This article is supported by the Friedrich Naumann Foundation Beirut Office. The opinions expressed here do not necessarily reflect those of the donor.

Lebanon’s agri-food sector, encompassing agriculture, food processing, packaging, distribution, and marketing, forms a cornerstone of the economy and food security. In 2020, the sector contributed around 13% of GDP—9% from agriculture and 4% from food processing (FAO, 2025). Beyond its economic weight, the industry links rural livelihoods with urban consumers and integrates sustainability and innovation into national development. Yet, despite this significance, Lebanon’s agri-food system has been strained by successive crises, economic collapse, regional conflict, infrastructure destruction, and climate pressures.

The depreciation of the Lebanese pound and inflation rates exceeding 45% in 2024 have crippled purchasing power and increased production costs (Hage Boutros, 2025). The Beirut port explosion in 2020 and recurrent border conflicts devastated farmlands and disrupted trade. Moreover, 20% of the population (around 1.24 million people) faces acute food insecurity (Al Jadeed, 2025). In this fragile context, rebuilding a resilient agri-food industry is both an economic and humanitarian imperative.

Sector Overview

The global agri-food market is shifting toward higher-value, health-focused, and sustainably produced goods. The Middle East and North Africa (MENA) region, historically dependent on imports, is investing heavily in food self-sufficiency, agri-tech, and sustainable farming (Aboelsoud & Hashem, 2021). Lebanon, with its Mediterranean climate and culinary heritage, is well-positioned to capitalize on these trends. Its diverse terrain supports a range of crops, fruits, olives, grapes, nuts, and vegetables, and the country already exports high-quality olive oil, wine, and processed foods.

However, structural weaknesses persist. The sector remains fragmented, under-capitalized, and poorly integrated with modern supply chains. Outdated infrastructure, limited financing, and weak governance hinder productivity and innovation (FAO, 2020). As seen in manufacturing, industrial stagnation in Lebanon is not the result of lack of talent, but of systemic neglect and inconsistent policy support (Maddah & Maddah, 2023). Similarly, the agri-food industry’s survival depends on fiscal stabilization, efficient governance, and technology adoption.

Challenges

Lebanon’s agri-food challenges are multi-dimensional, encompassing economic, environmental, institutional, and social factors.

1. Economic Collapse and Inflation

Currency depreciation and high inflation have sharply increased the cost of fertilizers, seeds, fuel, and packaging. Many producers, particularly smallholders, lack access to dollar accounts, making imports nearly impossible. The sector’s profitability has plummeted as input prices soared while consumer demand weakened. Lebanon’s GDP fell from $52 billion in 2019 to $23 billion in 2021, and the country was reclassified from upper-middle to lower-middle income within three years (World Bank, 2023).

2. Conflict and Trade Disruption

Regional instability, especially the 2024 conflict with Israel, destroyed agricultural lands, interrupted export routes, and displaced farming communities (Jaafar, 2024). Loss of access to fields and markets has left farmers with unsold produce and mounting debts. The resulting market imbalance has intensified price volatility and food shortages.

3. Infrastructure and Governance Failures

The 2020 Beirut port explosion exposed the vulnerability of Lebanon’s food logistics. A joint World Bank–UN–EU assessment estimated damages of $3.8–$4.6 billion and losses exceeding $3 billion (World Bank, 2024). Agricultural storage, transportation, and processing infrastructure remain largely unrepaired. Meanwhile, weak governance and bureaucratic inefficiency slow recovery efforts, echoing the administrative paralysis highlighted in the manufacturing sector (Maddah & Maddah, 2023).

4. Urbanization and Demographic Pressures

Rapid urban growth has reduced farmland and increased reliance on food imports. Only 11% of the population now lives in rural areas, and 40% of farmers are above 55 years old (UNESCWA, 2023). Youth participation is minimal, limiting innovation and continuity. As cities expand, fertile land is converted into real estate, diminishing Lebanon’s agricultural base.

5. Skills and Standards Gap

Many producers lack training in international quality and safety standards such as ISO 22000 or EU certification. This limits export potential and integration into global markets. The education-industry gap mirrors Lebanon’s broader “brain drain” challenge, with young professionals emigrating for better opportunities (FEWS NET, 2024).

6. Climate Change and Resource Scarcity

Water shortages, erratic rainfall, and rising temperatures threaten crop yields. With few irrigation networks and minimal investment in climate-smart farming, Lebanon’s agricultural resilience remains weak (FAO, 2024).

Combined, these factors have left the agri-food system fragmented, unproductive, and vulnerable to both domestic and external shocks.

Opportunities

Despite adversity, Lebanon’s agri-food industry holds untapped potential for recovery and export growth.

1. Strategic Location and Crop Diversity

Lebanon’s Mediterranean position and fertile valleys enable production of high-value crops such as olives, grapes, citrus fruits, and nuts that are in global demand. The country’s culinary heritage enhances the branding of authentic Lebanese food products in international markets (IDAL, 2020).

2. Rising Demand for Local and Sustainable Foods

Currency depreciation has shifted consumer preferences toward local products, mirroring patterns observed in manufacturing (Maddah & Maddah, 2023). This shift offers Lebanese producers a competitive edge, if they can improve quality and consistency. Simultaneously, the global appetite for organic, clean-label, and sustainable foods aligns with Lebanon’s potential for eco-friendly, small-scale production.

3. Innovation and Cluster Development

Agri-food innovation clusters such as QOOT have strengthened collaboration between farmers, startups, and research institutions. Supported by the International Labor Organization (ILO) and the Food and Agriculture Organization (FAO), these clusters promote value-chain modernization, post-harvest efficiency, and market access (ILO, 2025). The creation of contract farming models and agri-tech incubators further supports farmer access to finance and technology.

4. Educational and Institutional Assets

Institutions like the American University of Beirut and the Lebanese University offer agricultural and food-technology programs that can act as innovation hubs. Partnerships between academia, the private sector, ministries, and the order of engineers could drive applied research in post-harvest management, food safety, and climate adaptation.

5. Infrastructure Modernization

The reconstruction and digitalization of the Beirut port have improved its global ranking from around 700th to 54th (Digital Star News, 2025). This progress in logistics and management efficiency could facilitate exports and supply-chain coordination for agri-food products.

6. Policy Momentum and International Support

National strategies such as the Agriculture Strategy 2020–2025 emphasize sustainable production, youth inclusion, and rural-urban linkages (Ministry of Agriculture, 2020). International donors, including FAO, UNIDO, and UNDP, continue to fund capacity-building programs and infrastructure projects to strengthen competitiveness (FAO, 2024; UNDP, 2023).

If properly leveraged, these assets could transform the sector into a catalyst for inclusive growth, employment, and export diversification.

Recommendations

Following a recent Lebanese Center for Policy Studies-Friedrich Naumann Foundation panel discussion, participants identified strategic reforms necessary to reposition Lebanon’s agri-food sector as a driver of economic recovery.

1. Embrace Technology and Vertical Farming

Modern technologies such as hydroponics, vertical farming, and precision agriculture can overcome land and water scarcity while boosting yields. Pilot projects should be launched jointly by the Ministry of Agriculture, universities, and order of engineers to test scalable models. A National Agri-Tech Strategy (2025–2030) could formalize these efforts, aligning Lebanon with global trends in sustainable production.

2. Strengthen Post-Harvest Infrastructure

Significant quantities of produce are lost each year due to poor storage and handling. Investments in cold chains, warehousing, and digital tracking can reduce waste and improve quality. Encouraging solar-powered or renewable energy-based cold storage can simultaneously cut costs and emissions.

3. Promote Research, Quality, and Compliance

Lebanon needs accessible laboratory testing and certification services to help SMEs meet export standards. Establishing Technology Transfer Offices (TTOs) within universities would bridge research and commercialization, mirroring recommendations from industrial reform (Maddah & Maddah, 2023).

4. Reform Pesticide and Input Regulation

Ensuring the availability and oversight of safe agricultural inputs is essential for consumer protection and export credibility. Collaboration between universities, the Ministry of Agriculture, order of engineers, and international partners should yield updated guidelines and farmer training programs.

5. Decentralize Agricultural Governance

Regional agricultural authorities should be established to manage data collection, policy implementation, and coordination with local producers. Decentralization would reduce bureaucratic delays and allow tailored responses to regional needs from the Bekaa to the South.

6. Reactivate the Farmer Card

Reinstating the Farmer Card (بطاقة المزارع) would enable the creation of a national farmer registry, improving access to subsidies, loans, and training, while fostering accountability and data transparency.

7. Expand Contract Farming

Formal agreements between farmers and processors can guarantee prices, reduce risks, and ensure supply stability. Model contracts monitored by agricultural authorities would build trust and promote youth and women’s participation.

8. Integrate Urban Agriculture

Urbanization can be harnessed through rooftop gardens, hydroponic units, and community farming, reducing food insecurity and creating green jobs. Such initiatives also strengthen rural-urban links and consumer awareness of local production.

9. Enhance Export Competitiveness and Branding

Lebanon needs to have a better balance between imports and exports. Developing a “National Label of Origin and Quality” would unify branding and assure buyers of authenticity. The Investment Development Authority of Lebanon (IDAL) should play a central role in attracting foreign direct investment, supporting SMEs, and establishing agro-industrial zones.

10. Foster Public-Private Partnerships (PPPs)

PPPs can mobilize private capital for logistics, energy, and irrigation projects. Transparent agreements with clear accountability mechanisms are essential to rebuild trust. The private sector should reinvest in innovation and sustainability, while NGOs coordinate with the government to avoid duplication and align with national goals.

11. Empower Cooperatives and SMEs

Agricultural cooperatives and SMEs are crucial for inclusive rural growth. Providing them with access to credit, digital tools, and export channels can enhance competitiveness and create economies of scale.

Conclusion

Lebanon’s agri-food sector stands at a decisive moment. Its challenges—economic collapse, environmental stress, and governance failures—are profound, yet its opportunities remain substantial. The country’s natural endowments, skilled workforce, and cultural reputation for quality food can anchor a new model of resilient, export-oriented growth.

To achieve this, Lebanon must integrate technology, infrastructure renewal, and governance reform into a unified national strategy. The future of Lebanese agri-food production depends on collaboration among government, academia, private enterprises, and international partners. By aligning investments and policies with innovation and sustainability, Lebanon can transform its agri-food industry from a sector in survival mode into a regional leader in resilience and quality.

References

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