The Food Processing sector in Lebanon can be described as one of the main driving forces for economic growth in Lebanon. According to the most recent survey conducted by the Ministry of Industry, more than 4800 establishments are currently active in food processing activities, 80% of which are classified as SME’s, employing between 5-10 workers, but the total workforce is estimated to be around 26000 employers or 25% of the total industrial workforce. It is also labeled as the highest added-value among the remaining Industrial sectors, with second rank in Lebanese exports (10% of total industrial exports in 2009) , and more than 75 different export destinations.
As for the geographic distribution, the following slide depicts that 29% of the Food Processing Units are located in North Lebanon, whereas the Bekaa valley accommodates more than 20%, the remaining are distributed among the other Lebanese Districts as described. The Lebanese Food Sector used the international classification made by CODEX ALIMENTARIUS to categorize the various food sub-sectors:
- Milk & Dairy
- Oil, Fat & Derivatives.
- Canned Food, Pickles and Jams.
- Flour & Bakeries.
- Alcoholic and Non-Alcoholic Beverages.
- Roasted Nuts, Coffee, Beans and Snacks.
- Spices.
- Confectionery.
- Water and Flowers Distillers.
- Meat & Poultry Processing.
The Macro and Micro trends of Lebanese Food Processing Business shape the constraints and opportunities for sector growth, and possess a significant impact on its strengths and weaknesses as well: Climate diversification, the reputable image of Lebanese restaurants and food service, advanced production know-how, and availability of affordable, skilled and unskilled labor force can all be listed among many other strengths of this sector, without forgetting the distinguished presence of the Lebanese International Pavilion in most of the international trade fairs. However, many discrepancies exists on this sector value chain, especially at the source level, where many problems arise in the farm and the agricultural sector, the main source of raw materials, adding to it other structural deficits that characterize the Industrial Sector as a whole. The development of an internationally recognized Lebanese cuisine, with excellent reputation worldwide may constitute the best opportunity to promote Lebanese food exports and contribute in the expansion of this sector. Moreover, Lebanese Food exports are recording higher penetration rate each year, and the access to streamline foreign markets is becoming more and more credible, without forgetting the huge potential of granting several Lebanese products a Geographical Indication label.
However, Lebanese Food Sector is witnessing a fierce competition from neighboring countries, adopting more aggressive policies to support their local production, in a highly dynamic market where standards and norms are changing constantly.
In 1995, the Syndicate of Lebanese Food Industrialists was founded, to organize the members’ activities and represent their interests and concerns to the official authorities. Current membership exceeds 135 members, including more than 80% of the major food producers and exporters in Lebanon.
In an endeavor to promote the sector image in and outside Lebanon, the Syndicate formulated its action plan to take into account all the challenges facing the food sector, and was better declared in the Syndicate vision and mission statements.
However, the main message that we always try to disseminate through our products will always remain: Made in Lebanon is an international quality standard that depends on the total integration and cooperation of all the stakeholders (Processors, Public Sector, Universities and Research Centers, NGO’s…), focusing on high added-value outputs, to be consumed in local and export markets, and processed by entities that respect that Cultural, Social, and Family value of the Lebanese Society.
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