Summary:

This week, the head of the National Chamber of Milk Collection Centers, Hamda Aifi, clarified the state of Tunisia’s milk supplies, indicating that while current production can meet demand, the dairy industry has challenges looming on the horizon.

Aifi reported that current milk production levels are at 1.8 million liters per day, which can cover daily consumption which ranges from 1.5 to 1.7 million liters per day.

However, Aifi highlighted the need to review the pricing system which has forced some producers to operate dairy farms at a loss. Farmers have resorted to slaughtering their herds or smuggling livestock out of the country to avoid rising production costs.

He provided estimates livestock populations have decreased in some areas of the country by as much as 50%.

Outlook:  

Our team has been tracking the growing pressure on Tunisia’s milk supply, including recently reporting a significant decline in livestock investments that could portend an even greater reduction in future production capacity.

As Russia’s war in Ukraine continues, grain prices fluctuate unpredictably, increasing costs for dairy producers who rely in part on imported feed for their livestock.

Our team is monitoring factors that could lead to additional strain on the milk supply as we also track other shortages that could impact broader stability in Tunisia and regionally.

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