1. EU-MED Agpol Annual Meeting Istambul 9 -12 may 2005
CHARACTERIZATION OF AGRICULTURAL AND AGRO-INDUSTRIAL SECTORS
IN TUNISIA
(Case of olive oil sector (D 4))
Dr. Boubaker KARRAY
Istambul 10 may 2005

2. Plan
Olive oil sector in Tunisia: Structure, development strategies and performances.
Main determining factors of olive oil sector performances

3. Contribution in EU-MED Agpol project
1. Elaboration Report concerning the characterization of Tunisian agricultural and agro-industrial sectors. (achieved work) ,English text is under revision.
2. Application of the DELPHI method for an estimated potential of Tunisian olive-oil production and exportation (2005).

4. Olive oil sector in Tunisia 1990/02
Olive oil sector in Tunisia 1990/02
farms
Tons of olives
1600 oil mills
Tons of olive oil
Traditional (35%)
Modern (65%) 
NOO (70%)
Private exporters 107 (30%) 
Export (71%)
Local market (29%)

5. The majority of farms are private, small and familial (which is the same case in Europe) (Public firms, production cooperative unity, streamlining and production company, plots technicians and private farms
The olive trees are concentrated in the arid and semi_arid regions (73%), conducted in full (81%), in dry (99%) and planted with different density.

6. An industrial chain containing
*1600 oil-mills (having a theoretical capacity of tons per 24 hours
* 10 companies of pumas oil extraction : theoretical capacity of 2000 tons per day,
* 7 refining unities of alimentary oil : total capacity of 900 tons per day,
* 24 conditioning unities : a capacity of tons,
* Many soap factories, coal mining and other companies for naval and small scale construction.

7. A consumption structure of alimentary oil composed of 73
A consumption structure of alimentary oil composed of 73.5 % of grain oil. The consumption per person and per year is of 23 kg in average with a significant differences between the regions
A quite diversified range of institutions and a determining role by the government concerning olive growing sector with an increasing incitation for private operators in olive production and in the collection and exports of olive oil (ONH, DGPA, DGPDIA, IO, DGFE, APIA, API, CEPEX, FORODEX, FAMEX, UTAP et CC).

8. Olive oil role in Tunisia
33,7% of cultivated lands,
57% of agricultural farms
20% of agricultural employment
13% of the agricultural production value
11% of agro – industrial production
43 % of industrial export receipts
Valorization of marginal lands

9. International position of Tunisia
16.1% of world surface (2nd position after Spain)
6% of world plantation number (7th position after Spain, Italy, Greece, Turkey, Morocco and Syria)
Tunisia is the 4th world producer (6%), and exporter (11.5%) of olive oil ( )
9.8% of olive oil world market ( )
12.5% of European market, 16% of Italian market and 22.7% of Spanish market ( )

10. History of agricultural politics
Decolonization of agriculture
First liberalization attempts
Collectivization period
State capitalism
Since 1970
Return of liberal politics
Politic of structural adjustment
PSA and (P.A.S.A.) in 1986
Since 1990
Tunisian adherence to GATT
Association agreements with the European Union

11. Olive growing politics since the first socio-economic plan (1962-64)
An absolute priority to olive oil exportation and grain oil importation.
* Reduce the chronic deficit of alimentary commercial balance sheet.
* To preserve the buying capacity of the most poor social layers and satisfy their needs of food oil.

12. Olive growing politics since 1987
Suppression of the monopoly of (NOO) concerning the collection and marketing in 1994.
Privatization of one part of olive growing lands
Signature of Uruguay round Agreements and the Association with the European Union.
Elimination of export taxation (1,5%)
The implementation of a program concerning the streamlining of olive growing industry and promotion of packaging.
Promotion of organic olive oil production.
Creation of FSDO, Council, Committee etc…

13. Structure Functioning Performance
Emergence of a new category of technician farmers
Emergence of new organic mode of production and intensive system
Creation of new oil mills, extension of the trituration and storage capacity, modernization and reorganization of oil mills.
Creation of packaging unities
Emergence of new operators: 107 private olive oil exporters
Emergence of specialized shops for the sale of olive oil
Creation of coordination structures
Structure
Product availability in retail commerce with different prices
Emergence of Tunisian trade Mark
Development of consultation and coordination between the concerned institutions for the development of the sector
a greater implication of the profession in the elaboration of research and development programs
Emergence of new integration mode of farmers : EZZAYATINE company of Sfax.
Functioning
Performance
Production and exportation increase and positive result of the commercial balance in absolute term.
Regression of olive oil position in the world market and particularly in the EU (speed loss regarding competitors).

14. Production-Exportation d’huile d’olive
Source: INS + DGPA

15. Ces exportations sont assurées à 98% en vrac
EXPORT DESTNATION
62-64
65-68
69-72
73-76
77-81
82-86
87-91
92-96
97-01
Total 45 36 61 63 52 73
106
125
ONH
102,7
Privés
3,3 64
dont Italie 14 8 19 40 42 28 53 59
87,6
Espagne 10 7 27 21
Autres[1]
10.5 9 20
12.5 12
15.5
9.3
7.8
11,4
Ces exportations sont assurées à 98% en vrac
Source: INS

16. Commercial balance
Exp OLIVE OIL (E)
Imp GRAIN OIL (I)
E-I
I/E
période
V (MD)
%EXPA
%EXPT
%IMPA
%IMPT MD %
1990
106,9
48,415
3,462
53,2
11,974
1,102
53,7 50
1991
266,8
55,364
7,808
56,1
18,044
1,171
210,7 21
1992
138,5
41,282
3,875
52,4
13,771
0,921
86,1 38
1993
177,3
44,425
4,715
65,59
15,688
1,063
111,71 37
1994
305,3
55,318
6,500
91,6
16,875
1,378
213,7 30
1995
216,7
46,905
4,189
111
13,473
1,487
105,7 51
1996
117,1
33,070
2,180
112,57
18,588
1,501
4,53 96
1997
288,45
48,430
4,692
99,6
13,033
1,133
188,85 35
1998
213,3
38,874
3,272
140,2
17,470
1,477
73,1 66
1999
382,7
54,145
5,493
126,73
18,890
1,258
255,97 33
2000
263,99
42,023
3,298
110,1
14,072
0,938
153,89 42
2001
200,27
29,626
2,099
126
13,598
0,920
74,27 63
2002
55,76
10,011
0,572
151,5
13,255
1,121
-95,74
272

17. Tunisian position in European market

18. Source: Commission européenne
Part de marché
Source: Commission européenne

19. Source: Commission européenne
Huile d’olive vierge lampante
Huile d’olive vierge extra
Source: Commission européenne

20. Quality structure of UE import Source: Commission européenne
5.1%
4.1%
21%
38%
Source: Commission européenne

21. Main determining factors of olive oil sector performances

22. MCO Olive-growing farms Mills Exporters
Small
olive oil
world market
Olive-tree
Alternate
cultivation
Production
alternating
Intra and intra annual
price instability
Instability of
olive oil price
MCO
Planning difficulty of picking
Direct sale to
oleifactors in the
production place
and with cheap prices
Lack of means of transport
Quite intense
competitiveness
and instability of
international price
Local market
little developed
Natural environment
Insufficiency and
rain irregularity
High utilization cost
of the local market
Continuous increase
of production price
inputs (mechanization,
workforce and transport)
Weak ability of price
negotiation
by small olive-growers
Regression of
Tunisian olive oil
position in the
world market
Revenue
instability
Olive-growers
behavior
Increase of olive
production cost
Olive-growers
behavior
1. Limitation to cultivation
progress, supposed to be
less demanding
2. Weak efforts in the
modernization of
olive-growing heritage
Weak olive return
per tree
Weak revenue
per hectare
Increase of
olive oil
production
cost
Weak competitive
capacity of Tunisian
exporters
Lack of profits
caused by
non-quality
Insufficiency of agricultural
credits allocated to
the olive-growers
Weak olive return
per hectare
Access difficulty
to agricultural credits
for the small farmers
Stall weak capacity
of Tunisian exporters
to elaborate
and implement
marketing strategies
Under exploitation of
trituration capacity :
Weak production
Unavailability of financial
means
The know-how
of olive-growers
Increase of olive
factors
Exporters
Management, formation and vulgarization
are not in accordance with the importance
of olive growing in the country

23. équivalent tarifaire 1995 (Euros/T) Source: Commission européenne
MCO: Exchange regime
1. Normal  regime
Huile d’olive
équivalent tarifaire 1995 (Euros/T)
Équivalent tarifaire 2000 (Euros/T)
Prix de déclenchement (Euros/T)
vierge lampante
1532
1226
1361
vierge non lampante
1556
1245
1682
raffinée
1346
1101
Source: Commission européenne
2. Association agreement : Contingent 56 mille tons ?
3.TPA regime: 65% of total import from SMC

24. Source: Commission européenne
Prélèvements aux importations d’huile d’olive vierge lampante originaire de la Tunisie (OCM)
Adh.
Espagne +
Portugal
Adh. Grèce
GATT
Contingent
56 MT
Contingent
46 MT
Source: Commission européenne

25. Source: Commission européenne
Import in TPA
tons
65% of total UE
import from SMC
Source: Commission européenne

26. An innovation strategy concerning olive oil sector
Restructuring of olive growing forest
Adoption of new technologies,
Product differentiation,
Olive oil bio, AOP, IGP and STG,
Elaboration of marketing plans and strategies
Reinforce partnership agreements

27. Thank you for your attention