Call for Proposals - Implementation Agreement for Strengthening the Competitiveness and Sustainability of the Potato Value Chain in Lebanon

Lebanon’s agricultural sector continues to play a critical role in sustaining rural livelihoods, employment, and food security, particularly in regions such as Akkar and the Bekaa where agriculture remains a primary source of income for vulnerable communities. In times of economic and social crisis, protecting agricultural production is essential not only for supporting farmers’ incomes, but also for maintaining local food systems, stabilizing rural markets, and preventing further deterioration of fragile livelihoods.

However, the sector has been significantly weakened by the cumulative effects of the economic crisis since 2019, rising production costs, regional trade disruptions, and limited access to finance and modern agricultural technologies. Many farmers continue to rely on traditional farming methods, including outdated irrigation systems, limited crop rotation, low mechanization, and old seed varieties that no longer match the evolving requirements of export markets. These practices have contributed to higher production costs, declining productivity, inconsistent product quality, and reduced competitiveness across key agricultural value chains.

This decline is particularly visible in the fruit and vegetable sector, where Lebanon’s export performance has dropped sharply in recent years. According to the ILO Value Chain and Export Market Systems Analysis, total fresh vegetable exports declined from USD 57.2 million in 2017 to USD 24.9 million in 2023 and further to USD 11.7 million in 2024. Potatoes, while still remaining Lebanon’s leading vegetable export crop, have also been significantly affected by the closure of key regional markets, increasing competition from neighbouring countries, and the inability of local production systems to meet changing market demand for specialized and industrial varieties.

At the same time, the sector faces serious labour challenges. Agriculture in Lebanon remains highly labour-intensive and has been increasingly impacted by shortages in seasonal agricultural workers, rising wages, and declining labour productivity. This has increased pressure on farmers and, in some cases, contributed to negative coping mechanisms such as reliance on child labour. Weak labour conditions, combined with growing international requirements related to labour standards, traceability, and social compliance, are becoming direct barriers to export competitiveness and access to regional and international markets.

Against this backdrop, improving productivity, strengthening labour conditions, and modernizing farming systems have become urgent priorities. Mechanization, better production planning, improved cooperative support, and stronger compliance with labour and export standards offer important opportunities to reduce costs, improve yields, enhance market access, and create more sustainable and decent employment opportunities.

Building on the findings of the ILO 2025 assessment, this intervention aims to address these systemic constraints through a market systems approach that supports agricultural producers and cooperative structures in improving productivity, strengthening compliance, and enhancing the long-term competitiveness and resilience of Lebanon’s agricultural sector.

Objective

The ILO is soliciting the services of an implementing partner to strengthen the competitiveness, inclusiveness, and sustainability of the potato value chain in Deir El Ahmar, Bekaa, by reinforcing the Union of Cooperatives of Deir El Ahmar as a structured Potato Growers’ Service Centre. Building on its strong institutional capacity, established infrastructure, wide farmer network, and existing market linkages, the intervention will support 70–100 small and medium-scale farmers through improved agricultural services, advisory systems, access to finance, and stronger cooperative support to increase productivity, reduce costs, improve working conditions, and access higher-value markets, while promoting more inclusive benefits for agricultural workers, including forcibly displaced persons..

Scope of Work

To achieve the above-mentioned objectives, the International Labour Organization (ILO) is seeking a partnership with a leading technical organization supported by a Microfinance Institution to promote the development of the potato value chain in Deir El Ahmar and its surroundings in the Bekaa. The lead implementing partner will be responsible for the overall technical implementation of the intervention, including institutional strengthening of the Union of Cooperatives, support to farmers and cooperatives, and the upgrading of production, post-harvest, and market integration systems. The microfinance institution will be responsible for the financial component of the intervention, including the design and implementation of tailored loan products and financial literacy support for farmers. The intervention will target approximately 70 to 100 potato farmers working under cooperative structures, preferably as cooperative members, while strengthening the role of the Union of Cooperatives of Deir El Ahmar as a Potato Growers’ Service Centre providing coordinated services to farmers across the value chain:

Objective 1: Strengthen the Institutional Governance, Management, Business and financial Sustainability of the Union of Cooperatives

Expected Outcome: The Union of Cooperatives of Deir El Ahmar operates with strengthened governance, management, and financial systems under a clear and sustainable business model, enabling it to function as an effective Potato Growers’ Service Centre and expand the inclusion of potato farmers in the potato value chain.

• Activity 1.1 Conduct a Rapid Institutional and Business Assessment and Develop a Strengthening Plan for the Union of Cooperatives
• Activity 1.2 Develop and Implement a Farmer Inclusion and Cooperative Engagement Plan

Objective 2: Strengthen Production and Post-Harvest Systems for Improved Cost-Efficiency, Export Readiness, and Market Access

Expected outcome: Potato farmers improve productivity, reduce production costs, and produce export-ready potatoes through improved production, irrigation, post-harvest practices, and the use of appropriate mechanization supported by the Union of Cooperatives

• Activity 2.1 Improve Soil and Water Management through Soil Mapping and Irrigation Planning
• Activity 2.2 Strengthen Technical Advisory Services and Farmer Capacity for Improved Production and Export Readiness

Objective 3: Facilitate Access to Finance for Productive Upgrading in the Potato Value Chain.

Expected outcome: Potato farmers and the Union of Cooperatives gain improved access to blended finance through subsidized loans and grants to invest in production upgrades, mechanization, and post-harvest improvements

• Activity 3.1 Design and Implement a Blended Finance Scheme for Potato Farmers
• Activity 3.2 Deliver Financial Literacy Training to Farmers
• Activity 3.3 Provide Blended Finance Support to the Union of Cooperatives for Mechanization and Post-Harvest Upgrading

Objective 4: Improve Working Conditions and Promote Decent Work in the Potato Value Chain.

• Activity 4.1 Raise Awareness on Occupational Safety and Health (OSH) and Responsible Labour Practices
• Activity 4.2 Develop Practical OSH Guidelines and Promote Safe Working Practices

Objective 5: Strengthen Market Integration and Value Chain Arrangements

Expected outcome: Potato farmers are integrated into contract farming arrangements with traders and exporters through the Union of Cooperatives, improving market access and enabling more stable and predictable income.

• Activity 5.1 Facilitate Market Linkages and Contract Farming Arrangements

Required Qualifications

This project will be implemented through a partnership with a lead implementing partner subcontracting a microfinance institution (MFI). The following section outlines the required qualifications for the lead implementing partner and the MFI.

A prerequisite for selection: A registered non-profit organization/entity in Lebanon that can provide, through collaborating with a registered MFI, a contribution that matches ILO’s requirement for earmarking fund for loans to potato growers and the Union of Cooperatives of Deir El Ahmar at a leverage rate of 1:1 (the contribution that the implementing partner is presenting should be between USD 250,000 and USD 270,000).

1. A Lebanese based registered NGO with proven experience of at least 7 years in working with agricultural cooperatives and unions of cooperatives in Lebanon, including strengthening governance, service delivery, and cooperative-based business models.
2. Demonstrated experience in designing and implementing agricultural value chain development programmes (minimum 7 years of experience) supporting farmers, producer organizations and agricultural workers.
3. Proven experience in facilitating market linkages and commercial partnerships between farmer organizations (cooperatives), traders, exporters, and other private sector actors.
4. Experience in supporting collective marketing initiatives, branding, or export promotion of agricultural products.
5. Proven experience in working with Lebanese farmers and agricultural workers, preferably in the Bekaa and Baalbeck-Hermel regions.
6. Demonstrated experience in coordinating with key agricultural stakeholders, including cooperatives, private sector actors, the Director General of Cooperatives in Lebanon and the Ministry of Agriculture.
7. Proven experience in delivering training, coaching, and technical advisory services to farmers and farmer organizations.
8. Proven capacity to manage the provision of both financial and non-financial services to cooperatives and farmers and to design a loan product and manage the loan portfolio coupled with close monitoring, namely in the agriculture sector.
9. Demonstrated record of successful collaboration with UN agencies, international organizations, or development partners is an advantage.
10. Senior team lead with minimum 10 years of relevant experience in cooperative management, agricultural development and project management.