iyed kacem technical director of imc tunisia - interbio [sola... · ¾new action plan adopted by...

Iyed Kacem – Technical Director of IMC Tunisia

ORGANIC AGRICULTURE IN TUNISIA

The organic agriculture, in Tunisia, started during the eighties by private initiatives and experienced a slow development until the years 1997-1998.

ORGANIC AGRICULTURE IN TUNISIA

A national strategy was set up; it is based on several components :

- Regulation; - Research; - Training; - Extension; - Organization; - Structure and encouragement.

All these actions contributed to a good development and a significant evolution of this sector.

Organic Crops and Areas in Tunisia (2009)

168500Forest168595Spontaneous Organic plants335897Total

95Alfa167302Organic Agricultue Area24079Pasture20975Bare ground

408,5Aromatic and Medicianl plants

4313Fruit trees1 216Cereales210,5Vegetables1 100Dates

115 000 OlivesAreas (ha)Crops

Source : General Direction of Organic Agriculture

55645744--12----Export Value (Million of Tunisian Dinars)

1209513000900056002615301810151110Export (tons)

1658889400070000800004000016430121165566Total production

20092008200720062005200420032002Year

PRODUCTION AND EXPORT OF MAIN ORGANIC PRODUCTS

Source : General Direction of Organic Agriculture

TUNISIAN ORGANIC LAW AND REGULATION

• Tunisian law n° 99-30 of 5 April 1999 relative to Organic Agriculture• Decree N° 200-409 of 14 Febraury 2000 establishing the

agreement conditions of inspection and certification bodies and the procedures of control and certification for organic agriculture sector.

• Minister of Agriculture Order of 28 th Fedruary 2001 concerning the approval of the organic plant production standard.

• Minister of Agricutlure and Hydraulic resources Order of 9 july 2005 concerning the approval of organic animal production standard.

TUNISIAN ORGANIC LAWS AND REGULATIONS

• Minister of Agriculture and Hydraulic resources Order of 2 December 2005 concerning the approval of processing of organic product standard.

• Decree n°2010-1547 of 21 June 2010 establishing a logo for Tunisian Organic Products and fixing the conditions of its grant and withdrawal

HOW TO IMPORT ORGANIC PRODUCTS IN TUNISIA

Equivalence of EC Reg. n° 834/07

Tunisian Importer must be certified by an accredited Certification Body

Translation of Label to Arabic language is required and must beapproved by the importer certification boy.

The imported organic products must be accompanied by a certificate granting the conformity to EC Reg. n° 834/07


Many importers are importing organic products without certificates and are not certified by an accredited certification body as required by Tunisian law 99-30 this is due:

Customer authorities are not updated concerning the necessity of the imported organic products to be accompanied by a certificate

Ministry of Agriculture and Hydraulic Resources and Ministry ofEconomy are not controlling the market of organic products in Tunisia due to the absence of qualified staff

The Tunisian law n° 99-30 is not very specific concerning the procedures how to import organic products in Tunisia


The market of organic products in Tunisia is very small and new, the commercialization

including the import is not very well structured and need be more organised.

-

Germany, FranceCorn flakes

FrancePasta

Product Country

Jams France

Soya Milk France, Germany

Biscuits France

Rice France

Sugar Salvador, Brazil

MAIN IMPORTED ORGANIC PRODUCTS

The quantities imported are very small and the main country of importation is France.

In Tunisia imported organic products are mainly considered as dietitic products.

ORGANIC PRODUCTS MARKET

IN TUNISIAThe Market of organic products in Tunisia it’s characterized by :

Small dimension

Few range of organic products

Few volume of organic products offered

Market channels dominated by the supermarkets and hypermarkets (Monoprix, Geant, Carrefour, Champion)

High prices of organic products (in some item the difference is double and triple compared to conventional one).


IN TUNISIAProblems slowing the development of Organic products market

in Tunisia:

Organic production targeted mainly to export market

No diversification of organic products (the mainly products are olive oil, dates)

Absence of diversification of distribution and commercialisation channels for organic products.

Absence of control during the commercialisation of organic products (the retailers are not controlled and certified in Tunisia)

Very high prices of organic products compared to the international media


IN TUNISIAOpportunities of the organic products markets:

Very big demand on local market

New action plan adopted by the government to develop local market for organic products to rise it to 1% of total agro-food market on 2014.

Some products are very demanded by the local consumers (animal products, dairy products, etc..)

Adoption on 2009 of a National logo in order to give more visibility of the organic product in Tunisian market.

IMPORT OF AGRICULTURE AND AGRO-FOOD PRODUCTS IN TUNISIA FROM EU

Tunisia bellowing the group of emergent countries importers of agro-food products (food deficient balance).

The main imported products are: Cereals, vegetal oils, sugar (Tunisia is not auto-sufficient for those products).


Tunisia signed in 1995 a bilateral Association Agreement with the European Communities and their Member States .

The Agreement provides for the progressive liberalisation of certain agricultural and fishery products.

Protocols 1 and 2 provide for tariff preferences for agricultural and fishery products originating in Tunisia, in particular, olive oil, meat, roses, cut flowers, spices, and fruit and vegetables (the latter only during specified periods of the year), preserved fruit and vegetables, wine, and preserved fish and crustaceans.


For its part, Tunisia granted the EU, for the first time, preferential tariff quotas for agriculture and agro-food products listed in the protocol n°3 of the Bilateral Association Agreement.

The main products that are under preferential tariff quotas are : Cereals, meat, sugar, dairy products, vegetal oils, potato (see next table).


1200017Barley23000017Wheat durum

20043Hazelnut1650043Potato1650015Potato for seeds110043Eggs45027Cheese25035Better

970017Milk40043Poultry meat

800027Bovine meat200017Bovines

Quota (T)Import taxe (%)Désignation

des produits

Source: Protocol n°3 of Bilateral agreement Tunisia-EU


900017Maize280025Tobacco280043Animal feeding

7200015Sugar30031Animal fats and oils40020Linen oil

3000043Colza oil30020Palm oil

750015Soya oil

70029Alfa alfa Flour200043Malt80043Maize semolina30043Wheat durum semolina

Quota(T)

Import taxe (%)Product

Source: Protocol n°3 of Bilateral agreement Tunisia-EU


Products not listed in the protocol n°3 are not subject to preferential tariffs.

The tariffs are very high for some category of products that are considered as available in local market as for fresh fruits and vegetables where taxes reach 110% .

For imported organic products no presence of preferential tariffs quotations (are considered as conventional products).

IMPORT OF AGRO-FOOD PRODUCTS IN TUNISIA FROM EU

Fig. Import taxes for agricutlure and agro-food products


Conclusion:

Exporting agriculture and agro-food products in Tunisia is quite complicated and submitted to high taxes as consequence imported products are mainly more expensive than local products.

INVESTMENTS OPPORTUNITIES ON ORGANIC FARMING SECTOR

Agricultural Partnership Conditions

- Foreign investment in agriculture and fishing is carried out in partnership by the creation of companies with foreign participation.

- The foreign investor can own up to 66% of the capital, says APIA. The arable land is rented and cannot be subject of contribution to the capital

- Agricultural investments do not require a preliminary authorization, but they must be declared with the APIA.


Investment Incentives

Within the framework of the Investment Incentives Code in force in Tunisia, investment made in agriculture and fishing benefits from tax incentives and financial encouragements. These encouragements are granted to both the Tunisian operators as the foreign operators.


Financial advantages

Grants from the state vary between 7% and 40% of the investment amount, according to the areas and components of the project.

Specific incentives for investment projects are granted to certain components such as:- Organic agriculture 30% - Water Economy 40% - Soil and Water conservation 30%- Creation of pasture and forest trees plantation 30%- Prospection of underground water 40%


Fiscal advantages

Two fiscal regimes can be adopted: the totally exporting regime and the wholly exporting regime. Partnerships applying for this regime benefit from the following fiscal advantages:

- Full exemption from income tax over a period of 10 years, and exemption of up to 50% beyond this duration

(10% for agriculture).

- Full tax exemption on revenues liable to income tax if those revenues are reinvested in the same company if provisions made by law nº. 89-114 of 13th December 1989 promulgating tax code is respected.


Fiscal advantages

Full and permanent exemption from the following tax and duties:Custom duties, equivalent effects duties, value added tax and consumption tax relating to:

- Equipment with the exclusion of private cars- Raw materials, semi-finished products, spare parts, and

consumables necessary for the realization of the project- Value added tax and consumption duties on related

equipment, raw materials, semi-finished products, services, construction materials acquired locally with the exclusion of private cars

- Recruitment of foreign nationals: Wholly exporting companies can recruit out of 4 employees, of foreign nationality.

FOREIGN INVESTMENT INCENTIVES ON ORGANIC FARMING SECTOR

Tunisia is giving a special interest to organic farming, promoting the sector thanks to a number of key decisions that have been taken over the past 11 years since the industry was launched in the country.

Many opportunities of investiments are presented to foreign investors in order to establish projects in Tunisia, the sector is developping fastely in the last years and the local demand on organic products is starting which open big opportunities for investors who want to invest in this sector.

THANK YOU FOR YOUR ATTENTION

iyed kacem technical director of imc tunisia - interbio [sola... · ¾new action plan adopted by...

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