Opportunities and Challenges for Lebanese Horticultural Producers Linked to Corporate Buyers

Abstract

This paper aims to analyze procurement decisions and contractual arrangements in the horticultural supply chain and evaluate opportunities for and challenges of horticultural producers linked to supermarkets and corporate restaurants in Lebanon. Accordingly, in-depth, semi-structured interviews were conducted with key horticultural supply chain actors in Lebanon. The study finds that corporate restaurants offer more opportunities for large horticultural producers and suppliers than supermarkets. Yet, corporate restaurants have more stringent quality requirements, as demonstrated by food safety certifications, and their contractual relationships are binding, symbiotic, and formal. Supermarkets source most of their products from wholesale markets and have opportunistic, non-binding relationships with their suppliers. In sum, the nature of the business relationships between horticultural producers and suppliers and corporate buyers depends on the ability of the producers to meet the quality requirements of the latter. Although corporate buyers have shown some interest in the local produce, they are yet to invest in local supplier development initiatives to enhance the capabilities of producers. Instead, corporate buyers resort to imports when the local producers fail to meet the quality standards or required volumes. The study suggests several alternative routes to enhance the market position of horticultural producers and suppliers in Lebanon.