Some ten years ago, Fadel Trading Company planted its first avocado trees on the edge of its banana plantations, purely as protection against occasional strong winds. Four years later, given avocados' skyrocketing popularity at home and especially overseas, they established proper orchards. By 2023, this South Lebanese cultivation and trading company has 100 hectares of avocados. And that will increase significantly in the coming years.
Fadel grows bananas in-house on 400 hectares
Yet, for now, avocados still play second fiddle to bananas at Fadel Trading Company. This family business, run by founder Rida Fadel and his brothers Ali and Abdallah, has an acreage of 400 hectares of bananas. That, then, is one of two products at the heart of what began as a trading company in 1980. Rida marketed bananas in the winter and watermelon in the summer, all of which he purchased from local growers. Brother Ali joined later, and in 1995, the business was officially named Fadel Trading Company.
The focus has now moved to avocados
Canary Island bananas
Abdallah, too, joined the company, which added fruit cultivation to its trading. First, bananas: drawing growing method, variety, and post-harvest treatment inspiration from the Canary Islands. "That was fairly obvious because southern Lebanon’s coastal climate isn't that different from that of the Spanish archipelago. The mercury never drops below 7°C here in winter. If it gets cold, and by that, I mean below 15°C, the plants don't die; it just delays the harvest. The problem sometimes is the wind. But we have the avocado trees or nets for that," begins Abdallah.
Sorting of newly delivered avocados
By now, Fadel Trading Company grows not only bananas and avocados but also watermelon (200 ha), citrus (100 ha), and stone fruit, apples, and grapes (200 ha). "In fruit trade, we’re among the top five companies in Lebanon, turnover-wise," says Mirna, Rida's daughter, who also works at the company. "We source produce from growers via direct purchase or contract growers, thus always ensuring a uniform variety range."
Avocado's are dried after being washed
Focus on quality standards
Once cultivation was well established, the trading company entered the next critical phase to best serve its customer base: investing in post-harvest handling by constructing warehouses and packing facilities and installing sorting lines. "In 2009, we commissioned a technologically advanced banana line to meet the high export quality standards, with shipments to countries like Turkey and Jordan. Three years later, a modern stone fruit packing plant followed in southern Lebanon, and in 2020, a facility for avocados - the biggest grower among fruits," Mirna explains.
...and sorted...
In Lebanon, many growers are switching from citrus to the more profitable avocado. "And come a bad banana year, I'm sure some of that acreage will be converted to avocado orchards, too. Avocado is a versatile product in Lebanese cuisine. But much of its yield is for export. Greenskins are marketed mainly in the Middle East, Hass, and to a lesser extent, Lamb Hass in Europe. In our plots, those two varieties' distribution ratio is 30% Hass and 70% Lamb Hass, but we're going to expand the Lamb Hass acreage. It's easier to grow and isn't rotation-sensitive like Hass. And even though European clients traditionally prefer Hass, Lamb Hass is becoming increasingly popular in Valencia, for example," says Abdallah.
They are then packed, at the moment for the domestic market in single layer creates
Historically oriented toward the Middle East
Lebanese growers and traders always had their sights set on the Gulf States; a mental shift has, however, occurred recently, at least among the larger companies such as Fadel Trading Company. Still, a perfectly good explanation exists for that historical orientation toward the Middle East. "The Gulf States were more interesting as a market simply because of their geographical and cultural proximity. You can't underestimate that advantage. Even though labor is cheap in Lebanon, we face some hidden costs which sometimes make exporting to more distant destinations, especially Europe, unattractive."
Fluctuating wages
Abdallah explains that, unlike Israeli or Turkish growers, Lebanese horticulturalists have never received government grants. "Also, electricity is costly and, though labor is inexpensive, it's far more efficient in, say, Europe. We've not yet reached European cultivation and processing's high-tech level. Salary levels aren't the only limiting factor; wage fluctuations over the years are just as much so. Before the 2019 crisis, we paid our workers an average of €1,000," he says.
"During the crisis years, that plummeted to €200, now it's risen to €500. In other words, we have to constantly adapt to a new reality. That's counterproductive for a company. Logistics are also expensive, especially maritime ones, because they, too, aren't always consistent. So it's quite understandable that many preferred overland exports to the neighboring Middle Eastern countries.”
Own coldstores
Average prices as indicator
However, with the Syrian civil war and Saudi Arabia banning Lebanese products in 2021, much of that route is currently cut off. And so Europe is increasingly coming into focus. "Especially for us. We're a sizable company, so we have significant responsibilities,” explains Abdallah. “Firstly, to our employees, but also to all our suppliers and their families. We actively look for market opportunities, based on thorough analysis of the information we collect on different markets.”
However, with the Syrian civil war and Saudi Arabia banning Lebanese products in 2021, much of that route is currently cut off. And so Europe is increasingly coming into focus. "Especially for us. We're a sizable company, so we have significant responsibilities,” explains Abdallah. “Firstly, to our employees, but also to all our suppliers and their families. We actively look for market opportunities, based on thorough analysis of the information we collect on different markets.”
“Europe offers the greatest opportunities. For example, some markets have supply gaps at certain periods for some of the products we offer, including avocados. We can fill those. But instead of doing that, our strategy is to monitor a given product's average prices in a given market and, using that, establish long-term buyer relationships. We want to be a stable, reliable supplier, not an opportunist," Abdallah concludes.
This year, due to water shortages, Spain's top avocados cultivation area - the Costa Tropical - has 70% lower yields. The time has, thus, perhaps come for Fadel Trading Company and, by extension, the still very new Lebanese avocado sector to seize the day and sign export contracts in Europe for this fall and winter. Thereby laying the foundation for further cooperation.
Mirna Fadel in discussions with Piet Schotel
You can find Fadel Trading Company at the upcoming Fruit Attraction in Madrid in Hall 1, stand 1C10.
For more information:
Abdallah Fadel (managing director)
Fadel Trading Company
Chatila Square, Beiroet (Libanon)
Tel: +961 3282448
Tel: +961 1856313
[email protected]
www.fadeltrading.com