APIP Agricultural Policy Implementation Project

1.1 Study Objectives
1. INTRODUCTION
A recent study of the Tunisian agriculture and food sector revealed a
number of excellent investment opportunities for products destined for export and
recommended a close examination of the cut flower in this regard. It is within
this context that the present study was undertaken by the Agricultural Policy
Implementation Project (APIP) in collaboration with CEPEX and APIA. 1 The overall
goal of this study is to assess the potential for expanding Tunisian cut flower
exports.
In order to accomplish this goal, the study was divided into two phases.
Phase I, conducted in Tunisia over a three-week period, documented the current
status of the cut flower export marketing system, identified organizational and
operational constraints to its development, assessed the production system and
its cost structure, and examined the Tunisian Government's role in promoting
investments in the flower sector. Phase II,carried out in the United States and
France, identified promising European flower markets for Tunisian exports,
evaluated likely changes in the European flower market in the next few years,
identified trade and tariff constraints, and evaluated price structures at
wholesale and retail markets for high potential flowers.
The authors found that since the Tunisian cut flower sector was smallscale,
it would be inaccurate to characterize export marketing activities as a
"system." Interviews were conducted with five of the six Tunisian cut flower
exporters who had actually exported within the past four years and it was evident
that these growers benefit from a number of "natural" advantages; i.e. good
climate, adequate soils, sufficient irrigation water and proximity to the export
market. In addition to these assets, 4t is clear the Government of Tunisia has
begun to make important policy and regulatory changes which are making
agricultural exports, including flowers, more attractive to investors. These
positive factors, while holding potential for the industry, are balanced by
numerous problems. There are constraints on the development of the industry in
the areas of infrastructure, market information, government procedures, and
inadequate technical knowledge. The principal constraints identified in this
study are:
* Lack of organized air cargo shipments for flowers;
* Inadequate air cargo capacity, especially during peak season;
0 Lack of cold storage at the Tunis airport;
* Little technical information available from extension services;
'CEPEX is the Center for the Promotion of Exports (Centre de Promotions des
Exportations) and APIA is the Agency for the Promotion of Agricultural Exports
(Agence de Promotion des Investissements Agricoles). Both are discussed in
detail in Chapter 5.