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Freekeh LIVCD Intervention and Impact This presentation is made possible by the support of the American people through the United States Agency for International Development (USAID). The content of this presentation is the sole responsibility of the Lebanon Industry Value Chain Development (LIVCD) Project and does not necessarily reflect the views of USAID or the United States Government

What is freekeh ? Lebanon Industry Value Chain Development (LIVCD) Project

Freekeh is a roasted green wheat. At a certain stage of growth: Wheat spikelets are harvested, roasted, threshed and dried. Lebanon Industry Value Chain Development (LIVCD) Project

Market size • In 2015, based on Market survey by LIVCD team , major Lebanese processors purchase an estimate of 300 tons of freekeh from neighboring countries such as Syria and Egypt for the local market and export market. • LIVCD project has supported 10 cooperatives to produce total of 20 tons in 2017. • Freekeh demand is growing due to the increasing health trend in the world and need for ancient grains. Lebanon Industry Value Chain Development (LIVCD) Project

Main challenges 1. Low freekeh yield from traditional wheat varieties especially in the arid areas 2. Absence of an appropriate post harvest process for freekeh 3. High cost of production of traditional freekeh process 4. Lack of quality and consistency of the end product preventing Lebanese Freekeh from being exported. 5. Absence of a local and international freekeh standard Lebanon Industry Value Chain Development (LIVCD) Project

LIVCD interventions • Introduce new wheat varieties resistant to drought with a desirable large grain and high yield in arid regions • Increase yield and availability of freekeh to meet market demand • Develop a process capable of producing higher quality freekeh in larger volumes at competitive cost with increased margins to improve net income of cooperatives and farmers. • PPP- Partnership with National Instruments to introduce technology that improves the efficiency and quality of the post harvest process. • Facilitate market linkages between cooperatives and small producers with MSMEs. Lebanon Industry Value Chain Development (LIVCD) Project

FREEKEH VALUE CHAIN INTERVENTION 2015-2017 Axis 1 Axis 2 Axis 3 Market support Aggregation + Processing Production 1-New Freekeh 1-PPP- Public private 1-In partnership 1-GMP &GAP standard to be adopted partnership with NI, with LARI, training to by Codex Alimentarius. LIVCD and local LIVCD farmers and 2-Freekeh facts website freekeh producers introduced a new women 3-New market linkages introduced new post variety of wheat with food industries producers harvest ( ICARACHA ) to equipment(Roaster, increase yield. dryer) Lebanon Industry Value Chain Development (LIVCD) Project

TRADITIONAL VERSUS NEW FREEKEH PROCESS Harvesting of green wheat Farmers harvest local and new variety of wheat prior to maturity while the spikelet's are still green and the grain has high moisture content. Drying & Roasting Process: Traditionally harvested green wheat is spread on the side of the road before roasting to be sun dried for up to 24 hrs. LIVCD introduced new roasting machine that ensures consistent of roasting reducing contamination. Lebanon Industry Value Chain Development (LIVCD) Project

TRADITIONAL VERSUS NEW FREEKEH PROCESS Traditional Drying Process Traditionally once charred, the roasted green wheat spikelet's are spread once again on the side of the road for them to be sun dried for up to 24 hrs. New Drying Process: Using the new automated drier, Freekeh grains are sterilized and evenly dried at high temperature. The machine automatically stops the drying process once the preferred moisture content of the grains is reached. Lebanon Industry Value Chain Development (LIVCD) Project

Cost of producing one dunum of Freekeh Activities Cost-LBP Cost -USD Seeds 13,000 8.6 Land rental 75,000 50 Ploughing + weeding 30,000 20 Fertilization 50,000 33.3 Labors for manual harvesting 80,000 53.3 Tools (bags, nylon sheets for sun drying) 30,000 20 Labors for roasting 45,000 30 Gas for running the roaster 30,000 20 Transportation from the field to the roaster 15,000 10 Transportation from the roaster to the 15,000 10 threshing machine Threshing 50,000 33.3 Transportation from the threshing machine 10,000 6.6 to the dryer Labors for drying 5,000 3.3 Gas for running the dyer 5,000 3.3 Total 453,000 301 Lebanon Industry Value Chain Development (LIVCD) Project

Wheat versus Freekeh-1 dunum Freekeh wheat 1 dunam = 200 kg 1 dunam = 400 kg Production cost for 1 dunam = Production cost for 1 dunam = $302 $160 Average cost of 1kg = $1.6 Average cost of 1kg = $0.4 Average selling price of 1kg = $4 Average selling price of 1kg = $4 Net income generated out of Net income generated out of 1dunam = $480 1dunam: $160 Lebanon Industry Value Chain Development (LIVCD) Project

LIVCD impact on freekeh Value chain Figure 1. LIVCD intervention impact on number of freekeh farmers and cultivated dunums in South and Bekaa Source: LIVCD records – Activity results, Processed Food Value Chain, September 2017. Lebanon Industry Value Chain Development (LIVCD) Project

LIVCD impact on freekeh Value chain 72 60 women women producers producers Figure 2. LIVCD intervention impact on number of jobs impacted including women producers ”cooperative” who are also freekeh farmers Source: LIVCD records – Activity results, Processed Food Value Chain, September 2017. Lebanon Industry Value Chain Development (LIVCD) Project

LIVCD impact on freekeh Value chain Figure 3. Freekeh production and sales increase 2015-2017 LIVCD records – Activity results, Processed Food Value Chain, September 2017. Lebanon Industry Value Chain Development (LIVCD) Project

Major Highlights • Axis 1: Market support – Complete cost analysis of freekeh production for coops – Completed rebranding and nutrition labeling for 4 SME’s and cooperatives – Market linkages with processors – 4 Beirut based processors are purchasing freekeh from women cooperatives and SMEs. – Freekeh website (www.freekehfacts.com) – Support participation in trade shows in Lebanon – Completing Freekeh standard with LIBNOR Lebanon Industry Value Chain Development (LIVCD) Project

Major Highlights • Axis 2: Aggregation & Processing – PPP: Public Private partnership with National Instruments. – Partnering with Mekatronico-a start up Lebanese company to design and execute the roaster and dryer. – Introducing new wheat variety for better yield and quality. Lebanon Industry Value Chain Development (LIVCD) Project

Major Highlights Axis 3: Productivity – Helping farmers to Introduce new wheat varieties with high productivity, suitable for freekeh and tolerant to drought – Providing Good Agricultural Practices (GAP) training for farmers – Providing Good Manufacturing Practices (GMP) training for farmers and cooperatives – Developing Freekeh Nutrition Facts with processors – Developing Freekeh standard with LIBNOR Lebanon Industry Value Chain Development (LIVCD) Project

Recommendations Introducing new equipment to Freekeh farmers and processors to reduce production bottlenecks  Destoner  Thresher  Mechanical harvester  Wheat seeding machine Lebanon Industry Value Chain Development (LIVCD) Project

THANK YOU Lebanon Industry Value Chain Development (LIVCD) Project