More Than 50% of Agricultural Product Exchanges in Distribution Channels Are Controlled by Informal Intermediaries, Study Finds
A study on "Rehabilitating Agricultural Distribution Channels in Tunisia" presented at the 10th edition of the Tunisia Economic Forum has found that over 50% of agricultural product exchanges in distribution channels are controlled by informal intermediaries. The study, conducted by the Arab Institute of Business Leaders (IACE), was presented by consultant Ahmed Ben Khedher in Tunis on Tuesday.
The study highlights a "dysfunctional and informal-dominated" agricultural distribution system, characterized by price distortions, high tax evasion, and a lack of traceability. The study also notes the degradation of infrastructure due to lack of maintenance, short concession contracts, and the absence of specialized municipal expertise. Furthermore, the study warns of the health risks posed by the state of abattoirs and the complete absence of digital tracking systems.
To reform the distribution channels, the study proposes three strategic axes: modernizing the legal framework and infrastructure, integrating informal intermediaries into the organized circuit, and developing contract farming, as well as establishing a digital ecosystem, "e-market," to shorten the value chain between producers and consumers.
Regarding the modernization of the regulatory framework, the study recommends creating a unified and simplified code of commercial circuits, as the current texts are deemed scattered and outdated. It also proposes adopting long-term concession contracts to encourage investment and ensure the quality of services and infrastructure maintenance.
To integrate the informal sector, Ben Khedher suggests registering intermediaries in official registers, issuing professional cards accompanied by fiscal and social incentives. Their role would be limited to procurement and transportation, under regulatory supervision.
To better structure production, the study emphasizes the need for pre-contracts between producers and buyers, defining prices, volumes, and delivery times.
To shorten the value chain through digitalization and local circuits, the study recommends creating a unified national digital platform for traceability and electronic invoicing, dubbed "e-market." It also proposes establishing short circuits through a national network of collection and refrigeration centers, urban "Farm Markets," and integrated transformation units at wholesale markets to valorize unsold products, with a goal of "zero waste."
According to the study, based on data from the Tunisian Wholesale Markets Society (SOTUMAG) and the National Institute of Statistics (INS), reforming distribution channels would allow the state to increase its tax revenues, ensure real-time tracking of exchanges, and strengthen the fight against speculation.
Social benefits are also expected, including an increase in farmers' incomes due to the reduction of unnecessary intermediaries. Prices for consumers are expected to decrease, with improved guarantees for food safety and quality. The study also predicts a significant reduction in food waste, improved profitability of logistics investments, and a decrease in corruption and regional disparities.
The reform roadmap, scheduled for five years, includes a start-up phase (2026-2027) focused on drafting a government decree governing new management formulas, activating a support fund for entrepreneurs, launching a pilot national digital platform for prices, and creating two regional pilot companies responsible for governance.
The deployment phase (2028-2030) foresees the rehabilitation of five wholesale markets and two abattoirs according to international standards, revising the regulatory framework for competition, and deploying the national digital platform for matchmaking.
