World Grain - April 2007 - 20

COUNTRYFOCUS

Morocco
North African nation is experiencing rapid
growth in its feed and meat industries
by David McKee

An hour's drive inland from the rapidly growing metropolis of
Agadir, Morocco, a major agricultural cooperative, Copag, has
begun a pilot program for confined feeding of cattle. The goal
is to increase the quality and volume of local beef production,
which still relies on grazing in a semi-desert zone south of the
Atlas Mountains. In addition to increasing per capita meat consumption by Moroccans, rising numbers of tourists are expected
to create even greater demand for maize-fed beef.
The program has received technical and financial support from
the U.S. Grains Council, which seeks to increase the use of imported maize. Development of this entirely new sector is just one
example of the dynamism of Morocco's feed industry.
The rapid evolution of feed and poultry production must be
counted as a success story in Moroccan agribusiness. Mixed feed
production, which is still 90% for poultry, climbed from less than
1 million tonnes in 1996 to 1.8 million tonnes in 2005 before
declining slightly in 2006 due to bird flu worries. The industry
is highly competitive, partly because it is free from
PORTUGAL
most forms of government control, such as production quotas and import restrictions. As meat conALG
sumption (primarily poultry) has steadily risen,
MOROCCO
there has been an influx of investment into larger
and more integrated feed plants throughout the
country. The main beneficiary has been the Moroccan consumer, who sees chicken and turkey increasingly available and affordable at street roasters
as well as in restaurants and supermarkets. Poultry
and eggs now account for about 40% of animal protein consumption in Morocco.
Though the industry is regionally based and fragmented, there
are already three feed mills producing more than 15,000 tonnes
per month. The largest feed producer is Alf Sahel in Casablanca,
which was already the largest poultry producer when it built its
own feed mill about five years ago. There are about 30 feed mills
in the country producing over 2,000 tonnes per month - nearly
all are independent, family-owned enterprises. No feed milling
groups have yet appeared; organic growth in an expanding market seems to be the best formula for success. Margins are thin,
however, and industry sources predict that several of the smaller
mills producing less than 5,000 tonnes per month will disappear.
Only a few companies are fully integrated from feed to slaugh20

Key Facts
Capital: Rabat
Population: 33 million
Religions: Muslim 98.7%, Christian 1.1%, Jewish 0.2%.
Location: Northern Africa, bordering the North Atlantic
Ocean and the Mediterranean Sea, between Algeria and
Western Sahara.
Government: Constitutional monarchy: chief of state is
King Mohamed VI (since July 30, 1999); head of government
is Prime Minister Driss Jettou (since Oct. 9, 2002).
Economy: Moroccan economic policies brought
macroeconomic stability to the country in the early
1990s but have not spurred growth sufficient to reduce
unemployment that nears 20% in urban areas. Poverty
has increased due to the volatile nature of Morocco's
GDP, its continued dependence on foreign energy and its
inability to promote the growth of small- and medium-size
enterprises. However, GDP growth rebounded to 6.7% in
2006 due to high rainfall, which resulted in a strong second
harvest. Despite structural adjustment programs supported
by the International Monetary Fund (IMF), the World Bank
and the Paris Club, the dirham is only fully convertible
for current account transactions and Morocco's financial
sector is rudimentary. Moroccan authorities understand
that reducing poverty and providing jobs is key to domestic
security and development. In 2004, Moroccan authorities
instituted measures to boost foreign direct investment and
trade by signing a free trade agreement with the U.S., which
are now in effect. It also sold government shares in the
state telecommunications company and in the largest stateowned bank. Long-term challenges include preparing the
economy for freer trade with the U.S. and E.U., improving
education and job prospects for Morocco's youth, and
raising living standards, which the government hopes to
achieve by increasing tourism and boosting competitiveness
in textiles.
GDP per capita: U.S.$4,400 (2006 est.); Inflation 2.8%;
unemployment 7.7% (2006 est.).
Currency: Moroccan dirham; U.S.$1 equals 8.39 dirhams
(March 26, 2007).
Exports: U.S.$11.72 billion f.o.b. (2006 est.); clothing, fish,
inorganic chemicals, transistors, crude minerals, fertilizers
(including phosphates), petroleum products, fruits.
Imports: $21.22 billion; crude petroleum, textile fabric,
telecommunications equipment, wheat, gas and electricity,
transistors, plastics.
Major crops / agricultural products: barley, wheat,
citrus, wine, vegetables, olives, livestock.
Grain and oilseed crops: barley and wheat.
Agriculture: 13.3% of GDP and 40% of the labor force
Internet: code .ma, 3,218 hosts and 4.6 million users
(2006)
April 2007 / World Grain / www.World-Grain.com

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World Grain - April 2007

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