Lebanon Opportunities

Organic gains a cost advantage

The gap is shrinking between the prices of organic and conventional fruits and vegetables. Organic agriculture is gaining some cost advantage because it does not use pesticides, synthetic fertilizers, and other chemicals. These inputs are imported from abroad and are paid for in hard currencies. Conventional farming, which relies on these chemicals in order to boost productivity and benefit from economies of scale, is witnessing a sharp rise in its production costs. But organic farmers still have to pay for imported natural pesticides such as bacteria, sulfur, eucalyptus oil, and extracts from the chinaberry tree in addition to organic certification fees. Both organic and conventional farmers have to bear other expenses such as imported agricultural equipment, seeds, and fuels. The subsidies provided by the government cover only a small portion of the cost, according to Antoine Howayek, Chairman of the Lebanese Farmers’ Association.

Surge in conventional food prices

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