Lebanon - 3.5 Food and Additional Suppliers

Food and Additional Suppliers

Lebanon's ability to procure and rely on local produce has been influenced by a combination of factors including its geography, climate, agricultural practices, economic conditions, and historical development. Historically, Lebanon has had a strong agricultural sector, but in recent years, there have been challenges that have impacted its ability to fully rely on local produce. Here's an overview:

Challenges:

Imports and Market Access: In recent years, Lebanon has become increasingly reliant on imported goods, including food products. Imported goods can sometimes be cheaper due to economies of scale, impacting the competitiveness of local produce.
Agricultural Modernization: Traditional agricultural practices, while valuable, might not always align with modern efficiency and productivity standards. Lack of access to modern technologies and farming methods can limit the sector's growth.
Political and Economic Instability: Periods of political instability, conflict, and economic challenges have affected investment in the agricultural sector and the overall ability to produce and distribute local goods.
Water Scarcity: Despite its relatively diverse climate, Lebanon faces water scarcity issues, which can impact agricultural production. Mismanagement of water resources can further exacerbate this challenge.

The food supply market in Lebanon has historically been competitive due to the country's diverse cuisine, the importance of food in its culture, and the presence of various local and international food suppliers. The market encompasses a wide range of products, from fresh produce to packaged goods, and includes both local and imported options. Supermarkets, grocery stores, food distributors, wholesalers, and even small traditional markets contribute to the competitive landscape.

Lebanon's ability to meet food demand has faced challenges due to several factors:

Import Dependency: Lebanon heavily relies on food imports to meet its domestic demand. This dependency makes the country vulnerable to disruptions in global supply chains, currency fluctuations, and international trade dynamics.
Economic Challenges: Economic difficulties, including currency devaluation and inflation, can impact the affordability of imported goods, affecting the accessibility of certain food products for the population.
Infrastructure and Distribution: Issues related to infrastructure, storage facilities, and transportation can hinder the efficient distribution of food products across the country.
Agricultural Constraints: Despite its agricultural potential, Lebanon's agricultural sector faces challenges such as limited arable land, water scarcity, and outdated farming practices, which can affect domestic production levels.

Lebanon is heavily reliant on imports to meet its domestic needs, partly due to the country's limited natural resources and industrial capacities. Key imported goods include:

Food Products: Grains, meat, dairy products, and processed foods.

Lebanon's export sector is relatively small compared to its imports, and its exports in Food Industry include:

Agricultural Products: fruits, vegetables, nuts, and wine, benefiting from its Mediterranean climate and fertile land.
Food Processing: Olive oil, processed foods, and dairy products are being produced for both domestic consumption and export.

It's important to note that Lebanon's manufacturing and production capacities have been affected by economic challenges, political instability, and regional conflicts. The country's ability to fully leverage these capacities is contingent on addressing these challenges and creating a conducive environment for economic growth and stability.

Lebanon - 3.5.1 Food Suppliers

Overview

In Lebanon, where food should be available, there are obstacles for food manufacturers and retailers. The economy isn't steady because of economic and financial problems and political issues, which makes it tough for food producers to keep their prices reasonable. They also have trouble getting all the things they need to make food because the situation makes it hard to find ingredients. This makes it tricky for the people who sell food in large amounts (wholesalers) because they can't always get what they want. Even moving the food around using trucks and roads isn't working well anymore because things aren't being maintained properly. It's difficult, but even with all these problems, the people in the food industry are doing their best to keep Lebanon's food going despite the challenges this sector is facing,

At a wider level, the availability of various food commodities in Lebanon is influenced by both domestic production and international trade partnerships. In terms of ready-to-eat foods, these include a range of packaged and processed foods that cater to convenience. Importation of such products is substantial, with a mix of international sources being key trading partners.

Cereals, pulses, oil, and sugar form the core of dietary staples. Cereals like wheat and rice, along with pulses such as lentils and chickpeas, constitute significant dietary components. Oil, often derived from sources like olives and vegetables, is a crucial ingredient in Lebanese cuisine. The availability of these commodities is affected by domestic production capacities, which can be influenced by factors like weather and agriculture policies. Additionally, Lebanon may engage in international trade for these commodities to fulfil demand and manage supply shortages.

Live animals, meat, and dairy products play a central role in Lebanese cuisine. The local production of livestock, including poultry, sheep, and cattle, contributes to the availability of meat and dairy. However, fluctuations in these sectors are also subject to factors like disease outbreaks and environmental conditions. Imports might supplement domestic supply, especially for specific cuts and varieties not produced locally. Main trading partners for such imports could include neighbouring countries and larger international markets.

In the context of Lebanon's intricate food system, the availability of these commodities is intertwined with both domestic production capabilities and international trade dynamics. Challenges ranging from economic instability to supply chain disruptions can impact this delicate balance, ultimately affecting the accessibility of essential food items across national and district levels.

Retail Sector

The retail sector in Lebanon showcases a blend of both established local players and international retailers. While local retailers hold a significant presence, major regional and global retail chains have also entered the market, offering a diverse range of products to consumers. These retailers often have well-established relationships with national and regional wholesalers, facilitating the distribution of goods to their stores. Despite the challenges faced by Lebanon's economy, the retail sector has exhibited resilience, with established retailers demonstrating stability and continuing operations. While the country's economic environment may present hurdles, the retail sector does make use of credit systems to some extent, aiming to provide consumers with purchasing flexibility and support in the face of economic fluctuations. The coexistence of local and international retailers, coupled with stable retail operations and credit mechanisms, paints a complex picture of the retail landscape within the nation.

Types of Retailers Available
Type of Retailer	Rank (1-5)
Supermarket – concentrates mainly in supplying a range of food, beverage, cleaning and sanitation products; have significant purchasing power; are often part of national/regional/global chains.	1
Convenience Store/Mini Market – medium sized shop; offers a more limited range of products than supermarkets; usually has good/stable purchasing power; may be part of chain or cooperative.	2
Permanent shop with strong supply capacity – individually/family owned store; usually offers fewer commodities and a limited selection of brands; good storage and reliable supply options.	3
Permanent shop with limited supply capacity – individually/family owned store; offers fewer commodities and a limited selection of brands; limited storage and unstable supply options.	4
Mobile Shop/Market Stand – individually/family owned store; usually offers fewer commodities and a limited selection of brands; may be found at outdoor markets, camps or unstable environments.	5

Wholesale – Zein J. Harb S.A.L

Zein J.Harb was established in April 1999, they are a food supplier they are considered a retailer since they procure their goods from local and international markets, some of the products is ready to be distributed in the market such as canned food, and the other part is usually re-bagged in their premises. They have a local affiliation with a sister company called Alfa Interfood SAL, both are under the umbrella of Harb Holding International Company SAL.

Supplier Overview
Company Name	Zein J. Harb & Partners S.A.L
Address	Haret Hreik, Mouawad District, Nahle Bldg, Beirut Lebanon
Does the supplier have its own production/manufacturing capacity?	No, the supplier is only a wholesale retailer
Does the supplier have its own retail capacity?	No, the supplier is only a wholesaler, they only distribute to markets
Does the supplier have its own transport capacity?	Yes
Does the supplier have its own storage facilities?	Yes
Approximate Turnover in MT	90 MT Per Day
Payment Methods Accepted	Cash, Bank transfers.
Other Comments or Key Information	NA

Other Locations
Region(s)	Service Location(s)
Bekaa	Masnaa

Primary Goods / Commodities Available
Commodities by Type** (SITC Rev 4 Division Code - Title)		Comments
00 - Live animals (other than fish, crustaceans, molluscs, etc.)	No	Indicate in this column if goods are imported or produced/manufactured locally; any seasonal variations in stocks, or other limitations on availability.
01 - Meat and meat preparations	No
02 - Dairy products and birds’ eggs	No
03 - Fish (not marine mammals), crustaceans, molluscs…	No
04 - Cereals and cereal preparations	rice, flour, pasta.	imported
05 - Vegetables and fruit	No
06 - Sugars, sugar preparations and honey	sugars	Imported
07 - Coffee, tea, cocoa, spices and manufactures thereof	TEA	Imported
09 - Miscellaneous edible products and preparations	No
41 - Animal oils and fats	No
42/43 - Fixed vegetable fats and oils, crude, refined or fractionated	vegetable oil	Imported

Lebanon - 3.5.2 Additional Suppliers

Overview

In general, operational support equipment is in good supply in local markets. Construction equipment (water pipes, pumps etc) is available (mostly imported). Plastic water tanks are locally produced.

Potable water is generally available via the public water network, however Beirut city often faces water shortages during the summer season (July to October) due to lower rainfall. Private water tankers fill the gap during this time, at roughly 15-20 USD (22,500 to 30,000 Lebanese Pounds) per 1,000 litres of water.

Tents are produced locally and also imported. In most cases, tent tarpaulins are imported, while the other parts (structure, frame etc) are produced locally.

ICT equipment including laptops, scanners, printers, etc. are widely available in the local market. However, in some cases, specific equipment which is not common in Lebanon, will require importation (e.g., Specific server equipment, large-scale map plotters etc.).