Analyzing supply response of fruit tree products in Tunisia: The case of peaches

In Tunisia, peaches have a significant place in the fruit tree sector. Planted areas have been expanding ever since the eighties as a result of irrigation water extension and the use of better yielding varieties. These factors resulted in high production levels and fruit exports thereof. However, important seasonal and annual variation of fruit supplies continues to characterize prices at both wholesale and consumption levels. To study the response of peach production an econometric model was developed. Modelling was carried out in two stages. First area variation was explained through new plantings and removals and second yield variation was analyzed. The methodological approach followed takes into account the characteristics and specificities related to perennial crops. Weak response of supply to variations in expected prices was obtained. Supply price elasticity was estimated about 0.13 suggesting a high degree of inelasticity.