22 May 2012

BEIRUT: Nearly five years ago, 40 percent of Lebanese food and beverage exports were denied entry into North America, Europe and the Gulf region under the pretext of irregularities in packaging and labeling, according to a study by the Economy Ministry.

However, by 2012, this percentage has fallen considerably as many Lebanese producers have become more focused on the importance of packaging and labeling, which are seen as crucial requirements to enter markets abroad, Soha Atallah, director of LibanPack told The Daily Star.

The Lebanese Packaging Center, LibanPack is a nonprofit private-sector association founded in November 2007 with the support of United Nation Industrial Development Organization-Market Access and Compliance for Lebanese Export and funded by Switzerland.

Atallah said the major objective of LibanPack is to raise awareness among Lebanese industrialists on the importance of complying with international standards for packaging and labeling in a bid to increase the competitiveness of Lebanese products in export markets.

LibanPack services include integrated feasibility studies, technical assistance in packaging design, consultancy services to ensure compliance with international standards such as ISO 22000 and in-house training that covers manufacturing practices, Atllah said.

However, despite increased interest from Lebanese industrialists in packaging, Atallah said LibanPack still faces difficulties.

Among these difficulties is the reluctance of Lebanese industrialists to pay for consultancy services.

“Some Lebanese industrialists are still reluctant to pay for consultancy services. They would rather pay for tangible products,” she added.

However, LibanPack is drawing a growing number of customers from the Arab world such as Iraqi and Egyptian industrialists who have been cooperating with LibanPack.

The increased interest by Arab clients is helping LibanPack in its quest to accomplish self sustainability by guaranteeing the necessary funds for its operations, Atallah said.

Switzerland through its State Secretariat for Economic Affairs has committed $2.5 million to LibanPack since its kickoff for a five year period that ends in 2012, Atallah said.

“We thank Switzerland for its support that enabled us to offer free services when we started operating in 2007. Currently we are charging a symbolic fee for our services and our main revenue comes from sponsors,” she said.

Atallah added that the Lebanese Industrialists Association has also assisted LibanPack by hosting the association at its headquarters free of charge.

LibanPack offer its members three membership plans: a professional membership costing LL250,000 per year for Lebanese industries, companies and individuals; a student membership available at LL30,000 per year and an honorary membership starting at LL2,000,000 in annual fees.

Starting in 2013, LibanPack, faces the challenge of securing new funds to cover for the ending of the Swiss funding grant.

To compensate for the Swiss funding, the government should play a role in supporting LibanPack and by knock-on effect Lebanese industries, Atallah said.

With more than 60 members including industry professionals, companies, NGOs and student groups, LibanPack, a member of the World Package Organization, has extended its network by signing partnership agreements with the French and Tunisian packaging centers, she said.

Lebanon will host the 2013 board meeting of the World Packaging Organization, according to Atallah, who added that LibanPack was also organizing regional study tours for industries from Iraq and Sudan among other countries.

During the LibanPack-organized Lebanon Student Starpack 2012 award ceremony held in March, leading Lebanese industrialists said that superior packaging has boosted the competitiveness of Lebanese products and has contributed to the doubling of industrial exports over the last five years.

However, the industrialists have warned that the increasing energy costs involved in product packaging threaten the competitiveness of this new focus on image.

Copyright The Daily Star 2012.