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APIP Agricultural Policy Implementation Project

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orchids, gladioli and tulips are the major imports. The French market demands<br />

high quality, though even second quality Moroccan roses have found a sizable<br />

market. It appears that gladioli may be an important niche market for Tunisian<br />

growers. Gladioli are heavy flowers and Tunisia may have a significant<br />

geographical advantage given the shipping costs inherent in gladioli transport.<br />

THE TUNISIAN CUT FLOWER MARKETING SECTOR<br />

The Tunisian cut flower marketing sector isdivided into two segments. The<br />

first consists of producers who grow flowers exclusively for the domestic market.<br />

The second consists of a small group who produce primarily for the export market.<br />

Domestic Marketing Segment<br />

Domestic cut flower marketing isdominated by two large producers who sell<br />

only in Tunisia. Their principal clients are tourist hotels, restaurants,<br />

embassies and small retailers inTunis. Though the number of Tunis retailers has<br />

increased in the past five years, producers do not see the domestic market as a<br />

source of significant growth in the future.<br />

Export Marketing Segment<br />

This study identified only 5 active producer/exporters of cut flowers in<br />

Tunisia. Growers are in an experimental stage, trying different varieties,<br />

production systems and marketing arrangements. These producer/exporters depend<br />

heavily on European partners and contacts for production techniques and market<br />

information. Inexperienced labor means that time consuming on-the-job training<br />

is required from the earliest stage of production all the way through the<br />

postharvest handling and distribution stages.<br />

Export marketing strategies are closely tied to the type and level of<br />

foreign involvement in these enterprises. In most cases the European partners<br />

or contacts guarantee the sale of all production at a price fixed at the beginning<br />

of the planting season. This appears to be an effective strategy. Those<br />

Tunisian growers who have no European partner find that their production<br />

decisions are not well coordinated with market requirements.<br />

COSTS AND RETURNS TO CUT FLOWER PRODUCTION FOR EXPORT<br />

Enterprise budgets for three important cut flowers -- roses, carnations,<br />

and gladioli -- were prepared in order to assist growers in analyzing factors<br />

affecting the profitability of producing alterative crop intheir own operations.<br />

Growers need guidelines to organize and plan the combination of crops they choose<br />

to produce, and enterprise budgets can help growers understand the factors<br />

affecting costs and possibly construct budgets for their own operations. Growers<br />

may have difficulty estimating their costs due to:<br />

inexperience with cost calculation methods,<br />

absence of published recommended guidelines on cut flower<br />

production, and<br />

ii

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