世界发展银行-Medicinal-and-Aromatic-Plants-in-the-North-West-of-Tunisia-_-A-Value-Chain-and-Jobs-Analysis_67页_2mb

Summary of the Value Chain Development for Jobs in Lagging Regions: Let’s Work Program in Tunisia (P157321)

Core Content

This report presents an analysis of the Medicinal and Aromatic Plants (MAPs) sector in the North-West region of Tunisia, focusing on the potential for creating more and better jobs. The study was conducted as part of the Let’s Work Program (P157321), a World Bank initiative aimed at promoting job creation and economic development in lagging regions. The program is supported by multiple international donors, including the World Bank, UK AID, Norway, Germany, Austria, and Sweden.

The report is based on a survey and benchmarking study conducted in 2017 and 2018, covering approximately 253 respondents across three main nodes of the MAPs value chain: agriculture, manufacturing, and distribution. It also includes 30 interviews and three focus group discussions. The objective is to assess the structure, productivity, employment patterns, and challenges in the sector and to identify areas for improvement to enhance competitiveness and job creation.

Main Viewpoints

• Global Trends: The global demand for MAPs has been increasing, driven by the need for natural, organic, and traditional products. This has led to higher prices and a surge in exports, with India, the US, and China being major players in the industry.

• Tunisia’s Position: Tunisia is not among the top producers of MAPs, but it has a diverse range of wild and cultivated MAPs. Wild MAPs make up 90% of the total production, and the sector accounts for 0.8% of total agricultural production and 1% of exports.

• Sector Structure: The MAPs sector is characterized by a large number of small, informal actors in the upstream (agriculture) and more structured downstream actors (manufacturing and distribution). Eight major companies dominate the market, with a growing interest in the domestic market.

• Value Chain Actors: The value chain includes more than ten distinct actors across the three nodes:

  • Agriculture: Growers, nurseries, and harvesting subcontractors.
  • Manufacturing: Distilleries, essential oil producers, herbs and spice producers, and packaging firms.
  • Distribution: Wholesalers, traders, and exporters.

• Key Products: The top five MAPs grown in the region are rosemary, thyme, mint, myrtle, and mastic, with rosemary and thyme being the most widespread. Essential oils and soaps and cosmetics are the main products sold by manufacturers.

• Employment Patterns:

  • Household labor dominates employment in all nodes, especially in agriculture (90%).
  • Permanent and FTE jobs are most common in the manufacturing node (45%).
  • Temporary and unskilled labor are prevalent in agriculture and distribution.
  • Women are more represented in manufacturing, with 88% of trained workers and 42% of firm owners being women.
  • Youth are also present in permanent employment, particularly in manufacturing and distribution (15-20% of workers).

• Quality of Employment:

  • Monthly wages for permanent workers range from TND 450 to 600.
  • Benefits vary by node, with healthcare being the most common in manufacturing and distribution, and meals and transport in agriculture.
  • Labor intensity is highest in agriculture, with lower revenue per working hour compared to manufacturing.

• Challenges:

  • Access to finance is the most cited constraint across all nodes (80%, ~75%, and 85% in agriculture, manufacturing, and distribution, respectively).
  • Access to land is a major issue for small actors, as large operators tend to dominate the auction process.
  • Electricity supply, licensing and permits, and market access are key challenges in manufacturing and distribution.
  • Product quality is affected by lack of skilled labor and outdated equipment.
  • Sustainability is a concern due to the lack of tracking systems and controls for wild plant harvesting.

• Growth Prospects:

  • Optimism is highest in manufacturing and distribution for increasing production with existing land.
  • Diminishing returns to scale are observed in all nodes when output is doubled.
  • Capital investment is more critical than labor for output growth, with a higher return on capital than on labor.

Key Information

• Survey Data: Collected from 253 respondents, including 108 in agriculture, 97 in manufacturing, and 48 in distribution.
• Job Estimates: The total estimated number of jobs in the MAPs value chain is ~4,210, with 174 in agriculture, 3,875 in manufacturing, and ~161 in distribution.
• Legal Structures: 94% of farms are individual or family-owned (IFO), and micro-firms are predominant in all nodes.
• Constraints to Employment:
  • Agriculture: Access to land, low wages, and lack of formal employment.
  • Manufacturing: Lack of skilled labor, high loan repayments, and outdated equipment.
  • Distribution: Licensing, permits, and market access.

Conclusion

The study highlights the potential for job creation in the MAPs sector of North-West Tunisia, particularly in the manufacturing node, where the value added is highest and formal employment opportunities are more available. However, informal employment remains the norm in agriculture, and constraints such as access to finance, land, and skills significantly hinder productivity and employment quality. The World Bank and its partners aim to address these challenges through technical assistance, training, and targeted interventions to improve market access, productivity, and competitiveness. The findings will inform lending projects and policy recommendations to support sustainable development and job creation in the region.