Since it broke out last Saturday, the war in the Middle East has quickly expanded, now reaching Lebanon. The war is impacting agricultural operations and exports, just as professionals were barely recovering from the damage caused by the previous war. "Unfortunately, the situation flared up very quickly," says Hania Chahal, a Lebanese Agri- Food Marketing Economist specializing in the fresh produce sector.
The areas most affected by the conflict, namely the south of the country and the Bekaa region, account for a significant share of the country's fresh produce production. The attacks are making farms inaccessible, and civilians are fleeing strike zones, thus creating labor shortages. However, the impact on production remains minimal at the time being, according to Chahal.
"Given the timing of the conflict, the products most affected are avocados, oranges, and some vegetables. These products have already been largely harvested, minimizing the damage to production. However, we fear a significant impact on later crops, such as cherries, potatoes, and, later on, grapes, if the conflict continues into April," she explains.
"Packing houses have been spared so far, as they are mainly located in areas outside the hot zones. They are doing their best to keep operations going. The same goes for public services for exporters; there have been delays in getting certificates over the last few days, but the Ministry of Agriculture has urgently relocated such procedures to another new office to make processes easier," Chahal continues.
Hania Chahal, Lebanese economist
The impact of the war is most acute at the logistical and commercial levels. On the one hand, transportation costs have skyrocketed, and on the other, Lebanese exporters are cut off from important markets.
Chahal says, "The cost of sea freight has more than doubled with the introduction of risk charges. Air freight to Gulf markets is impossible as the few lines still operating do not provide cargo services. Road routes to Gulf countries have not been operational since the outbreak of civil war in Syria 14 years ago."
Access to markets is currently more problematic than access to farms. Gulf markets such as the UAE and Qatar are not accessible by sea, air, or road. Shipping to Europe is still available, and exporters, especially in the avocado industry, are doing their best to continue exporting until the end of the season in April," she adds.
The extent of the damage to Lebanese agribusiness, including production, logistics, transportation costs, and marketing, is likely to worsen significantly should the conflict last for several more weeks, Chahal concludes.
For more information:
Hania Chahal
Tel: +961 30 428 72
Email: [email protected]
