Appraisal of the Dairy Value Chain project in Tunisia under the Danish-Arab Partnership Programme.

The Project “Economic Development and Job Creation in the Tunisian Dairy Sector” is formulated under the Danish-Arab Partnership Programme (DAPP) 2013-2016, thematic area IV - Economic Growth and Job Creation.

Tunisia has a considerable potential for increasing milk production from a significant number of smallholders. An increase in milk production and improved milk quality will increase farmers’ income and lead to higher earnings in the collection, transport and processing sectors, and eventually contribute to economic growth.

When analysing the production structure in Tunisia, there are ample opportunities for expanding production in quantity as well as improving the quality of milk. If the dairy value chain as a whole is expanding and value addition in the form of processing is further expanded, the overall assumption of the Project is that it will contribute to economic development and support the creation of jobs as expected in the overall objective.

The Project intervenes in the north-western governorate of Béja and will support:

1) Improvement of the regulatory and policy framework at national level through

i) Strengthening of standards and control systems, and

ii) a revision of dairy strategies and policies.

2) Improvement of the volume and quality of milk in the region of Béja through

i) improvement of farm productivity,

ii) improvement of the dairy cold chain,

iii) support to development of a functioning quality based payment system, and

iv) improved coordination of the value chain.

3) Development of semi-industrial dairies and SMEs specialised in fodder and input provision in Béja through

i) promotion of semi-industrial dairies and

ii) support to input and support SMEs.

The target groups are small and medium sized farmers with potential, milk collection centres in Béja, processing industries, semi-industrial dairy SMEs, input and support SMEs in Béja, farmers’ organisations and financial institutions.

The Project is executed in cooperation between the Tunisian Ministry of Agriculture/Office of Livestock and Pastures and the Danish Veterinary and Food Administration. The Veterinary and Food Administration draws on the Knowledge Centre of Agriculture to establish a partnership with the Office of Livestock and Pastures for the practical implementation of the Project. The Danish Ministry of Foreign Affairs is the financing entity.