ROLE OF MICROFINANCE ON SMALL-SCALE FARMERS AND DAIRY PROCESSORS: A CASE STUDY ON THE GOAT SECTOR IN WEST BEKAA AND SHOUF AREAS IN LEBANON

Abstract

Microfinance, also microcredit, refers to a specific type of financial service aimed for customers with low-incomes and that do not qualify for commercial loans, and consists of lending money, usually in small amounts. Small-scale goat farming and small-scale goat dairy productions are significant constituents in the livelihoods of marginal Lebanese rural communities. Reviving and aiding this sector is complementary in creating value for rural communities in terms of building sustainable livelihoods, safeguarding traditional functioning value chains, providing food security, and maintaining ecological wellbeing. In Lebanon, the MF sector remains unsaturated and limited research is available on its performance. In addition, the traditional goat sector in Lebanon is underdeveloped and its socio-economic aspects are understudied. A qualitative socio-economic approach was employed to determine the perceived challenges, opportunities and context of goat farmers and dairy processor in the Shouf and West Bekaa casas and the role of Microfinance to these communities. Qualitative semi-structural interviews were conducted with 30 participants divided equally between the two areas. Results show that challenges facing this sector are economic, regulatory, operational, social and hygienic as perceived by the participants. The economic challenges are namely markets, competition, demand and supply; and less financial and capital. The majority do not see opportunities in this sector in its current system and demand improvements and regulations to protect them as small-scale actors, as such, MF is not able to directly address challenges in this sector.