing strategies and instruments, including Beneficiary: Entrepreneurs in the FV training - value chain in South Lebanon, Bekaa, and North Lebanon. Implementation preparation of TORs and 4-week mission by an international expert within IS LED assistance, assistance and follow up by ART GOLD LED specialists

Value Chains, Basic Interventions, Supports - 57

HONEY

Characteristics, constrains and opportunities, hypothesis of strategic guidelines and support

• Focus Groups (see att. N.2): o Bek FG n.8, 21/09/07, o NLe FG n.1, 25/09/07, o NLe FG n.3, 26/09/07, o SLe FG n.1, 13/09/07, o SLe FG n.6, 02/10/07. Sources of informations: • Field Reconnaissances: o Bekaa, 05/10/07, o North Lebanon, 08/10/07, o North Lebanon, 09/10/07, o South Lebanon, 03/10/07.

• Desk Analysis.

5. The Honey value chain

5.1. Honey and connected value chains

5.1.1 Sectors’ material interactions

The following chart outlines, in a simplified way, standard material interactions of the main Sectors involved in the Honey value chain with each other, and with other value chains.

Water Management

Mead

Energy Management Bee Wax

Honey - dew

Biodiversity Beekeeping Honey

Pollen

Distribution Waste Management Royal Jelly

Chemical Productions Propolis

Bee Poison Packages Production

Synth. Prod.

Value Chains, Basic Interventions, Supports - 58 Other elements referred to the immaterial interactions complete the value chains, as for instance quality control, the various services (from training to finance), the marketing, the equipment maintenance, veterinary services, etc.

5.1.2 Thematic Systems, Areas, Sectors, Chains involved

The following Table 1 summarises the main sectors involved in entire Honey value chain.

Systems Areas Sectors Other involved Chains Ground Environment Biological Factors

Municipalities • Land planning activities. Admin. – Inst. Public Services • Chambers of Commerce. Financial • Credit. Primary • Beekeeping. • Packages Production • Chemical Production: Secondary o Pesticides, • Energy Management o Synthesis Products, Waste Management o Food Chemistry. • Economic • Transportation. • Water Management • Distribution. Human Activities • Marketing. Tertiary • Business Services. • Consulting Services: o Quality Certification, o Organic Certification, o Food Safety. Health Services • Veterinary Services.

Social Representation • Ass. Of Productive Sectors, • Labour Unions. Welfare • Services for Employment. Education and • Food research Cultural • Food education Research • Job training

Table 1: The sectors involved into the Honey Value Chain

5.2. Conditions, processes and products

The conditions of the beekeeping activities, and the characteristics of products and productive processes, as identified at actual stage of action-research, are described in the following paragraphs.

5.2.1 The conditioning factors

Environmental conditions

The Honey value chain productivity and the quality are strictly depending on the existence of the following two factors:

• territorial biodiversity: high levels of biodiversity allows the production of richer multi-flowers kinds of honey, and more varieties of mono-flower (very valuable) kinds of honey;

• not polluted lands: the chemical pollution of the land is a very strong threat for the health (or even the life) of the bees, and the quality of the products, in which polluting substances can be found.

Around 500 kinds of herbs and plants were identified and recorded by the researchers in Lebanon until now. These were, are, and progressively could be the reason of many original flavours and tastes of different kinds of honey, and, therefore, for the Lebanese honey competitive advantage.

Value Chains, Basic Interventions, Supports - 59 The gradual disappearing of biodiversity is a serious threat to the honey competitiveness. The agriculture mismanagement is also contributing to the biodiversity degradation, because, mainly, of • a widespread conversion of the natural lands into crop production, • the excessive increase of some endogenous plants to the detriment of other farmed and wild ones, • the introduction of some exogenous plants.

This mismanagement is the main cause for the excessive alteration of the equilibrium of many ecosystems, and contributes to accelerate the process of land degradation, both in terms of impoverishment of the biodiversity, and in terms of increasing of chemical pollution. It manifests itself mainly through the following factors.

• The encroachment of agriculture.

The natural vegetation of rain-fed areas makes such areas very important “biodiversity tanks”. In Lebanon, like everywhere else, agricultural use of these areas can get good harvests only in the short term, but this practice leads to impoverishment on the long term, first of all because of the “biological erosion”. Furthermore, a massive use of chemical fertilizers and pesticides is needed to support the increasing of farmed areas (impoverished of nutritive substances) through the introduction of “more specialized” (and, therefore, more delicate) varieties.

• Lack of data, sensitiveness and technical skills.

The lack of data regards the situation of natural lands, and depends on inexistence of monitoring activities. The lacks of sensitiveness and technical skills are referred to: o the knowledge of the dynamics of rural and natural ecosystems, and the abilities in protecting and improving their quality, o the knowledge and the respect of the sustainability conditions in the development programs and processes.

Southern environmental and agricultural conditions can be considered as an emblematic case. The introduction of new fruit plants in South Lebanon allows the production of avocado honey and banana honey. This last kind of honey is very light, and it is considered less valuable than the citrus one, whose production is now decreasing just by the massive replacement of citrus plants with new fruits. Furthermore, beyond taking away space for citrus cultivation, banana plants, with their pollen, contaminates citrus honey, which is desired pure. Nevertheless, the production of banana has to be considered a very competitive resource for the South.

This situation shows the urgent and generalized (not only in the South) need of systemic optimisation of rural activities by • implementing actions of re-forestation and re-naturalization of rural areas, to use all Lebanese biodiversity’s potential at its best, • promoting a more sustainable culture of farming, based on decreasing use of chemical substances and, as much as possible, organic processes, • detecting new suitable markets and/or new utilizations (for example, in Pastry Sector) for the “new” kinds of honey, • promoting the traditional cultivation of citrus, to whom the production of “spring” honey is necessarily linked on the whole Lebanese coastal areas.

Relational conditions

Honey is the main source of income for approximately 10% of Lebanese rural workers. Therefore, the development of this sector should be considered as an economical and social priority. Good internal (to the sector), external (with other sectors, or citizens) and international (with foreign partners or distributors) relationships are always needed for improving sectorial performance. The Lebanese relational conditions for the honey sector are the following ones.

• Local Relational Capitals.

Relational Capital is sufficiently developed in North Lebanon. A good part of northern beekeepers are gathered in Associations or Cooperatives, although the sector is still too fragmented.

Individual producers, with or without their own brands, were identified in Bekaa. The presumed form of the “cooperative”, as a solution for constituting a “critical mass” of producers and products, is not so

Value Chains, Basic Interventions, Supports - 60 much preferred by local Actors, because - they say - it can easily be influenced by politicians. A consortium is considered a better associative solution.

The opinion of South Lebanon beekeepers is that the promotion of best practices in rural productive activities, especially in the Honey value chain, is a necessary, but also a very difficult target to accomplish. Many local actors seem be reluctant to introduce changes and innovations. Furthermore, the obsolete rules of co–operations, as established by an old 60’s law, doesn’t help to create effective local coalitions.

• External relationships.

The local Actors involved in the focus groups appreciated very much the innovative strategic and comprehensive ART approach. They highlighted the remarkable difference with other cooperation programs dedicated only to the beekeepers, and, therefore with scarce final results and impact.

In Lebanon, the different productions are obtained by the utilization of mobile beehives. This is good practice, worldwide spread, and allows a very good variety of products. Displacements of the beehives take place fivefold in a year, from early spring (15th of April) to late summer, until first days of October. The participants to the focus groups pointed also out mobile beehives are not always and everywhere welcomed, by the people living in the places visited during itinerant activity.

• International relationships.

The participants to the focus groups consider the ART GOLD Lebanon Programme support for establishing trans-national partnership an unequalled occasion for exchanging experiences with foreign beekeepers regarding common problems and possible common solutions, promoting abroad Lebanese products, and positioning them on new foreign markets.

Safety conditions

The low production levels are also due to the uncertain and unsteady safety conditions.

This, for instance, impeded the care of the beehives against the infesting parasitic insects (here called ferouà, probably the “beehives’ scarab” - Aethina tumida) during the war, because of the lack of medicines and chemical substances normally used to deal with the problem.

On the other hand, the Northern Lebanon and Bekaa beekeepers decided not to transport the beehives to Southern sea shore this year, as they used to do during every spring, because of the uncertain political and military situation in the South.

5.2.2 Processes and products

The participants to the focus groups pointed out the needs of: • the quality certification, • packaging systems, regarding all the products of the Honey value chain, that can be satisfied through integrated solutions (for example, through the establishment of “Store – Laboratories”).

Lebanese Honey value chain works as follows.

Bees and beehives

During action-research activity, the following bee genotypes have been identified.

• Bekaa.

o Seiefi Seiefi breed is of Syrian origin, and is somewhat aggressive.

o Gannami Gannami variety is a crossbreed between Italian queen bee and a local male. These bees are calmer and more productive. The activities of crossbreeding, managed since a long time in Bekaa, have caused the extinction of local bee breed.

• North Lebanon.

o “Italian” breed

Value Chains, Basic Interventions, Supports - 61 The queen bee used is often of an Italian variety, here just called “Italian”. It is often imported already pregnant. Later, when worker bees are born, the Italian queen bee is crossbred with Syrian male.

• South Lebanon.

o Hybridised Souri Local beekeepers hybridised Souri (“Syrian”, in this case) queen bee, more resistant, with Italian male, as Italian breed is more calm and productive. Because of the appearance, at the third generation, of genetic problems, they decided to select the best generations, and to continue a progressive selection process.

The honeys

During action-research activity, two kinds of honey were identified: multi-flowers and mono-flowers. For each type, the following products are described.

• Multi-flowers honey

Citrus honey (or, traditionally, “spring honey”).

During the period between the “conventional” dates of the 15th of April and the 1st of May, Lebanese mobile beehives are mostly located on the sea shore, in occasion of the blooming of the citrus threes. The resulting honey is, therefore, a citrus one: orange coloured, somewhat fluid, citrus flavoured.

This kind of honey is an excellent curative against the head cold and hay fever, and it helps in the therapy against asthma and bronchial illness.

Because of the use of mobile beehives, allowing the displacement of the bees on the sea shore also to Bekaa’s beekeepers, citrus honey can be considered a Lebanese national product.

Although Lebanese citrus honey is a high rank one, Lebanese consumers don’t appreciate it as much as it deserves. The beekeepers think it is because of its high tendency to crystallize. Consumers misunderstand the high natural sugar level of the honey, and they think the beekeepers adulterate the product by adding sugar. It is, therefore, a question of information and sensitisation.

Lawn honey.

The action-research identified many different kinds of lawn honey, coming from prairie and hill vegetation and characterized by different properties.

• Mono-flower honeys.

o Acacia Honey

Acacia honey is produced in almost all hill areas of Lebanon. It is, probably, the best known worldwide mono-flower honey.

This kind of honey has a clear colour, light and delicate fruit – like smell and flavour without aftertaste, and is very fluid. It is very rich in fructose (and therefore is scarcely tending to crystallize) and poor in mineral salts, enzymes and acidity.

Western Countries imports acacia honey from China, as their internal production of this kind of honey is not sufficient to satisfy their markets.

o Eucalyptus honey

Thanks to the strong presence of Eucalyptus trees, the honey from its flower is produced, in July, in all Lebanese rural areas.

This kind of honey is not too sweet (someone says “a little salted”), is characterized by liquorice flavour, and has a low level of humidity (even of the 14%); because this reason, it is a dense honey.

The properties of Eucalyptus essential oil are also ascribed to this kind of honey, which is suggested as a balsamic curative against head cold and winter illness.

o Thyme (Zaatar) honey

The kind of honey obtained from Thyme plant (Thymus capitatus) is very renowned since a long time in Mediterranean region.

It is a lowly crystallizing honey, amber coloured, with flower – spice smell, a little acid taste, and a flavour characterized by “essential oil” feelings, due to the presence of thymol. It is rich in fructose and in enzymes (diastases).

Value Chains, Basic Interventions, Supports - 62

During action-research, thyme honey has been identified in North Lebanon.

o Lavender honey

The honey from lavender is a rare, known and appreciated product in all Mediterranean region.

This very competitive kind of honey is amber coloured, has intense and original smell and flavour, and crystallizes in a compact way.

During action-research, until now, lavender honey has been identified in Bekaa.

o Sage honey

Sage honey has been identified in North Lebanon. It maintains the flavour of the sage, and has antiseptic properties. It can have tonic effects on digestive organs.

o Sesame (Tahini) honey

Produced in small quantities in the mountains of Bekaa, Sesame honey has been identified. It is a very appreciated product on local markets, and further knowledge about it is needed.

o Oregano honey

Oregano honey has been identified in North Lebanon. It is dark, and maintains the flavour of the oregano. It has therapeutic properties against rheumatic illness.

o Banana honey

Banana honey has been identified in South Lebanon. It is very clear and light, and is not appreciated on Lebanese market. It probably deserves to be more known, and its potential innovative uses (for example as a natural, flavorous sweetener in confectionery) should be assessed.

o Avocado honey

Also avocado honey has been identified in South Lebanon. Also in its case, innovative uses could be identified.

The honey-dew

The honey-dew (melata, in Italian) is, properly, a sugary secretion of some insects, as scale insects (Rynchota Homoptera) or aphids, that eat plants’ lymph. Those insects concentrate in their bodies nourishing nitrogenous substances of the lymph, and expel the liquid in excess, very rich in sugar, that is the honey-dew. Bees collect that secretion, often located among trees’ leaves as a thin layer, and use it to produce honey. This kind of honey should be called, more correctly, honey of honey-dew (miele di melata, in Italian), but the expression honey-dew is preferred in the common use.

That’s why kinds of honey from pine trees, oaks, etc. can be obtained, and different kinds of honey can be obtained from the same plant (for example, honey and honey-dew from chestnut trees). The honey-dew is quite less sweet than the honey, and so it doesn’t tend to crystallize. Furthermore it is darker, more dense and more aromatic than the honey. It is also very rich in mineral salts, and is the preferred kind of honey by Lebanese consumers.

It is of common understanding in Lebanon there are two main kinds of honey: the “spring” one (made by citrus flowers) and the “summer” one (also, often, called “forest” honey). As matter of fact, the second kind of honey is honey-dew. At the end of citrus’ blooming, around the start of June, mobile beehives are transported from the coast to new collecting locations, in the hills and in the mountains, even at altitudes of 1,000 – 1,200 m, and left there until the first days of October. Different kinds of mono and multi-flower honeys and “mono” and “multi-plants” kinds of honey-dew are produced there, depending on ecosystems and vegetation

Until now, the following kinds of honey-dew have been identified.

• Multi-plants honey dew.

o Forest honey

Value Chains, Basic Interventions, Supports - 63 The presence of different kinds of trees allows the production of a mixed flavour honey-dew. It is, technically, a honey-dew, but it is called “forest honey” by Lebanese producers and consumers. This name is also often used as a synonymous of “summer honey”, as above mentioned.

“Forest honey” is produced in all Lebanese areas, and its properties depend on local vegetation, but the forest honey of Akroum, located in the qadaa of Akkar (North Lebanon), in the only volcanic area of the Country, is unique. The Cenozoic volcanic field of Akkar consists of a thick succession (200 m) of basaltic lava flows, erupted at the junction between a restraining bend (the Yammouneh transform fault) and its northern extension (the Ghab transform) in Syria. Both faults are part of the Dead Sea transform fault system, which represents the boundary between the Arabian and African plates and the Levantine subplate. This particular bio-chemical composition of the forest floor gives specific uniqueness to the Akroum honey.

Most of the summer honey produced in Bekaa is made by putting beehives in the Rashaya side of Jabal el Sheikh (Mount Hermon). This kind of honey is unique, darker than the other honey, and it is very well-known also outside Lebanon. “Jabal el Sheikh” is also a Rashaya brand. The participants to the focus groups pointed out this honey, directly distributed on the markets, has no problem whatsoever being sold. It is also sold in Europe, as a pasteurized honey

• Mono-plant honey dew.

The following kinds honey-dew are produced in forest areas of North Lebanon, characterized by the prevalence of one variety of tree: o juniper (“lezzeb”) honey, o pine honey, o oak honey, o quinine (“kina”, Chinchona officinalis) honey.

Because of Lebanese customs and taste, the honey-dew is the most successful on the markets.

Royal Jelly

An average composition of royal jelly is represented by an amount of 66% of water, 14% of sugar (glucose, fructose and saccarose), 13% of protides, 4.5% of lipids, vitamins (A, B1, B2, B3, B5, B6, B12, C, D, E), and calcium, copper, iron, phosphorous, potassium, siliceous and sulphur.

It is commonly known that royal jelly is a powerful help for the people in fatigue or stress conditions, and in nutrition of premature babies. The researchers discovered also the following royal jelly properties: • re-balance of the endocrine’s system, • help for the therapy against anaemia, • help for the therapy against anorexia, as a good natural appetite regulator, • powerful “anti-age”, thanks to B5 vitamin, • help for the therapy against some auto-immune illnesses, as Systemic Lupus Erythematosus.

The most important component or royal jelly is the 10-hidrossidecenoic acid (Hda), exercising anti-bacterial and anti-cancer activities, according to the research of G.F. Townsend (1960) and followings. This organic acid is present in fresh royal jelly, and decreases according to the age of the product; below a concentration accounting 1.5%, its presence is therapeutically ineffective. A good average concentration of Hda is 1.9%, that, furthermore, certifies the freshness of the royal jelly.

Beyond the freshness, also the healthfulness of the royal jelly is important. A very high percentage (till an amount of 97%) of European need of royal jelly is satisfied by Chinese products, in which residues of antibiotics, massively used in rural activities of that Country, can be found.

Therefore, a Lebanese pure and fresh royal jelly can find a good market in Europe. But this goal can be achieved through a productive optimisation allowing lower prices: Lebanese royal jelly is very expensive (2-3 $/g) if compared to European prices (1.10 – 1.30 $/g).

The royal jelly is produced in Bekaa, North Lebanon, South Lebanon.

Pollen

Value Chains, Basic Interventions, Supports - 64 The pollen is not produced by the bees, but just collected by them from the flowers in special “crates” located on their legs. Worker bees usually collect more pollen than it is needed to produce honey and royal jelly. Therefore the substance in excess can be scratched out by adequate gratings located on beehives’ doors.

Many people consider the pollen as the most complete existing food; it averagely contains: • an amount of 60% of water, • an amount of 20% of proteins (2 or 3 times more than the meat), • an amount of 5% of lipids, in the most part essential fatty acids as alpha-linoleic acid (Omega 3), linoleic acid (Omega 6), mono- unsaturated fats and just a small part of saturated fats, • sugars • 21 of 23 known amino acids, • all the known vitamins (just with a low percentage of B12), • mineral salts of calcium, manganese, phosphorous, iron, sodium, potassium, aluminium, magnesium, copper, • enzymes and co-enzymes, • carotenoids, bioflavonoids and phytosteroles.

The presence of the Omega 3 and bioflavonoids is the reason of the anti-oxidant power of the pollen that, beyond its “anti-age” action, • prevents cardio-vascular diseases, • has anti-inflammation, anti-viral, anti-bacterial and anti-cancer properties, • helps against anaemia, mental fatigue, and physical, nervous and sexual asteny.

The production of pollen has been identified in Bekaa and South Lebanon.

Propolis

The propolis is a resinous substance collected by the bees from plants’ buds and barks, and processed by adding wax, pollen and enzymes produced by themselves.

The colour of the propolis can vary, depending on vegetable source: yellow-green from pine trees, reddish from poplars, black from birches. Also its taste can vary, from a typical pungent-bitter even to almost sweet. Its smell is, generally, strongly aromatic. The consistence of the propolis depends on the temperature: it is hard and friable, but becomes ductile if manipulated and very malleable near 30°C. It fluxes at 65°C – 70°C.

The propolis is essentially a mixture of aromatic and phenol components, enriched by very heterogeneous substances (fatty acids, terpenes, amino acids, vitamins, mineral salts, etc.), whose percentage composition varies in function of the seasons and the places of production. An average composition of the propolis could be the following one: • an amount of 50% - 55% of resins and balms (terpenes, polysaccharides, uronic acids, aromatic acids, aromatic aldehydes), • an amount of 25% - 35% of wax, • an amount of 5% of several substances as flavonoids, minerals (calcium, chrome, copper, manganese, lead, silicon), vitamins (B1, B2, B6, PP, C, E), • pollen, whose presence can be due to accidental causes.

The propolis is little water-soluble. The solution in the alcohol is more effective (but also far from 100%), and having an amount of 33% of flavonoids, the most important components of propolis, in order to give the product • bacteriostatic and bactericide properties, • fungicide properties, • anti-viral properties, • healing properties, • immunostimulating properties, • vasoprotective properties, • anti-oxidant properties.

The price of the propolis on Lebanese market is very high (300 $/kg), if compared to European price (170 $/kg). A productive optimisation allowing lower prices is needed.

The production of propolis has been identified in Bekaa and South Lebanon.

Bee Poison

Value Chains, Basic Interventions, Supports - 65 Bee poison is produced (around 0.003 mg) by the bee, and gathered in a small bladder on its legs, ready to be injected by its sting.

This substance contains water and many enzymes, and has by now experimented therapeutic properties against rheumatic and cardiac diseases, • as a vasodilator, • as an anticoagulant.

The lack of adequate laboratories constrains a Lebanese production of bee poison–based medicines, therefore the poison is sold abroad, mainly in Romania.

The production of bee poison has been identified in South Lebanon.

Mead The mead (“idromele”, in Italian), as some participants to the action-research have declared, is obtained, in Lebanon, through the fermentation of a mixture of honey, water and yeast.

It is probably the most ancient existing fermented drink. It was known in Ancient Egypt, in Celtic England, in Viking Scandinavia. It was probably the mead to be considered, by ancient Greeks, the “gods’ nectar”. During the Imperial age, according to a Roman tradition (probably also originating the term “honeymoon”), the mead was drunk during the weddings, to propitiate the generation of male sons.

The production of mead has been identified in South Lebanon.

Bee Wax

The bees secrete the wax to build the cells of their honeycomb.

The bee wax is used • to produce quality candles to be used in special liturgical occasions, as suggested by Orthodox and Catholic Churches, • to produce cosmetic compounds, • to produce pharmaceutical compounds. • as a component of the mixtures used to coat quality cheeses, • in jewellery, to create models for the casts (lost wax process), • as a food additive (polisher, E900).

The production of bee wax has been identified in North Lebanon and South Lebanon.

Value Chains, Basic Interventions, Supports - 66 5.2.3 Detected geographical distributions

In the following table products are listed according to their geographical distribution. Activities, varieties, products Bekaa Dahyeh (BSS) North Lebanon South Lebanon Bees Syrian - - X X Italian - - X X Seiefi (Syrian) X - - - Gannami (crossbreed, local queen + Italian male) X - - - Selected crossbreed - - - X Honey Citrus honey (multi-flower) X - X X Lawn honey (multi-flower) X - X X Acacia honey (mono-flower) X - X X Eucalyptus honey (mono-flower) X - X X Thyme honey (mono-flower) - - X - Lavender honey (mono-flower) X - - - Sage honey (mono-flower) - - X - Sesame honey (mono-flower) X - - - Oregano honey (mono-flower) - - X - Banana honey (mono-flower) - - - X Avocado honey (mono-flower) - - - X Honey-dew Forest honey (multi-plant) X - X X Juniper honey (mono-plant) - - X - Oak honey (mono-plant) - - X - Pine honey (mono-plant) - - X - Quinine honey (mono-plant) - - X - Other products Royal Jelly X - X X Pollen X - - X Propolis X - - X Bee poison - - - X Mead - - - X Bee wax - - X X

Table 2: Honey related products in the ART GOLD LEBANON Areas

(-) : not identified, until now

5.2.4 Market dynamics and costs

Regarding costs and market dynamics, the following issues have been pointed out until now.

The markets

• Domestic market:

o the Lebanese production of all kinds of honey-dew, of all mono-flower kinds of honey and of the lawn honey seems to be very appreciated by local consumers;

o an high quantity of citrus honey is yearly introduced on domestic market (as it is produced substantially by almost all Lebanese beekeepers), but this product seems to be less appreciated than the other kinds of honey and honey-dew, mainly because of a scarce food education of the consumers;

o Honey and honey-dew are, mostly, directly sold to the store owners and to the consumers, according to a dynamic strongly based on consumers’ trust in local sellers and producers;

o there are just few honey brands, and only a small percentage of them is nationally recognized;

o all the participants to the action-research confirmed all the production is sold;

Value Chains, Basic Interventions, Supports - 67 o other Honey value chain products, having a high added value, as royal jelly, pollen, propolis, bee poison, mead, bee wax, are mostly not sold on domestic markets, because of the lack of local adequate processing laboratories.

• Foreign markets:

o the products of the Honey value chain are worldwide very appreciated (for many reasons); consequently, international markets’ space for those products is very expansive, and it can be used to increase the export of Lebanese products;

o organoleptic properties of Lebanese honey and honey-dew are of a good level, and can be appreciated by foreign consumers;

o a good level of quality, for all chain’s products, can be earned and certified, to increase the market’s points of strength against direct competitors, the Chinese ones, which cannot be faced in terms of quantity of product;

o until now, during action-research, only one Lebanese brand (Jabal el Sheikh) has been identified as international exporter.

Costs and prices

o the beekeepers highlighted difficulties to purchase for tools and machinery (centrifuges, royal jelly pumps, etc.) and for raw materials (artificial honeycombs, etc.), because of high costs and an inappropriate financial support system;

o other Honey value chain products, having a high added value, as royal jelly, pollen, propolis, bee poison, mead, bee wax, are too expensive both for domestic and foreign markets, if compared with analogous foreign products (not only Chinese ones) and, therefore, a productive optimisation (quality – quantity – domestic processing) is needed.

5.3. Strategic considerations

Because of the substantial similarity of the various kinds of product, the existence of a single Lebanese Honey value chain can be considered.

5.3.1 Competitiveness

Competitive advantage and strategy

The products of the Honey value chain, regardless of their provenience, if really natural and unpolluted (and, so, free from additives or dangerous or just adulterating substances), are generally very appreciated by all the markets in the world. Generally both foreign markets and consumers of the Honey value chain products are mostly very skilled and exigent.

Consequently, the main competitive advantage of Lebanese Honey value chain relies on the nature itself of its products as • they belong to an already worldwide very appreciated (for many reasons) whole of products, • their destination markets (both local and international ones) are open to safe products of quality, and are not saturated, • they can be produced in large quantities.

The competitive advantage is higher when the products • represent high levels of biodiversity of some Lebanese areas, • become from not polluted lands, • are typically representative of Mediterranean and Middle Eastern regions (as thyme, sesame, lavender, oregano, sage honeys, and quinine honey-dew), • are rare and/or original (as juniper, oak, pine honey-dew), • are unique (as Akroum honey-dew).

A good strategic target, therefore, can consist in exploiting the competitive advantage for expanding the market quotas at national and international level.

Competitiveness factors for each product

Value Chains, Basic Interventions, Supports - 68 The following table lists the competitive advantages of the products of the Honey value chain, as they were identified at actual stage of action-research. At the same time, market notices (“warnings”, in some cases) are listed.

Product Competitive advantage Market notices Honey

• Related to intrinsic properties: o Produced in large quantity o Lowly appreciated on Citrus o Recognized and appreciated on foreign markets Lebanese market because of o Therapeutically helping against head cold, asthma and bronchial illness its easy crystallization • Specific Lebanese: produced with Lebanese citrus flowers • Related to intrinsic properties: Lawn o Small price for a common and daily use - • Specific Lebanese: can be produced in large quantity • Related to intrinsic properties: o Mono-flower o Western Countries imports Acacia Recognized and appreciated on foreign markets o acacia honey from China o Low tendency to crystallize • Specific Lebanese: can be produced in large quantity • Related to intrinsic properties: o Mono-flower Eucalyptus o Recognized and appreciated on foreign markets - o Therapeutically helping against head cold, and winter illness • Specific Lebanese: can be produced in large quantity • Related to intrinsic properties: o Mono-flower Very renowned since a long time in Mediterranean region Thyme o - o Original smell, taste and flavour o Recognizable as a Mediterranean product o Can be innovative on many foreign markets • Related to intrinsic properties: o Mono-flower Lavender o Known, rare and renowned in Mediterranean region - o Original smell, taste and flavour o Can be innovative on many foreign markets • Related to intrinsic properties: o Mono-flower o Has antiseptic properties Sage o Has tonic properties for digestive organs - o Original smell, taste and flavour o Recognizable as a Mediterranean product o Can be innovative on many foreign markets • Related to intrinsic properties: o Mono-flower Original smell, taste and flavour Sesame o - o Recognizable as a Middle Eastern product o Very appreciated on Middle Eastern markets o Can be innovative on many foreign markets • Related to intrinsic properties: o Mono-flower Original smell, taste and flavour Oregano o - o Recognizable as a Mediterranean product o Therapeutically helping against rheumatic illness o Can be innovative on many foreign markets • Related to intrinsic properties: Mono-flower Not appreciated on Lebanese Banana o o o Original smell, taste and flavour market o Can be innovative on many foreign markets • Related to intrinsic properties: Mono-flower Not spread on Lebanese Avocado o o o Original smell, taste and flavour market o Can be innovative on many foreign markets

Value Chains, Basic Interventions, Supports - 69 Product Competitive advantage Market notices Honey - dew • Related to intrinsic properties: Known and renowned in Lebanon Forest honey o - o Original smell, taste and flavour o Can be innovative on many foreign markets • Related to intrinsic properties: Known and renowned in Lebanon Forest honey o Original smell, taste and flavour - (Akroum) o o Can be innovative on many foreign markets • Specific Lebanese: unique, as becoming from a volcanic area • Related to intrinsic properties: o Known and renowned in Lebanon Forest honey o Also covered by a brand Original smell, taste and flavour (Jabal el Sheikh) o known abroad o Can be innovative on many foreign markets • Specific Lebanese: unique

• Related to intrinsic properties: o Mono-plant Known and renowned in Lebanon Juniper honey o - o Original smell, taste and flavour o Can be innovative on many foreign markets • Specific Lebanese: unique, as becoming from high mountains • Related to intrinsic properties: o Mono-plant Pine honey o Known and renowned in Lebanon - o Original smell, taste and flavour o Can be innovative on many foreign markets • Related to intrinsic properties: o Mono-plant Oak honey o Known and renowned in Lebanon - o Original smell, taste and flavour o Can be innovative on many foreign markets

• Related to intrinsic properties: o Mono-plant Quinine honey o Known and renowned in Lebanon - o Original smell, taste and flavour o Can be innovative on many foreign markets

Other products

Related to intrinsic properties: • o More expensive of foreign Royal Jelly All the intrinsic properties of the royal jelly o ones • Specific Lebanese: good possibilities of being unpolluted

• Related to intrinsic properties: Pollen o All the intrinsic properties of the pollen - • Specific Lebanese: good possibilities of being unpolluted Related to intrinsic properties: • o More expensive of foreign Propolis All the intrinsic properties of the propolis o ones • Specific Lebanese: good possibilities of being unpolluted • Related to intrinsic properties: Bee poison o All the intrinsic properties of the bee poison - • Specific Lebanese: good possibilities of being unpolluted • Related to intrinsic properties: Mead o High historical and cultural added value - o Can be innovative on national and many foreign markets Related to intrinsic properties: Bee wax • - o All the intrinsic properties of the bee wax

Table 3: Lebanese Honey value chain products’ competitive advantage

5.3.2 Obstacles and critical areas

Value Chains, Basic Interventions, Supports - 70

Obstacles and Critical Problems’ Areas

The following table shows the main obstacles to be faced and overcome in order to give effectiveness to the intrinsic potential competitive advantage of Lebanese Honey value chain. Obstacles Bekaa Dahyeh (BSS) North Lebanon South Lebanon Beekeeping Beekeeping activities Agricultural mismanagement X - X X Uncertainty and low safety in itinerant activities X - X X Expensive tools, machinery, raw materials X - X X Lack of prod. - proc. quality rules (ISO) X - X X Lack of quality control process (ISO) X - X X Lack of food safety rules (HACCP) X - X X Relational fragmentation X - X X Lack of targeted finance and credit X - X X Services to beekeeping activities Ineffective and inefficient sanitary service X - X X Lack of spreading of good practices X - X X Weak support to ISO rules introduction X - X X Lack of training to ISO rules management X - X X Low support to HACCP rules introduction X - X X Lack of training to HACCP rules management X - X X Lack of targeted finance and credit X - X X Product processing Royal jelly, pollen, propolis, bee poison Lack of laboratories to process the products X - X X Weak innovation and research X - X X Weak job training X - X X Lack of targeted finance and credit X - X X Mead, bee wax Lack of plants to process the products X - X X Weak job training X - X X Lack of targeted finance and credit X - X X Marketing internal marketing Lack of chain's optimisation (total quality rules) X - X X external marketing Lack of branding X - X X Weak distribution X - X X Lack of promotion and communication X - X X Lack of food education for consumers X - X X

Table 4 Obstacles to the development of the Lebanon Honey Chain

(-) : not identified, until now

The Critical Areas, therefore, can be identified as the following ones. a. Productivity and Production Costs

In order to improve productivity and reduce production costs, following actions are needed:

a.1) Organisation of the Honey value chain, that could - reduce transactional costs among the involved stakeholders - realise scale and scope economies - face better the competition because of the improved market power

a.2) Applied Research for innovations and the introduction of good practices, that should - produce and spread innovative know – how, - design field support laboratories;

Value Chains, Basic Interventions, Supports - 71 a.3) Production (Beekeeping) increase by - promoting and supporting the setting up of more beehives - introducing sustainable innovations in know – how and technologies,

a.4) Product processing improvement by introducing sustainable innovations in technologies and know – how, for producing royal jelly, pollen, propolis, bee poison, bee wax, honey for the mead;

a.5) Energy Management, in order to obtain cheaper and more steady energy availability;

a.6) Water Management, in order to - obtain easier and cheaper drinking water availability for product processing, - safeguard ecosystems and biodiversity

a.7) Waste Management, in order to safeguard ecosystems and biodiversity. b. Safety and Quality management and control

In order to improve food safety and product – process quality, following actions are needed:

b.1) improvement of Sanitary Services;

b.2) introduction of certified Quality standards, management and control (ISO), to be applied to all the Actors of the chain;

b.3) introduction of certified Food Safety rules and control (HACCP), to be applied to all the Actors of the chain;

b.4) promotion of certified Organic lines of products; c. Marketing and Distribution System

In order to improve the effectiveness of Marketing and the efficiency of Distribution System, following actions are needed:

c.1) promoting applied researches about bio – chemical and nutritional characteristics of Lebanese Honey value chain’s products;

c.2) promoting food education activities for the consumers;

c.3) creating and promoting a national Quality Brand of Honey value chain’s Products, by defining a progressively growing body of products, their characteristics and prerogatives, their standards;

c.4) establishing a National Distribution and Sale System;

c.5) establishing an adequate National (internal and external) Marketing System.

c.6) establishing an International Distribution and Sale System;

c.7) establishing an International Marketing System, in order to o analyse foreign markets, o elaborate and carry on Marketing strategies settled on “target” foreign markets.

In conclusion, Lebanese Honey value chain’s products are not ready to be channelled into international markets, in a significant quantity and with sure effective results, mainly because they do not accomplish ISO and HACCP international standards.

Value Chains, Basic Interventions, Supports - 72

5.4. The proposal for strategic guidelines

The analysis of the products of the Honey value chain and the considerations about its competitiveness and obstacle areas highlight the need of actions of the following kinds: • making available, in an optimized way, sufficient quantities of really natural and unpolluted products, • achieving the conditions to certify their quality and safety, • identifying their nutritional, historical, cultural, territorial, etc. added values, • identifying the most adequate foreign markets, • promoting their image on domestic and foreign markets, by adequately communicating their quality, safety and added values, • creating effective distribution and selling organizations.

Consequently, strategic guidelines for developing a sustainable long term competitive Honey value chain to be carried out mainly regard the following issues: • the creation of a network system among all the actors involved in the value chain, • the improvement of productive performances, • the improvement of the quality and the food safety, • the design and implementation of actions for better positioning on domestic and international markets.

5.4.1. The network system

Optimisation needs

Lebanese Honey value chain is constituted by a large number of micro or small enterprises. Nevertheless this high number of SMEs, currently very fragmentised, have the chances to become a competitive system if managed as an “optimised network system”, as into the value chain concept. This implies each “knot” of the network (its component elements, which are enterprises or institutional Actors) shall: • share reliable strategic targets, that should inspire the network’s design, • know, understand and cooperate with each other, • organise a “consistent system of interactions among suitable subjects”, • organise the supports to the necessary material and non-material resources, o monitor the processes by feedback, in order to verify the quantity of used resources, that should be the smallest as possible, and the level of the accomplishment of their strategic target.

Currently a real Lebanese Honey value chain does not exist, and small, weakly managed local networks, characterised by high levels of fragmentation and entropy’s production, operate just on “very local” markets.

The main component of a new strategy for improving the Honey value chain performances should be, therefore, the establishment of a structured and organised value chain network system, designed to • establish “critical masses” for production, sales and services, so to ensure production’s adequate and standardised levels of quality, quantity, supports, and achieve a stronger “strategic and market power”, • providing a shared and efficient answer to resources’ needs (energy, water, research, supports, marketing), • establishing a feedback – based monitoring system, to correct and adapt processes and produce in order to achieve the best performances on equal terms of used resources.

National and local networks

Lebanon is a small country, and the characteristics and competitive advantage of the Honey value chain is more or less the same for each Area of the Programme: they rely on the same types of land, geomorphology (except for the fact that Bekaa has not coastal environments), climate, and also culture and know how; furthermore, the use of mobile beehives unifies many products. A strategy for developing the various, fragmented local chains in a comprehensive way should rely, therefore, on • a national network (National Honey Consortium), also involving public subjects (to induce the best Sectors’ policies) and private representatives of other productive or not productive Sectors, in order to gather critical mass of resource, establish common standards, and optimise strategic services (commercialisation, marketing, quality and food safety control, etc.), and on

Value Chains, Basic Interventions, Supports - 73 • Areas’ networks (Area Sector Associations), both being local articulations of the national network, and representing more local Sector’s interests and problems, with the aim of implementing national strategies, monitoring their implementation, detecting needs, problems or new kinds of resources, exploiting at the best local values.

The local network: Area Sector Associations

An Area Sector Association, locally g) represents a “critical mass” of Actors, and is its operative arm; h) It is the local sensor of the National Honey Consortium, for monitoring the state of the local value chain, and is local actuator of best practices and actions (which should be introduced in Local Development Programmes); i) is a natural interlocutor with other sectors and thematic areas; j) has to became one of generating subjects and natural interlocutor of a LEDA (Local Economic Development Agency), and so has to be involved in Area Local Partnership to decide and support local targets for all value chains involving its Sector (for instance, Chemical Productions are also involved in other value chains); k) is the main co - actuator (with LEDA, where existing) of Local Development Programme; l) supports the producers and promotes their recognizability (by promoting trademarks, or territorial brands, etc.).

The national network: National Honey Consortium

The National Honey Consortium, largely shared, should be established countrywide by all micro, small, medium and large enterprises that are involved in Honey value chain. The Consortium’s functions should be: j) identifying and monitoring the chain’s national and local conditions, also by using Area Sector Associations as sensors; k) promoting research and testing activities, aimed at detecting food properties and productions best practices , by involving universities and research centres; l) sharing best practices with the Areas, thanks to mediation of Area Sector Associations; m) supporting producers to apply best practices, by using Area Sector Associations as actuators; n) identifying local typical varieties of products • whose production has to be protected, promoted and supported, • whose property standards have to be established and certified by brands; o) for beekeeping and product processing, detecting, promoting and supporting the full-scale introduction, as far as possible, of worldwide certifiable standards of: • safety, to be sure that the produce is safe for the consumers’ health, according to EFSA (European Food Safety Authority) rules, and starting from massive introduction of HACCP (Hazard Analysis and Critical Control Point) procedures, • quality, to ensure that the products are “the best” (in terms of nutritional and organoleptic properties) that can be obtained from the best processes (effectiveness and efficiency of production, packaging, distribution, promotion, etc.), according to ISO 9001, • organicity, for obtaining products without using synthesis chemical substances; p) managing internal marketing activities, according to total quality rules, and therefore • considering that relations among producers of different chains are of the “supplier – customer” kind, • optimising those relations, knowing that the satisfaction of the final user (the consumer) depends on the satisfaction of intermediate users; q) managing external marketing activities and therefore • in Lebanon and abroad, creating a favourable market environment for Lebanese products, thanks to an optimisation of prices and an effective promotion, which is based on the communication of real food characteristics and consumer education about food, • managing product promotion abroad and the most direct distribution as possible (to ensure the best gain to the “national side” of trading chain).

Value Chains, Basic Interventions, Supports - 74 If correctly managed the establishment of interacting National Honey Consortium and Area Sector Associations should help to • solve the current local state of disorganisation, and prevent future ones (because a feed – back controlled system is created), • spontaneously increase local and national chain’s production in Lebanon, • recover lost areas of the domestic market (thanks to an appropriate national management of external marketing), • reduce production costs and, consequently, make available additional financial resources per unit of sold product, to manage innovative production processes that have been introduced (more expensive than the old ones), • increase employment (by increasing job need) in the Honey value chain.

5.4.2. Networks’ actions

The following actions should be carried on through the established networks.

Improvement of productive performance and productivity f) increasing honey production, through fostering productivity and promoting new businesses within the value chain, g) improving the energy, water, and waste management systems, h) improve sanitary services, i) introducing innovative technologies and practices, according to the national and international experience and know how, j) optimising the transactions between the value chain actors, according to the rules agreed within the established networks, k) improving entrepreneurial and professional capacities.

Improvement of quality and food security e) establishing standardised rules and protocols, f) realising laboratories for quality control and food security management, g) training all value chain’s Actors about quality and food security h) improving current applied action-research (through universities and LARI) for continuous innovation opportunities.

Marketing

• Domestic market positioning, by: k) designing and implementing internal and external marketing strategies, l) realising products’ certification, according to ISO and HACCP standards, m) realising Honey products quality and typicality national brands, n) training marketing experts, o) implementing a food education campaign, p) organising an effective national distribution system,

• International market positioning, by: q) monitoring foreign Countries market opportunities, also thanks to the help of Lebanese People of Diaspora, r) designing a distribution system, ending as closer as possible to foreign consumer, s) organising sales promotion, based on an adequate communication of product’s intrinsic qualities (nutritional and organoleptic properties, “cultural” and historical added values, etc.), addressed to foreign consumers, t) training international marketing agents.

5.4.3. A control system

Marketing and Control

The following chart outlines how a “Main Control System” (established inside of National Honey Consortium), feedback based, can control Honey value chain’s activity, thanks to the flows of informations and controls running on Internal and External Marketing appropriate channels.

Value Chains, Basic Interventions, Supports - 75

Area Sector Chemical Productions Beekeeping Associations

Packages Production Main Control Internal System Distribution marketing

External marketing

Final consumer

Information Flows

Control Flows

Interactions with infrastructural networks

The following diagram outlines an ordinary control system for the interactions of the Honey value chain with infrastructural networks.

Energy Management

Water Management

Main Honey value chain Control System

Control Flows

Information Flows Waste Management

5.5. The ART GOLD support

The ART GOLD Programme in Lebanon should provide the following support to the Honey value chain, either at local, national, and international level, in order to contribute implementing the above mentioned strategic guidelines.

Value Chains, Basic Interventions, Supports - 76

Action plans should be established and agreed within the Area Local Partnerships and the National Coordination Committee for carrying on the above mentioned activities, and they will be part of the annual AGL Programme action plans, supported by ART IS-LED. A proposal for the ART GOLD support to the honey value chain is illustrated in the tables 5 (overall support) and 6 (initial support for the first 3-5 months).

TABLE 5: ART GOLD LEBANON OVERALL SUPPORT TO THE HONEY VALUE CHAIN Activities Issue Area level National level o Technical assistance for establishing local networks their composition, rules, strategies, and o Technical assistance for establishing a organisation national network, its composition, rules, The network Capacity building o strategies, and organisation system o Links between networks and LEDAs o Capacity building Deep continuous action-research for improving o the economic dynamic and valorising the Lebanese local typicality and potential

o Promotion of sustainable processes in agriculture o Assessment and technical assistance for entrepreneurship, technology, processes and products, through specialised experts o Entrepreneurial and professional capacity building Improvement of o Assistance for the formulation and execution of o Assessment and technical assistance to projects regarding waste, water, and energy universities and LARI for enhancing applied productive system, through decentralised cooperation research activities, and facilitating links with performances o Technical assistance and training for sanitary international similar structures services o Organisation of the LEDA for targeted financial and non-financial continuous support o Assessment and technical assistance to universities and LARI for enhancing applied research activities, and facilitating links with international similar structures

o Technical assistance for the establishment of the national quality and food security o Assistance for design and implementation of system and its procedures and protocols projects regarding laboratories for quality control, Assistance for the design and the Quality o through decentralised cooperation implementation of projects regarding o Capacity building laboratories food security, and monitoring, through decentralised cooperation o Capacity building o Support to the elaboration of the marketing strategies and instruments Support to establishing links between the local o Creation of a national brand networks and with the national network o Training of marketing experts and Marketing Capacity bulding o o international marketing agents Creation of territorial brands o Facilitating links with international partners o for international market positioning o National campaigns for food education

Value Chains, Basic Interventions, Supports - 77 TABLE 6: PROPOSAL OF THE ART GOLD LEBANON INITIAL ACTIONS (FIRST 3-5 MONTHS) TO SUPPORT TO THE HONEY VALUE CHAIN SUPPORT TO THE NETWORKS Strategic expected result Area level National level Actions: International IS LED expert for stimulating and supporting local and national Actors for learning how to build, to take advantage and to manage collective-based networks, and to establish optimization between local (Area Sector Associations) and national (National Honey Consortium) ones Local and National networks related to Beneficiaries: Actors of the Honey value chain in South Lebanon, Bekaa, and the value chain promoted North Lebanon (breeders, dairy producers, university, chamber of commerce, etc). Implementation: 2 missions of 2 weeks each in Lebanon, establishment of a promoting group, assistance and follow up by the AGL LED international expert and the LED ART GOLD area specialists Action: Training session of 1 week on value chain consortium best practices Beneficiary: Actors of the Honey value chain in South Lebanon, Bekaa, and North Lebanon (breeders, dairy producers, university, chamber of commerce, Networks’ Actors capacities in etc), Lebanon Government, and National Associations of entrepreneurs and managing them improved farmers. Implementation: Preparation TOR’s and realisation of 1 week mission of an expert institution in Lebanon within the IS LED action plan, assistance and follow up by the AGL LED international expert and the LED ART GOLD area specialists Action: International IS LED Action: International IS LED technical technical assistance for assistance for establishing a LEDA establishing an agreement with a national financial institution Beneficiaries: Private and Public Actors of the ART GOLD Lebanon Programme, including farmers, industrial entrepreneurs and Beneficiaries: Population of Links between networks and future their associations, NGOs, Chamber of the ART GOLD Lebanon area, LEDAs identified Commerce, Research Centers, Incubators, with particular reference to the Business centers, Banks and other financial most disadvantaged groups institutions at local level, municipalities, and union of municipalities Implementation: 3 missions of 2 weeks each in Lebanon, assistance by the AGL LED international expert and the LED ART GOLD area specialists , ART GOLD national staff. Undp CO. Desk assessment Action: International assistance to the established local networks, for looking at new local economic potentialities and opportunities, above the already detected Deep continuous action-research for ones improving the economic dynamic and Beneficiaries: Members of the local networks valorising the Lebanese local typicality in the ART GOLD LEBANON areas and potential carried on Implementation: International IS LED expert in 2 weeks mission in Lebanon, assistance and follow up by the AGL LED international expert and the LED ART GOLD area specialists . Desk assessment

Value Chains, Basic Interventions, Supports - 78

IMPROVEMENT OF PRODUCTIVE PERFORMANCE Strategic expected result Area level National level Action: International IS LED technical assistance to Area Staff for promoting the Sharing of detected experiences and introduction of sustainable processes in best practices Improving and increasing the agriculture sustainability of agricultural Beneficiaries: Farmers in Bekaa, North Lebanon, South Lebanon processes Implementation: agreement with LARI (or preparation of TORs and 1 week mission of an international expert within the IS LED assistance) for analysing the possibilities of improving and increasing the sustainability of agricultural processes. Action: Assessment by an international expert Assessment and technical on techniques asset of the honey – related Sharing of the results assistance for entrepreneurship, production technology, processes and Beneficiary: Entrepreneurs of the Honey value chain in South Lebanon, Bekaa, and products, including capacity North Lebanon building Implementation preparation of TORs and 4 weeks mission of an international expert within the IS LED assistance, assistance and follow up by the AGL LED international expert and the LED ART GOLD area specialists Action: Engagement of Decentralised Cooperation in formulating and realising the projects Beneficiaries: Population of the ART GOLD Assistance for the formulation LEBANON areas and execution of projects regarding waste, water, and Implementation: IS LED Assistance on the field and at distance for the formulation of the energy system, projects: • missions of 2 weeks each in Lebanon for training assisting Lebanese partner in formulating the projects for decentralised cooperation; • IS LED contacts and follow up in Europe for engaging the appropriate partners; Assistance and follow up by the AGL LED international expert and the LED ART GOLD area specialists . Action: Engagement of Decentralised Cooperation in formulating and realising the Assessment and technical projects assistance to universities and Beneficiaries: Lebanese Academic structures and research centers LARI for enhancing applied Implementation: IS LED assistance on the field (during one of the above mentioned research activities, and missions) and at distance for the formulation of the projects. facilitating links with international IS LED contacts and follow up in Europe for engaging the appropriate partners. similar structures Assistance and follow up by the AGL LED international expert and the LED ART GOLD area specialists .

Value Chains, Basic Interventions, Supports - 79

IMPROVEMENT OF PRODUCT QUALITY

Strategic expected result Area level National level

Action: Engagement of Decentralised Cooperation in formulating the projects Assistance for design and Beneficiaries: Lebanese Academic structures and research centers implementation of projects regarding laboratories for quality control, food Implementation: IS LED assistance on the field (during one of the above mentioned security, and monitoring, through missions) and at distance for the formulation of the projects. decentralised cooperation IS LED contacts and follow up in Europe for engaging the appropriate partners. Assistance and follow up by the AGL LED international expert and the LED ART GOLD area specialists . Actions: Engagement of - Decentralised Cooperation in realising a feasibility study Technical assistance for the - Beneficiary: The National Honey establishment of the national quality Consortium and food security system and its Implementation: IS LED assistance on the field (during one of the above mentioned procedures and protocols missions) and at distance for the formulation of the projects. IS LED contacts and follow up in Europe for engaging the appropriate partners. Assistance and follow up by the AGL LED international expert and the LED ART GOLD area specialists

MARKETING Strategic expected result Area level National level Action: Technical Assistance and 1 training session by an international - expert on the marketing possible strategies for Lebanese Honey products. Support to the elaboration of the marketing strategies and instruments, Beneficiary: Entrepreneurs of the including training - Honey value chain in South Lebanon, Bekaa, and North Lebanon. Implementation preparation of TORs and 4 weeks mission of an international expert within the IS LED assistance, assistance and follow up by the AGL LED international expert and the LED ART GOLD area specialists

Value Chains, Basic Interventions, Supports - 80

MEDICAL AND AROMATIC PLANTS

Characteristics and strategic opportunities

• Focus Groups (see ann. 2): o NLe FG n.2, 26/09/07, Sources of information: o SLe FG n.4, 01/10/07.

• Desk Analysis.

6. The MAP value chain

6.1. The ART GOLD support

6.1.1 Action-research

The results of above mentioned FG are available in annex 2, pages 24 and 46.

It is not possible to identify, at this stage, what overall support the ART GOLD Lebanon shall provide to this resource for its competitive and sustainable development for the duration of the programme. This will depend on the outcome of the analysis of the following: • possibilities of improvement of the value chain: o processing of raw materials (also citrus varieties should be considered important sources of aromatic substances, see 4.2.1), o production of essential oils, • national and international market demands of fresh and processed products, • constraints and critical development problems, • current status of the value chains (in terms of needed production flows, and interactions with other value chains), • needs assessment to enhance sustainable and competitive development and to improve value chain organisation, productive performance, services, quality, and marketing.

This analysis, carried out through an action-research methodology, shall be part of the initial ART GOLD Lebanon support to the value chain, having a duration of 2 months. It is envisaged that this action-research will continue in the next annual ART GOLD Lebanon operational plan, as illustrated in the following table 1.

Value Chains, Basic Interventions, Supports - 81 TABLE 1: PROPOSAL FOR ART GOLD LEBANON INITIAL ACTIONS (2 MONTHS) TO SUPPORT THE MAP VALUE CHAIN

ACTION-RESEARCH Expected strategic result Area level National level Actions: organisation of “Focus Groups” including all the actors currently working in the MAP value chain: • farmers, • gatherers, • processers, Analysis of national and international • distributors, market demand, constraints and critical and other institutions with potential for development problems of the current intervention (Universities, Municipalities, other status of the value chains (in terms of governmental bodies, associations, creation of new enterprises, needed syndicates, etc.). productive flows and interactions with Beneficiaries: Potential and actual Actors of other value chains) the MAP value chain in Bekaa, Dahyeh (BSS), National Government North Lebanon, South Lebanon.

Implementation: 2 months work by AGL LED area specialists, using the methodology learned through the previous ART IS LED

mission, coordinated by an AGL international LED expert, and distance assistance from ART IS LED. Action: International IS LED technical

assistance Needs analysis to enhance sustainable and competitive development and Beneficiary: Potential and actual Actors of the MAP value chain in Bekaa, Dahyeh (BSS), improve value chain organisation, National Government productive performance, services, North Lebanon, South Lebanon, Universities, quality, and marketing Chambers of Commerce. Implementation: 1 week mission in Lebanon, supported by an AGL LED international expert and LED area specialists Action: International IS LED technical assistance

Beneficiary: Potential and actual Actors of the MAP value chain in Bekaa, Dahyeh (BSS), National Government North Lebanon, South Lebanon, Universities, Definition of strategic guidelines Chambers of Commerce.

Implementation: Desk assessment, discussions with the AGL National Coordination Committee and Area Local Partnerships.

Value Chains, Basic Interventions, Supports - 82

MILK

Characteristics, constrains and opportunities, hypothesis of strategic guidelines and support

• Focus Groups (see att. N.2): o Bek FG n.4, 11/09/07, o Bek FG n.7, 21/09/07, o SLe FG n.5, 02/10/07.

Field Reconnaissance: Sources of informations: • South Lebanon, 03/10/07, o o Bekaa, 05/10/07.

• Desk Analysis.

• Other activities: o Meeting with FAO Representative, Tyre, 13/09/07.

7. The Milk value chain

7.1. Milk and connected value chains

7.1.1 Sectors’ material interactions

The following chart outlines, in a simplified way, standard material interactions of the main Sectors involved in the Milk value chain: • with each other, • with other value chains.

Water Management

Packages Production Energy Management

Milk Biomass

Pastures

Farming Breeding Dairy Productions Forages

Fodders Fertilizers Cheese Yogurt

Pesticides

Chemical Productions Distribution Rennet

Waste Management

Value Chains, Basic Interventions, Supports - 83 Other elements referred to the immaterial interactions complete the value chains, as for instance quality control, the various services (from training to finance), the distribution, the marketing, the transportation, the equipment maintenance, veterinary services, etc.

7.1.2 Thematic Systems, Areas, Sectors, Chains involved

The following table 1 summarises the main sectors involved in entire Milk value chain.

Systems Areas Sectors Other involved Chains Ground Environment Biological Factors

Municipalities • Land planning activities. Admin. – Inst. Public Services • Chambers of Commerce. Financial • Credit Primary • Industrial plants (forages), • Breeding. • Dairy Production, • Packages Production Secondary • Chemical Production: • Energy Management o Pesticides, Waste Management o Fertilizers, • Economic o Food Chemistry. • Water Management • Transportation. • Distribution. Human Activities • Marketing.

Tertiary • Business Services. • Consulting Services: o Quality Certification, o Organic Certification, o Food Safety. Health Services • Veterinary Services.

Social Representation • Ass. Of Productive Sectors, • Labour Unions. Welfare • Services for Employment. Education and • Food research Cultural • Food education Research • Job training

Table1: Sectors involved in the Milk Value Chain

7.2. Cheese and yogurt production

The characteristics of products and productive processes, as detected at actual stage of action-research, are described in the following paragraphs.

7.2.1 Breeding activities for milk production

The conditions of the grasslands

Lebanese grasslands (mainly for ovine species) are articulated in the following 4 areas: • the hills and foothills above the coastal zone, • pasture lands facing the Mediterranean Sea, • Bekaa’ slopes, • Northern hills.

Studies undertaken by UNDP and LARI (Lebanese Agricultural Research Institute) demonstrated that the productivity of those lands has drastically declined because of over-cultivation, overgrazing and massive deforestation. Several interacting factors, such as converting marginal lands into crop production, breaking down of traditional grazing practices and rights and livestock’s low productivity, contributed to overloading the already

Value Chains, Basic Interventions, Supports - 84 decreasing grazing spaces, and accelerated the process of land degradation. Those factors are described as it follows.

• The encroachment of agriculture

The natural vegetation of rain-fed marginal areas makes such areas the best pasture land. In Lebanon, like everywhere else, agricultural use of those areas can get good harvests only in the short term, but, this practice leads to impoverishment on the long term, because of the “biological erosion”. Very often, the best pasture lands will quickly lose both their pasture and their farming properties when used for agricultural purposes. As consequence only agricultural activities will be able to be carried on those lands, and only with the aid of chemicals, and grazing activities will have to be moved to less productive rangelands which, as a result, will be further impoverished.

• Overgrazing

Recent available studies documented that in low productivity rangelands (like, for example, Northern Bekaa’s semiarid lands), actual grazing rate is 10 heads (of sheep or goats) per hectare, while carrying capacity of Lebanese rangelands was estimated to be around 1 head per hectare, dropping to 0.2 head/ha on marginal lands; this overgrazing process is blamed on small ruminants, still raised under extensive production systems, characterised by low production inputs and outputs and mainly depending on pastures and agricultural by – products; overgrazing has clear consequences, especially in terms of decline in pasture productivity and spontaneous replacement of palatable vegetation species by unpalatable ones, and consequently in terms of decrease in fertile soil, soil covering vegetation, breeding activities’ economic return. The risk of soil erosion is, therefore, high, rand habitat degradation cannot be reversed for decades, or even centuries.

• Lack of data, sensitiveness, technical skills

The lack of data regards the situation of the rangelands, and depends on non-existence of monitoring activities. Scarce sensitiveness is referred to: o knowing and understanding still existing traditional pastoral systems, o understanding the dynamics of the problems of the rangelands, o involving local Actors in rangeland’s improvement activities, o respecting conditions of sustainability in designing development programs and processes. Furthermore, the lacks of an effective Veterinary Service and of consultation services for animal nutrition have to be remarked.

Grazing, forage and fodder

Different ways of feeding animals were identified as the follows • free pasture, especially when the breeder owns his pasture land, • use of the forages (mainly alfalfa, meadow grass), especially when breeder can cultivate it, • use of the industrial fodders. In Lebanon, natural pasture lands are considered unpolluted but, as above described, they are decreasing in largeness and nutritionally poor. Furthermore, there is a low production of forage’s seeds. Livestock nutrition, therefore, is mainly dependent on expensive imported forage and fodders.

The food eaten by the cows influences milk and products’ colour. If wild or grass pastures are used, the colour of the cow’s milk and cheese produced with it tends toward yellow. In the opinion of breeders, that is the best kind of milk, since it is rich in natural nutritional elements (vitamins, proteins, mineral salts, etc.). This opinion contrasts with consumer preferences for white products. Consequently, dairy factories prefer white milk, produced by feeding cows with forage or industrial fodders.

Dairy cattle

Bovine seed is bought abroad by Government, and distributed to the breeders not more than 12 times in a month, by a Veterinary Service. Currently, indeed, breeders are returning to natural reproduction. During action-research activity, the following beef genotypes were identified.

• Baladi According to the meaning of the word (“local”), the Baladi is the local beef variety; around 40% of Lebanese cattle heritage belong to this species. In addition to the results of Bekaa’s FG n.7, 21/09/07, it

Value Chains, Basic Interventions, Supports - 85 should be noticed that Baladi cows were detected also in Bekaa during Field Reconnaissance of 05/10/07. Declared Baladi’s milk production amounts to around 25 l daily, and so is a high one. Baladi is also used for meat production.

• Foreign breeds

For milk production, pure-bred German and Dutch Friesian are the most imported beef varieties in Lebanon (from Germany and Holland), and accounts for around 25% of the Country’s cattle. Both varieties are famous worldwide, because of their highest milk productivity. A daily milk production around 30 l has been attributed to those cows by local breeders. Friesian is more delicate than the Baladi, and without adequate management and food it gives mediocre results. Furthermore, some local breeders said that lactation life of foreign cows is shorter than of Baladi cows. Imported Italian, Polish and Brazilian cows are also locally bred.

• Crossbred

Crossbred cows account for 35% of Lebanese cattle, and are obtained with the insemination of Baladi cows with the seed of Canadian Holstein Friesian, which is widely used worldwide for crossbreeding. Crossbred cows gives a good milk production, and are reproduced in 50% by local breeders.

Sheep

In Lebanon, sheep numbers are steady around 200,000 heads (1970-1990) (UNDP – LARI). Sheep are generally kept in extensive and semi-sedentary systems, whose low productivity is not balanced by promotion on foreign markets as dairy products coming from a “natural way” breeding. Sheep’s reproduction is traditionally natural. During action-research activity, the following sheep genotypes have were identified.

• Awassi

The Awassi variety comes from the evolution of a nomadic sheep breed, thanks to centuries of natural and selective breeding, aimed at obtaining producing sheep with the highest milk yield in the Middle East. The breed is a Near Eastern Fat-tailed type. The Awassi variety has a brown face; the colour of its fleece can vary from brown to white, and some individuals with black, white, grey or spotted faces can also be found. The fleece is mostly carpet type with a varying degree of hair. The males have horns. The average ewe has over 300 litres per 210 day single lactation; often outstanding females have more than 750 litres per 210 day lactations. Those are very high productivity level, if compared to a conventional average production of 100 litres – 150 litres per lactation. The Awassi is calm around people and easy to milk. Machine milking takes not longer than 6 minutes. The breed also has the advantage of a natural hardiness and grazing ability.

• Baladi

According to the meaning of the word (“local”), each Area has its own local variety of sheep, which is used for milk production. In North Lebanon, Baladi is bred in the prairies. In Bekaa, Baladi is called Esise. The Baladi produces an average amount of milk. This breed is very well adapted to living and grazing on poor lands without much grass.

• Bella

Bella is local name given in Bekaa to an exogenous sheep breed (not yet identified during action- research), coming from Europe.

Goats

Goat numbers have increased from 300000 heads in the 1970s to 500000 heads in the 1990s (UNDP – LARI). Goats are generally kept in extensive and semi-sedentary systems, whose low productivity is not balanced by promotion on foreign markets as dairy products coming from a “natural way” breeding. Goats’ reproduction is traditionally natural. During action-research activity, the following goat genotypes have were identified.

• Baladi

Value Chains, Basic Interventions, Supports - 86

According to meaning of the word (“local”), each Area has its own local variety of goat, which is used for milk production. In North Lebanon, Baladi is called Ouais and is bred in the mountains. Hasbaya (South Lebanon) Baladi belongs to a variety famous for the quality of its meat and milk. The Baladi produces an average amount of milk. This breed is very well adapted to living and grazing on poor lands without much grass.

• Shami

The Shami breed is imported from Syria, for milk production. This genotype is famous throughout the Middle East because of its high prolificacy and high milk production.

7.2.2 Cheese

The milk

Milk powder is used for cheese production in some places. This process is considered generally to be a low quality one. Most Lebanese cheese is produced with fresh milk. Some organoleptic characteristics of local cheeses (flavour, texture, softness, etc.) requires a process of low pasteurisation (60°C – 65°C for 30 minutes). This kind of process, often used for wine and beer, doesn’t guarantee the destruction of certain micro – organisms, such as typhus (Salmonella typhi), Escherichia Coli, Myco – Bacteria, Brucellae. High pasteurisation (reaching 90°C for some seconds) is considered a safe process for the milk. This process is adopted, in Lebanon, for the milk that is channelled into yogurt production.

The rennet for cheese

The rennet, or coagulant for cheese, is composed by many kinds of proteases that can break up casein, so causing the coagulation of the milk’s fat mass and, consequently, the precipitation of curd, that is the main substance to be worked to produce cheese. There are several kinds of rennet.

• Animal rennet: it is extracted from the stomach of an unweaned calf or lamb; this kind of rennet is reputed to be the best quality, and is used for the best cheese (for instance, for many PDO - Protected Designation of Origination - kinds of cheese). Traditional Lebanese cheeses like Shanklish or Darfieh should be produced with the use of animal rennet but, until now, during action-research activity, its use in ordinary dairy production hasn’t been identified.

• Micro – biological rennet: it is extracted from moulds and is a cheap and low quality rennet. Fromase, the rennet detected until now, during action-research activity, is an industrial micro – biological one, and is extracted from Muchor miehei mould.

• Re – combining rennet: it is obtained from genetically modified organisms.

• Vegetable rennets: fig latex, lemon juice, or substances extracted from pineapple trunk, pumpkins, artichokes, thistles can be used as coagulants for cheese.

The cheeses

The following types of cheese exist in the areas of the ART GOLD Programme.

• Aakawi

Aakawi (or Akawi) is a dense cheese, common throughout the entire Middle East. It is made from sheep's milk; each 100 kg of milk produce 28 – 30 kg of white Aakawi, containing 8% salt and 45% dry matter, 40% of which is fat. After salt treatment, Aakawi can be stored for longer than one year.

Although Aakawi is a typical Middle Eastern cheese, in recent years it has also been produced in the Czech Republic (EU), since 1999 according to the rules of: o the HACCP (Hazard Analysis and Critical Control Point ) system, that represents the basic standard for food safety, o ISO 9001 certification, that guarantees the matching between the intrinsic and organoleptic properties of the food. The observance of the above - mentioned rules was not generally detected, during action-research, into the Lebanese dairy production. Furthermore, it is a fact that a considerable fraction (up to 80%) of Czech

Value Chains, Basic Interventions, Supports - 87 Aakawi production is exported to Middle East Countries (Kuwait, Bahrain, Saudi Arabia and Lebanon itself).

A baladi (“local”) Aakawi has been detected in Bekaa.

• Darfiyeh

Darfiyeh is a traditional goat cheese. It’s a typical product of mountain areas, and it’s made using uncooked goat milk, seasoned in goat’s skin containers (dariff), and dried goat’s stomach as rennet.

Darfiyeh has been detected, until now, during action-research activity, just thanks to Desk Analysis; it is produced, in fact, on the mountains ranges of Mount Lebanon, which is not located within the ART GOLD Areas. Slow Food International Association includes it among the most important Lebanese products. Darfiyeh goat cheese is a good example of a cheese made in a very traditional way, and which is incompatible with modern quality controls.

• Halloum

Halloum (or Halloumi, Hallomi, Hellim) is a typical cheese in Cyprus and can be found throughout the Middle East. It is traditionally made from a mixture of sheep and goat’s milk, although Halloum that contains also cow’s milk can be found. Industrial Halloum often contains more beef milk than ovine milk. That reduces costs, but changes its taste and flavour, and also its cooking characteristics, when the cheese is fried or grilled.

The cheese is white, with a distinctive layered texture similar to Italian mozzarella (but it is not a spun paste cheese), and it has a salty taste. It can be garnished with aromatic plants (mint, thyme, etc.). Halloum can be eaten fresh, or cooked (fried or grilled). It is often an ingredient of Lebanese mezze. Lebanese Halloum can be found in different varieties, depending on their form: in pieces, rolled, wrapped like a hair braid. It is sold fresh, stored in its natural whey with salty water; it also can be frozen at -18°C (and defrosted at a regular refrigerator temperature, +4°C) and so can kept for up to one year.

Since the 1990’s, Halloum has been registered in the US as a Cypriot protected product. In Canada, this cheese is registered as “Hallomi”, without “u”, because of a not better clarified dispute among local dairy producers. The path to achieve PDO (Protected Designation of Origin) in EU is going to be started by Cypriot producers. Also in this case, the delay in registering the name “Halloumi” seems to be due to a conflict between Cypriot dairy producers and sheep and goat farmers, about registered Halloumi’s contents (sheep/goat milk ratio, admissible percentage of cow milk, etc.).

• Shanklish

Shanklish (also known as shinklish, shankleesh, sorke, or surke) is a type of cow or sheep milk cheese, made both in Lebanon and Syria. Its flavour and taste remind of Italian Gorgonzola Cheese, although stronger and more spicy than the latter. It is typically formed into balls of approximately 6 cm in diameter, which are often covered in thyme (zaatar) and Aleppo pepper, and then processed by aging (in cold surroundings, or freezers) and drying. Those are the reasons why Shanklish has a very good natural preservation.

The thyme gives the Shanklish an appearance of a “dirty tennis ball”. This cheese is also sold in small balls, or unformed. Shanklish can greatly differ in form, texture and flavour. Fresh cheese has a soft texture and a mild flavour; dried and aged cheese progressively becomes harder, and can acquire an extremely pungent fragrance, taste and flavour. In some cases, some spices like Anis (Pimpinella anisum) or hot peppers can be mixed in the cheese, before it is formed into balls. Spicy Shanklish is often covered in hot peppers, and so has a red appearance. Shanklish of Akkar qadaa is considered particularly delicious and valuable; it is hard, with a clean, strong flavour and near-white colour.

Shanklish is a common mezze dish, generally eaten with finely-chopped tomato, onion, and dressed with olive oil; it’s often accompanied by Arak. The cheese can be also mashed up with eggs or crushed in a pita with cucumbers, mint, and olive oil for breakfast.

• Other goat cheese

Value Chains, Basic Interventions, Supports - 88 The utilisation of some goat cheeses (among the many locally produced in Lebanon) in the production of ice creams should be mentioned.

7.2.3 Yogurt

The milk: pasteurisation and starters

In Lebanese yogurt’s production, the milk is submitted to a high pasteurisation (getting to 90°C for 10’’ – 15’’). Used yogurt starters can be: • a previous batch of yogurt; • chemical ones, produced in France or Belgium; • natural ones, obtained by just keeping fresh milk in a covered food container for one day; although this ancient process is not used anymore, yogurt produced in this way is sweeter and very appreciated by local consumers.

The Yogurts

The following types of yogurts exists in the ART GOLD Lebanon areas.

• Labnan

Labnan is Lebanese yogurt, the primary product of milk fermentation process, due to Streptococcus termophilus and Lactobacillus bulgaricus; it is a very fluid product, and can be drunk from the bottle. Sometimes, garlic and pieces of ice are added to labnan, to make an impromptu refreshing summer drink called Airan.

In Lebanon cow milk Labnan and goat milk Labnan are both produced. Thanks to the utilisation of low fat milk, diet kinds of yogurt are produced.

As a yogurt, Labnan has a high acidity level. So, the growth of pathogenesis micro – organisms is inhibited. Consequently, Labnan is a safe food, and keeps for 20 – 25 days in ordinary refrigerators without the addition of preservatives.

• Labneh

Labneh (or labaneh, lebnah) is dried yogurt, and is a common product in the Middle East and in South Asia. It is also called Dahi in the Indian subcontinent, or “Strained Yogurt”, “Yogurt Cheese”, and in Europe, America and Australia “Greek Yogurt”, because Labneh’s most widespread brand in those Continents, “Fage”, is Greek.

It is important to note that, in the US, the Fage brand of dried yogurt has moved into the health and natural food stores market, and so this product is no longer viewed as just as another “ethnic food”. Fage Greek Yogurt has become very popular also in Europe, in its low fat version, because it can be an alternative to cream in many preparations.

When Labneh is made, it is strained through a filter (a muslin cloth or paper bag) to remove the whey, so giving Labneh a consistency between that of yogurt and cheese, while preserving the characteristic sour taste of yogurt.

In Lebanon, Labneh is eaten fresh with olive oil, and is often used to dress sandwiches. A very popular and traditional Labneh, called Anbris, is produced from goat Labnan. Labneh preserved in oil keeps for up to one year.

Value Chains, Basic Interventions, Supports - 89 7.2.4 Detected geographical distributions

In the following table products are listed according to their geographical distribution. Activities, varieties, products Bekaa Dahyeh (BSS) North Lebanon South Lebanon Livestock food Grassland availability X - X X Forage production X - X X Fodder manufacturing - - - - Dairy cattle Baladi (local) X - - X Friesian (German, Dutch) X - X X Other foreign breeds (Italian, Brazilian, Polish) X - X - Crossbred - - - X Sheep breeds Awassi (Middle East) X - X X Baladi (local) X - X X Bella (European) X - - - Goat breeds Baladi (local) X - X X Shami (Middle East) X - X X Cheese From fresh milk X - X X From milk powder - - X - Animal rennet for cheese - - - - Micro – biological rennet for cheese X - X X Re – combining rennet for cheese - - - - Vegetable rennet for cheese - - - - Aakawi cheese (Middle East, Czech Republic) X - - - Darfiyeh (Mount Lebanon) - - - - Halloum cheese (Cyprus, Middle East) X - X X Shanklish cheese (Lebanon, Syria) - - X - Yogurt Labnan (Lebanese kind) X - X X Labneh (Lebanon, Greece, India) X - X X Anbris Labneh (Lebanon) X - - - Oil preserved Labneh (Lebanon) X - - -

Table 2: Milk products in the ART GOLD LEBANON areas

(-) : not identified, until now

7.2.5 Costs and Market dynamics

Regarding costs and market dynamics, the following issues have been pointed out until now:

• Lebanese breeders prefer selling milk to big dairy factories, because small ones are not able to take in sizeable quantity of product;

• all daily milk production is generally fully sold;

• milk production costs are the most important obstacle for improving quality and further increasing the amount of produced milk; the most important cost item are represented by forage (because not all breeders can produce it by themselves) and fodders;

• of dairy production costs, the following ones, common to many other Lebanese production activities, are very high: o the purchase, management (diesel oil) and maintenance of private electric generators, to satisfy production energetic needs during the frequent breakdowns of National electricity network, o the purchase, management and maintenance of private water purification plants, to make the mains water drinkable, to satisfy production needs for water;

• the average fresh milk price, for dairy use, is around 0.50 $ per litre;

Value Chains, Basic Interventions, Supports - 90

• the lack of fresh milk forces dairy producers to buy milk powder, causing a significant increase in production costs, and the reduction in the quality of the produce;

• most Lebanese dairy producers, both branded or non-branded micro and small enterprises (and therefore considered craftsman-like), are involved in fierce competition with industrial producers; consequently only progressively smaller and more local markets are willing to take their products, and big industries buy increasingly local produce just to brand them;

• all dairy production is generally sold every day;

• milk and dairy production accounts for around 40% of GNP coming from livestock;

• Lebanon imports 100% of its milk powder requirements and around 50% of its cheese and butter needs. Many economic studies seem to be saying that, in the short term, the Country will find it difficult to attain any appreciable level of self – sufficiency to satisfy its milk and dairy products needs.

7.3. Strategic considerations

Because of the substantial similarity of the various kind of product, the existence of a single Lebanese Milk value chain can be considered.

As it will be hereinafter showed, domestic and Middle Eastern markets need different strategic approaches than international markets; all those approaches, however, are aimed at progressively improving performances, increasing production and quality, and providing more jobs. Furthermore, those approaches are mutually complementary: the actions to be accomplished in order to achieve a real competitiveness on Lebanese and ME markets dovetail a part of necessary conditions to be satisfied for the competitiveness on other foreign markets.

7.3.1 Domestic and Middle Eastern markets

Competitiveness factors on the domestic market

The Milk value chain involves sectors and activities (farming, breeding, dairy factories, etc.) whose sales are spontaneously daily monitored. Therefore, if unsold goods were a problem, that surely would have been recorded and, consequently, pointed out during the debates. Nevertheless, no-one involved in the chain pointed out, during action-research, any problem with unsold produce (it was explicitly declared, in many cases, that “all product is sold every day”). Local Actors stressed often that “thanks to adequate marketing activities (now missing), an increased production (now possible) could be supported by markets”.

Furthermore, it was found - during desk analysis - that foreign dairy factories (in some cases even western ones, from Eastern Europe) sell a very high percentage of their Middle East – like (or even Lebanese – like) products just in the traditional origin areas of products (the case of “Czech” Aakawi could be a good example of that). It was also detected a very high level of Lebanese importation of milk and dairy products.

The main competitive advantages of Lebanese Milk value chain products on domestic and ME markets, relies on • Lebanese types of dairy products, whose specific organoleptic characteristics are still recognised and appreciated by local consumers; • the quality / price ratio, which is still considered to be relatively sustainable by local markets.

The enduring existence of these products, in spite of the presence, of very aggressive and powerful competitors on the same markets, is a clear signal of their high potential.

The main reason of the presence of foreign dairy products on the Lebanese market, is not because of the potential of foreign drive, but rather because foreign products are progressively going to cover the spaces left free by the diminishing capability of national production to saturate the market.

This represents a strong threat for Lebanese economy but, at the same time, it means that effective actions, carried out for maintaining and even expanding the market share, can be identified and implemented: there are market’s spaces that can be conquered, if Lebanese Milk chain value produces and sells better and more, at lower costs and prices.

Value Chains, Basic Interventions, Supports - 91 Obstacles and Critical Problems’ Areas

The following table shows the main obstacles to be faced and overcome in order to accomplish the strategic goal of increasing production and sales at lower costs and prices, as they have been detected at this stage of action-research. Obstacles Bekaa Dahyeh (BSS) North Lebanon South Lebanon Breeding and milk production Breeding activities grassland mismanagement X - X X Low availability of forage X - X X Low availability of less expensive fodder X - X X Lack of prod. - proc. quality rules (ISO) X - X X Lack of quality control process (ISO) X - X X Services to breeding activities Ineffective and inefficient veterinary Service X - X X Lack of consulting services for animal nutrition X - X X Weak support to ISO rules introduction X - X X Lack of training to ISO rules management X - X X Weak job training X - X X Dairy production Milk Insufficient fresh milk X - X X Cheese production Insufficient natural rennet for special productions X - X X Lack of optimisation of productive plants X - X X Lack of food safety rules (HACCP) X - X X Lack of prod. - proc. quality rules (ISO) X - X X Lack of quality control process (ISO) X - X X Yogurt production Lack of optimisation of productive plants X - X X Lack of food safety rules (HACCP) X - X X Lack of prod. - proc. quality rules (ISO) X - X X Lack of quality control process (ISO) X - X X Services to dairy activities Low support to HACCP and ISO rules X - X X introduction Lack of training to HACCP and ISO rules X - X X management Weak job training X - X X Weak innovation and research X - X X Lack of targeted finance and credit X - X X Marketing internal marketing Lack of chain's optimisation (total quality rules) X - X X external marketing Lack of standards for typical varieties X - X X Lack of branding X - X X Weak distribution X - X X Lack of promotion and communication X - X X Lack of food education for consumers X - X X

Table 3: Obstacles to the development of the Lebanon Milk Value Chain

(-) : not identified, until now

Value Chains, Basic Interventions, Supports - 92 The Critical Areas, therefore, can be identified as the following ones. d. Productivity and Production Costs

In order to improve productivity (low) and reduce production costs (high), actions are needed in the following Sectors:

a.1) Organisation of the milk value chain, that could - reduce transactional costs among the involved stakeholders - realise scale and scope economies - face better the competition because of the improved market power

a.2) Applied Research for innovations in Breeding and Dairy Production, that should - produce and spread innovative know – how, - design field support laboratories;

a.3) Milk Production (Breeding), that should be increased by - introducing sustainable innovations in technologies and know – how, - increasing the availability of livestock’s food, by promoting grassland management and a cheaper production of forage and fodders;

a.4) Dairy Production, that should be increased by introducing sustainable innovations in technologies and know – how, in order to manage higher availability of milk;

a.5) Energy Management, in order to obtain cheaper and more steady energy availability;

a.6) Water Management, in order to obtain easier and cheaper drinking water availability. e. Safety and Quality management and control

In order to improve food safety and product – process quality, following actions are needed:

b.1) improvement of Veterinary Service;

b.2) introduction of certified Quality standards, management and control (ISO), to be applied to all the actors of the chain;

b.3) introduction of certified Food Safety rules and control (HACCP), to be applied to all the Actors of the chain;

b.4) promotion of certified Organic lines of products;

b.5) Improvement of Waste Management System. f. Marketing and Distribution System

In order to improve the effectiveness of Marketing and the efficiency of Distribution System, following actions are needed:

c.1) promoting applied researches about bio – chemical and nutritional characterics of Lebanese Milk’s products;

c.2) promoting food education activities for the consumers;

c.3) creating and promoting a national Quality Brand of Dairy Products, by defining a progressively growing body of products, their characteristics and prerogatives, their standards;

c.4) establishing a National Distribution and Sale System;

c.5) establishing an adequate National (internal and external) Marketing System.

7.3.2 Other markets

Factors of competitiveness on foreign markets

The following table lists the competitive advantages of Milk value chain’s products on foreign markets (also not ME ones), as they were detected at actual stage of action-research. At the same time, market notices (“warnings”, in some cases) are listed.

Value Chains, Basic Interventions, Supports - 93

Product Lebanese competitive advantage Market notices Cheese

o Genuine and recognizable flavour and taste. Identified as a typical Middle Eastern product.. Aakawi o Presence of Aakawi produced in Czech Republic o Regional varieties detected (Bekaa). o High intrinsic characteristics of preservation.

o Genuine and recognizable flavour and taste, if hand –made. Registered in the US as a Cypriot protected product. Can be cooked (fried or grilled) o Registered in Canada as “Hallomi”. Halloum o Identified as a typical Middle Eastern product.. o Lebanese Halloum has been detected as unique (more soft and delicate). PDO in Europe is going to be achieved by Cypriot o High intrinsic characteristics of preservation, if frozen. producers.

o Very strong, genuine and recognizable flavour and taste (reminding of Italian Gorgonzola, but stronger) Shanklish o Identified as a typical Lebanese and Syrian product.. - o Regional varieties detected (Akkar). o High intrinsic characteristics of preservation (seasoned cheese)

Yogurt

o Genuine and recognizable flavour and taste. Very fluid. Labnan o o Basic ingredient for Airan. o High intrinsic characteristics of preservation.

o Low fat content. o Genuine and recognizable flavour and taste. Diet Labnan o Very fluid. Yogurt is a known and large consumption product. o Basic ingredient for airan. o High intrinsic characteristics of preservation.

o Genuine and recognizable flavour and taste. Very fluid. Goat Labnan o o Basic ingredient for airan. o High intrinsic characteristics of preservation.

o Genuine and recognizable flavour and taste. Labneh o High intrinsic characteristics of preservation.

o Low fat content. o Genuine and recognizable flavour and taste. Diet Labneh Dried yogurt is known and promoted thanks to the o A good, “diet” alternative to cream in cooking. presence of Greek exported one. o High intrinsic characteristics of preservation.

Goat Labneh o Genuine and recognizable flavour and taste. (Anbris) o High intrinsic characteristics of preservation.

Oil preserved Genuine and recognizable flavour and taste. o - Labneh o Very high intrinsic characteristics of preservation.

Table 4: Lebanese milk products competitive advantage in foreign markets

The main general potential competitive advantages of Lebanese milk products for international markets, are, therefore: • genuine and recognizable flavour and taste (sometime very specific, as in the case of Shanklish, Halloum, and Goat Labnan and Labneh), • high intrinsic characteristics of preservation,

Obstacles on international markets and actions

• Competition on Quality and Safety

The main critical problem is the international competition of other Countries on the same products, in terms of Quality and Food Safety.

Value Chains, Basic Interventions, Supports - 94 Czech Republic, Cyprus, and Greece are already producing, and exporting worldwide, respectively Aakawi, Halloum and Dried Yogurt (Labneh), accomplishing the international standards on quality and security; furthermore they have a consolidated market position hard to erode.

In Lebanon, however, there is a little spread knowledge of Foreign Country’s Quality standards and Safety rules, either if regarding ISO and HACCP, or even more restrictive than these ones, and the strategies for fitting single dairy product’s characteristics (when it is possible without threatening nutritional and organoleptic qualities) to those standards and rules are also weak, or not existing.

Indeed, very critical case exists, such as, for instance, for the Darfiyeh goat cheese. It is a good example of a cheese made in a very traditional way, which is incompatible with modern quality controls; although it could be a very important product (for traditional and cultural reason), it seems impossible producing it in a “health safe” way saving, at the same time, its organoleptic and nutritional characteristics.

• Denomination

The above mentioned countries (Czech Republic, Cyprus, and Greece) represent three different situations, related to three different products.

o Halloum – Cyprus This is the most difficult situation. The denomination of “Halloum” as a Cypriot cheese is already registered in US; the cheese is also going to be registered in EU, and it seems substantially impossible a Lebanese registration in Canada. A conceivable solution to this problem could consist in finding a “reasonable” Lebanese name to the cheese, and imposing a restrictive standard for its production (becoming from traditional Lebanese production rules, and first of all including “made in Lebanon” as a condition). Then, with this name, the cheese, as a typical Lebanese variety of the common Middle Eastern Halloum cheese, could be registered on international markets.

o Aakawi – Czech Republic The registration of Aakawi on international markets as a Lebanese cheese should be not difficult, thanks to its Middle Eastern typicality, and establishing a Lebanese productive standard.

o Labneh – Greece No problems exist for the Labneh’s denomination. Competitor product is “Greek Yogurt”, or “Dried Yogurt”. Also in this case, the establishment of a typically Lebanese productive standard is needed. The good spread of Greek Yogurt could also help the distribution abroad of Labneh, thanks to adequate marketing strategies.

• Marketing Activities

In Lebanon, the intents to internationalising the market of dairy produce have been, until now, little realised. The three main obstacles are the following:

o the analysis on foreign Country market is poor, specially when applied to each dairy product to be exported,

o marketing strategies for valorising the potentialities and advertising the reasons of the dairy products, in order to make them to be appreciated by foreign consumers, are still poor, or not existing.

o Rules aimed at protecting national products are not existing.

Critical Problems’ Areas

According to the above mentioned considerations, Critical Areas for the internationalisation of Lebanese Milk’s product can be identified as the following ones. a. Productivity and Production Costs

In order to improve productivity and reduce production costs, needed actions are obviously the same as those listed for national and ME market. b. Safety and Quality management and control

In order to improve food safety and product – process quality, to the action from (b.1) to (b.5), needed for national and ME market, the following ones should be added:

b.6) introduction of exclusive use of fresh milk in Dairy Productions;

b.7) promotion of the utilisation of natural animal rennet in Dairy Production;

Value Chains, Basic Interventions, Supports - 95

b.8) promotion of the research about effective possible natural vegetable rennets. c. Marketing and Distribution System

In order to improve food safety and product – process quality, to the action from (c.1) to (c.5) needed for national and ME market, the following ones should be added:

c.6) establishing an International Distribution and Sale System;

c.7) establishing an International Marketing System, in order to o analyse foreign markets, o elaborate and carry on Marketing strategies settled on “target” foreign markets.

As it was figured out, the actions to be accomplished for national and ME market constitute the necessary condition to be satisfied for international competitiveness. The condition becomes necessary and sufficient thanks to added actions.

In conclusion, Lebanese dairy products are not ready to be channelled into international markets, in a significant quantity and with sure effective results, mainly because they do not accomplish ISO and HACCP international standards.

7.4 The proposal for strategic guidelines

Strategic guidelines for developing a sustainable long term competitive milk chains should be carried out, and they mainly regard the following issues: • the creation of a network system among all the actors involved in the value chain, • the improvement of productive performances, • the improvement of the quality and the food security, • the design and implementation of actions for better positioning on national/ME and other international markets.

7.4.1 The network system

Optimisation needs

Lebanese Milk value chain is constituted by a large number of micro or small enterprises. When it is a ”micro and small enterprises system”, a value chain can be very competitive if it is strategically managed as an “optimised network system”: in other words, if it is a system in which both the “knots” of the network (its component elements) and functional relations among them are: • known, understood, and shared • aimed at sharing and achieving a reliable strategic target, that should inspire the network’s design, • organised to be a “consistent system of interactions among suitable subjects”, • adequately supported by the necessary material and non-material resources, • feed – back monitored in their work, to verify: o the quantity of used resources, that should be the smallest as possible, o the level of the accomplishment of their strategic target.

Currently a Lebanese Milk value chain does not exist, and small, wrongly fed, randomly created and managed local networks, characterised by high levels of fragmentation and entropy’s production, operate just on “very local” markets. Consequently, “micro and small knots” are unprotected against international market “aggression”.

The main component of a new strategy for improving the Milk value chain performances should be, therefore, the establishment of a structured and organised value chain network system, designed to • establish “critical masses” for production, sales, and services, so to ensure production’s adequate and standardised levels of quality, quantity, supports, and achieve a stronger “strategic and market power”, • completing the locally, “fragmented” Milk value chains through promoting missed “rings” (animal food production, distribution, commercialisation, etc.), • providing a shared and efficient answer to resources’ needs (energy, water, research, supports, marketing), • establishing a feedback – based monitoring system, to correct and adapt processes and produce in order to achieve the best performances on equal terms of used resources.

Value Chains, Basic Interventions, Supports - 96 National and local networks

Lebanon is a small country, and the characteristics and competitive advantage of the Milk value chain is more or less the same for each Area of the Programme: they rely on the same types of land, geomorphology (except for the fact that Bekaa has not coastal environments), climate, and also culture and know how. A strategy for developing the various, fragmented local chains in a comprehensive way should rely, therefore, on • a national network (National Milk Consortium), also involving public subjects (to induce the best Sectors’ policies) and private representatives of other productive or not productive Sectors, in order to gather critical mass of resource, establish common standards, and optimise strategic services (commercialisation, marketing, quality and food security control, etc.), and on • Areas’ networks (Area Sector Associations), both being local articulations of the national network, and representing more local Sector’s interests and problems, with the aim of implementing national strategies, monitoring their implementation, detecting needs, problems or new kinds of resources, exploiting at the best local values.

The local network: Area Sector Associations

An Area Sector Association, locally m) represents a “critical mass” of Actors, and is its operative arm; n) It is the local sensor of the National Milk Consortium, for monitoring the state of the local value chain, and is local actuator of best practices and actions (which should be introduced in Local Development Programmes); o) is a natural interlocutor with other sectors and thematic areas; p) has to became one of generating subjects and natural interlocutor of a LEDA (Local Economic Development Agency), and so has to be involved in Area Local Partnership to decide and support local targets for all value chains involving its Sector (for instance, breeding activities are involved in Milk, Meat and Textile and Clothes value chains); q) is the main co - actuator (with LEDA, where existing) of Local Development Programme; r) supports the producers and promotes their recognizability (by promoting trademarks, or territorial brands, etc.).

The national network: National Milk Consortium

The National Milk Consortium, largely shared, should be established countrywide by all micro, small, medium and large enterprises that are involved in Milk value chain. The Consortium’s functions should be: r) identifying and monitoring the chain’s national and local conditions, also by using Area Sector Associations as sensors; s) promoting research and testing activities, aimed at detecting food properties and productions best practices , by involving universities and research centres; t) sharing best practices with the Areas, thanks to mediation of Area Sector Associations; u) supporting producers to apply best practices, by using Area Sector Associations as actuators; v) identifying local typical varieties of products • whose production has to be protected, promoted and supported, • whose property standards have to be established and certified by brands; w) for dairy products and processes, detecting, promoting and supporting the full-scale introduction, as far as possible, of worldwide certifiable standards of: • safety, to be sure that produced dairy food produce is safe for the consumers’ health, according to EFSA (European Food Safety Authority) rules, and starting from massive introduction of HACCP (Hazard Analysis and Critical Control Point) procedures, • quality, to ensure that safe dairy food is “the best” (in terms of nutritional and organoleptic properties) that can be obtained from the best processes (effectiveness and efficiency of production, packaging, distribution, promotion, etc.), according to ISO 9001, • organicity, for obtaining products without using synthesis chemical substances;

Value Chains, Basic Interventions, Supports - 97 x) managing internal marketing activities, according to total quality rules, and therefore • considering that relations among producers of different chains are of the “supplier – customer” kind, • optimising those relations, knowing that the satisfaction of the final user (the consumer) depends on the satisfaction of intermediate users; y) managing external marketing activities and therefore • in Lebanon and abroad, creating a favourable market environment for Lebanese dairy products, thanks to an optimisation of prices and an effective promotion, which is based on the communication of real food characteristics and consumer education about food, • managing product promotion abroad and the most direct distribution as possible (to ensure the best gain to the “national side” of trading chain).

If correctly managed the establishment of interacting National Milk Consortium and Area Sector Associations should help • to solve the current local state of disorganisation, and prevent future ones (because a feed – back controlled system is created), • to spontaneously increase local and national dairy production in Lebanon, • to recover lost areas of the domestic market (thanks to an appropriate national management of external marketing), • to reduce production costs and, consequently, make available additional financial resources per unit of sold product, to manage innovative production processes that have been introduced (more expensive than the old ones), • to increase employment (by increasing job need) in the Milk value chain, • to increase Lebanese self – sufficiency with regard to milk and dairy products.

7.4.2 Networks’ actions

The following actions should be carried on through the established networks.

Improvement of productive performance and productivity l) increasing milk production, through fostering productivity and promoting new businesses within the value chain, m) improving the energy, water, and waste management systems, n) improve veterinary services, o) introducing innovative technologies and practices, according to the national and international experience and know how, p) optimising the transactions between the value chain actors, according to the rules agreed within the established networks, q) improving entrepreneurial and professional capacities.

Improvement of quality and food security i) establishing standardised rules and protocols, j) realising laboratories for quality control and food security management, k) training all value chain’s Actors about quality and food security l) improving current applied research actions (through universities and LARI) for continuous innovation opportunities.

Marketing

• Domestic/Middle East market positioning, by: u) designing and implementing internal and external marketing strategies, v) realising products’ certification, according to ISO and HACCP standards, w) realising milk products quality and tipicality national brands, x) training marketing experts, y) implementing a food education campaign, z) organising an effective national distribution system,

• International market positioning, by: aa) monitoring foreign Countries market opportunities, also thanks to the help of Lebanese People of Diaspora, bb) designing a distribution system, ending as closer as possible to foreign consumer,

Value Chains, Basic Interventions, Supports - 98 cc) organising sales promotion, based on an adequate communication of product’s intrinsic qualities (nutritional and organoleptic properties, “cultural” and historical added values, etc.), addressed to foreign consumers, dd) training international marketing agents.

7.4.3 A control system

Marketing and Control

The following chart outlines how a “Main Control System” (established inside of National Milk Consortium), feedback based, can control Milk value chain’s activity, thanks to the flows of informations and controls running on Internal and External Marketing appropriate channels.

Information Flows

Chemical Productions Farming Control Flows

Breeding

Packages Production

Dairy Production Area Sector Associations

Distribution Internal marketing Main Control System

Final consumer External marketing

Interactions with infrastructural networks

The following diagram outlines an ordinary control system for the interactions of the Milk value chain with infrastructural networks.

Value Chains, Basic Interventions, Supports - 99 Energy Management

Water Management

Main Milk value chain Control System

Control Flows

Information Flows Waste Management

7.5 The ART GOLD support

The ART GOLD Programme in Lebanon should provide the following support to the Milk value chain, either at local, national, and international level, in order to contribute implementing the above mentioned strategic guidelines.

Action plans should be established and agreed within the Area Local Partnerships and the National Coordination Committee for carrying on the above mentioned activities, and they will be part of the annual AGL Programme action plans, supported by ART IS-LED. A proposal for the ART GOLD support to the milk value chain is illustrated in the tables 5 (overall support) and 6 (initial support for the first 3-5 months).

Value Chains, Basic Interventions, Supports - 100 TABLE 5: ART GOLD LEBANON OVERALL SUPPORT TO THE MILK VALUE CHAIN Activities Issue Area level National level o Technical assistance for establishing local networks their composition, rules, strategies, and o Technical assistance for establishing a organisation national network, its composition, rules, The network Capacity building o strategies, and organisation Links between networks and LEDAs system o o Capacity building Deep continuous action-research for improving o the economic dynamic and valorising the Lebanese local typicality and potential

o Promotion of local agreements for the grasslands o Assessment and technical assistance for entrepreneurship, technology, processes and products, through specialised experts o Entrepreneurial and professional capacity building Improvement of o Assistance for the formulation and execution of o Assessment and technical assistance to projects regarding waste, water, and energy universities and LARI for enhancing applied productive system, through decentralised cooperation research activities, and facilitating links with performances o Technical assistance and training for the international similar structures veterinary service o Organisation of the LEDA for targeted financial and non-financial continuous support o Assessment and technical assistance to universities and LARI for enhancing applied research activities, and facilitating links with international similar structures

o Technical assistance for the establishment of the national quality and food security o Assistance for design and implementation of system and its procedures and protocols projects regarding laboratories for quality control, Assistance for design and implementation of Quality o through decentralised cooperation projects regarding laboratories food security, o Capacity building and monitoring, through decentralised cooperation o Capacity building o Support to the elaboration of the marketing strategies and instruments Support to establishing links between the local o Creation of the national brand networks and with the national network o Training of marketing experts and Marketing Capacity building o o international marketing agents Creation of territorial brands o Facilitating links with international partners o for international market positioning o National campaigns for food education

Value Chains, Basic Interventions, Supports - 101 TABLE 6: PROPOSAL OF THE ART GOLD LEBANON INITIAL ACTIONS (FIRST 3-5 MONTHS) TO SUPPORT TO THE MILK VALUE CHAIN SUPPORT TO THE NETWORKS Strategic expected result Area level National level Actions: International IS-LED expert for stimulating and supporting local and national Actors for learning how to build, to take advantage and to manage collective-based networks, and to establish optimization between local (Area Sector Associations) and national (National Milk Consortium) ones

Local and National networks related to Beneficiaries: Actors of the Milk value chain in South Lebanon, Bekaa, and the value chain promoted North Lebanon (breeders, dairy producers, university, chamber of commerce, etc). Implementation: 2 missions of 2 weeks each in Lebanon, establishment of a promoting group, assistance and follow up by the AGL LED international expert and the LED ART GOLD area specialists Action: Training session of 1 week on value chain consortium best practices Beneficiary: Actors of the Milk value chain in South Lebanon, Bekaa, and North Lebanon (breeders, dairy producers, university, chamber of commerce, etc), Networks’ Actors capacities in Lebanon Government, and National Associations of entrepreneurs and farmers. managing them improved Implementation: Preparation TOR’s and realisation of 1 week mission of an expert institution in Lebanon within the LED IS action plan, assistance and follow up by the AGL LED international expert and the LED ART GOLD area specialists Action: International IS-LED Action: International IS-LED technical technical assistance for assistance for establishing a LEDA establishing an agreement with a national financial institution

Beneficiaries: Private and Public Actors of the ART GOLD Lebanon Programme, including farmers, industrial entrepreneurs and Beneficiaries: Population of Links between networks and future their associations, NGOs, Chamber of the ART GOLD Lebanon area, LEDAs identified Commerce, Research Centers, Incubators, with particular reference to the Business centers, Banks and other financial most disadvantaged groups institutions at local level, municipalities, and union of municipalities

Implementation: 3 missions of 2 weeks each in Lebanon, assistance by the AGL LED international expert and the LED ART GOLD area specialists , ART GOLD national staff. Undp CO; Desk assessment

Action: International assistance to the established local networks, for looking at new local economic potentialities and opportunities, above the already detected Deep continuous action-research for ones improving the economic dynamic and Beneficiaries: Members of the local networks valorising the Lebanese local typicality in the ART GOLD LEBANON areas and potential carried on Implementation: International IS-LED expert in 2 weeks mission in Lebanon, assistance and follow up by the AGL LED international expert and the LED ART GOLD area specialists. Desk assessment

Value Chains, Basic Interventions, Supports - 102

IMPROVEMENT OF PRODUCTIVE PERFORMANCE Strategic expected result Area level National level Action: International LED IS technical assistance to Area Staff for promoting local Sharing of detected experiences and agreements for the grasslands and forages best practices production Improving and increasing the Beneficiaries: Farmers and Breeders in Bekaa, North Lebanon, South Lebanon production of natural food for the livestock Implementation: 3 days (one for Area) IS-LED support to the Area Staff to starting up local negotiates for the agreements for the grasslands; agreement with LARI (or preparation of TORs and 1 week mission of an international expert within the IS-LED assistance) for analysing the possibilities of natural food’s increase and designing the intervention. Action: Assessment by an international expert Sharing of the results Assessment and technical on technology asset of the dairy production assistance for entrepreneurship, Beneficiary: Entrepreneurs of the milk value chain in South Lebanon, Bekaa, and North technology, processes and Lebanon products, including capacity building Implementation preparation of TORs and 4 weeks mission of an international expert within the IS-LED assistance, assistance and follow up by the AGL LED international expert and the LED ART GOLD area specialists Action: Engagement of Decentralised Cooperation in formulating and realising the projects Beneficiaries: Population of the ART GOLD Assistance for the formulation LEBANON areas and execution of projects regarding waste, water, and Implementation: IS-LED Assistance on the field and at distance for the formulation of the energy system, projects 3 missions of 2 weeks each in Lebanon for training assisting Lebanese partner in formulating the projects for decentralised cooperation IS-LED contacts and follow up in Europe for engaging the appropriate partners. Assistance and follow up by the ART GOLD staff Action: Engagement of Decentralised Cooperation in formulating and realising the Assessment and technical projects assistance to universities and Beneficiaries: Lebanese Academic structures and research centers LARI for enhancing applied Implementation: : IS-LED assistance on the field (during one of the above mentioned research activities, and missions) and at distance for the formulation of the projects facilitating links with international IS-LED contacts and follow up in Europe for engaging the appropriate partners. similar structures Assistance and follow up by the AGL LED international expert and the LED ART GOLD area specialists

Value Chains, Basic Interventions, Supports - 103

IMPROVEMENT OF PRODUCT QUALITY

Strategic expected result Area level National level

Action: Engagement of Decentralised Cooperation in formulating the projects

Assistance for design and Beneficiaries: Lebanese Academic structures and research centers implementation of projects regarding Implementation: : IS-LED assistance on the field (during one of the above mentioned laboratories for quality control, food missions) and at distance for the formulation of the projects security, and monitoring, through IS-LED contacts and follow up in Europe for engaging the appropriate partners. decentralised cooperation Assistance and follow up by the AGL LED international expert and the LED ART GOLD area specialists Actions: Engagement of - Decentralised Cooperation in realising a feasibility study Beneficiary: The National Consortium Technical assistance for the - establishment of the national quality of the Milk and food security system and its Implementation IS-LED Assistance on the field (during one of the above mentioned procedures and protocols missions) and at distance for the formulation of the projects IS-LED contacts and follow up in Europe for engaging the appropriate partners. Assistance and follow up by the AGL LED international expert and the LED ART GOLD area specialists MARKETING Strategic expected result Area level National level

Action: Technical Assistance and 1 training session by an international - expert on the marketing possible strategies for Lebanese milk products Support to the elaboration of the marketing strategies and instruments, Beneficiary: Entrepreneurs of the milk including training - value chain in South Lebanon, Bekaa, and North Lebanon Implementation preparation of TORs and 4 weeks mission of an international expert within the IS-LED assistance, assistance and follow up by the AGL LED international expert and the LED ART GOLD area specialists

Value Chains, Basic Interventions, Supports - 104

OLIVE

Characteristics and strategic opportunities

• Field Reconnaissance: o South Lebanon, 1/10/2007 Sources of informations: o Bekaa, 10/09/2007 11/09/2007 o North Lebanon, 25/09/2007.

• Desk Analysis.

8. The Olive value chain

8.1. Products and processes

8.1.1 The plants

Distribution and varieties

The olive value chain represents an important resource for the Lebanese economy.

According to www.lebaneseoliveoil.com, there were an estimated 13 million olive trees in Lebanon in 2002, covering around 57,000 hectares (representing 20% of the total cultivated area in the Country). The density of trees per hectare varies between 200 and 250. The regional distribution of olive groves in Lebanon is 40% in the North, 39% in the South, 15% in Mount Lebanon, and around 6% in the Bekaa Valley.

It is estimated that around 16% of all olive orchards are less than 10 years old, and that 36% are more than 50 years old. It is widely acknowledged that the production of olive trees starts declining after 70 years. Olive production in Lebanon varies with climatic conditions, but olive varieties planted in Lebanon are local varieties that are not well characterized or scientifically differentiated. Several varieties are usually grown within one grove. The most common varieties, as per the local nomenclature are Soury (from “Sour”, Tyre), baladi (“local”, in Arabic), Ayrouni, Shami, Smoukmouki. Their oil content is almost the same, amounting 20-21% in mass. Not always the differences among owned varieties are known by the small farmers. Often, the participants to the action-research (mainly in the South) call just Italian one or more exogenous cultivars imported from Europe.

An amount of 80% of the olive growers produce individually from 1,000 to 1,200 kg of olive oil, and the most common practice is to sell the production to relatives and neighbours.

Like everywhere else, adult olive plants do not need water to live, but irrigation devices are necessary to start up new plants with young olive trees.

The harvest

In South Lebanon, the olive harvest starts in September, and is progressively delayed, according to the altitude of the lands, until November. In North Lebanon, olive picking is very late, starting in late October.

Mechanical shakers, scrapes and nets are used for harvesting the olives. Olive pruning is carried out before harvesting.

8.1.2 The mills

Milling technologies

Lebanon has about 544 oil mills (2002 data) distributed throughout its regions as follows: • North Lebanon, 274 • South Lebanon, 139 • Mount Lebanon, 110

Value Chains, Basic Interventions, Supports - 105 • Bekaa, 21

Lebanon’s olive oil mills can be classified into two main technological categories: those using traditional technology and those using automated or semi-automated technology. The vast majority of the mills (80%) are traditional.

Mills using traditional technology rely mainly on stone mills to crush the olives and produce a paste that is subsequently pressed by an electrically powered vertical hydraulic press.

Also (20%) cold milling with a continuous and parallel cycle are used.

The delay between harvesting and milling is differentiated: • the 30% of farmers does it within 24 hrs, • the 60% between 2-3 days up to 6 days (10%). These delays are mostly due to queuing.

Produced oil is conserved in plastic containers (60%), galvanized iron containers (40%), inox or stainless steel containers (30%), clay (10%). In the majority of the cases, the oil is conserved in cellars in the dark, however, under conditions of high humidity and temperature ranging from 18-25°C Oil is conserved there till marketing, and that is most commonly 1,2 or 3 years.

8.1.3 The oil

Kinds of oil

Out of all Lebanese olive production, around 30% is consumed fresh (table olives) and the remaining 70% is transformed into oil; Lebanese production of olive oil amounted 7,000 tons in 2005. Olives can be turned into a variety of different oils: • extra virgin oil, • virgin oil, • olive oil, • lampante oil, • refined oil. Lebanon has no pomace extraction factories, and hence no pomace oil.

Flavour and taste

The interaction between several cultivars of plants and different environment (soil, climate, altitude, cultural practices, etc.) could seem to allow special characteristics and different tastes for the oils produced in various regions in Lebanon. Some studies have declared that “Lebanese olive oils are typically characterized by a mild aroma that is perceived as intense, but mellow once it enters the mouth sometimes with a peppery finish”, and the following descriptions of taste have been listed: • Batroun (North Lebanon, hilly region): “rich and fruity with a zesty flavour”, • Koura (North Lebanon, coastal region, with plains and hills): “light and delicately flavoured oil ideal for use in cooking”, • Zgharta (North Lebanon, hilly region with intermediate elevations): “fruity and fragrant with a subtle aroma”, • Akkar (North Lebanon, hilly region with intermediate elevations): “rich with a distinct flavour of tomatoes and a strong spicy finish”, • Rashaya el Foukhar (Bekaa, hilly region with intermediate elevations): “mildly sweet with a herbal and floral aroma, oils from this region often have a distinct peppery flavour”. • Hasbaya (South Lebanon, steep hills and terraces): “a rich taste and smoothly textured oil, moderately sweet with a pleasant herbal aroma”.

Above mentioned description must be probably referred to special, rare and not commercial kinds of oil, and have not been confirmed until now, during action-research activity. Tasted oil (both during the work in the field, and also in restaurants of good level) substantially had no taste and flavour, and a determined rancid aftertaste.

8.2. Strategic considerations

8.2.1 The opportunities

Value Chains, Basic Interventions, Supports - 106

Several promising opportunities lead to consider the olive chain of value as a strategic resource where it is worthwhile to support. Among them:1 • new worldwide interest and awareness in the importance of olive oil, • expanding potential markets worldwide, • increasing demand on new types and tastes of oil, • interest, in the Government, in developing this sector, • presence of several interested funding programs or projects and special agreements (EU, USA, Japan) to support the sector, • presence of large Lebanese emigrated communities all over the world (many well-off and successful businessmen), • potential distinctive value of the Lebanese olive oil.

8.2.2 Market and costs

The total market export of the Lebanese olive oil has been, in 2003, of just 445 Tons, of which 362 of Olive Oil, and 83 of Virgin Oil.

The total production cost (test made in 2003 in some villages), including harvesting, ploughing, chemicals, machinery, etc) ranged from 735-2800 $/ha, with an average of ca. 1925 $/ha (1.13 $/kg at yld of 1.7 tn/ha)2

The wholesale price of the oil is average-high: a can of 20 litres of olive oil is sold for 90$ (4.50 $/l, amounting to around 3.20 €/l).

The standards for exporting Lebanese olive oil are the international standards as defined by the International Olive Oil Council (IOOC) of which Lebanon is a member.

8.2.3 Constrains

The participants to the action-research listed the “good” rules they to follow to obtain a good olive oil: • effective and good hoeing of the soils of the olive tree groves, • use of manure (natural compost), • mechanical traps against olive flies (integrated fight), th th • harvest of the olives in the period between 15 of September and 15 of October, • prompt milling of harvested olives. The low quality of the product points out that these rules are generally unheard.

Several constrains were preliminarily identified by Raddison3 and confirmed by the action-research. The main one is presented by the too fragmented and unmanaged value chain. The other ones are the following.

Production system

• Lack of modern machinery (continuous and parallel cycle mills, etc.). • Inadequacy of canning systems. • Absence of standard rules about any step of the chain, from the olive farming to the milling. • High acidity of the oil up to an altitude of 1,000 m, because of delayed harvest and long delays between picking and milling the olives. • Too long conservation (conventionally, after 1 year, olive oil loses organoleptic, nourishing and healthy – antioxidant – properties).

Service system

• Limited extension services for growers and mills • Absence of financial policies to support the sector

1 See Presentation of Radisson- Martinez, SRI International , USAID “National Workshop on “High Potential Export Markets for Lebanese Olive Oil”, Thursday 10 July 2003 (http://www.inmadevelopment.org/SRI/Uploads/Presentations/32.pdf 2 Radisson, ibidem 3 Raddison, ibidem

Value Chains, Basic Interventions, Supports - 107 • Poor educational level and awareness of labour force at the mill.

Quality

• Absence of the enforcement of olive oil standards. • Absence of an appointed official laboratory for oil analysis. • Absence of clear rules to define product quality (for instance, “extra virgin oil”), nor standards to certify the quality of products and processes for the oil. • Hygienic conditions not always proper to render good quality oil. • Poor management of byproducts.

Marketing

• Nonexistent marketing activities. • Limited knowledge of the external market potential and foreign labelling requirements. • Limited use of the high quality of local oils for the high-end specialized market. • High production cost. • Relatively low nationwide per head consumption. • High market price requested without quality standards (tests).

8.2.4 Strategic guidelines

The action-research on the olive chain value could not collect enough information for drafting a precise proposal for the ART GOLD Lebanon strategic guidelines, for instance on the competitive advantage, the production system, the small producers constrains and needs. More research and discussions with local and national actors is needed for completing the assessment, and this could be part of the next annual AGL plan of action, provided this chain is strategic for the Lebanese economy. According to the preliminary results it is predictable the strategic guidelines will face the following issues: 1) organising the local and national network for managing the chain of value, 2) improving the productive performance, by introducing new machineries and better management, 3) improving the quality of the products and the quality control system, 4) improving the services to the chain, 5) improving the marketing strategies.

8.3. The ART GOLD support

It is not possible to identify at this stage the overall support the ART GOLD Lebanon shall provide to this resource for its competitive and sustainable development, during all the programme duration. This will depend on the outcomes of a further analysis that is needed to carry on the following issues: - market dynamics, - current status of the value chains (in terms of productive flows needed for producing and selling, and the internal and external interactions), - need assessment for enhancing sustainable and competitive development and for improving the value chain organisation and technology, This analysis, realised through the action-research methodology, shall be part of the initial AGL support to the value chain, of a duration of 2 months. It is envisaged to carry on this action-research in the next annual AGL operational plan, as it is illustrated in the following table.

Value Chains, Basic Interventions, Supports - 108

ACTION-RESEARCH Strategic expected result Area level National level Actions: organisation of “Focus Groups” including all the actors currently working in the Assessment on national Olive value chain, and other institutions with policies for the value chain and potential of intervention (Universities, market trends Analysis of the national market Municipalities, other governmental bodies, demand, of the critical development etc.) problems, of the current status of the Beneficiaries: Actors of the value chain in value chains (in terms of productive National Government Bekaa, North Lebanon, South Lebanon. flows needed to produce and sell, and the value chains interactions ) Implementation: 2 moths work by the AGL LED area specialists, using the methodology learned through the previous ART IS LED Support from the National mission, coordinated by the AGL international Coordination Committee LED expert, and assisted at distance by ART IS LED Action: International IS LED technical

Need assessment for enhancing assistance sustainable and competitive Beneficiary: Actors of the Olive value chain development and for improving the in Bekaa, North Lebanon, South Lebanon, National Government value chain organisation, the productive Universities, Chambers of Commerce. performance, the services, the quality, and the marketing Implementation: 1 week mission in Lebanon, supported by the AGL LED international Support from the NCC expert and the area LED specialists Action: International IS LED technical assistance

Beneficiary: Actors of the Olive value chain in Bekaa, North Lebanon, South Lebanon, National Government Definition of the strategic guidelines Universities, Chambers of Commerce.

Implementation: Desk assessment, Discussions with the AGL National Coordination Committee and Area Local Partnerships.

Value Chains, Basic Interventions, Supports - 109

TEXTILE FABRICS AND CLOTHES

Characteristics and strategic opportunities

• Focus Groups (see att. N.2): o BSSFGn.1, 03/09/07, o BSSFGn.3, 07/09/07, o NLe FG n.2, 26/09/07, o SLe FG n.5, 02/10/2007.

Sources of information: • Field Reconnaissance: o Bekaa, 04/10/07, o Dahyeh (BSS), 27/09/07.

• Desk Analysis.

• Other activities: o Meeting with Karim Dakrub, Khaial Association, Dahyeh, 16/10/07.

9. Textile Fabrics and Clothes

9.1. Products and Sectors

The characteristics of actual or potential products and sectors of the Lebanese TFC value chain, as identified in the present actual stage of action-research, are described in the following paragraphs.

9.1.1 Wool

Sheep

The Awassi genotype of wool producing sheep has been identified in South Lebanon during action-research activities.

The Awassi variety of sheep comes from the evolution of a nomadic sheep breed, due to centuries of natural and selective breeding, aimed at obtaining sheep with the highest milk yield in the Middle East. The breed is a near Eastern fat-tailed type. The Awassi variety has a brown face; its fleece colour can vary from brown to white, and some individuals with black, white, grey or spotted faces can also be found. The fleece is mostly carpet type with a varying degree of hair. The males have horns. The breed also has the advantage of a natural hardiness and grazing ability.

According to "World Animal Science" Sheep and Goat Production (Elseviez Scientific Publication Co. 1982), representative measurements of Awassi wool are outlined by the following table.

Property Measurements Mean fiber diameter 33 m Grease Fleece Weight 1.9 kg Yield 85 % Staple length 165 mm Fleece composition: wool 69 % hair 24 % Kemp 7 %

Table1: average measurements of Awassi wool

This kind of wool is particularly suitable for the production of natural mattresses of quality, because of its properties (mainly the high value of mean fiber diameter).

Value Chains, Basic Interventions, Supports - 110 This kind of product is now much appreciated on the international market. In Europe, for example, a good unsaturated market exists for natural mattresses made of wool of pramenka, a Serbian genotype of sheep with similar characteristics to the Awassi.

In North Lebanon, the wool from sheep-shearing is not used, for unknown reasons. The wool could be the subject of further action-research in the area, also considering that traces of former wool production, aimed at supplying local carpet production, have been identified.

Goats

The Shami (also called Damascus) genotype of wool producing goat has been identified in Bekaa and South Lebanon, during action-research.

The Shami breed is imported from Syria for milk production. This genotype is famous and spread throughout the Middle East because of its high prolificacy and high milk production.

Average diameter of the wool fiber of the Shami is 12.6 µm, and therefore it is not in the range of high quality cashmere, ranging between 13 and 16 µm. In order to assess the possibilities of improving the quality of Shami wool by operating on genetic factors, in 2005 Mahmut Keskin, Osman Bicer and Sabri Gul, researchers of the Department of Animal Science, Faculty of Agriculture of Mustafa Kemal University (Antakya, Hatay – Turkey) carried out a study based on crossbreeding Shami and German Fawn genotypes. The average length of the fiber of crossbred goats remained the same as the Shami (around 183 mm), while the diameter increased to 13.5 µm; therefore, the wool of this experimental kind of crossbred goat can be included in the range of high quality cashmere.

9.1.2 Silk

An ancient Lebanese product

Traces of former silk production, such as mulberry trees and the ruins of small silk factories, have been identified in the qadaa of Akkar (North Lebanon) during action-research activities. Traditional silk production has now disappeared but not forgotten. In fact, a Museum of Silk was locally established and, according to the words of the people involved in action-research, traditional know-how in silk processing hasn’t yet been forgotten.

Old silk plants in the north originated when silk production, after it was introduced under the reign of the Emirs (XVI – XVII century) in Mount Lebanon and progressively spread, excelled throughout the country.

When industrial production of artificial silk replaced the handmade natural product, many mulberry trees in Lebanon were replaced by fruit trees. Silkworm breeding activities were abandoned and silk factories ceased their activities. A further example of the past value represented by silk for the Lebanese economy is the old silk factory of Bsous, near Jamhour, very close to Beirut, now bought by the Asseily family and changed into an eco silk museum.

Potential competitiveness

Poor quality of commercial Chinese silk and artificial silk has led to a significant re-introduction of natural silk, especially when it is characterized by high added values and differential value such as, for instance, when made using old production traditions, original or unique drawings or designs of clothes, etc.

Re-introduced Lebanese silk production could have a good chance of development, thanks to its historical heritage, particularly if well promoted.

9.1.3 Hemp

An old product of Bekaa

Local Bekaa actors mentioned a former production of hemp, now abandoned, during action-research. A re- introduction of hemp in Lebanon, if feasible, could contribute by introducing new crops without resorting to exotic, globalized, unsustainable and germ plasmas that have nothing to do with Lebanese traditions.

Potential competitiveness

Value Chains, Basic Interventions, Supports - 111 Increasing consumers’ awareness about the use of products made from renewable raw materials is the most important reason for the growing demand of natural and vegetable fibres, such as hemp.

The versatility of hemp is high. As a textile fabric, when used for producing high quality clothes, linen, tents, etc., it is very competitive in western markets. This value grows when the design (tailoring, drawings, etc.) of the products is original, typical, traditional or unique.

9.1.4 Jute

A product identified in Bekaa

A variety of jute, Tossa Jute (Corchorus olitorius), with the Arabic name of Mulukhiya, has been identified, during action-research activities in Bekaa. It is called also Melokiyah or, in English, Jew’s mallow. The identification of the plant was possible because it is used as food (see FV value chain) throughout Middle East, but it is mainly known and used worldwide as the source of a natural fibre.

The leaves are the edible part of the plant. The fibre is obtained from the shaft of the plant. Jute fibres have a golden (Corchorus olitorius) or a silver (Corchorus capsularis) reflex. Like the fibre, the resulting textile fabric is also scraggy and very resistant. It is used to produce sacks for agricultural purposes, but also, when tailored and decked, bags, belts, hats or carpets, in some cases of high quality

Potential competitiveness

There is an increasing demand in international markets for natural fibre products, and fashion objects made of jute can progressively gain positions because it: • It is 100% biodegradable and recyclable, • It has a unique reflex (it is called “golden fibre), • It is the cheapest vegetable fibre, • It is, after cotton, the most produced, available, and globally used fibre • It has low extensibility and high ultimate strength, • It guarantees high transpiration.

9.1.5 Manufacturing and trade

The factories

The largest Lebanese textile factories are in Tripoli and in Beirut.

Domestic and imported textile fabrics are tailored mostly by small or micro enterprises, mostly located in Dahyeh (BSS), and represents an important proportion of secondary activities in the Area (estimated around 10% of the activities).

In Dahyeh leather is also tailored, or used in the production of shoes. In the same area, many artisan tailors work on behalf of larger domestic and foreign enterprises, providing raw materials and half-processed elements, and branding final products.

Textile, clothes and shoe traders

The tertiary sector (commerce) represents 90% of the economic activities of Dahyeh, and commercial activities in the area are mainly related to textiles and clothes, shoes and leather.

Many areas of Dahyeh are renowned as well-provided commercial places for several kinds of merchandise, and draw customers from afar (for instance, from Byblos, from Saida, etc.).

9.1.6 Sector material interaction

The following chart outlines, in a very simplified form, possible standard material interaction in the main sectors that can be involved in the TFC value chain.

Value Chains, Basic Interventions, Supports - 112 raw leather tannery leather Breeding

wool spinning shoes prod.

yarns hemp

Farming fabric prod. jute clothes prod.

Distribution other prod.

Silkworm Breeding silk cocoon

Trading

Other elements referred to non-material interactions complete the value chains, as for instance quality control, various services (from training to finance), distribution, marketing, transportation, equipment maintenance, veterinary services, etc.

Value Chains, Basic Interventions, Supports - 113 9.1.7 Detected geographical distributions

Activities, varieties, products Bekaa Dahyeh (BSS) North Lebanon South Lebanon Wool Breeding of Awassi - - - X Shami X - - X Wool production Awassi - - - X Shami cashmere - - - - Crossbred Shami cashmere - - - - Products from wool carpets - In the past In the past - natural mattresses - - - X clothes - X - - Leather Leather production raw leather - - - - tanned leather - - - - Products from leather shoes - X - - clothes - X - - Silk Silk production silk - In the past In the past - Products from leather clothes - X - - other products - X - - Hemp Hemp production hemp In the past - - - Products from hemp clothes - X - - other products - X - - Jute Jute production Jew’s mallow X - - - Products from jute clothes - - - - other products - - - - Fabrics and leather manufacturing Wool fabrics - X X - Silk fabrics - - - - Hemp fabrics - - - - Jute fabrics - - - - Other kinds of fabric - X X - Leather - X X - TCS trading Significant activities of TCS trading - X X X

Table 2: The products of the TCS value chain identified in ART GOLD Lebanon Areas

(-): not detected, until now

9.2. Strategic considerations

9.2.1 Lebanese production

Value Chains, Basic Interventions, Supports - 114

Poor national self-sufficiency

Lack of raw materials is the main cause of high level of Lebanese imports of textile fabrics from abroad. Low level of self-satisfaction of textile fabric domestic needs represents a serious threat for many economic sectors.

High costs of imported raw materials, mainly from Europe, have repercussions on manufacturing (causing the shutdown of many factories), and consequently on trade activities. The replacement of European products with Chinese ones has encouraged the opening up of Chinese stores, with unbeatable prices.

Social consequences

Consequently, urban low and medium quality commercial quarters of Beirut, Tripoli, Tyre, experience uncomfortable conditions, in social and economical terms, as a consequence of growing unemployment. In many occasions, during action-research, local actors pointed out job creation as a priority that could resolve social, educational and health problems.

With regard to Dahyeh, a very problematic urban area, as a result of factory closures, or relocation to other parts of the country, thousands of people lost their jobs and many parts of the area became “dormitories”.

9.2.2 Competitive advantage

At present the Lebanese TFC value chain is mismanaged and fragmented.

Several reasons for competitive advantage, such as a tradition and know-how in silk production, and probably existing know-how in production and manufacturing, can be used to increase the added value of the Lebanese TFC value chain.

Current factors

Dahyeh and its activities, not only directly linked to the TFC value chain, can assume the function of strategic hub.

First of all, Dahyeh artisan tailors and manufacturers are recognized for their know-how. This is a promising starting point for the creation of a “TFC district”, where they could develop their own activities, instead of carrying on working as hidden and unknown workers on behalf of big factories.

Municipalities of Dahyeh like Fourn el Chebak are already renowned for their commercial quarters. After a re-qualification of the area, a “Territorial Outlet Centre” could be established in Dahyeh, as an important “territorial showcase” for all the products (not only belonging to the TFC value chain) of the areas involved in the ART GOLD Lebanon Programme.

A significant number of people living in Dahyeh come from rural areas of the country. Although the socio-cultural situation in Dahyeh is difficult, it is also really interesting and original, thanks to the cross-relationships between a contemporary urban context and traditional rural heritage, stemming from the people who came to Dahyeh years ago from other rural areas. As has happened in many difficult urban contexts in the world, this kind of “contamination” can become a fertile source of new ideas, to be applied also in the creation of new fashion products, designs and styles.

To sum up, significant possibilities for the creation of a “Dahyeh Brand”, that can add value to the national FTC value chain, do exist. Their effectiveness must be, however, assessed.

9.2.3 Market dynamics

• Domestic market:

The dynamics of the domestic market of the TFC value chain need to be detected and assessed.

• Foreign markets:

International markets for products made from natural and vegetable fibres and materials are open and penetrable.

9.2.4 Development prospects

Value Chains, Basic Interventions, Supports - 115 Product Competitive advantage note • High added value as excellent raw material for mattress Awassi wool production. Existing

• Open and penetrable international markets.

• Excellent experimental properties of high quality cashmere Experimental introduction Crossbred Shami cashmere • Open and penetrable international markets. should be assessed • High added value due to o the quality of raw materials, o traditional production know-how, Mattresses of Awassi wool o cultural aspects. Existing

• Low price, compared to international competitors

• Open and penetrable international markets. High added value as a traditional Lebanese product Re-introduction should be Wool carpets • • Open and penetrable international markets. assessed • High added value due to o intrinsic quality, Re-introduction should be Silk o traditional production know-how, o cultural aspects. assessed

• Open and penetrable international markets. • High added value due to o intrinsic quality, Re-introduction should be Hemp o traditional production know-how, o cultural aspects. assessed

• Open and penetrable international markets.

• High added value due to intrinsic quality, Existing, its use in the Jute FTC value chain should • Open and penetrable international markets. be assessed

Table 3: strategic value and competitive advantage of the TFC value chain

The prospects for the development of an optimized Lebanese FTC value chain are very promising. Nevertheless the strategy to support it depends on factors (which action-research did not have the chance or time to explore) such as domestic market demand, main constraints, feasibility, in terms of availability of raw materials and economic sustainability, need for services.

This could be part of the next AGL plan of action.

9.3. The ART GOLD support

It is not possible to identify at this stage the overall support the ART GOLD Lebanon will provide to this resource for its competitive and sustainable development, for the duration of the programme. This will depend on the outcome of the analysis that is needed in following areas: • national market demand, • constraints and critical development problems, • current status of the value chains (in terms of productive flows needed by productions and trading activities, and interaction with other value chains), • needs assessment to enhance sustainable and competitive development and to improve value chain organisation, productive performance, services, quality, and marketing.

This analysis, conducted through action-research methodology, will be part of the initial ART GOLD Lebanon support to the value chain, having a duration of 2 months. It is envisaged that this action-research will be included in the next annual ART GOLD Lebanon operational plan, as illustrated in the following table 4.

Value Chains, Basic Interventions, Supports - 116

TABLE 4: PROPOSAL FOR ART GOLD LEBANON INITIAL ACTIONS (2 MONTHS) TO SUPPORT THE TFC VALUE CHAIN

ACTION-RESEARCH Expected strategic result Area level National level Actions: organisation of focus groups including all actors currently working in the value chain, and other institutions with

Analysis of national market demand, potential for intervention (universities, the constraints and critical development municipalities, other governmental bodies, problems, the current status of the etc.). value chains (in terms of productive Beneficiaries: Actors of the FTC value chain flows needed by productions and in Bekaa, Dahyeh, North Lebanon, South trading activities, and interactions with Lebanon. other value chains) Implementation: 2 moths work by the AGL LED area specialists, using the methodology learned through the previous ART IS LED

mission, coordinated by the AGL international LED expert, and distance assistance from ART IS LED Action: International IS LED technical

Needs assessment for enhancing assistance sustainable and competitive Beneficiary: Actors of the FTC value chain in development and for improving value Bekaa, Dahyeh, North Lebanon and South chain organisation, productive Lebanon, universities, chamber of commerce, performance, services, quality, and national government marketing Implementation: 1 week mission in Lebanon, supported by the AGL LED international expert and the area LED specialists Action: International IS LED technical assistance

Beneficiary: Actors of the FTC value chain in Bekaa, Dahyeh, North Lebanon and South National government Lebanon, universities, chamber of commerce Definition of strategic guidelines

Implementation: Desk assessment, discussions with the AGL National Coordination Committee and Area Local Partnerships.

Value Chains, Basic Interventions, Supports - 117

TYPICAL HANDICRAFT

Characteristics and strategic opportunities

• Focus Groups (see ann. 2): o Bek FG n.5, 11/09/07, Sources of information: o BSS FG n.2, 06/09/07.

• Desk Analysis.

10. The TH value chain

10.1. The ART GOLD support

10.1.1 Action-research

The results of above mentioned FG are available in annex 2, pages 13 and 24.

It is not possible to identify, at this stage, what overall support the ART GOLD Lebanon shall provide to this resource for its competitive and sustainable development for the duration of the programme. This will depend on the outcome of the analysis of the following: • possibilities of improvement of the value chain, • national and international market demands of fresh and processed products, • constraints and critical development problems, • current status of the value chains (in terms of needed production flows, and interactions with other value chains), • needs assessment to enhance sustainable and competitive development and to improve value chain organisation, productive performance, services, quality, and marketing.

This analysis, carried out through an action-research methodology, shall be part of the initial ART GOLD Lebanon support to the value chain, having a duration of 2 months. It is envisaged that this action-research will continue in the next annual ART GOLD Lebanon operational plan, as illustrated in the following table 1.

Value Chains, Basic Interventions, Supports - 118 TABLE 1: PROPOSAL FOR ART GOLD LEBANON INITIAL ACTIONS (2 MONTHS) TO SUPPORT THE TH VALUE CHAIN

ACTION-RESEARCH Expected strategic result Area level National level Actions: organisation of Focus Groups including all the actors currently working in the TH value chain and other institutions with

potential for intervention (Universities, Analysis of national and international Municipalities, other governmental bodies, market possibilities, constraints and associations, syndicates, etc.). critical development problems of the current status of the value chains (in Beneficiaries: Potential and actual Actors of terms of creation of new enterprises, the TH value chain in Bekaa, Dahyeh (BSS), National Government needed productive flows and North Lebanon, South Lebanon. interactions with other value chains) Implementation: 2 months work by AGL LED area specialists, using the methodology learned through the previous ART IS LED

mission, coordinated by an AGL international LED expert, and distance assistance from ART IS LED. Action: International IS LED technical

assistance Needs analysis to enhance sustainable and competitive development and Beneficiary: Potential and actual Actors of the TH value chain in Bekaa, Dahyeh (BSS), improve value chain organisation, National Government productive performance, services, North Lebanon, South Lebanon, Universities, quality, and marketing Chambers of Commerce. Implementation: 1 week mission in Lebanon, supported by an AGL LED international expert and LED area specialists Action: International IS LED technical assistance Beneficiary: Potential and actual Actors of the TH value chain in Bekaa, Dahyeh (BSS), National Government North Lebanon, South Lebanon, Universities, Definition of strategic guidelines Chambers of Commerce.

Implementation: Desk assessment, discussions with the AGL National Coordination Committee and Area Local Partnerships.

Value Chains, Basic Interventions, Supports - 119

WINE

Characteristics and strategic opportunities

• Focus Groups (see att. N.2): o Bek FG n.2, 10/09/07, o Bek FG n.3, 10/09/07. Sources of informations: • Field Reconnaissances: o Bekaa, 05/10/07.

• Desk Analysis.

11. The Wine value chain

11.1. The ART GOLD support

11.1.1 Action-research

The results of above mentioned FG are available in annex 2, pages 6 and 8.

It is not possible to identify, at this stage, what overall support the ART GOLD Lebanon shall provide to this resource for its competitive and sustainable development for the duration of the programme. This will depend on the outcome of the analysis of the following: • possibilities of improvement of the value chain: o diffusion of best practices among small producers of wine and Arak, o identification of endogenous grapevines, • national and international market demands of fresh and processed products, • constraints and critical development problems, • current status of the value chains (in terms of needed production flows, and interactions with other value chains), • needs assessment to enhance sustainable and competitive development and to improve value chain organisation, productive performance, services, quality, and marketing.

This analysis, carried out through an action-research methodology, shall be part of the initial ART GOLD Lebanon support to the value chain, having a duration of 2 months. It is envisaged that this action-research will continue in the next annual ART GOLD Lebanon operational plan, as illustrated in the following table 1.

Value Chains, Basic Interventions, Supports - 120 TABLE 1: PROPOSAL FOR ART GOLD LEBANON INITIAL ACTIONS (2 MONTHS) TO SUPPORT THE WINE VALUE CHAIN

ACTION-RESEARCH Expected strategic result Area level National level Actions: organisation of Focus Groups including all the actors currently working in the Wine value chain and other institutions with

potential for intervention (Universities, Analysis of national and international Municipalities, other governmental bodies, market possibilities, constraints and associations, syndicates, etc.). critical development problems of the current status of the value chains (in Beneficiaries: Potential and actual Actors of National Government terms of creation of new enterprises, the Wine value chain in Bekaa. needed productive flows and interactions with other value chains) Implementation: 2 months work by AGL LED area specialists, using the methodology learned through the previous ART IS LED

mission, coordinated by an AGL international LED expert, and distance assistance from ART IS LED. Action: International IS LED technical

assistance Needs analysis to enhance sustainable and competitive development and Beneficiary: Potential and actual Actors of improve value chain organisation, the Wine value chain in Bekaa, Universities, National Government productive performance, services, Chambers of Commerce. quality, and marketing Implementation: 1 week mission in Lebanon, supported by an AGL LED international expert and LED area specialists Action: International IS LED technical assistance

Beneficiary: Potential and actual Actors of the Wine value chain in Bekaa, Universities, National Government Definition of strategic guidelines Chambers of Commerce.

Implementation: Desk assessment, discussions with the AGL National Coordination Committee and Area Local Partnerships.

Value Chains, Basic Interventions, Supports - 121 Basic interventions

Value Chains, Basic Interventions, Supports - 122

BASIC INTERVENTIONS

Design specifications of the interventions on infrastructural networks: Energy Management, Water Management, Solid Waste Management

12. Basic interventions

12.1 Energy management

12.1.1 Overview

Title

Promotion and increase of energy sustainability of existing rural and peripheral productive units

Eligible target Areas

ART GOLD Lebanon Areas of: • Bekaa • Dahyeh • North Lebanon • South Lebanon

Beneficiaries

Population and productive actors of identified intervention Areas.

Partners

Decentralised Cooperation organisations and entities

12.1.2 Objectives and analysis

General objective

To increase the energy supply for the rural production through alternative sources (biomass, photovoltaic, wind, etc.), in order to improve their economic performance and to lower production costs.

Specific objectives

a. Analysis

Analysis of rural and/or urban productive units and their energy needs, according to inputs from the ART GOLD Programme, also considering possible supply to villages and demand trends.

b. Optimization Planning

Realization of a plan for defining the most effective alternative energy sources and optimising the distribution of energy generation plants, also considering: • local states of art, • options for networking, • Lebanese legislation.

c. Feasibility

Elaboration of a feasibility study, including proposals for the localization, size and cost of plants.

d. Action Planning

Value Chains, Basic Interventions, Supports - 123 Definition of a plan of action, shared with the ART GOLD Lebanon Programme and Local Area Partnerships, to approve the feasibility study and define implementation.

e. Design and installation

Design and installation of the plants, including training for operators

This intervention will pursue, in the first phase, objectives (a), (b), (c), and (d).

Prospects and needs analysis

Sustainable economic development in Lebanon must be pursued through a strategy that will improve the positioning of local products in local, domestic and international markets, while providing equitable opportunities of new jobs for the population, with particular reference to the most disadvantaged, and safeguarding environmental resources.

The economy of rural and peripheral areas is the most important component of Lebanese regional development. The value chains of fruit and vegetables, honey, milk, olive, typical handicraft, in some cases located in a framework of high levels of biodiversity, constitute the main regional resources, and the conscious definition and optimization of other existing but mismanaged value chains, like boatyards or textile fabrics and clothes is going to be pursued by the ART GOLD Lebanon Programme.

Nevertheless, lack and cost of energy constitute a big problem, both for economic actors and the Lebanese population, and it reduces the chances of improving performance, competitiveness, and, consequently, job opportunities. For economic activities, the purchase, management (diesel oil) and maintenance of private electric generators, to satisfy production energy needs during the frequent breakdowns of national electricity network, are big added costs.

Supporting local economic potential resources needs more energy, a steadier supply and more sustainable production.

12.1.3 Conditions

Implementation

The intervention will be implemented in the framework of the ART GOLD Programme, aimed at supporting local partnerships to improve economic development in Lebanon, and assessed by ART IS LED.

A first mission of decentralised cooperation partners will take place at the beginning of the partnerships to launch the projects and define details. A seminar will be held with the participation of all parties, including decentralised cooperation partners, UNDP, the ART GOLD Local Partnerships of the intervention area, and ART IS LED.

A technical mission of about 2 months will follow to carry out activities related to objective (a), and gather all information relative to productive units, either indirectly (through available data, UNDP, associations, etc.), or through field visits. A report of this mission will be delivered to the partners involved.

The analysis of the information and the preparation of the plan (objective b) which identifies the type of the plants and the geographic distribution of energy will be carried out in Italy, through the involvement of specialists. The report of the study will be given to the partners for comment and adjustments, and finalised by the same specialists.

Accordingly, the feasibility study (objective c), including the proposals for the localization of the plants, dimension and costs, will be carried out in Italy by specialists, shared with ART/II LED and discussed in Lebanon with the partners and beneficiaries.

The plan of action for the implementation of the study (objective d) will be discussed and defined through meetings in Lebanon with the partners.

Sustainability

The sustainability of the intervention relies on the following components:

Value Chains, Basic Interventions, Supports - 124 • Partner commitment in guaranteeing results (in terms of the physical investment), also by searching additional project finance for the second phase, • added knowledge of a sustainable strategy for energy supply that can be used and replicated in other districts of Lebanon and outside, • sustainability of the beneficiaries’ productive activities, either because the project will improve it (lowering production costs), or because they will be supported by the ART GOLD Programme to improve their market positioning and growth opportunities, • improvements in environmental sustainability.

Duration and schedule

The duration of the first phase of the intervention (objectives a, b, c, and d) is 7 months, in accordance with the following schedule:

Activity 1 2 3 4 Months 1 2 3 4 5 6 7

12.2. Water management

12.2.1 Overview

Title

Integrated approach to the Water Cycle

Eligible target Areas

ART GOLD Lebanon Areas of: • Bekaa • Dahyeh • North Lebanon • South Lebanon

Beneficiaries

Population and productive actors of identified intervention areas.

Partners

Decentralised Cooperation organisations and entities

12.2.2 Objectives and analysis

General objective

To improve water cycle quality through an integrated approach to water management

Specific objectives a. Analysis

Analysis of the rural and/or urban productive units and their water needs, according to inputs from the ART GOLD Programme, also considering possible supply to villages and demand trends.

b. Optimization Planning

Value Chains, Basic Interventions, Supports - 125 Realization of a plan to define an optimized design for an integrated water cycle: • water-supply network (sources and springs, water capture and potabilisation, tanks, supplied area, distribution network, waterways, network control, quality control), • drainage network (waterways, refluent water purification, network control, quality control), • technical services (plants maintenance and support),

also considering: • local states of art, • options for networking, • Lebanese legislation.

c. Feasibility

Elaboration of a feasibility study, including proposals for the localization, size and cost of the plants.

d. Action Planning

Definition of a plan of action, shared with the ART GOLD Lebanon Programme and Local Area Partnerships, in order to approve the feasibility study and define implementation.

e. Design and installation

Design and installation of the plants, including training for the operators

This intervention will pursue, in the first phase, objectives (a), (b), (c), and (d).

Prospects and needs analysis

Sustainable economic development in Lebanon must be pursued through a strategy that will improve the positioning of local products in local, domestic and international markets, while providing equitable opportunities of new jobs for the population, with particular reference to the most disadvantaged, and safeguarding environmental resources.

The economy of rural and peripheral areas is the most important component of Lebanese regional development. The value chains of fruit and vegetables, honey, milk, olive, typical handicraft, in some cases located in a framework of high levels of biodiversity, constitute the main regional resources, and the conscious definition and optimization of other existing but mismanaged value chains, like boatyards or textile fabrics and clothes is going to be pursued by ART GOLD Lebanon Programme.

Nevertheless, the lack and cost of water and drinking water constitute a big problem, both for economic actors (industrial uses) and the Lebanese population, and it reduces the chances of improving performance, competitiveness, and, consequently, jobs opportunities: • for families, the purchase of packaged drinking water is a significant financial load on ordinary expenditure, • for economic activities, the purchase, management and maintenance of private water purification plants, to make the water drinkable, to satisfy production needs for water, are big added costs.

Furthermore, the ineffectiveness (or in some cases, the absence) of drainage plants for civil, agricultural and industrial sewage is a big danger to public health, the environment and product quality.

In order to improve the quality of the Lebanese environment, recourse should also be made to natural methodologies to be applied in the context of an integrated water cycle. An example of this kind of methodology is represented by the technique of Constructed wetlands, a light duty natural water purification system, recommended by IDEASS (Innovation for Development And South-South cooperation), a project by UNDP, ILO, UNOPS, UNESCO, UNIFEM, WHO. (http://www.ideassonline.org/bros_view_eng.asp?id=20)

12.2.3 Conditions

Implementation

The intervention will be implemented in the framework of the ART GOLD Programme aimed at supporting local partnerships to improve economic development in Lebanon, and assessed by ART IS LED.

Value Chains, Basic Interventions, Supports - 126 A first mission of decentralised cooperation partners will take place at the beginning of the partnerships to launch the projects and define details. A seminar will be held with the participation of all parties, including decentralised cooperation partners, UNDP, the ART GOLD Local Partnerships of the intervention area, and ART IS LED.

A technical mission of about 2 months will follow to carry out activities related to objective (a), and gather all information relative to productive units, either indirectly (through available data, UNDP, associations, etc.), or through field visits. A report of this mission will be delivered to the partners involved.

The analysis of the information and the preparation of the plan (objective b) which identifies the type of the plants and the geographic distribution of energy will be carried out in Italy, through the involvement of specialists. The report of the study will be given to the partners for comment and adjustments, and finalised by the same specialists.

Accordingly, the feasibility study (objective c), including the proposals for the localization of the plants, dimension and costs, will be carried out in Italy by specialists, shared with ART/II LED and discussed in Lebanon with the partners and beneficiaries.

The plan of action for the implementation of the study (objective d) will be discussed and defined through meetings in Lebanon with the partners.

Sustainability

The sustainability of the intervention relies on the following components: • Partner commitment in guaranteeing results (in terms of the physical investment), also by searching additional project finance for the second phase, • added knowledge of a sustainable strategy for integrated water management, that can be used and replicated in other districts of Lebanon and outside, • sustainability of the beneficiaries’ productive activities, either because the project will improve it (lowering production costs), or because they will be supported by the ART GOLD Programme to improve their market positioning and growth opportunities, • improvements in environmental sustainability.

Duration and schedule

The duration of the first phase of the intervention (objectives a, b, c, and d) is 7 months, in accordance with the following schedule:

Activity 1 2 3 4 Months 1 2 3 4 5 6 7

12.3. Waste Management

12.3.1 Overview

Title

Integrated approach to solid waste management

Eligible target Areas

ART GOLD Lebanon Areas of: • Bekaa • Dahyeh

Value Chains, Basic Interventions, Supports - 127 • North Lebanon • South Lebanon

Beneficiaries

Population and productive actors of identified intervention areas.

Partners

Decentralised cooperation organisations and entities

12.3.2 Objectives and analysis

General objective

To improve the quality of solid waste management

Specific objectives

a. Analysis

Analysis of the rural and/or urban productive units and their needs in terms of solid waste management, in accordance with inputs from the ART GOLD Programme, also considering possible supply to villages and demand trends.

b. Optimization Planning

Realization of of a plan to define an optimized design for an integrated solid waste cycle: • improvement of public awareness about solid waste differentiation, • differentiated solid waste gathering, • waste recycling, • energy from solid waste (biomasses, thermo-valorisation, etc.), • identification of dumping grounds, • garbage dump management, • technical services (plants maintenance and support), • cycle control,

also considering: • local states of art, • options for networking, • Lebanese legislation.

c. Feasibility

Elaboration of a feasibility study, including proposals for the localization, size and cost of the plants.

d. Action Planning

Definition of a plan of action, shared with the ART GOLD Lebanon Programme and Local Area Partnerships, in order to approve the feasibility study and define implementation.

e. Design and installation

Design and installation of the plants, , including training for the operators

This intervention will pursue, , in the first phase, objectives (a), (b), (c), and (d).

Prospects and needs analysis

Sustainable economic development in Lebanon must be pursued through a strategy that will improve the positioning of local products in local, domestic and international markets, while providing equitable opportunities of new jobs for the population, with particular reference to the most disadvantaged, and safeguarding environmental resources.

The economy of rural and peripheral areas is the most important component of Lebanese regional development.

Value Chains, Basic Interventions, Supports - 128 The value chains of fruit and vegetables, honey, milk, olive, typical handicraft, in some cases located in a framework of high levels of biodiversity, constitute the main regional resources, and the conscious definition and optimization of other existing but mismanaged value chains, like boatyards or textile fabrics and clothes is going to be pursued by ART GOLD Lebanon Programme.

Nevertheless, the ineffectiveness (or in some cases, absence) of effective Solid Waste Management systems is a big danger to public health, the environment and product quality, worsening territorial and, consequently, also productive competitiveness.

12.3.3 Conditions

Implementation

The intervention will be implemented in the framework of the ART GOLD Programme aimed at supporting local partnerships to improve economic development in Lebanon, and assessed by ART IS LED.

A first mission of decentralised cooperation partners will take place at the beginning of the partnerships to launch the projects and define details. A seminar will be held with the participation of all parties, including decentralised cooperation partners, UNDP, the ART GOLD Local Partnerships of the intervention area, and ART IS LED.

A technical mission of about 2 months will follow to carry out activities related to objective (a), and gather all information relative to productive units, either indirectly (through available data, UNDP, associations, etc.), or through field visits. A report of this mission will be delivered to the partners involved.

The analysis of the information and the preparation of the plan (objective b) which identifies the type of the plants and the geographic distribution of energy will be carried out in Italy, through the involvement of specialists. The report of the study will be given to the partners for comment and adjustments, and finalised by the same specialists.

Accordingly, the feasibility study (objective c), including the proposals for the localization of the plants, dimension and costs, will be carried out in Italy by specialists, shared with ART/II LED and discussed in Lebanon with the partners and beneficiaries.

The plan of action for the implementation of the study (objective d) will be discussed and defined through meetings in Lebanon with the partners.

Sustainability

The sustainability of the intervention relies on the following components: • t Partner commitment in guaranteeing results (in terms of the physical investment), also by searching additional project finance for the second phase, • added knowledge of a sustainable strategy for integrated water management, that can be used and replicated in other districts of Lebanon and outside, • sustainability of the beneficiaries’ productive activities, either because the project will improve it (lowering production costs), or because they will be supported by the ART GOLD Programme to improve their market positioning and growth opportunities, • improvements in environmental sustainability.

Duration and schedule

The duration of the first phase of the intervention (objectives a, b, c, and d) is 7 months, in accordance with the following schedule:

Activity 1 2 3 4 Months 1 2 3 4 5 6 7

Value Chains, Basic Interventions, Supports - 129 Supports

Value Chains, Basic Interventions, Supports - 130

TERRITORIAL INFORMATION SYSTEMS

Design parameters

13. Territorial Information Systems

13.1. Territory as a system

13.1.1 The components of a territorial system

A systemic approach

The Art Gold Lebanon Program utilises the ART IS-LED approach, which is based on Local Partnerships aimed at setting up strategies for the valorisation of endogenous resources.

The “territory” is considered a “system”, that is an entity able to receive inputs and elaborate outputs. It is formed by interacting elements (or components), and it produces outputs in response to received inputs.

The territory as a system: conceptual approach

In terms of general system properties, a TS

• gives (more or less) predictable outputs when stimulated by specific inputs, • is a very complex issue, because it is formed by a “very large” (up to an infinite) number of “sub- systems”, and consequently, because of the impossibility of an analytical approach (in the mathematical sense of the expression), it is an intractable system, • is an non-stationary system, as it changes over time, • is generally a stable system, but it is subjected to threats of instability.

The following considerations must be explicitly noted.

• Whenever the dynamics of interaction among territorial elements are identified, they can be considered as a component sub-system of a TS. • A territorial element generally participates in many interactions and, consequently, belongs to several different sub-systems. • Territorial interactions are of an elliptical nature: new interactions or variations in all acting interactions can be induced just modifying the conditions of a few (even only one) characteristic territorial parameters.

The capability of assimilating a “disturbance” and neutralizing its effects is a characteristic belonging to all component sub-systems of a territory and, obviously, it depends on the stability of the single sub-system. Consequently, an assigned territory is characterized by the presence, among its components, of more or less stable sub-systems. Therefore, the concept of absolute stability of a territory can make sense only when a global quantification of stability can be made.

A “very stable” system is one with little “manoeuvrability” or innovation. A territory (often with a high degree of stability) tends to conserve its (good or bad) conditions. It is able to reduce the effects of a harmful event but, at the same time, it will tend to refuse and defy actions aimed at improvement.

The components

The environment and human activities are the two main interacting components of a territorial system (TS).

• Environment

The environment related to an identified geographic area is the system constituted by the following sub- systems:

o ground,

o subsoil,

o atmosphere,

Value Chains, Basic Interventions, Supports - 131

o sea (where it exists),

o inland waters (rivers and lakes, where they exist),

o meteorological factors,

o biological factors (plant and animal life, microbiological factors).

• Human Activities

Human Activities connected to an identified geographic area form a system constituted by the following sub-systems:

o Administrative – Institutional Activities: - activities of administrations and public institutions (regional or provincial governments, municipalities, districts, education, etc.), - activities of private or public-private utility services providers (for example, chambers of commerce, hospitals, schools, etc.);

o Financial Activities: - activities of banks, insurance companies, financial brokers, funds, etc.

o Productive Activities: - primary sector activities: mining and water supply, agriculture, breeding, fishing, hunting, forestry activities, - secondary sector activities: craftwork, industry, energy production, water processing, waste management, - service sector activities: trade and distribution, transport, information and communications, tourism, other services for citizens and enterprises,

o Social Activities: - activities of welfare and support for disadvantage people, health, representatives of productive sectors, syndicates and labour unions, civic associations, representatives of minorities, etc.

o Cultural Activities: - Educational activities: primary and secondary school, university, postgraduate, etc. - training activities: vocational guidance, job training (for the unemployed), job specialization, job re-qualification, - research activities: pure, applied, scientific , technological, in human sciences, in social sciences, etc., - cultural heritage management activities: preservation (recovery and restoration, archiving, libraries, museums and galleries, historical and archaeological sites, etc.), production and consumption (theatre, music, cinema, visual arts, publishing, etc.).

An identified geographic area subtends a TS (that is a “territory”) characterised by the interactions of the above-mentioned components. There is a difference between “geographic area” and “territory” (or TS); the first is a portion of the earth surface to which geo-morphological, hydrographical, biological, anthropic characteristics are attributed; the second, as a “system”, is determined by elements according to their capabilities of interacting with each other, and continued (“good or bad”) interactions.

Interactions

The definition of environment and human activities sub-systems has just an analytical purpose, for identifying and ordering the elements that “make up” the territory.

Dynamic Analysis, such as SWOT Analysis or, as in our case, a Resource – Needs Analysis for Territorial Competitiveness are needed to detect interactions among those elements

The simplest example of interaction among sectors is represented by the value chain. The value chain is the logic flow that describes relationships between all activities needed to produce material or non material goods, from the supply of raw material to the “final consumer”.

13.2. The ISTD

13.2.1 Control needs

Value Chains, Basic Interventions, Supports - 132 State Variables

In system theory, control engineering, and other areas of science and technology, state variables are used to represent the states of a general system. State variables can be used to describe the “state”, the “condition” of a system.

A set of logical or numerical variables can be associated to any TS component. These variables are dependent on other logical or numerical variables: the independent ones. If the logical or numerical values of the independent variables are known, as well as the links (functions) among dependent and independent variables, many data on the TS are also known.

The number of territorial independent variables tends towards infinity. Therefore, the choice of operating with a “finite” number of independent variables is compulsory. The greater the number of independent variables, the more precise, but also complex, is the analytical model. These variables constitute the TS state variables.

Control

“Controlling a TS” involves: a) establishing a precision (and so, complexity) degree of the model, b) knowing all the state variables associated to that model, c) knowing functional (numerical or logical) links among the state variables and macro socio-economic variables (which are dependent), d) knowing in real time the logical or numerical values of the state variables, and, consequently, the values of the dependent ones, e) deducing actual TS socio-economic dynamics (for example, the actual state of the value chains), f) identifying “bad” and “good” territorial dynamics, g) identifying the interventions than can dampen down bad dynamics and increase and improve good dynamics (development action), h) implementing the interventions, i) checking the efficiency and effectiveness of development action.

Any natural (physical, biological, etc.) system has a control system, often feedback based. A TS is a “five degrees of freedom” system. Each degree is referred to the following five “macro-dynamics”: • administrative-institutional, • economic, • spatial-environmental, • cultural, • social.

Each development plan should, therefore, take into consideration integrated action on the systems’ five degrees of freedom, with the specific aim of: • innovating administration, • managing endogenous development, • planning environmental and urban development, • managing cultural development, • allowing social inclusion.

13.2.2 Information systems and development

A definition of ISTD

A TS needs its own control system capable of:

• detecting, collecting, storing and updating territorial data,

• elaborating data to obtain information,

• making this information usable by users,

• elaborating this information to describe actual and plausible future scenarios,

• defining possible interventions on o administrative-institutional dynamics, o economic dynamics, o spatial-environmental dynamics,

Value Chains, Basic Interventions, Supports - 133 o cultural dynamics, o social dynamics;

This control system is an “Information system”: an Information System for Territorial Development (ISTD).

As mentioned above, a TS is a non-stationary system, because a territory continuously changes. The ISTD is the main tool to be used to monitor and control TS development processes and plans, the effectiveness and efficiency of the planned implementing actions, and to provide feedback for further interventions.

The ISTD supports the governance and government structures of the TS, through integrated information management that identifies explicit, hidden, or potential territorial needs and resources, whose interactions determine future development scenarios.

13.2.3 ISTD operational cycle

A logical operative cycle

ISTD operation is essentially based on a cycle involving the following macro-phases: • Input of data and information, • Storage of data and information, • Elaboration of data and information, • Output of stored or elaborated data and information, • Cycle control (by feedback).

The cycle is outlined in the following chart.

Territory

Governance Implementing Agency

Input Storage Elaboration Output phase phase phase phase

Control phase

Information Flow Data Flow Provision Flow

The phases of the cycle o Input phase

Data and information are collected through territorial (environment and human activities sub-systems) monitoring formed by: o Action-research (mainly territorial animation), o desk-analysis, o field appraisal, o links to other appropriate “information tanks”. This phase needs its own methodologies, to be determined in accordance with the kind of detected information.

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With regard to the data and information that can be geo-referenced, the cornerstones, referred to the current ART GOLD Lebanon Programme situation, are the following:

Territorial or administrative partition

Bekaa Dayeh (BSS) North Lebanon South Lebanon

Area - Mohafaza Mohafaza Multiples Qadaa Area Qadaa Qadaa

Municipality Municipality Municipality Municipality reference unit

cadastral unit cadastral unit cadastral unit cadastral unit under multiples

Table 1: datum scale of the cornerstones for the geo-reference

Collected data and information are the output for the input phase and, obviously, the input for the storage phase. o Storage phase

Collected data and information must be stored in an adequate recording system, that is: o opportunely versatile, and therefore able to store and organise any kind of datum or information in adequate fields, o able to be easily updated and modified in real time, o able to allow easy search.

Numerical data can be stored through a digital database, which is part and parcel of the Geographic Information Systems, hereinafter described, and interacts with the latter through data processing (geo- referencing, applications by algorithms, etc.). The storage of non numerical data and information of several kinds must be carried out on a case by case basis. The use of innovative methodologies such as hypertext, search engines, relational databases, neural networks, etc. could be considered.

The storage phase strictly interacts with the following elaboration phase. The output of the elaboration phase will “come back” to the storage phase to be recorded, creating sometimes new fields and new kinds of data and information. o Elaboration phase

The elaboration phase of the ISTD is aimed at o exhaustively describing identified territorial dynamics, o detecting new territorial dynamics, to describe potential scenarios, o enriching the set of state variables of the LST and updating their values.

The processing of data and information needs inter-disciplinary tools and supports. Therefore, a multi- disciplinary network of specialists (the ISTD Specialist Network), is needed. o Output phase

The output of the elaboration phase becomes available to o territorial actors, o local partnership, to exercise its function of governance, o the government system (agency, or area staff, or other) o Control phase

The control phase of the ISTD is feedback based, and acts on the other phases according to the principles of total quality applied to the processes. The increase of the quality level of the ISTD must be pursued through o the identification of systemic quality parameters and indicators, o progressive adequate increase of the density of control sensor presence.

Such a system is able to “understand” what it is looking at, “discover” new solutions, “learn” from what happens.

Value Chains, Basic Interventions, Supports - 135 13.2.4 The components of ISTD

Component sub-systems of the ISTD

An evolutionary nucleus of the ISTD shall be established in each area of the Programme.

This initial nucleus could grow according to the operational needs of the different territories. The minimal configuration of the four evolutionary self-evolving systems should be made up of the following sub-systems: a control unit and a geo-reference unit.

The Control Unit

The Control Unit has the functions of • co-ordinating the ISTD operational cycle, • monitoring the ISTD operational cycle, • organizing and managing the ISTD Specialist Network, according to Area Development Plan needs

A coordinator (the ISTD coordinator) and three junior researchers are needed to manage the ISTD Control Unit.

Function Characteristics and skills

Professional Agent of Socio-economic Territorial Development, with knowledge and experience in the following fields:

• LED activities (Territorial Animation, Planning, Designing, Project Management and Control), • design and management of integrated territorial interventions, Co-ordinator • System and Control Theory, and Mathematical Modelling, • Information and Communication Science and Technology (mainly with regard to digital operative systems, computer programming, software applications), • use of digital systems.

Junior researchers in the following fields:

• Economics, • Social Sciences, • Urban and Environmental Planning, Researchers with knowledge and experience in

• Information and Communication Science and Technology (mainly with regard to digital operative systems, computer programming, software applications), • Operational Analysis and Research.

Table 2: Control Unit Human Resources

The Geo-Reference Unit (GRU)

The Geo-reference Unit has the functions of • installing, making ready and managing digital systems to store data and information, • installing and managing the GIS (Geo-referenced Information System) co-ordinating the operative cycle of the ISTD, • identifying and when possible, satisfying by self-production, the algorithms and the applications needed by the ISTD.

A GIS specialist is needed for implementing the GRU, whose TOR’s are generally described as follows.

Function Characteristics and skills

GIS Professional, with knowledge and experience in:

• installing and globally managing digital databases, GIS specialist • installing and globally managing Geo-referenced Information Systems, • territorial monitoring and survey, • problem analysing and solving, • producing algorithms and GIS applications.

Table 3: GIS Specialist

Value Chains, Basic Interventions, Supports - 136 13.2.5 Elements of GIS technologies

Geo-referenced Information Systems

The GIS can be a very important support to the activities of socio-economic territorial development and, if well used, is a fundamental tool for the ISTD.

A GIS is, first of all, a tool able to create “digital thematic maps”, when fed by several kinds of data with regard to an assigned geographic area. It records them in a “geo-referenced way”, by attributing real spatial coordinates (latitude and longitude) to any territorial datum, and then can draw thematic maps in a desired scale through video screens, printers, plotters, etc.

The GIS data “tank” (that is its database recorded on magnetic support readable by a computer) includes

• the data related to the topography of an assigned geographic area, which are digital maps produced in several scales, processed in different ways (by scanning, from aero photogram, etc.), “digitalized” by several processes (raster maps, vectorial maps);

• A set of the values of determined properties associated to any point of the territory.

A GIS needs to be fed by a territorial monitoring and survey system, even if well equipped by digital maps.

The applications of a GIS

Therefore, a GIS is a “geographical” tool. To be effective for the territorial development, it should be equipped by suitable applications.

An application is substantially constituted by three elements: an Oriented Data Model, a set of algorithms and a User Interface.

• Oriented Data Model (ODM)

An Oriented Data Model is a modality of detecting and collecting data to be introduced into the database and used. It is strictly related to the “questions” for which the system must find answers. In the case of ISTD, the ODMs will be very flexible, because of the multi-disciplinary approach.

• Algorithms

The algorithms are the cause – effects links (functions, formulas, logical relations, etc.) characterizing territorial phenomena of interest. They must be translated into computer programs in order to obtain their inputs from the database, and release their output in the database.

• User Interface (UI)

The User Interface is a piece of software to manage relations between the human operator and the application. Through the UI o data can be introduced into the database, o software tools can be installed, o applications can be used, o outputs are made visible.

The many ISTD applications must use the same progressively growing database and ODM, and the same UI, because the ISTD is not an expert system but it is a general purpose tool.

Value Chains, Basic Interventions, Supports - 137 The GIS concept

A conceptual outlining of a GIS’ database could be represented by the following matrix, where, for i = (1,2…n) and k = (1,2… m), in which n and m can be arbitrarily “large”, depending on the power of the software:

Pi are the n points by which the geographic area has been discretized (discretization is the processing of describing continuous models in sets of points; for instance, continuous land can be translated into a set of points identified by their latitudes and longitudes),

Vj (Pi ) are the m “territorial properties” (translated into numerical – scalar, vectorial, tensorial – or “logical” values).

Points Territorial properties

P latitude longitude V1 V2 V3 … Vk … Vm

P1 Λ1 Φ1 V1(P1) V2(P1) V3(P1) … Vk(P1) … Vm(P1)

P2 Λ2 Φ2 V1(P2) V2(P2) V3(P2) … Vk(P2) … Vm(P2)

P3 Λ2 Φ3 V1(P3) V2(P3) V3(P3) … Vk(P3) … Vm(P3) … … … … … … … … … …

Pi Λi ΦI V1(Pi) V2(Pi) V3(Pi) Vk(Pi) Vm(Pi) … … … … … … … … … …

Pn Λn ΦN V1(Pn) V2(Pn) V3(Pn) … Vk(Pn) … Vm(Pn)

Technological integrations of a GIS

A GIS can be integrated by other technologies and systems; the followings are good examples:

• GPS (Global Positioning Systems), satellite based, used as input devices for the ISTD or, for example, to localize means of transport, etc.,

• Videotel,

• ATM (Automatic Teller Machines), used, for example, to advise tourists, to give remote support to entrepreneurs, to remotely manage bureaucratic processes, etc.

13.3. ISTD design specifications

13.3.1 A strategic target

National Information Network

The ART GOLD Lebanon Programme could create a National Information Network to manage the design of an unified model of ISTD in the starting phase and, successively, to share data, algorithms, applications and best practices among the four areas of the Programme. For this purpose the ART GOLD Area Staff could be trained to manage the ISTD and find the best solution for self-sustainability.

13.3.2 Characteristics and resources

Characteristics

The ISTD aim is to optimize all the existing information systems (UNDP, chambers of commerce, etc.).

As for LED activities, they should be aimed at supporting optimized functioning of LED processes and the value chains, and as regards good governance and welfare, they should function as operative tools whose functions must be assessed in a shared way among area staff and the local actors;

Value Chains, Basic Interventions, Supports - 138 Its financial self-sustainability could be achieved, through agreements with national and local productive consortia and associations, and national and local administrative–institutional actors (also on good governance and welfare), or by selling services.

Resources

• Human resources

ISTD human resources can be implemented either by attributing new functions to some components of the area staff, opportunely trained, or by selecting new local personnel.

• Hardware equipment

For each area ISTD, the following hardware equipment is required: o 3 adequately set up workstations, o 1 laser printer A4, o 1 colour plotter A0, o 1 A3 scanner, o 1 photocopier o 1 telephone/fax o 1 digital camera o broadband connection to the Internet

• Software tools

For each area ISTD, the following software tools are required:

o 3 PC Operative Systems, o 3 office management suites, o 3 antivirus licenses, o 1 C++ software for developers, o 1 PC graphic suite, o 1 GIS software (basic, spatial and 3D analysis, printing, Internet publishing, AutoCAD interface, viewer, etc.).

• Cartographic equipment

For each area ISTD, the following cartographic equipment is required:

o digital (or, where missing, paper) maps of the municipalities, o raster digital maps 1:25000, o raster digital orthophotos 1:10000, o vectorial technical maps 1:5000, o 2 GPS portable detectors.

It is should be noted that an optimized distribution of GIS applications needs 2 workstations that can also satisfy office requirements. The third workstation is dedicated to ISTD management, data analysis and processing, graphic activities, and also the productions of applications thanks to software for C++ developers.

At present, an accurate forecast of ISTD cartographic needs is not possible. Above described cartographic equipment, therefore, must be considered as basic, and the need to add to it (also by using GPS detectors) must be considered.

13.3.3 Starting activities

Starting activities related to the establishment of a National Information Network and the ISTDs involve four steps: preparatory actions, design, implemention, transitory regime.

The following actions should be carried out.

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Implementation Step Phases Actions Area level National level

Agreement between ART GOLD Lebanon Programme and a. Main decentralised cooperation partners ART GOLD Lebanon Programme - agreements Agreement between ART GOLD with the contribution of IS-LED Lebanon Programme and national associations and consortia.

Area staff and decentralised 1 b. Feasibility Analysis of design, implementation, AGL and decentralised cooperation supported by IS- study and system self-sustainability cooperation supported by IS-LED LED Preparatory actions Establishment of a National AGL and decentralised c. Networking Area staff Information Network cooperation supported by IS-LED

• ART GOLD Lebanon Programme, d. Project Team Establishment of the Project Team - • Decentralised cooperation partners. Identification of needs related to • local LED processes, • Good governance, Area staff supported by a. Needs • Welfare, • IS-LED, Project Team. identification • local services requirements • Decentralised cooperation Identification of locally existing partners. systems of information management and optimization needs. Local agreements with b. Local • partners, 2 users Area staff ART GOLD Lebanon Programme specifications • on optimization needs and services Designing proposition • Project team c. Technical Technical design of ISTDs, feedback • Decentralised cooperation • Project team design controlled to ensure shared solutions partners, • National information network • Area staff

• Project team Planning of activities: d. Activities • Decentralised cooperation • installing, ART GOLD Lebanon Programme planning partners, • transitory regime. • Area staff

Identification, for each area, of a • Project team • Co-ordinator a. Human • Decentralised cooperation • GIS specialist, ART GOLD Lebanon Programme resources partners, • Junior Researcher to build the ISTD Teams • Area staff

3 Procurement of • Project team • logistic support, • Decentralised cooperation b. Procurement • hardware equipment, ART GOLD Lebanon Programme organisations, Implementation • software tools, • cartographic equipment. • ISTD team Setting up of Project team • input, output, data storage and • Decentralised cooperation c. Setting up elaboration, control, • ART GOLD Lebanon Programme • ISTD Specialist Network. organisations, • ISTD team ISTD team training

Value Chains, Basic Interventions, Supports - 140 • Project team Feeding data archives through • Decentralised cooperation a. Feeding • Action-research, • National information network organisations, • desk analysis. • ISTD team • ISTD team Supporting 4 • Project team • LED cycle, b. LED Support IS.LED • National information network • Local Development Strategic • Transitory Programme • Decentralised cooperation regime partners • ISTD eam • Project team c. Services Starting the design of service activities. • IS-LED • National information network • Decentralised cooperation organisations

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LOCAL TOURIST SYSTEMS

Conceptual elements and planning parameters

14. Local Tourist Systems

14.1. Tourism and development

14.1.1 Hospitality systems

Toward a stable situation

Although the situation of Lebanese international tourism still remains critical, the following two considerations suggest that tourism development plans should be made so that they are ready when, hopefully soon, Lebanon is able once again to show its attractive image to the world: • there is much to do to establish effective tourism development, in terms of building relational capital, awareness and capacity, and preparing infrastructure and local bodies for the governance of tourism (strategic bodies) and management (technical – operational bodies), • tourism is already in place on a small scale, but mostly involves the national population, the Lebanese Diaspora, but also foreigners and their families temporarily living in Lebanon.

An integrated and systemic approach

A “hospitality system” is an optimised environment aimed at • conceiving and establishing a programme of territorial socio-economic development based on the sustainable use of the various resources of an area that is significant from a tourist point of view, • implementing such a programme, through the integration of suitable projects.

The need to create “hospitality systems”, “bodies” with complex functions, rather than just "accommodation systems", devoted to mere hospitality management, was identified in order to link tourist activities within a territorial system and foster interaction • with all the socio-economic dynamics of the territory, in its capacity of complex producer, • with the process of friendship and integration between peoples, rendering individual territories a logical place for human and cultural exchange.

14.1.2 Specifications for Lebanon

An “area based” system

The hospitality system defined here, proposed for the areas of Bekaa, North Lebanon and South Lebanon, was conceived as a coherent tool using ART GOLD development methodology; this, naturally, in anticipation of integrated operation within the context of a local development programme. Therefore, optimised interaction, and also compatibility with the LEDA in the area, must be guaranteed, to foster and support the best tourism-based interactions among local territorial thematic areas.

For Lebanon, a model was created based on the following considerations:

• tourism (economic area, service sector), in a stable and safe context, can be a major local activity,

• the value chains that were identified, involving activities in the primary and secondary sectors of the economy (agriculture, breeding, fishing, manufacturing, agricultural foodstuffs and craft industries), are significant in terms of typicality, recognisability and potential quality and, consequently, are important sources of tourist added value,

• the cultural area has good resources (in terms of both preserved cultural heritage and conservation, and production of material and intangible cultural assets), which need, however, targeted promotion to increase visibility and usability,

• the social area is typical of a “developing” system, with all the problems that come with it,

Value Chains, Basic Interventions, Supports - 142 • the administrative-institutional area is sensitive to the need to proceed not only with tourism development, but also integrated development in their own areas of competence.

The “subsystems” component

The model involves setting up a hospitality system with the following subsystems: • coordination, • hospitality, • production, • attractors, • services.

It would be appropriate to underline the evolutive character of the model proposed here. Therefore, in the application of the proposal, the need to control triggered dynamics should be borne in mind. Control - through the use of feedback – is part of the coordination subsystem.

14.2. Strategic dynamics

14.2.1 A virtuous cycle

Synergies between sectors and infrastructures

In accordance with the above concepts, including the need to harmonise the evolution of the hospitality system with an improvement in general conditions of stability and safety in Lebanon, the initial strategic objectives should be pursued through: • the establishment of inter-relationships between tourism development and other economic activities, • the appropriate provision of basic infrastructure The following diagram gives an idea, in an much simplified form, of the action proposed.

Expected effects Sectors Action proposed 1st order 2nd order 3rd order

Increase in Increase in numbers of different Increase in the • Promotion of local produce potential attractiveness, types of tourists consumption of traditional Tourist services • abroad. • quality of hospitality. • duration of the tourist and/or quality produce. season.

Increase in Increase in Primary, • self-sufficiency of the The local and/or quality Promotion of the territory • the production of local products, secondary, hospitality system, product becomes a vehicle abroad for tourism • the amount and quality of general tertiary • the exportability of the for promoting the territory purposes. production (material and intangible). local produce

Creation of the best system conditions for production sectors • Preliminary actions • Primary and secondary, tourist: Infrastructure • Support actions • o potential of local attractions, (all sectors) • Communication and strategic o accessibility, marketing actions o hospitality, o promotion.

Table 1: Actions and effects

By correctly implementing favourable and sustainable actions, for example in the value chains belonging to the primary and secondary rural sectors, in the tourist sector and in the right areas and intangible infrastructure, it is fair to expect reciprocal, substantial and beneficial effects, potentially triggering a virtuous circle

• promoted, at the outset, by actors in the administrative-institutional area involved in territorial requalification and promotion of natural attractions;

• directly involving actors in the following economic areas:

Value Chains, Basic Interventions, Supports - 143 o primary sector: agriculture, breeding, fishing, forestry activities, o secondary sector: agricultural foodstuffs, handicrafts, o service sector: management of attractions, tourist hospitality, tourist services, media, commerce, o all sectors, with the improvement of territorial infrastructures,

and actors in the cultural sector involved in:

o the valorisation of cultural assets, o collection and preservation of cultural assets, o production of cultural assets, o public consumptions of cultural products (guides, etc.),

• leading to an increase in employment and quality of life.

If properly administered, the virtuous cycle described here would, in a relatively short time, involve also other areas not reported here, in a way compatible with it. The importance of suitable preliminary infrastructural, support and promotional interventions should not be overlooked.

A virtuous cycle can be triggered by the hospitality system through:

• the implementation of the actions proposed in the table regarding the primary, secondary and service sectors, the tourism sector, and infrastructural improvement,

• the installation of a monitoring and control system.

Operation

To become fully operational the hospitality system must go through certain stages.

As regards the first phase, interventions conforming to the proposed actions, and regarding for example rural activities, should lead to the attainment of the expected effects in the 1st, 2nd and 3rd order, in a percentage that decreases with respect to the order; the 3rd order effect, however, no longer lies in the rural context, but rather in the tourist sphere, and is a contribution, induced by the rural sector, to the body of the interventions that, at the same time, have been started in the tourist field; equally, the effects of the 3rd order of tourist interventions will be tangible in the rural sector and will help increase the effectiveness of the interventions in the sector itself.

The dynamics, then, are “cyclical” and tend to be self-expanding. It should be clearly pointed out that the effective operation of this cycle requires that the boundary conditions be met, which involves:

• implementing work on infrastructure, which would increase the usability and habitability of the territory,

• promoting the territory through a suitable marketing plan that uses as its main thrust representative images of the territory that have been acquired and shared,

• activating monitoring and control.

14.2.2 Subsystems

The coordination subsystem

The coordination subsystem, in the hospitality system, is fundamental and involves guaranteeing the functionality, effectiveness and efficiency of the system as a whole.

Functions include:

• identifying, through appropriate action research, an “evolving minimum nucleus” of the hospitality system, i.e. a minimum initial system of resources providing a “limited" number of needs, to be used in order to trigger the operational cycle; if this operation is correctly carried out, the self-expansion of the cycle can be expected;

• identifying a “minimum number” of interventions in sectors identified as strategic, and helping create a marketing plan;

• setting up and coordinating the implementation of the interventions;

• monitoring the attainment of the desired effects, and controlling the system through feedback; therefore o identifying malfunctions and correcting them,

Value Chains, Basic Interventions, Supports - 144 o identifying new needs, o linking appropriate new resources to the system.

Like the LEDA, the LTS is an autonomous productive structure, but it is also a profit-making body; therefore, to be started, it needs a reliable business plan. Its legal structure, any future shareholding structure (public-private), and other characteristics must be discussed and decided upon in consultation with the local partnership.

Other subsystems

The other subsystems of the hospitality system are made up of territorial resources organised in the following groups: • production (companies in the primary or secondary sector), • hospitality (farm stays, hotels, bed & breakfast and other accommodation, restaurants, etc.), • attractors (the “conventional” or innovative elements which give the territory value in terms of tourist interest), • services (particularly the supply of intangible assets to be used for tourism).

These are the resources that the coordination subsystem helps to link up, a little at first and then to an increasing degree, until the strategic objective of the system is achieved: interaction between local activities for systemic development.

14.2.3 LTS and LEDA

The need for synergy

For the obvious reasons of democracy, unambiguous policies and strategies, and therefore effectiveness and efficiency, and having considered the definition of “Local Partnership”, it is clear that in the same territory:

• there cannot co-exist two different bodies of governance and, therefore, in an extensive area there cannot co-exist two different local partnerships involved in the same local development programme;

• all bodies exercising functions of government (technical-operational branch) have to operate, in accordance with the LED cycle, in synergy and in harmony with one another, directed by a governing body (the only local partnership), and applying the strategy the latter has defined.

It is obvious, then, that

• the LTS and the LEDA, together with the other bodies in the territory, which will be identified as far as they are eligible, are both bodies empowered with the functions of government,

• these bodies should cooperate, working together on the basis of their relative functions (some the same, others different or complementary) with the aim of creating a development strategy, which is the one defined by the local partnership

14.3. Operation

14.3.1 The operational cycle

LTS governance

As regards the LTS, the local area partnership’s functions, role, characteristics, methods and ability to act, initially through consultation, are those envisaged by the LED cycle.

The government of the LTS

The government functions of the LTS are part of the coordination subsystem.

In addition to being the operational arm of the local partnership in relation to the development of integrated tourism, it needs to operate harmoniously with the LEDA, which must make its tools available (for example, its territorial information system, guaranty fund, etc.) to meet all the needs imposed by the development of tourism.

It also constitutes a body for delivering advanced services (local tour operator, web portal, etc.).

Value Chains, Basic Interventions, Supports - 145 Governance-government interaction

It is the job of the LEDA and LTS Coordination to start up and manage the local development cycle, on the basis of strategic lines defined by the local partnership, taking into account the needs imposed by the development of tourism. The principal product of this collaboration is the planning and start-up of a tourist section of the local development programme

14.3.2 Tools

The Territorial Information System

LTS Coordination has to have an ISTD (Information System for Territorial Development, see chap. 13), on the basis of the specifics described in this file.

Local Tour Operator

With the aim of fostering new relationships with the tourist market, and governing them for the benefit of the territory, LTS Coordination has to conceive, implement and manage an organisational structure aimed at promoting and managing the contact point between tourism supply and demand, on the basis of indigenous attractors. Local tour operator services are the main LTS resources because they are financially self-sustainable.

Marketing

LTS Coordination has to conceive, plan, implement and manage tourism marketing and promotion. This would also involve the use of a special web portal, which is also the computer support for the work of the local tour operator.

14.3.3 Human resources

The following table details the manpower needs of LTS Coordination.

Value Chains, Basic Interventions, Supports - 146

Professional resource Functions

• Technical coordination for - the installation, running and control of an integrated local development cycle (organisation, programming, planning, start-up), - service allocation • Collaboration with the person in charge of the local partnership Territorial Coordinator-Organiser - in running the Consultation Committee, - in relation to supra-local institutions. • Managing relations with the LEDA. • Collaboration in drawing up and starting territorial tourism marketing and promotion. • Identifying and attracting financial resources.

• Identification and evaluation of the state of the area’s tourist attractions. • Monitoring and analysis of the tourist sector and the state of local and supra-local tourist markets. • Planning and coordination (back-office and front-office) of services for local tourist operators Tourist sector expert • Collaboration for drawing up and initiating territorial tourism marketing and promotion. • Collaboration in planning and implementing the GIS. • Collaboration with the government representative. - in running the Consultation Committee, - in relation to supra-local institutions. • Identifying and attracting financial resources.

• Starting up action research: - consultation - desk and field analysis Territorial researchers regarding the state of local thematic areas (administrative-institutional, economic, cultural and social), aimed at implementing and updating the territorial needs-resources framework • Collaboration in drawing up and initiating territorial tourism marketing and promotion.

Web services designer and administrator • Designing, creating and updating web services • Collaboration in drawing up and starting territorial tourism marketing and promotion.

Front-office manager • Administration of the front-office business of the local tour operator.

Administrative personnel • Management of administrative business.

Table 2: Human Resources in LTS Coordination

Value Chains, Basic Interventions, Supports - 147