16. ARC NUMBER August 1974 Loop
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FOR AID USE ONLY AGENCY FOR INTERNATIONAL DEVELOPMENT WA5HINGTON 0. C. 20523 BIBLIOGRAPHIC INPUT SHEET SA. PRIMARY 1. SU1BJECT E~conomics CLASSI- FICATION e EODR Agricultural Marketing 2. TITLE AND SUBTITLE Study of the Tunisian Grain Marketing System 3. AUTHOR(S) Pfost, Harry B.; Dahl, Reynold; Thornburrow, William; and Steinke, Keneth 4. DOCUMENT DATE NUMBER OF PAGES 16. ARC NUMBER August 1974 loop. ARC T -5& .II hI--I 7. REFERENCE ORGANIZATION NAME AND ADDRESS Kansas State University Food and Feed Grain Institute Manhattan, Kansas 66506 8. SUPPLEMENTARY NOTES (Sponsoring Organlzation# Pubilahet, Availability) 9. ABSTRACT The Kansas State University team studied the grain storage and marketing system from the timc of harvest through the point of processing for food or feed. Storage facilities for grains at the buying centers of the Office of Cereals are inadequate and much grain is stored outside where it is subject to weather damage. The construction of an estimated 100,000 tons of additional bulk storage is recommended; the cost would be approximately 1,400,000 Dinars. Storage facilities through the remainder of the grain marketing system appears adequate. Storage facilities at the local level for seed and fertilizer are inadequate. The additional storage recommended above should provide facilities for storing agri cultural inputs. An oversimplified grain pricing structure which does not reflect storage and transpor tation costs leads to inefficiencies in the over-all marketing system. For example, flour mills have much empty storage space which is not utilized because there is no price incentive to store. Transportation from point to point within the country may not reflect the cheapest routing because of oversimplification of cost for trans portation. The problem of supplying farm inputs, handled through the grain marketing centers, should be studied to determine if the system could be improved to provide farmers with seed and fertilizer at the time when needed. Other recommendations are covered in the Section IX. PRICE OF DOCUMENT 10. CONTROL NUMBER 11. PN-AAB - / 5-2 PROJECT NUMBER 12. DESCRIPTORS 13.931-ii-190-786 Costs, Trans- 11COTAC -UME Storage Facilities, Seed, Fertilizer, Flour AID/CSD-1588 portation, Farm Inputs, Grain Marketing Centers, Mills 15. TYPE OF DOCUMENT Research Study AID 590.1 14"74) Grain Storage, Processing and Marketing Report No. 47 August 1974 Stidy of The Tunisian Grain Marketing System FOOD & FEED GRAIN INSTITUTE KANSAS STATE IUINIV IItSITY MANHATTAN, KANSAS 66506 STUDY OF THE TUNISIAN GRAIN MARKETING SYSTEM by Dr. Harry B. Pfost, Agricultural Engineer Dr. Reynold Dahl & William Thornburrow, Consultants Kenneth Steinke, Graduate Student Prepared for the AGENCY FOR INTERNATIONAL DEVELOPMENT AID/csd-1588 Technical Assistance in Food Grain Drying, Storage, Handling and Transportation at the FOOD AND FEED GRAIN INSTITUTE Kansas State University Manhattan, Kansas 66506 Dr. William J. Hoover, Director Dr. Leonard N. Schruben, Associate Director Dr. Richard Phillips, Agricultural Economist Dr. L. Orlo Sorenson, Agricultural Economist Dr. Harry B. Pfost, Agricultural Engineer Dr. Do Sup Chung, Agricultural Engineer John R. Pedersen, Entomologist PREFACE Following a preliminary visit of about one week by Dr. Orlo Sorenson of Kansas State University in April 1974, USAID/Tunisia requested the assistance of a team to study the grain storage and marketing system in Tunisia. Team members included Dr. Harry Pfost, (Agricultural Engineer and Professor), Department of Grain Science and Industry, Kansas State University, Dr. Reynold Dahl, Professor of Agricultural Economics, University of Minnesota, Mr. William Thornburrow, Vice-President, Manhattan Milling Co., Manhattan, Kansas, and Mr. Kenneth Steinke, Graduate Research Assistant, Kansas State University. The team arrived in Tunisia on August 1 and left on September 7. Most of the interviews with farmers were conducted by Mr. Steinke. Mr. Thornburrow conducted a survey of the commercial grain storage facilities. Dr. Pfost visited flour mills, the railroad office and contractors. Dr. Dahl worked closely with the Bureau of Plan and Agricultural Development to collect and analyze data on production, marketing, and prices. The team is greatly indebted to many agencies and persons for assistance in providing support for this study. Particular thanks are due Dr. Buford H. Grigsy, Acting Senior Sector Advisor, USAID/ Tunisia for his logistical support and professlonal gul(lance. Mr. Johnson l)ouglas, CIMMYT, provided support durlng thv tudy of the input sector regarding need. 'runistlan agencieI which w, re partic ularly helpful included the Office of Cereals and the Bureau of I Plan and Agricultural Development (BPDA) in the Ministry of Agricul ture. The University of Minnesota Team is attached to the BPDA and we acknowledge the assistance and cooperation of all members of the team. We are particularly indebted to Mr. Mansour and Mr. Saidane of the BPDA who assisted in the field work and analysis. We also acknowledge the cooperation and assistance of the two grain market ing cooperatives, Cooperative Centrale des Grandes Cultures (CCGC) and Cooperative Centrale de B16 (COCEBLE). Much of the critical data required for a complete comprehensive analysis of the grain and marketing system could not be obtained. These included: seasonality and location of grain purchases and sales, flour and semolina production and sales by area, and costs of handling and storing grain using the existing marketing system. LI TABLE OF CONTENTS Page Preface .................................................... i Executive Summary ........................................... vii I. Introduction .......................................... 1 A. Importance of Agriculture in Tunisia .............. 1 B. Farm Size, Land Tenure, and Land Use ............ 4 C. The Price of Cereals in Tunisian Agriculture . 4 D. Nutrition ......................................... 8 E. Weather .......................................... 12 F. Transportation ................................... 14 II. Development and Present Status of Tunisia's Grain Marketing System .................................. 17 A. Background of the Grain Marketing System .......... 17 B. Production and Trade of Cereals .................. 20 C. Supply and Distribution of Cereals, 1973-74 ...... 24 III. Farm Storage ......................................... 27 IV. Commercial Grain Marketing Channels .................. 31 A. Collection Centers ............. .................... 31 B. Terminal Elevators ........ ....... ..... 34 C. Port Elevators ..................... ...... ...... 36 V. Grain Processing .............. ........... .......... 37 A. Flour Mills ..... ...o . ....... .... ... ... 37 B. Manufactured Animal Feeds .......... ........ 40 VI. Agricultural Imputs ............................. 43 VII. Economics of Cereals Prices In Tunisia ............... 47 A. Cereals Prices and Marketing Margins ............. 47 B. Price Structure for Cereals ...................... 50 C. Pricing Efficiency in the Tunisian Cereals Sector ........................... ............ 55 VIII. Recommendations ..................................... 58 1. Farm Storage ............................ 58 2. Collecting Centers ............... ........ 59 3. Terminal Elevators ................... .0.. 60 4. Flour Mills ................... ......o. ... 61 5. Analysis of Overall Storage Requirements #so# 62 iii iv Page VILL. Con' t. 6. Analysis of Bag Versus Bulk Handling and Storage Systems...................... 62 7. Transportation................... .. .. .. ... 66 8. Feed Mills ............................ 66 9. Cooperatives ............................... 67 10. Farm Inputs ................................. 67 11. Subsidies .................................. 67 12. Base Farm Prices ............................. 68 13. Timing Announcement of Official Prices ....... 68 14. Marketing Margins ............................ 68 15. Storage Use ............................ .. .. 69 16. Training .................................... 69 Appendix .................................................... 70 Table AI-I Temperature, Humidity, and Expected Grain Moisture June-August 1970-71 .......... 71 Table AI-2 Temperature, Humidity, and Expected Grain Moisture November-March 1970-71 ........ 72 Figure Al-I Major Cereal Production Areas in Tunisia ................................. 73 Figure AI-2 Railroad Map of Tunisia ................. 74 Figure AI-3 Major Paved Highways in Tunisia ......... 75 Table A II-I Quantities of Cereals Purchased by the Office of Cereals in the 1973-74 Crop Year ... 76 Table A 11-2 Quantities of Cereals Purchased by COCEBLE in the 1973-74 Crop Year ............. 77 Table A 11-3 Quantities of Cereals Purchased by CCGC in the 1973-74 Crop Year ..................... 78 Table A 11-4 Estimates of the 1973 Cereals Crop Marketed through Commercial Channels, Used on the Farm Where Grown, or sold through the parrellel marketing ...................... 79 Table AIV-1 Location and Storage Capacity of Grain Storage Facilities of "COCEBLE"................ 80 Table AIV-2 Location and Storage Capacity of Grain Storage Facilities of "CCCC" .. ................. 81 Table AIV-3 Local Receiving and Sales Centers of the Office of Cereals and Their Storage Capacities (1974) ........ .............. ...... ......... 82 Table AIV-4 Summary of Field Observation of Grain Storage Facilities ........................... 83 Table AIV-5 Grades and Price Premiums for Barley .... 87