Tunisia's agricultural sector is struggling with numerous challenges, including climate change, persistent drought, financing difficulties, and fierce competition from abroad. The country's olive oil sector, a crucial part of its agricultural industry, is particularly affected. The sector's future appears uncertain, with the olive tree canker already impacting a large number of trees and threatening the entire industry. According to the National Chamber of Olive Producers, olive oil production is expected to reach around 300,000 tonnes in 2026/2027, a significant decrease from nearly 500,000 tonnes in the previous campaign.
The challenges facing Tunisia's olive oil sector have led to a decline in production, highlighting the sector's vulnerability to climate and health-related risks. In this context, promoting Tunisian olive oil abroad has become a major issue. Nihaya Mhisen, president of the Jordanian Women's Olive Oil Network, has called for increased promotion of Tunisian olive oil in Arab markets, where it still enjoys a positive reputation and significant potential. However, Tunisia faces intense competition not only from traditional producers like Morocco and Syria but also from new entrants like China and Saudi Arabia.
China, despite being unfamiliar with olive cultivation, has been experimenting with olive production in Mediterranean-like climates since the 1960s, with the Longnan basin as its central hub. Saudi Arabia, with its desert climate, has been developing intensive olive cultivation since the 2000s, driven by controlled irrigation and supported by its Vision 2030 strategy. These examples demonstrate that olive oil has become a strategically valuable agricultural product, and countries are adapting their agricultural practices to increase production. Tunisia can no longer rely on its historical achievements and must modernize its sector to remain competitive.
Tunisia is among the world's leading exporters of olive oil, but its export model, primarily based on bulk exports, generates relatively low foreign exchange earnings compared to bottled and labeled olive oil. As long as most of Tunisia's olive oil is exported in bulk and bottled abroad, the majority of the added value is lost. In response, the Tunisian government has called for strengthening the storage capacity of the National Olive Oil Office and improving the promotion of Tunisian olive oil internationally.
To address these challenges, the government has identified several priorities, including combating the olive tree canker through monitoring, research, and support for farmers, modernizing olive groves, and mastering water resources. The government also aims to improve packaging and labeling to increase the sector's value and promote Tunisian olive oil aggressively in both Arab and traditional markets. With its centuries-old expertise, established reputation, and recognized quality, Tunisian olive oil has significant potential for growth.
The Tunisian olive oil sector has several strengths that can help it regain its position as a growth driver, foreign exchange earner, and national pride. However, swift and coherent action is necessary to address the sector's challenges. The government has initiated measures to support the sector, including a ministerial council to monitor the implementation of measures to ensure the success of the 2026-2027 olive oil season.
The coming months will be crucial for Tunisia's olive oil sector, with the government and stakeholders working to implement the necessary measures to support the sector. Key priorities include improving production, marketing, and export strategies to increase the sector's competitiveness and promote Tunisian olive oil abroad. With a concerted effort, Tunisia's olive oil sector can overcome its challenges and regain its position as a major player in the global market.
Key points
- Tunisia's olive oil production is expected to decline to around 300,000 tonnes in 2026/2027 due to climate and health-related risks.
- The country faces intense competition from traditional producers and new entrants like China and Saudi Arabia.
- To remain competitive, Tunisia must modernize its olive oil sector, improve packaging and labeling, and promote its product aggressively abroad.
