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Developing the Typical Dairy Products of the Bekaa and Baalbeck-Hermel Diagnosis and Local Strategy

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Developing the Typical Dairy Products of the Bekaa and Baalbeck-Hermel Diagnosis and Local Strategy Developing the typical dairy products of the Bekaa and Baalbeck-Hermel Diagnosis and local strategy January 2014 REFERENC ES This publication has been produced as part of the LACTIMED project with the financial assistance of the European Union under the ENPI CBC Mediterranean Sea Basin Programme. In Lebanon, LACTIMED is implemented by the Chamber of Commerce, Industry and Agriculture of Zahle and Bekaa (CCIAZ), in collaboration with the Ministry of Agriculture (Department of Economy, Industry and Marketing), associated partner of the project, coordinated by ANIMA Investment Network. The contents of this document are the sole responsibility of CCIAZ and the Mediterranean Agronomic Institute of Montpellier (CIHEAM-MAIM), partners of LACTIMED project, and can under no circumstances be regarded as reflecting the position of the European Union or of the Programme’s management structures. LACTIMED aims to foster the production and distribution of typical and innovative dairy products in the Mediterranean by organising local value chains, supporting producers in their development projects and creating new markets for their products. The project is implemented under the ENPI CBC MED Programme, and is financed, for an amount of EUR 4.35 million, by the European Union through the European Neighbourhood and Partnership Instrument. LACTIMED aims to foster the production and distribution of typical and innovative dairy products in the Mediterranean by organising local value chains, supporting producers in their development projects and creating new markets for their products. The project is implemented under the ENPI CBC MED Programme, and is financed, for an amount of EUR 4.35 million, by the European Union through the European Neighbourhood and Partnership Instrument. The European Union is made up of 27 Member States who have decided to gradually link together their know- how, resources and destinies. Together, during a period of enlargement of 50 years, they have built a zone of stability, democracy and sustainable development whilst maintaining cultural diversity, tolerance and individual freedoms. The European Union is committed to sharing its achievements and its values with countries and peoples beyond its borders. The 2007-2013 ENPI CBC Mediterranean Sea Basin Programme is a multilateral Cross-Border Cooperation initiative funded by the European Neighbourhood and Partnership Instrument (ENPI). The Programme objective is to promote the sustainable and harmonious cooperation process at the Mediterranean Basin level by dealing with the common challenges and enhancing its endogenous potential. It finances cooperation projects as a contribution to the economic, social, environmental and cultural development of the Mediterranean region. The following 14 countries participate in the Programme: Cyprus, Egypt, France, Greece, Israel, Italy, Jordan, Lebanon, Malta, Palestinian Authority, Portugal, Spain, Syria, Tunisia. The Joint Managing Authority (JMA) is the Autonomous Region of Sardinia (Italy). Official Programme languages are Arabic, English and French. © Copyright LACTIMED 2014. No part of this publication may be reproduced without express authorisation. All rights reserved for all countries. Electronic version available on: www.lactimed.eu AUTHORS . Main authors: Elie Haddad and Najah Chamoun; . Other contributors to the development, drafting and proofreading of the report: - For CCIAZ: Saïd Gedeon and Gloria Hanna; - For CIHEAM-MAIM: Selma Tozanli and Hamid Bencharif; - For ANIMA: Jeanne Lapujade. Developing the typical dairy products of the Bekaa and Baalbeck-Hermel January 2014 Diagnosis and local strategy ACRONYM S ALI Association of Lebanese Industrialists PDO Protected Designation of Origin AREC Agricultural Research and Education Centre CCIAZ Chamber of Commerce, Industry and Agriculture of Zahle and Bekaa CDR Council for Development and Reconstruction ESIAM Engineering School for Mediterranean Agronomy FAO Food and Agriculture Organisation of the United Nations IFAD International Fund for Agricultural Development IDAL Investment Development Authority of Lebanon IRAL Lebanese Agricultural Research Institute IRI Institute of Industrial Research ISO International Standardisation Organisation LIBNOR Lebanese Standards Institution LL Lebanese Pound NGO Non-Governmental Organisation UNIDO United Nations Industrial Development Organisation OPEC Organisation of the Petroleum Exporting Countries GDP Gross Domestic Product SME Small and Medium Enterprise UNDP United Nations Development Programme R&D Research and Development SWOT Strengths Weaknesses Opportunities Threats EU European Union UHT Ultra-High Temperature USAID United States Agency for International Development 3 Developing the typical dairy products of the Bekaa and Baalbeck-Hermel January 2014 Diagnosis and local strategy CONTENTS 1. THE DAIRY CHAIN IN LEBANON ................................................................ 6 1.1. DAIRY INDUSTRY STAKEHOLDERS .................................................................................. 7 1.1.1. Cattle farmers and their herds .......................................................................................................... 7 1.1.2. Collectors, processors and related industries ................................................................................... 9 1.1.3. Quality of milk and dairy products ................................................................................................... 10 1.1.4. Distribution networks....................................................................................................................... 11 1.1.5. Public institutions and professional organisations .......................................................................... 12 1.2. FLOW DYNAMICS AND EXPLANATORY FACTORS ............................................................. 15 1.2.1. Evolution of the production and collection of raw milk .................................................................... 15 1.2.2. Evolution of the production of dairy products ................................................................................. 16 1.2.3. Consumption of milk and dairy products ........................................................................................ 17 1.2.4. Foreign trade ................................................................................................................................... 18 1.2.5. Pricing system ................................................................................................................................. 21 1.3. PUBLIC POLICIES AND DEVELOPMENT PROJECTS ........................................................... 22 1.3.1. Strategic recommendations of the Ministry of Agriculture .............................................................. 22 1.3.2. Development projects ..................................................................................................................... 22 2. THE DAIRY CHAIN IN THE BEKAA AND BAALBECK-HERMEL ............. 24 2.1. SPECIFIC FEATURES OF THE DAIRY CHAIN IN THE BEKAA AND BAALBECK-HERMEL .......... 24 2.1.1. Fodder culture ................................................................................................................................. 24 2.1.2. Milk production ................................................................................................................................ 25 2.1.3. Dairy processing ............................................................................................................................. 26 2.2. RESULTS OF THE FIELD SURVEY ................................................................................... 27 2.2.1. Survey methodology ....................................................................................................................... 27 2.2.2. Structure and operation of dairies in the Bekaa and Baalbek-Hermel ........................................... 27 2.2.3. Vision of the dairy cluster ................................................................................................................ 34 2.3. SUMMARY AND STRATEGIC RECOMMENDATIONS ............................................................ 36 2.3.1. SWOT analysis ............................................................................................................................... 36 2.3.2. Strategic recommendations ............................................................................................................ 38 2.4. CONCLUSION.............................................................................................................. 39 REFERENCES ................................................................................................ 40 APPENDICES ................................................................................................. 42 APPENDIX 1: TYPICAL DAIRY PRODUCTS OF THE BEKAA AND BAALBECK-HERMEL ................. 42 APPENDIX 2: LIST OF STAKEHOLDERS AND INSTITUTIONS SURVEYED ..................................... 47 4 Developing the typical dairy products of the Bekaa and Baalbeck-Hermel January 2014 Diagnosis and local strategy 1. The dairy chain in Lebanon Lebanon is a country with rugged terrain. It is located on the Eastern shore of the Mediterranean and covers an area of 10,452 m². It is divided into eight governorates (mohafazats): Beirut, North Lebanon, Akkar, Mount Lebanon, Bekaa, Baalbek-Hermel, South Lebanon and Nabatieh (see Map 1). It consists of two mountain ranges:
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