Exploring the Manifestation of the Corporate Food Regime in Lebanon: Case of the Horticultural Supply Chain

Abstract

The paper examines the horticultural supply chain in Lebanon under the scope of food regime analysis amidst global geopolitical transformations and social movements. A historical view on Lebanon’s food system concerned with political, economic, and social changes was investigated with a focus on agricultural production and trade. Understanding significant historical alterations allow us to realize food system transformation in Lebanon during the first colonial food regime and the second food regime post-world war with the rise of the Green Revolution. This would set the stage for the 3rd corporate–led food regime post-Cold War, where liberalization, globalization, and corporatization led to corporate food expansion through the rise of transnational corporations with the help of supranational institutions and global agribusinesses. A phenomenon known by supermarketization and restaurant corporatization would later dominate the food sector. The global food system had changed with several waves conveyed to developing nations, where Lebanon during and after the Civil War would find their food retail structure transformed with increased international penetration through foreign investments alongside politically sectarian resistance. The alterations had some implications on society, nutrition and public health, and the environment. Ultimately, a novel food regime understanding might be emerging, amidst, global recession and pandemic, social movements, and geopolitical uncertainties. The corporate food regime has manifested in Lebanon for over 30 years with success but with resilience of traditional retail formats and the role of the local FV wholesale market The paper aims to evaluate opportunities for and barriers faced by Lebanese horticultural producers and suppliers when participating in the supply chain under the premises of the corporate food regime. In order to achieve this, procurement decisions, contractual agreements, standards, and credit terms required by supermarkets and corporate restaurants in Lebanon when procuring horticultural products were examined to understand market and negotiation power between the provider and the retailer. The objectives were realized through a qualitative research method that utilizes semi-structured interviews alongside critical observational analysis and guidance of the literature. A series of supermarkets, corporate restaurants, horticultural producers, and suppliers were interviewed across Lebanon. The study showed that specialty producers and processors supply corporate restaurants that require strict quality specifications and consistency, which can only be achieved through private food safety and quality certifications. Their relationship structure is binding, symbiotic, professional, and service oriented. Also, supermarkets have an opportunistic, non-binding relationship with their suppliers, where most of their products are sourced by the FV wholesale markets. Three categorizing dimensions were identified, where quality level (Privately Certified, IMP/Balade non-certified and conventional) was the principle indicator that determines negotiation and market power of horticultural providers when dealing with corporate procurers. The quality level is directly correlated to land size and ownership structure to the producer, where these are considered limiting factors faced by most producers. The principle limiting factor was considered to be the lack of a clear national agricultural policy and framework that has been absent for decades. The deteriorating economic situation including inflation and currency devaluation were also considered limiting factors for horticultural producers. There are opportunities found in the horticultural supply chain, where inefficiencies can be reduced at the level of the supplier, and producers can gain market power through investing in their quality level, away from conventional farming methods, especially in potato production to gain entry in the corporate restaurant supply chain. There are also opportunities in value-adding agro-processing sector, where a direct sale can be encouraged through farmer’s market or directly to retailers or the food-service industry. Achieving this requires positive transformations in government, where trust from the common people is refortified and where intervention in the private sector is strengthened through further collaboration, funding, and observation of projects by a functional, non-corrupt government. Also, the private sector has a role to play to increase traceability and transparency along the supply chain, and with the help of the banking sector in investing in agricultural projects. Finally, these transformations should be able to improve the effectiveness and efficiency of the horticultural supply chain for producers, traders, retailers, processors, and consumers; transitioning into a more transparent, socially-just, sustainable, and secure food system.