ART GOLD Lebanon Programme. Proposed Strategic Guidelines. for Territorial Economic Development

Transcription

1 ART GOLD Lebanon Programme Proposed Strategic Guidelines for Territorial Economic Development April 2008

2 POTENTIALITIES OF LEBANESE RESOURCES Agro-food value chains Beekeeping Milk Fruit and vegetables Wine Olive Fishing Medical and aromatic plants Natural Resources, Biodiversity Other Resources Textile fabrics and clothes Boatyards Typical handicraft

3 Resource Competitive Advantage ssesses value chains Fruit and Vegetables Honey Milk Especially apples, bananas, berries, citrus, table grapes, sweet preserves, juices, pickled products: recognized and appreciated products on foreign markets, as it is demonstrated by the high export quota, original and delicious taste and flavour often gathered in unpolluted areas, often handpicked, original production (density, piece-sized components) of jams and compotes, excellent juices, when made from 100% natural fruits and vegetables. often deriving from high levels of biodiversity, often produced in unpolluted lands, possibilities of being produced in large quantities, possibility of diversifying production unique, in some cases, as for instance, for the Akroum honey-dew, high quality niche market genuine and recognizable flavour and taste of the products (sometime very specific, as in the case of Shanklish, Halloum, and Goat Labnan and Labneh), special properties (as, for instance, fluidity of the yogurt), high intrinsic characteristics of preservation, good quality/price ratio.

4 Product Fresh fruit Strategic Value d vegetables strategic value Almond Carob Melon (mainly Cantaloupe) Prickly pear Fresh vegetables All fresh vegetables Dried products Fig All dried products Sweeteners Fructose Molasses Important ingredient in many traditional foods, important for Lebanese cuisine. Natural sweetener. Used in molasses production. Raw material for many kinds of processed food, important for Lebanese cuisine. Very nourishing and healthy food. Excellent crop for semiarid areas. Very nourishing and healthy food. Excellent crop for semiarid areas. Raw material for food processing. Important ingredient in many traditional foods, important for Lebanese cuisine. Raw material for food processing. Very nourishing and healthy food. Raw material for food processing. Very healthy products (excellent for diets).

5 Fresh fruit and vegetables titive advantage Apple Banana Berries Citrus Grapes Produced in large quantities, and exported in significant quantities (third place in Lebanese export ranking). The quince is considered a valuable product. Red Delicious apples are a very common product, requested by the international market. Produced in large quantities, and 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, and Often handpicked. Can be frozen. Blackberries are used in molasses production. Produced in large quantities., and recognized and appreciated on foreign markets (first place in Lebanese export ranking). Sources of essential oil. Original taste and flavour. Original taste and flavour. Used in molasses production. Seedless varieties are a very common product, requested by international markets. Sweet preserves Fruit jams Vegetable jams Original and delicious quality products. Original composition (density, piece-sized components). Compotes Juices Others Fruit juices Vegetable juices Pickled products Products with oil Original and delicious quality products, when 100% composed by natural fruits and vegetables Original and delicious quality products. Other specialities

6 Fruit and Vegetable Value Chain market position Domestic market: The domestic market seems to prefer exogenous lower quality more expensive fresh products (table grapes, peaches) products (Food Education!) Local fresh productions are sold mainly on local markets. All fresh and preserved productions are sold, also because on little scale; Many food processors use their own brands; Market growth and competitiveness is constrained by the lack of productive knowledge and available machineries Foreign markets: Some Lebanese products are already known by Gulf and African markets (mainly for the Lebanese diaspora) The Lebanese added value is generally poor Existing Lebanese added values of some already exported products, such as citrus fruits or bananas, are not sufficiently known and valorised International market space is very promising, when differential high quality, health and safety standards are achieved; Many Lebanese certified food processors export unbranded products to the EU; suppliers of European companies branding these products.

7 Fruit and vegetables Obstacles Introduction of exogenous kinds and varieties of products (Massive production of common, low quality products (Red Delicious apple, Nectarine peach, kiwi, etc.) Environmental unsustainability, (Massive use of chemical fertilizers and pesticides, energy and water management, scarce environmental sensitiveness) Weakness of the value chain (Absence of food processing activities, weak relationships among the different actors, low volume of production, absence of qualified services and research, weakness of quality certification and control)

8 Fruit and vegetable development objectives 1. Increase productivity and production 2. Improve quality and safety properties 3. Valorise (mainly through a Lebanese Brand policy) Lebanese typicality and prerogatives Main actions Productivity and Production Costs Organisation of the value chain, for reducing operative and transactional costs among stakeholders, recovering lost gains, and establishing scale economies, Applied research for innovations Production increase by promoting and supporting the creation of new productive plants (farms and factories), and introducing innovations Energy, Water, and Waste management Safety and quality management and control Introduction of certified quality and safety standards, Organic production Marketing and Distribution System Consumer food campaigns; national quality brand, national distribution and sale system Strategic marketing development

9 Honey Honey - dew Citrus Produced in large quantity Recognized and appreciated on foreign markets Therapeutically helping against head cold, asthma and bronchial illness Produced with Lebanese citrus flowers Forest honey Known and renowned in Lebanon Original smell, taste and flavour Can be innovative on many foreign markets Lawn Acacia Eucalyptu s ping competitive advantage Thyme Lavender Sage Oregano Banana Can be produced in large quantity and at cheap price Mono-flower Recognized and appreciated on foreign markets Low tendency to crystallize Can be produced in large quantity Mono-flower Recognized and appreciated on foreign markets Therapeutically helping against head cold, and winter illness Can be produced in large quantity Mono-flower Very renowned since a long time in Mediterranean region, as Mediterranean product Original smell, taste and flavour Can be innovative on many foreign markets Forest honey (Akroum) Forest honey (Jabal el Sheikh) Juniper honey Pine honey Oak honey Quinine honey Known and renowned in Lebanon Original smell, taste and flavour Can be innovative on many foreign markets Unique, as becoming from a volcanic Known area and renowned in Lebanon Original smell, taste and flavour Can be innovative on many foreign markets Unique Mono-plant Known and renowned in Lebanon Original smell, taste and flavour Can be innovative on many foreign markets Unique, as becoming from high Mono-plant mountains Known and renowned in Lebanon Original smell, taste and flavour Can be innovative on many foreign markets Sesame Avocado Mono-flower Original smell, taste and flavour Recognizableand appreciated as a Middle Eastern product Can be innovative on many foreign markets Mono-flower Original smell, taste and flavour Can be innovative on many foreign markets Other products Royal Jelly Pollen Propolis Bee poison Good possibilities of being unpolluted Mead High historical and cultural added value Can be innovative on national and many foreign markets

10 Honey Value Chain market position Domestic market: the Lebanese production of all kinds of honey-dew, of all mono-flower kinds of honey and of the lawn honey are very appreciated by local consumers; Citrus honey seems to be less appreciated than the other kinds of honey and honey-dew, mainly because of a scarce food education of the consumers; Few honey brands, and only a small percentage of them is nationally recognized; The production is sold, due the high demand Other 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 : Opportunities on international markets space (many products already appreciated) Organoleptic properties of Lebanese honey and honey-dew of excellent level, 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; Only one Lebanese brand (Jabal el Sheikh) has been identified as

11 Beekeeping Value Chain Obstacles Production Agricultural mismanagement (desease, queens, etc.) Uncertainty and low safety in itinerant activities Expensive tools, machinery, raw materials Fragmentation Lack of differentiation and innovation Services Lack of quality rules (ISO), quality control process (ISO), and food safety rules (HACCP) Lack of targeted finance and credit Lack of sanitary and technical services Lack of research and international research monitoring Marketing Lack of chain's optimisation (total quality rules) Lack of branding Weak distribution Lack of promotion and communication

12 Productivity and Production Costs Organisation of the value chain (for reducing transactional costs, realising scale economies, improving market power) Applied Research for innovations and the introduction of good practices (for producing and spreading innovation, and realising design support laboratories) Production increase (for more beehives, innovation, fight against diseases, queen re-production and management, product differentiation, organic production, energy, water, and waste management) Improvement of Sanitary Services Beekeeping Value main needed actions Safety and Quality management and control Certification (of the quality standards, management and control (ISO), food safety (HACCP), of organic products) Marketing and Distribution System Applied researches (about bio chemical and nutritional characteristics of Lebanese Honey) Food education National Quality Brand of Honey value chain s Products National and International Distribution and Sale System National (internal and external) Marketing System.

13 Cheese Aakawi Halloum Shanklish Genuine and recognizable flavour and taste. Identified as a typical Middle Eastern product.. Regional varieties detected (Bekaa). High intrinsic characteristics of preservation. Genuine and recognizable flavour and taste, if hand made. Can be cooked (fried or grilled) Identified as a typical Middle Eastern product.. Lebanese Halloum has been detected as unique (more soft and delicate). High intrinsic characteristics of preservation, if frozen. Very strong, genuine and recognizable flavour and taste (reminding of Italian Gorgonzola, but stronger) Identified as a typical Lebanese and Syrian product.. Regional varieties detected (Akkar). High intrinsic characteristics of preservation (seasoned cheese) Yogurt Value Chain competitive advantage Labnan Genuine and recognizable flavour and taste. Very fluid. Basic ingredient for Airan. High intrinsic characteristics of preservation. Diet Labnan Goat Labnan Labneh Diet Labneh Goat Labneh (Anbris Oil preserved Labneh) Low fat content. Genuine and recognizable flavour and taste. Very fluid. Basic ingredient for airan. High intrinsic characteristics of preservation. Genuine and recognizable flavour and taste. Very fluid. Basic ingredient for airan. High intrinsic characteristics of preservation. Genuine and recognizable flavour and taste. High intrinsic characteristics of preservation. Low fat content. Genuine and recognizable flavour and taste. A good, diet alternative to cream in cooking. High intrinsic characteristics of preservation. Genuine and recognizable flavour and taste. High intrinsic characteristics of preservation.

14 The Milk Value Chain position on the market Production Milk and dairy production accounts for around 40% of GNP coming from livestock; 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; high dairy and milk production costs (energy, water purification plants, lack of fresh milk for dairy) Lebanon imports 100% of its milk powder requirements and around 50% of its cheese and butter needs. Competition Fierce competition of the small producers with national medium and large companies Aggressive international competition on the same products (Czech Republic, Cyprus, and Greece are exporting worldwide, respectively Aakawi, Halloum and Dried Yogurt (Labneh), with international standards on quality and security) Great opportunities for national and international market positioning, due to typicality, organoleptic characteristics, potentialities for differentiation, possibilities of substituting importations on national market Little knowledge of Foreign Country s Quality standards and Safety rules Denomination Halloum Cyprus 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 Made name to the cheese, Aakawi Czech Republic The registration of Aakawi on international markets as a Lebanese cheese should be not difficult, Labneh Greece No problems exist for the Labneh s denomination. Competitor product is Greek Yogurt, or Dried Yogurt. Marketing Strategies In Lebanon, the intents to internationalising the market of dairy produce have been, until now, little realised, with respect of other countries (market analysis, strategies for valorising endogenous products, national regulations) Lebanese breeders prefer selling milk to big dairy factories, because of lack of scale economies

15 e Chain Obstacles Production Grassland mismanagement Low availability of forage and less expensive fodder Lack of quality rules (ISO), Insufficient fresh milk for dairy Insufficient natural rennet for special productions Lack of optimisation of productive plants Lack of food safety rules (HACCP) Services to breeding activities Ineffective and inefficient veterinary, and consulting services for animal nutrition Weak job training Weak innovation and research Lack of targeted finance and credit Marketing Lack of chain's optimisation (total quality rules) Lack of standards for typical varieties Lack of branding Weak distribution Lack of promotion and communication Lack of food education for consumers

16 The Milk Value Chain main needed actions Productivity and Production Costs Improve productivity and reduce production costs, needed actions are obviously the same as those listed for national and ME market. Safety and Quality management and control Improve food safety and product process quality Introduction of exclusive use of fresh milk in Dairy Productions; Promotion of the utilisation of natural animal rennet in Dairy Production; Promotion of the research about effective possible natural vegetable rennets. Marketing and Distribution System International Distribution and Sale System; International Marketing System

17 Strategic Resources for Dahyeh Sectors Spare parts Car and truck repairs Precision mechanics Tailoring and shoes production Goldsmith jewellery Trade Problems needs High customs fees High export fees (spare parts) Lack of equipment Absence of special and original (and consequently competitive) products High prices of Italian tool machines (replaced by Turkish ones, of lower quality) Sector lacks visibility Lack of foreign markets Lack of new equipment Small local market and demand Lack of foreign markets Lack of new equipment Imports and wrong competition Quality control Organization

18 GENERAL NEEDS Urban re-qualification Organization and innovation of productive activities (products, processes, markets) Creation of enterprises Know-how support for enterprises Financial support for enterprises Organization of human resources Job creation Job training Job re-qualification Job specialization

19 Main strategic actions Improvement of the primary and secondary sectors, to promote : The sea activities (boatyards, fishing, etc.), The MAP value chain (mainly to processing activities), Textiles and clothes (original fashion design and tailoring, etc.) Typical handicraft, Precision mechanics (introduction of CAD CAM methodologies and technologies), Cultural productions Improvement of the service sector As provider of services for other areas of the country, and Promoter, through Widespread Territorial Outlet, rural productions Systemic Actions Promotion of an IDA, Industrial Development Areas), in order to support a widespread Handicraft and Industry District, Conversion of some activities into others, characterized by lower energy needs, unique and specific productions, higher quality, Establishment of territorial brands and standards of quality, supported by adequate marketing activities, Valorisation of human resources, Promotion of an effective system of financial credit to support investment. Innovation and re-organization of craftsman-like value chains in Dahyeh (textile and clothes, shoes, etc.), search for new kinds of product and new suppliers (for example, in rural areas). Promotion of a Territorial Outlet Centre as an important territorial showcase for all the products of the Areas of the ART GOLD Lebanon Programme.

20 ART GOLD LEBANON STRATEGIC INTERVENTION GUIDELINES Building Network Systems of actors at national (National Consortia of Value Chains) and Area (Area associations of sectors) levels, to manage critical value chain issues (quality and safety control, distribution, marketing, brands, etc.) in a coordinated and strategic way; Improving productive performance, through interventions on technologies, organization, entrepreneurship, productivity, land management, disease, innovation Improving services, through the LEDAs: financial and nonfinancial, quality of human resources, infrastructural interventions (waste, water, energy management), etc.; Improving (or establishing) the national system for quality and food safety control, in terms of infrastructure, laboratories, organisation, procedures and protocols; Improving marketing strategies and actions, including the strategic framework, instruments, the creation of national and territorial brands, links with international markets.