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World Bank Document c -f Report No. 274a-TUN FILE. CO T The Economic Development REPORT DESK of Tunisia WITHlN ONE WEEK Public Disclosure Authorized Volume 1: Annex-Agriculture December 27, 1974 EMENA Region Country Programs Department II Not for Public Use Public Disclosure Authorized Public Disclosure Authorized Document of the International Bank for Reconstruction and Development Public Disclosure Authorized International Development Association This report was prepared for official use only by the Bank Group. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report. CURRENCY EQUIVALENTS Currency Unit = Dinar = 1000 millimes With effect from 1955 US $1.00 = 0.42 Dinar Dinar 1.00 = US $2.381 With effect from September 28, 1964 US $1.00 - 0.52 Dinar Dinar 1.00 - US $1.90 With effect from December 20, 1971 US $1.00 - 0.48 Dinar Dinar 1.00 = US $2.08 With effect from February 1973 US $1.00 = 0.44 Dinar Dinar 1.00 = US $2.27 UNITS AND WEIGHTS AND MEASURES: METRIC British/U.S. Equivalents 1 m = 3.28 ft. 1 m ton - 0.981 g. ton 1.1 US sh. ton 1 m 2 = 10.76 sq.ft. 1 kg 2.2 lb. 1 km = 0.62 mi. 1 litre = 0.22 ga. 1 km2 = 0.386 sq.mi. = 0.26 US liq. gallon 1 hectare = 2.5 acres 1 m3 = 1.31 cubic yards FISCAL E:AR January 1 - December 31 THE ECONOMIC DEVELOPMENT OF TUNISIA TABLE OF CONTENTS ANNEX I AGRICULTURE Page No. 10. THE ROLE AND PERFORMANCE OF AGRICULTURE IN THE 1960'S A. The Place of Agriculture ............................ 1 B. Recent Production Performance ..... .................. 5 C. The Factors of Production ........................... 8 D. Imports and Exports ................................. 11 E. Agricultural Prices and Incomes ..................... 12 11. THE POTENTIAL FOR GROWTH A. Overall Demand Prospects ............................ 17 B. Overall Production Prospects ........................ 21 C. Some Individual Commodities ........... .. ............ 27 (i) Wheat and Barley ............................... 27 (ii) Olive Oil ...................................... 38 (iii) Livestock ...................................... 47 (iv) Wine ........................................... 50 (v) Other Commodities .............................. 52 (vi) Vegetables ..................................... 52 (vii) Citrus ......................................... 53 (viii) Fish ........................................... 54 D. Labor and Capital Implications ...................... 55 12. THE ROLE OF GOVERNMENT IN AGRICULTURE A. Government Institutions ............................. 60 B. Public Investment Policies . ........ 64................. (i) General ........................................ 64 (ii) Irrigation ..................................... 68 C. Land Tenure ......................................... 75 (i) State-Owned Lands .............................. 76 (ii) Privately Farmed Lands ......................... 79 (iii) The Collectively-Owned Lands .... ............... Al D. Price and Mlarketing Policies ........................ 82 E. Policies for Private Investment and Credit ........ .. 85 (i) Short-Term Credit in Kind Campaign .... ......... 89 (ii) A Proposed Integrated Credit Structure .... ..... 90 TABLE OF CONTENTS (CONT'T) Page No. F. Agricultural Education, Research and Extension ..... 94 (i) Education .......... ........................... 94 (ii) Research .......... ............................ 96 (iii) Agricultural Extension ..... .................. 97 ANNEX I LIST OF MAPS Map No. 10518 Rainfall and Irrigated Areas . 10519 Soil Suitability for Crops . 10004 Location of Main Crops, I . 10005 Location of Main Crops, II . LIST OF GRAPUS Graph No. Page No. 10.1 Agricultural Output, In Value - Cereals .... ........ 15 10.2 Agricultural Output, In Value - Other Products 16 11.1 Tunisia - Areas of Bread Wheat and Durum in Hectares, 1949-1969 .31 11.2 Average Yields in Quintals Per Hectare of Bread Wheat and Durum, 1949-1969 .32 11.3 Production of Bread Wheat and Durum in 1000 Quintals, 1949-1969 ........ ............................. 33 11.4 Olive Oil Production Since 1949/1950 .... ........... 43 12.1 Organization of the Ministry of Agriculture ........ 100 10. THE ROLE AND PERFORUANCE OF AGRICULTURE IN THE 1960'S A. The'Place of Agriculture 10.1 Tunisia is less predominantly an agricultural country than some of its neighbors. In terms of GDP, employment, exports and investments, the farm sector is less important than in Morocco or Turkey, while in some aspects, it ranks below Algeria (share of employment) or Spain (share of exports). Table 10.1 shows this in some detail. The relatively minor importance of the agricultural sector is not a bad sign in itself. On the contrary, an inverse correlation can be observed between a country's per capita income and its dependence on agriculture. In the case of Tunisia however, with a per capita income roughly comparable with that of the other Maghreb countries, it is more a reflection of smaller natural endowments for agriculture and, possibly, less exploitation of these resources. 10.2 Climatic conditions are such that a wide variety of rainfed crops and pastures is only possible in the northern quarter of the country, where average rainfall is over 400 mm; but even there, fluctuations around the average are extremely large, and make agriculture a hazardous enterprise, with a succession of dry years (1967 till 1969) followed by years in which crops and soils are washed away by prolonged rains (1969 and 1973). In ad- dition, part of the north is mountainous, and soils in the plains are not uniformly good. A further quarter of the country has a rainfall of 200- 400 mm which supports a rainfed agriculture combining low-density raising of sheep and goats, tree crops (predominantly olives, also almonds), and cereals under marginal conditions. Finally, in the southern half of the country, where average rainfall is below 200 mm, several oases permit the cultivation of vegetables and date palms. Outside these oases centers of activity, some extensive grazing and olive production occur in the 150-200 mm zone. Chapter 11 discusses the resource base and the further possibilities in each of the regions mentioned. 10.3 As in most Mediterranean countries, the Tunisian farmer has striven to offset the deficiency and unreliability of rainfall by the careful manage- ment of water. There is a long tradition of irrigation through private wells and, since 1950, of dam and reservoir systems. Hiere again, Tunisia has not been very lucky. Some of its water resources have a high salt content, in particular some catchment areas in the north and most of the recently explored groundwater reserves in the south; much of the irrigable land is in areas that have already a relatively high rainfall; some soils in the planned expansion of the Mejerda are of mediocre quality; low average winter temperatures and strong winds put Tunisia at a disadvantage in comparison with countries like Morocco in the highly remunerative export of irrigated off-season vegetables. These reasons alone reduce the effectiveness of most irrigation works; in addition, because of other constraints (such as land tenure problems and in- adequate extension services) the considerable investments in irrigation works during the last 10-15 years have not yet had a significant impact on output. At present the total irrigated acreage is sonme 80,000 ha, out of a total cul- tivated acreage of 4.2 million ha. The total area of Tunisia is 16.4 million ha. The problems of the irrigated areas are discussed in Chapter-12. TABLE 10.1: AGRICULTURE'S 2 RDLE IN THE EOONOMY OF TUNISIA AND SELECTED MEDITERRANEAN COUNTRIES Tunisia Algeria Spain Morocco Turkey Average Average Average Average Average 1962-64 1970-72 1967-69 1967-69 1969-70 1969 Approximate Value of Agriculture Output (US$ Million) 360 550 6,000 8 2 0 /e 2,300 Percentage of Agriculture in GDA 21 18 13 16 28 31 Agriculture Labor Force as Percentage of Total Labor Force n.a. 50 61/e 31 70 70 Agriculture Exports as Percentage of Total Exports 59 34 18 40 58 75 Food Imports as Percentage of Total Imports 18/d 23 18 17 23 5 Balance o,f Agriculture Trade, /c (US$ Million) +1O/d -16 -2 -210 +14o +365 Gross Fixed Asset Formation in Agri- culture as Percentage of Total 21 13 16/f 10 25 13 /a Including Forestry and Fishing. / Value Added at Factor Cost, in 1966 Prices / Agrialture Exports minus Food Imports. Data do not permit to show Agriculture Exports minus Imports of all Agriculture Raw Materials and Agriculture Inputs. /d Average 1965-67 /p 1969 only. _ Public Investment only; but Private Investment was recorded minimal. Sources: For Tunisia - Derived from various publications of the Ministry of Planning. For Algeria - IBRD Economic Mission Report 1971. For Morocco - IBRD Economic Mission Report 1971. For Spain - IBRD Economic Mission Report 1971. For Turkey - IBRD Economic Mission Report 1971. 10.4 During the 1960's the share of agriculture in GDP declined (Table 10.1). After stagnating from 1962 to 1970 1/, production made a jump in 1971 and again in 1972; despite damaging floods in April 1973, the 1973 crop was again above the trend. In the discussion of the performance of agricuLture in the 1960s, reference is made to analysis of trends rather than to a com- parison of output levels from year to year. Indeed, fluctuations around the trend are large, in particular because of excessive variations in yields (as much as 300 percent for grains and 1,000 percent for olive production) due, directly in the
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