Tunisia to Stockpile Olive Oil to Stabilize Market and Support Consumers
In response to an exceptional harvest and a decline in international prices, Tunisia has decided to stockpile up to 150,000 tonnes of olive oil to sell at preferential rates to consumers in a second phase. This strategy, announced by the Minister of Agriculture Ezzedine Ben Cheikh and entrusted to the National Olive Oil Office, aims to stabilize the market while protecting producers and households, as well as optimizing market fluctuations.
Exceptional Harvest and Market Risks
Tunisia is preparing for an exceptional olive oil campaign, with production expected to reach nearly 500,000 tonnes for 2025-2026. While this abundance is a source of hope, it also poses risks to market equilibrium. To avoid a disorderly price drop and preserve the interests of stakeholders in the sector, the Ministry of Agriculture has announced the establishment of a strategic stockpile of up to 150,000 tonnes.
Strategic Stockpile and Market Regulation
This mechanism, funded and managed by the National Olive Oil Office (ONH), will be deployed over a period of approximately three months. It will serve to regulate supply in a context of overproduction and ensure a stable income for producers, particularly small farmers who are already affected by the decline in international prices. Despite a significant increase in Tunisian exports, the reduction in revenue due to the drop in global prices necessitates public intervention.
Supporting Consumers and Preserving the Sector
The stockpiling will also enable the preparation of sales at preferential rates, aimed at supporting household purchasing power. The modalities of distribution will be communicated with more precision in the coming weeks and are expected to guarantee wider access to a product that is emblematic of Tunisian consumption. It is essential to note that olive oil, a pillar of the country's culinary heritage, remains at the heart of social and economic challenges.
Government Support for the Sector
In parallel, the government is strengthening its support for the sector through a set of financial measures: restructuring of oil mill debts, credit facilities for transformation and storage, and active mobilization of public and private banks. The objective is to ensure better coordination between harvest, transformation, and marketing, while preserving competitiveness in exports.
A Sustainable Model for the Future
With this strategy, Tunisia aims to transform an exceptional year into a major asset for the entire sector. By securing prices, supporting producers, and guaranteeing access to affordable olive oil, the country seeks to build a more sustainable and resilient model for the years to come.
