Targeting high-end niche markets is an effective policy for an agri-food company to boost its exports since low cost is not a sustainable competitive advantage in Lebanon. Small and medium enterprises (SMEs) involved in the production of extra virgin olive oil, goat dairy products, and organic wine are seizing opportunities in export markets and earning the much-coveted fresh dollars. Quality, which is a prime requirement on global markets, necessitates abiding by specific and concrete standards to obtain certifications that are a ticket to enter increasingly demanding markets.
Goat dairy and extra-virgin olive oil
Hajjar Foods (Go Baladi), which produces conventional and organic dairy products from goat milk, currently exports 40-50 percent of its total output to the United Arab Emirates (UAE) and an African country. The company is currently focusing more on conventional dairy products due to the weakening purchasing power both locally and on global markets, according to Co-Founder and Production Manager of Go Baladi. She said: “We are considering expanding our exports to Qatar, Kuwait, Saudi Arabia, and Jordan in addition to new countries in Africa. There is an increase in global demand for goat dairy products as more people are becoming more aware of the health benefits of goat milk while global supply of goat dairy products is still limited.” Go Baladi, which is an SME, expands its supplier base of goatherds usually on an annual basis but it is not looking for new capital in the current circumstances. “We might consider an expansion in the future such as having a new partner who injects new capital,” Hajjar said. Go Baladi has recently introduced kashkaval cheese made from cow’s milk. “This new product targets customers who consume expensive imported kashkaval,” she said. Darmmess, which produces premium quality extra-virgin olive oil (EVOO), exports 80 percent of its output to Gulf, founder of Darmmess. She said they are not looking for financing for the time being but for a technical assistance grant and that they plan to launch an innovative product.
