APIP Agricultural Policy Implementation Project

grow flowers to sell intheir stalls. They supplement their own production with
small purchases from Gandouz or Bahri. From time to time export-oriented
producers sell excess or second quality flowers directly to retailers in
Tunis.
Retail prices on the Tunis market are about the same as in Europe, with
roses selling from 500m to 1 DT each. J Other types such as dahlias, carnations,
and lilies sell for 300m to 700m each. Since all retailers buy from the
same producers, the domestic wholesale market has little or no price competition.
Most flower stalls have the same variety of flowers. The only major differences
among stalls appear to be in the quality and elaborateness of the displays. The
quality of flowers varies greatly even within individual bunches. It is not
uncommon to see diseased or wilted roses or dahlias in the same bucket as fresh
and healthy ones.
High retail prices probably result from very uneven demand coupled with the
high perishability of the product. Retailers buy on consignment from the
wholesaler/producer. It appears that this system depends on strong personal
relationships between the retailer and the wholesaler. This is probably a thin
market which depends on purchases for mariages and other special events for the
bulk of its sales. Though the number of Tunis retailers has increased in the
past five years (from 10 in 1985 to 27 in 1990 according to one retailer),
producers do not see the domestic market as a source of significant growth inthe
future.
The growing cut flower export sector may have some effect on the domestic
market. Several new Tunisian flower exporters are selling on the local market
as part of their start-up strategy. The experimental nature of most exportoriented
enterprises means that these producers have second quality flowers which
they sell locally. For example, inthe case of strelitzias, a plant which takes
several years to reach export quality production, the local market is an
attractive alternative. Likewise, after the end of the European export season
in May, other exporters may have supplies which they sell locally.
The highest domestic demand occurs at the end of the year (December I -
January 15) and during tourist season (March 15 - October 15). The only off-pe
seasons, therefore, are January 15 - March 15 and October 15 - December I."
The capacity of the domestic market to absorb new supplies of cut flowers is
simply not well understood since it has not been studied.
3.2 Operation of the Cut Flower Export Sector
As noted earlier, the Tunisian cut flower export sector isvery small. In
1990 only five producer/exporters exported flowers, none of whom had been inthis
business in 1986. Tunisia is in an early phase in the development of a fullscale
cut flower marketing system. Thus, a description of how the cut flower
production and marketing system operates is really an analysis of how five
28 A 40 cm red rose sells for between 2.5 to 5 francs per flower.
29 European Floral Market, p.17.
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