Tunisia to cut wheat and barley imports due to good harvest

Thanks to good weather conditions during the winter, Tunisia can harvest a generous grain crop, predicts the Foreign Agricultural Service of the U.S. Department of Agriculture (FAS USDA).

Wheat production in MY 2024/2025 (July-June) will be 1.25 million tons, including durum wheat – 1.13 million tons. In the current season, Tunisia harvested 0.441 million tons of wheat, including durum – 0.427 million tons.

Gross barley harvest will increase to 0.6 million tons (0.089 million tons in the current season).

Wheat imports in 2024/2025 MY may decrease to 1.8 (2.2) million tons, barley – to 0.5 (0.95) million tons.

Imports and exports of wheat and wheat products are controlled by the Tunisian Grain Agency (ODC). Imported wheat is sold on the market at a subsidized price and the difference is covered by public funds. Despite concerns that wheat subsidies are becoming too burdensome on the budget, there are no indications that the subsidy program will change. or that imports will decrease.

Tunisia’s fragile economic situation has undermined the capacity of the Tunisian Grain Agency (ODC) to import grain.

As Tunisia is highly dependent on wheat imports, in 2023/2024 the country received funding and grants from international organizations and donors (World Bank, African Development Bank, from EU countries, etc.) to partially pay for the necessary wheat and barley imports.

Nevertheless, Tunisia is still looking for sources of financing to secure wheat supplies in MY 2023/2024.

The FAS USDA wheat import forecast is based on the assumption that Tunisia aims to maintain stocks equivalent to about one to two months of consumption, i.e. the minimum quantity needed to ensure a smooth supply chain.

To ease the burden on the public budget, the Tunisian government decided in MY 2023/2024 to liberalize barley imports after an initial bad experience twenty years ago. Now private sector private companies are allowed to import barley.

Decree No. 25 of January 10, 2024, established the National Feed Board under the Ministry of Agriculture, which will produce, procure and distribute fodder crops, including barley, for the livestock and poultry sectors. According to the Decree and reports from Tunisian industry representatives, there is no indication at this stage that there will be a transition from the new private sector barley procurement scheme to a public sector procurement process. Regulatory documents defining how the National Feed Board will operate will only be prepared once the Board is physically established at the end of MY 2023/24.

Tags: Tunisia, wheat, imports