Tunisia imports agricultural products on a net basis. The top agricultural imports in 2021 were wheat ($595 million), soybeans ($278 million), barley ($265 million), corn ($265 million), vegetable oils ($207 million), and sugar ($73 million). The top agricultural exports were olive oil ($564 million), dates ($236 million), fish products ($204 million), and citrus ($8 million).
In Tunisia, agricultural exports from the United States face an average import tariff of 32%. Soybeans and corn accounted for more than 95% of the $187 million in agricultural exports from the United States to Tunisia in 2021.
Tunisia benefits from the Generalized System of Preferences. However, the legislative authorization for the GSP program expired on December 31, 2020, and the US Congress has yet to renew it. Tunisia exported $259 million in agricultural products to the United States in 2021, with olive oil and dates accounting for 92% of that total. Tunisia accounts for 13-35% of imported dates and 4%-20% of imported olive oil in the United States.
Agriculture contributes to Tunisia’s economy in a minor way when compared to other North African countries, accounting for 16% of the labor force, 12% of GDP, and annual growth of about 2%. Even as larger agricultural businesses become more prevalent, the industry remains highly regulated and politically sensitive. The European Union has had a significant impact on Tunisia’s agricultural policy due to geographical and historical factors. Tunisia maintains strict market regulations throughout the agricultural value chain, which limits opportunities for investment and growth.
Leading Sub-Sectors
Below are some of the leading sectors.
The food-processing sector
An estimated 1,280 businesses with 10 or more employees each were part of the food processing sector in 2021. About 20% of these businesses only generate goods for export. The output value of this industry, which is roughly $12 billion a year, is continually increasing as a result of shifts in dietary preferences toward the use of processed goods rather than fresh ones. The need for imported high-value ingredients in the food processing industry is steadily rising as more advanced items are licensed by international food corporations. Due to the COVID-19-related losses in demand, notably the collapse of the tourism industry, this tendency has, however, momentarily slowed down. 90% of Tunisia’s imports of food are, on average, made up of oilseeds, vegetable oils, derivatives of sugar, and cereals and cereal products.
The food retail sector
Through joint ventures with international investors, the modern retail sector has experienced extensive development over the past ten years, which has driven the growth of modern distribution centers, supermarkets, and hypermarkets. These have primarily involved France. However, due to the temporary shutdown of malls and hypermarkets due to the pandemic, the sector lost market share over the past year to boutique retail and mom-and-pop food stores. Online food purchases have increased as a result of constraints on movement brought on by the pandemic.
The food service sector
This industry serves both domestic clients and the large number of visitors who come to Tunisia each year. The majority of hotels and restaurants either use annual tenders or the same distribution methods as homes to procure their food. Spirits, wines, and specialty cheeses are imported by high-end hotels either directly or through import businesses. Due to COVID-19, tourism has drastically decreased, which has lowered sales of food services.
Opportunities
Soybeans and crude vegetable oil, feed grains, starches, enzymes, genetics, grain silos, elevators, tractors, harvesters, irrigation systems, pesticides, and food processing and bottling equipment have the most market opportunities. Under the 2016 Investment Law, the GOT provides tax advantages of up to 50% to promote the purchase of agricultural equipment. The US and Tunisia also agreed on health certifications for 2017–2019 to access additional markets for US beef, poultry, eggs, day-old chicks, cattle, sheep, goats, and equine and bovine sperm. Consumer goods with the best prospects in the Tunisian market include tree nuts, dried fruit, condiments and sauces, dairy products, biscuits, chocolate and cocoa, and alcoholic and non-alcoholic beverages.
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