Business
Olive oil exports by volume and value have risen in the first eight months of 2022, according to recently-published data from the National Observatory of Agriculture (Onagri).
From January to August, olive oil exports increased by one percent in volume compared to the same period last year, up to 145,000 tons. However, the value increased by 33 percent due to a significant rise in olive oil prices per kilogram, from TND 8.09 (€2.66) to TND 10.66 (€3.51).
There are many agricultural products, such as olive oil, tomatoes and dates, which still have untapped export potential.- Houssem Eddine Chebbi, agricultural economics professor, ESSEC
Since the beginning of the 2021/22 crop year, Tunisia has exported TND 1.9 billion (€638 million) worth of olive oil, a 30-percent increase compared to the previous crop year despite the volume of olive oil falling from 194,800 tons in the 2020/21 crop year to 184,000 tons.
According to Onagri, Tunisian olive oil exports significantly contribute to the country’s trade balance, acting somewhat as a counterbalance to the 110-percent rise in vegetable oil imports and the increase in imports of other staples, such as sugar and cereals.
See Also:Morrocan Olive Oil Exports Rise After Last Year’s Bumper CropInternational Olive Council trade data indicate that Tunisia has exported an average of 218,000 tons of olive oil per year in the last five years, placing the country as one of the world’s largest exporters.
Tunisian olive oil production has been gaining relevance for the economy due to significant international trade agreements, most notably with the European Union. Those agreements have allowed the country to sell olive oil to large and affluent global markets with minimal tariffs.
A recent study presented by the German Bertelsmann Stiftung foundation emphasized the strategic relevance of trade relations with the E.U. for the country. Seventy-five percent of all Tunisian exports go to the E.U., and 50 percent of the country’s overall imports come from E.U. countries.
According to the foundation’s report, the E.U. might play an even more prominent role in sustaining the Tunisian economy.
“Yet some Tunisian agricultural products are subject to E.U. trade restrictions, which is why only 56,700 tons of its olive oil can be exported to Europe duty-free,” the report said.
See Also:The Best Olive Oils from TunisiaFor several years now, Tunisian authorities have asked the European Commission to increase the quota of duty-free olive oil exports.
According to the report, the Russian invasion of Ukraine has put growing pressure on the country’s economy, and the E.U. should take notice.
“There are many agricultural products, such as olive oil, tomatoes and dates, which still have untapped export potential,” said Houssem Eddine Chebbi, an author of the report and professor of agricultural economics at the Ecole Supérieure des Sciences Economiques et Commerciales in Tunis.
“Tunisia has a number of possibilities for further increasing its product range and export volumes in the European market,” he added, and should “engage in talks with the European bloc and increase export quotas for strategic products such as olive oil.”
“This would have a positive impact on the national economy and consequently the country’s stability,” Eddine Chebbi concluded.
More articles on: import/export, prices, tariffs
Feb. 23, 2024
World Trade Organization Finds U.S. Noncompliant in Table Olive Trade Spat
The WTO ruled that the U.S. must remove tariffs on Spanish table olive imports, while a separate case is pending in the Court of Appeals.
Sep. 7, 2023
Spanish Officials Raise Alarm Over Rising Olive Oil Prices While Calling for Calm
Olive oil prices have exceeded €10 per liter at retail and are expected to continue rising. Rain in Andalusia would provide a glimmer of hope for the approaching harvest.
Sep. 14, 2023
Syria Restricts Olive Oil Exports as Harvest Outlook Worsens
Olive oil production in Syria is expected to fall by 50 percent in the 2023/24 crop year. Authorities have banned exports to prevent price rises.
Jan. 16, 2024
Spain Set to Eliminate Value-Added Tax on Olive Oil Sales
The tax cut is part of wider efforts to address the rising cost of living. The measure would eliminate VAT on olive oil until June 30th.
Apr. 9, 2024
Tunisian Ag Minister Urges Sector to Take Advantage of Bumper Harvest
Olive oil production rebounded in the 2023/24 crop year. Abdelmonem Belati believes the sector must work together to export extra virgin olive oil quickly.
Feb. 29, 2024
Turkey's Production Plummets After Last Year's Record Harvest
Adverse weather, a poor fruit set and an ‘off-year’ have led to a meager yield.
Apr. 9, 2024
Discovery of Adulterated Olive Oil Kindles Debate Over Testing in Northern Cyprus
High olive oil prices and an import ban by the de facto state have created fertile ground for unscrupulous actor’s in the local market.
Jun. 5, 2024
Pompeian VP Says Baltimore Bridge Disaster Cost Company Millions
While the company was able to receive its most recent shipment of European olive oil through the port, the measures taken after the disaster were unsustainable in the long run.