Title: Tunisia's economy hit by olive oil glut - The Washington Post
Headings: Tunisia is one of the world’s top olive oil producers. But now, it’s facing a crisis of too much.
Tunisia is one of the world’s top olive oil producers. But now, it’s facing a crisis of too much.
Content: Tunisian olive oils have won medals at international competitions in London and Los Angeles. Advertisement
Yet Tunisian olive oil remains little-known to many foreign consumers. That is partly because it is largely exported in bulk, mostly to Italy and Spain, said former commerce minister Omar Behi. There, some gets mixed with local oils and sold in grocery stores around the world under Italian or Spanish brand names. Claire Parker for The Washington Post
Tunisia’s production of olive oil has doubled in a year, to about 350,000 metric tons, turning the country into the world’s second-largest producer after Spain. This glut has exacerbated the effects of what was already a global slump in olive oil prices. Story continues below advertisement
Tunisian producers are reporting dramatic price drops, with a kilogram of freshly produced virgin olive oil on average fetching about $1.50 in January, according to National Olive Oil Office chief executive Chokri Bayoudh. Prices for raw olives have dropped even more sharply, meaning small growers like Sid who do not make their own oil are bearing the brunt. Advertisement
“It’s a catastrophe, especially for small farmers,” said Faouzi Zayani, vice president of national farmers union Synagri. Olive oil constitutes half the country’s agricultural exports.