Approach of the Olive Oil Season: Preparations and Challenges
As the new olive oil season approaches, all stakeholders in the sector are preparing, including banking institutions. Another key player is also getting organized: olive oil refineries.
Increase in Refining Tariffs
According to the Syndicate Chamber of Olive Oil Refinery Owners, the refining tariff will now be set at 0.250 TND per kilogram. This tariff revision is due to the significant increase in operational costs, particularly electricity, labor, and spare parts costs. Without this increase, the financial viability of the sector would be compromised.
Uncertainty Over Olive Oil Prices
This decision adds additional uncertainty regarding the price at which Tunisians will be able to buy their olive oil this year. Although international prices do not seem to be rising significantly compared to the previous season, local constraints are intensifying.
Rising Production Costs
A cascading increase in profitability thresholds is observed. Farmers bear heavy costs for maintaining plantations and can no longer rely solely on rainfall. Refineries, on the other hand, are investing in new technologies to make production conform to export standards. As for industrialists, they face increasing fiscal and social pressure, in addition to growing financial costs.
Economic Implications
To recall, the decline in olive oil prices contributed to a reduction in inflation of 44 basis points this year. A rebound in prices could therefore have more significant economic consequences than expected, particularly on household purchasing power and the overall evolution of the price index.
