Sugar Industry in Crisis: A Threat to Sovereignty
The sugar industry remains a strategic production sector, not only for direct consumption but also for industrial uses. The fragility of the sector raises questions about sovereignty.
Situation in Tunisia
In Tunisia, the few industrialists in the sector are facing significant challenges. They are unable to ensure the exploitation of resources. Employees of the Tunisian Sugar Company have been protesting for two days, demanding their salaries and regularization of their professional situations. The government appears to be taking the issue seriously and has a significant problem to manage.
Financial Situation
According to the draft resolutions of the Ordinary General Assembly, scheduled for October 14, 2024, the net result for 2020 was -0.715 MTND. This brings the cumulative results to -52.263 MTND. Obviously, given that we are in 2025, the situation would be even more difficult in 2024. An Extraordinary General Assembly will be held on the same day, authorizing the continuation of operations. In fact, the company's equity is at -27,207 MTND, below half of the social capital. The sources of the difficulties are known: the factories have experienced several shutdowns, generating recurring shortages.
Global Crisis
However, the crisis in the sector, contrary to what many think, is global. In Europe, factories are closing one after another. After a price increase cycle between 2021 and 2024, prices began to fall. Meanwhile, there was overproduction in Europe following the abolition of quotas in 2017. An abundant supply, which put pressure on prices, and higher production costs, particularly energy, labor, and fertilizers, have caused significant losses for industrialists.
Solution for Tunisia
For Tunisia, there is a production capacity to be valued. We believe that the best solution would be either a public restructuring plan, which would put tens of millions of dinars on the table, or a public-private partnership, with the establishment of a strict control system for production and distribution.
