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.
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In December, angry farmers blockaded the Agriculture Ministry in Tunis, demanding that the agriculture minister resign and the government stabilize prices. Advertisement
The government responded by buying up some of the surplus and subsidizing exporters’ transportation costs. In January, it approved an emergency plan to store 100,000 tons of olive oil and pay a premium to producers and exporters. The central bank, meanwhile, has urged banks to continue extending credit to those affected. Tunisian officials have engaged in olive oil diplomacy, calling on foreign diplomats in Tunisia to promote the country’s oil back home. Claire Parker for The Washington Post
“The state has taken all necessary measures,” said Boubaker Karray, the former agriculture minister’s chief of staff. ( A new government was formed late last month with new ministers.) He said the government is encouraging irrigation and has readied a fund to help farmers who face losses because of climate change. Story continues below advertisement
In recent decades, successive governments have invested in expanding the olive oil sector to develop impoverished regions, reduce the trade deficit and inject foreign currency into Tunisia’s struggling economy. The government has also ramped up incentives in recent years for producers to bottle their olive oils — which increases their value — and promote them abroad.