Tunisia's Olive Oil Production Hits Record High, Despite Challenges
The 2024-2025 campaign has been exceptional for Tunisia, with olive oil production reaching a historic record of 340,000 tons, a 55% increase compared to the previous year, according to the National Olive Oil Office (ONH). This performance has enabled the country to generate over 5 billion dinars (1.6 billion dollars) in exports in 2024, boosting its economy. Despite this remarkable growth, Tunisian olive oil exports have recorded a 24.4% decline in value over the first three months of the season, reaching 1,202.3 million dinars compared to 1,590.2 million dinars during the same period last year, according to the Tunisian National Agronomic Observatory.
This decline is attributed to a strong supply on the global market, which has put downward pressure on bulk prices. In fact, the volume of exports has increased by 36.7% to reach 84,100 tons, but the value has decreased due to an imbalance between supply and demand, both locally and globally.
The Tunisian olive oil sector still faces major challenges, including high production costs and declining bulk prices, which have reduced producers' margins. Despite this, retail prices remain stable, with a liter of bottled oil selling for 12.5 dinars on the local market, reflecting the strong supply this season. Tunisia also benefits from a strategic position on the global market, particularly with the recovery of production in Spain, the world's largest producer, which saw its production increase to 1.29 million tons in 2024/2025 after two difficult years marked by severe drought. This Spanish recovery has contributed to stabilizing global prices around $8,500 (€7,900) per ton, offering a more favorable environment for Tunisian exports. However, increased competition and fluctuations in global prices require continuous adaptation to maintain Tunisian competitiveness.
