CuisineWire -- Food Trade Battle: Tunisia and Turkey Compete for Dominance in Libya's Market

By Ahmed Maamar M Elhadar

Libya's food market is witnessing fierce competition between Turkey and Tunisia. Turkey dominates processed foods with industrial capacity and affordability, while Tunisia benefits from proximity and fresh produce supply. Who will lead in 2025?

Trade Competition in Libya

In 2022, Turkey led with $2.84 billion in exports to Libya, while Tunisia supplied $855 million in 2023. Turkey excels in packaged foods like wheat flour, pasta, canned goods, sweets, snacks, and sauces. Meanwhile, Tunisia dominates fresh produce, couscous, uncooked pasta, dairy, and edible oils, with daily land deliveries helping stabilize prices.

While Turkey's food industry thrives on large-scale production and exports, Tunisia's advantage lies in its ability to supply perishable goods faster. Tunisia's trade relationship with Libya is deeply rooted in historical and cultural ties, contributing to its strong market presence despite lower overall export figures.

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Transport and Market Access

Tunisia's land transport offers a cost-effective solution but is vulnerable to disruptions due to political tensions and border closures, particularly at Ras Jedir. Any instability at this crossing affects Tunisian traders, making their exports less reliable.

Turkey, on the other hand, relies on maritime routes, which traditionally increased costs. However, recent reductions in freight expenses have made Turkish goods more competitive, despite the longer transit time. Turkish exporters are capitalizing on this shift to expand their market share in Libya.

Economic and Political Impact

Turkey's high inflation has been offset by currency devaluation, making its exports more affordable. This price advantage has helped maintain demand for Turkish goods in Libya. Moreover, Turkey's industrial capacity allows it to supply a wide range of processed food products at competitive prices.

Tunisia, experiencing moderate inflation, faces limitations in scaling its exports due to production constraints. However, its geographical advantage ensures that fresh goods reach Libyan consumers faster, giving it an edge in the perishable food sector.

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Political factors also play a significant role. While Tunisia struggles with intermittent border tensions affecting trade stability, Turkey enjoys growing economic relations with Libya's Tripoli-based Government of National Unity (GNU). Discussions of a potential Free Trade Agreement (FTA) between Turkey and Libya further strengthen Turkey's long-term position in the market.

Future Market Trends

Both Turkey and Tunisia are essential to Libya's food supply chain. Turkey's strength lies in its industrial production, affordability, and expanding trade agreements, while Tunisia relies on speed, proximity, and cultural ties. However, Tunisia's continued reliance on land transport makes it vulnerable to geopolitical instability.

The question remains: Will Turkey's growing export dominance and competitive pricing outweigh Tunisia's fresh food advantage? The evolving economic landscape and Libya's internal market needs will shape the answer in the coming years.

Ahmed Maamar M Elhadar – Entrepreneur & Economic Journalist