Tunisia: Upgrading Agricultural Product Distribution Networks

Seeing street vendors setting up near fruit and vegetable markets and selling their goods at lower prices than organized retailers is clearly unfair competition.

While these vendors help lower consumer costs, they hinder the activity of other organized retailers.

The implemented program primarily aims to develop services within distribution networks to meet market demands, improve the competitiveness of the production sector, and strengthen consumer protection and purchasing power by reducing distribution costs.

This program was implemented as a national program covering the four sectors involved (vegetables and fruits, red and white meats, and seafood). It will be implemented during the 11th and 12th Development Plans through a gradual approach that takes into account regional specificities and available resources.

The program covers the entire commercial network for agricultural and fishing products, comprising nearly 1130 local government units, over 1000 intermediaries and wholesalers, and over 31,000 retail outlets.

Eight Components

The first phase of the agricultural and fisheries product distribution network upgrade program includes 8 essential components with a total cost of 183.1 MD.

The program's essential components include upgrading basic infrastructure and equipment, developing management mechanisms, enhancing transaction transparency in markets, and improving product quality through widespread packaging, classification, and traceability in accordance with quality standards.

In 2007-2008, commitments amounted to 134.7 MD, or 74% of the 11th development plan estimates. A 50 MD credit line was created under Tunisian-French cooperation to finance 144 projects benefiting 119 municipalities across all regions.

Investments made in 2007-2008 amounted to 38.7 MD, creating 27 industrial companies employing more than 900 people. In 2009, the remaining financial resources were to be mobilized to complete the first phase of the upgrade program.

In the area of upgrading distribution and refrigerated transport of food products, 1792 projects were financed by BTS with an envelope of 14.4 MD, creating 2556 jobs, including 2490 jobs in the distribution sector.

At the qualitative objectives level, the national upgrade program includes several fundamental actions, including the adoption of modern distribution systems and the development of the tax system to unify tariffs and taxes imposed on trade, as well as the revision of the pricing and profit margin policy to develop the profession and adapt it to the evolution of the commercial sector.

To this end, the Ministry of Commerce and Crafts has, for some time, been modernizing legislation through the preparation of draft laws on distribution trade and the implementation of master plans for medium and large supermarkets, as well as for livestock markets and slaughterhouses.

In parallel, the ministry implemented a business support program aimed at organizing awareness campaigns and training courses for various stakeholders and establishing a quality and traceability system in the form of a computer network linking distribution networks to regional and central administrations.

Published March 16, 2009

Posted online March 16, 2009

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