Tunisia exported nearly 60 thousand tons of olive oil by the end of last January, most of which were sent to European markets, followed by the US, and 60 other countries.
The exported quantities will reduce pressure on the local market, which had a large production this season leading to reduced prices, causing protests among oil producers, according to the Tunisian Union of Agriculture and Fisheries (UTAP).
Tunisia’s olive oil production during the current season is estimated to reach a record high of 350 thousand tons, 250 thousand tons of which will be exported, namely to neighboring European markets.
These exports are expected to provide about $660 million which would contribute to ensuring financial balance in the country.
During this season, olive oil producers experienced a severe crisis in marketing prices of products in local markets, as they fell by about 50 percent compared to the last season.
Consequently, the Finance Ministry announced that the National Olive Oil Board will be able to secure additional financing to help it in its role to regulate local market and acquire olive oil from producers to avoid further price collapse.
General Manager of the Board Chokri Bayoudh estimated the total financing needs for this amendment to be about $60 million until mid next January.
The additional financial support comes after previous decisions to support the Board with over $17 million as treasury loans and a state guarantee of $35 million as additional financing to support its purchases for the agricultural season 2019 – 2020.
The Tunisian government established an exceptional program to store 100,000 tons of olive oil during this season.
Farmers, oil press owners, and exporters involved in the program can benefit from a storage grant worth about $17 to “encourage farmers and oil press owners to join in this exceptional program.”
