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During the past week, olive mills in Kairouan, central Tunisia, appeared almost empty of farmers, after previously being crowded with producers waiting to press their olive crops.
The sharp decline in global olive oil prices appears to have disrupted producers after prices fell to their lowest level in more than four years, according to global olive oil exchange data.
The price of one liter of olive oil fell from 26 Tunisian dinars, or about $8.5, to around 10 dinars, or about $3.3, per liter.
Mouldi Ramadhani, head of the regional farmers’ union in Kairouan, affiliated with the Tunisian Union of Agriculture and Fisheries, said Tunisia remains known for the strength of its olive oil production despite climatic difficulties.
He said Tunisia ranked second globally this year, with production of 340,000 tonnes of olives amid significant climate changes.
Ramadhani added that despite drought and climate change, irrigated farms in Kairouan and Sidi Bouzid enabled the country to achieve a strong crop in recent years.
Agricultural policy expert Faouzi Zayani said annual olive oil consumption in Tunisia is around 30,000 tonnes, equivalent to 2.5 liters per person.
He considered this volume low and said he hopes it will rise to 10 liters per person annually.
Olive oil plays a major role in Tunisia’s agricultural and food exports, accounting for around 50% of exports.
Higher prices had previously helped improve the country’s overall trade deficit, with olive oil export prices rising by 60.5% in September.
This importance gives strong support to the Tunisian economy through exports and helps improve both the food trade balance and the overall trade balance.
However, domestic consumption remains low compared with other olive-producing countries.
According to International Olive Council data for the 2021–2022 season, Tunisia ranked fourth among Middle Eastern and North African countries in consumption, at around 30,000 tonnes, or about 2.5 liters per person.
Tunisian consumption represents around 1% of global consumption, while consumption is higher in Syria, Morocco, and Lebanon.