Profitability of organic farming in Lebanon : the case of fruit vegetables value chain.

Abstract

Although agriculture is the major contributor to the occupation of 75percent of the world’s poor, but with issues like food safety and sustainability rising, there is definitely a need for alternative farming system. This alternative system must tackle environmental, health, economic, and social concerns. These factors led this study towards organic agriculture, aiming to represent its’ demographics in Lebanon. The foremost concern in this sector is that organic produce are not affordable for middle and low classes. A survey done in Beirut shows that 90percent of the households prefer organic vegetables but cannot afford it. Demand for organic is increasing, but supply is still low. The objectives of this study is determining organic production costs, mapping the organic value chain, determining the profitability for farmers, and comparing with conventional sector for the same value chain. This helps in showing whether selling prices are justified by production costs. Tomato was selected to be the main center of this study since it is the most common crop between organic vegetable farmers in Lebanon, and it is a cash crop with a very high demand in the market. Face to face interviews were executed after developing a questionnaire that permits the assessment of production costs, revenues, and profits. In addition, a market study (retailers, shops, and farmers market) was carried out in order to determine selling prices. A comparison between organic and conventional production costs and profits was done. It was found that organic tomato production costs are 11.60percent higher than conventional. This is mainly due to higher labor costs, and the organic certification costs (especially for a small farm). Profitability differs based on the marketing channel choice. The more direct process of selling by the farmer to the consumers increases his profits. It is concluded that organic farming can be profitable, and production costs are not the only factor behind the difference in selling prices. Farmers need technical assista