Fruit & Vegetables market

Morocco
Presentation by:
MEYS Emerging Markets Research
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INDEX
I. Country profile Morocco

II. Main trends and developments in Morocco’s agricultural sector

III. Fruits and Vegetables market in Morocco

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I. Country profile Morocco

▪ 14 km of Spain ▪ 35 million people

▪ Constitutional monarchy since 1956 ▪ 54% is younger than 30 years

▪ Capital Rabat (0.6 million people) ▪ 60% of the population live in urban areas

▪ Casablanca (3.3 million people) economic centre ▪ Strong economic growth rate (average > 4% p.a. during last 10
years)
▪ Political stable country
▪ Relatively low inflation rate (< 2% p.a. during last 10 years)
▪ Parliamentary elections every 4 years
▪ Sixth largest economy of Africa
▪ Head of State is King Mohammed VI (since 1999)
▪ Top destination in Africa for FDI

▪ Diversified economy

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II. Main trends and developments in Morocco’s agricultural sector
▪ Agriculture contribute 14% to GDP
Cereal production (million tons)

▪ 8.7 million ha. cultivated, of which 19% is irrigated 14,0

12,0

▪ About 85% of the cultivated farm plots are smaller than 10 ha. 10,0

8,0

▪ Average size of farm plots around 6 ha. 6,0

4,0

▪ 750,000 farmers in Morocco 2,0

0,0

▪ Almost 11,000 agricultural cooperatives with 355,000 individual members

Source: Ministry of Agriculture
▪ Sector provides employment to one-third of the total active labour force
Production Fruit and Vegetables Morocco
▪ Cereals (wheat, barley) main agricultural product (average 8 million tons (1000 tons)

annually since 2008) 14.000

13.500

▪ Annual export value agricultural products around 2 billion euros 13.000

12.500

▪ Main agricultural exports are green beans, potatoes, tomatoes and citrus 12.000

11.500
▪ Annual average production fruits and vegetables between 12 – 14 million tons, 11.000
depending on rainfall 2012 2013 2014 2015 2016 2017

[Link] Source: FAO

▪ Covered cultivation (plastic tunnels and houses) in Morocco still relatively limited (approx. 15,000 ha.)

▪ Canarian greenhouses are currently the most common type used in Morocco, although adapted to local circumstances since
the introduction in late 1970s

▪ Multichapel greenhouses only used by some large exporters

▪ Plastic houses and tunnels primarily used for tomatoes, bananas, green beans, melons, peppers, red fruit (strawberries,
raspberries, blueberries)

▪ Majority of covered cultivation in the southern region Souss-Massa around the cities of Agadir and Taroudant

▪ 6 600 ha. of covered tomato cultivation (approx. 900,000 tons) in the region of Souss-Massa

▪ Hydroponics cultivation in Morocco is at the moment limited to 650 ha. of tomatoes in the Souss-Massa region

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 Agro-food industry in Morocco
▪ Around 2 100 companies active

▪ Providing jobs to almost 150,000 people (25% of total jobs in Morocco’s industry)

▪ Annual turnover 115 billion dirhams (11 billion euros)

▪ Contributing 11% to Morocco’s total export value

▪ EU main export destination of Morocco’s agro-food industry

▪ For the period 2017 – 2021 investments will be made by public and private sector of 12 billion dirhams aimed at:
− Creating approximately 40,000 new jobs
− Opening up 371 new factories
− Increasing turnover with 42 billion dirhams (3.9 billion euros)
− Focus on fruit & vegetables, citrus, meat, milk, olive, poultry

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III. Fruit and Vegetables market in Morocco
▪ Fruit and vegetables sector occupies more than 700,000 ha.

▪ 260,000 ha. vegetable production, 450,000 ha. fruit production

▪ Annual production in 2017 amounts to around 13.5 million tons, of which 6.2 million tons of fruits (46%) and 7.3 million tons of vegetables
(54%)

▪ Export volume of fruit and vegetables (fresh and frozen) in 2018 2.3 million tons, of which 63% fruit and 37% vegetables

▪ On average 15% of total production in exported

Agricultural product Production, 2017 (tons) Agricultural product Export volumes, 2018 (tons)
Vegetables Vegetable crops (fresh):
Tomatoes 568 509
Potatoes 1 924 871 Onions 40 594
Tomatoes 1 293 761 Potatoes 9 823
Olives 1 039 117 Total vegetable crops 845 174

Onions 754 129 Citrus fruit (fresh):

sub-total Vegetables 7 277 898 Oranges 148 603
Mandarines, Clementines 558 851
Fruit
Total citrus fruit 724 068
Tangerines, mandarines 1 278 346
Melons, watermelons 1 237 920 Red fruit (fresh):
Strawberries 18 273
Oranges 1 037 218 Raspberries 23 134
Apples 820 547 Blueberries 18 234
Total red fruit 59 640
sub-total Fruit 6 217 599
Total Fruit & Vegetables 13 495 497 Total fruit and vegetables (fresh and frozen) 2 257 200

Source: FAO [Link] Source: Office des Changes

Three main regions for fruit and vegetable production in Morocco are:

▪ Souss-Massa (main export region in Morocco)

▪ Rabat-Salé most rainfed areas of Morocco

▪ Fès-Meknès

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 Morocco Fruit & Vegetables Exports, 2017 (1000 tons)
200

150

100

50

-
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

Fruits Vegetables
Source: Office des Changes Winter and early Spring main export
period Morocco
Production calendar Moroccan Fruit and Vegetables Export calendar Moroccan Fruit and Vegetables

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Market of potatoes in Morocco
▪ Annual production of potatoes between 1.8 – 1.9 million tons Production of potatoes (1000 tons)
2.000

▪ Cultivated area of potatoes around 59,000 ha., of which 16% for early 1.900
(primeur) potatoes
1.800

▪ Domestic production consist primarily of potatoes for local 1.700

consumption
1.600

▪ Main potato varieties: Nicola, Spunta, Desiree, Diamant, Liseta, 1.500

2009 - 2010

2010 - 2011

2011 - 2012

2012 - 2013

2013 - 2014

2014 - 2015

2015 - 2016

2016 - 2017
Mondial, Kondor. Nicola production is almost exclusively for export
market, while Desiree and Spunta are the leading varieties on the local
market Source: Ministry of Agriculture

▪ Harvesting season potatoes December – July and some production in

September - October

▪ Domestic market for processing potatoes into chips and french fries
still very limited

▪ Export volume of potatoes is around 2% of domestic production

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Market of tomatoes in Morocco
▪ Annual production of tomatoes between 1.2 – 1.4 million tons

▪ Cultivated area of tomatoes 15,000 ha.

▪ Around 45% of tomato production exported: Morocco top exporter of tomatoes to EU (export value around 0.5 billion euros)

▪ Three types of tomato production:

− Early tomatoes (80% of total production): for export markets produced in the regions Souss-Massa, Doukkala-Abda;
for domestic market produced in the regions Moulouya, Temara-Skhirat, and Casablanca
− Seasonal tomatoes (18%): for domestic market produced in the regions along the Atlantic coast from Safi to Temara-
Skhirat
− Industrial tomatoes (2%): for food processing and produced in the regions of Meknes, Marrakech and Beni Mellal
1,6

1,4

1,2

1,0

0,8

0,6

0,4

0,2

0,0
2010 2011 2012 2013 2014 2015 2016 2017

Production tomatoes (million tons) Exports tomatoes (million tons)

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Source: FAO, Office des Changes
Market of onions in Morocco
▪ Cultivated area around 27,000 ha.

▪ Annual production between 750,000 – 850,000 tons

▪ Half of national production is done in the province of El-Hajeb (region Fes-Meknes)

▪ Exports of onions are < 3% of domestic production

▪ Imports of onions are insignificant, only when domestic production is below 800,000 tons onions are imported

Production of onions (ton) Exports/Imports fresh onions (tons)

1.000.000 45.000
950.000 40.000
900.000 35.000
850.000 30.000
800.000 25.000
750.000 20.000
700.000 15.000
650.000 10.000
600.000 5.000
550.000 -
2010 2011 2012 2013 2014 2015 2016 2017 2018
500.000
2010 2011 2012 2013 2014 2015 2016 2017
Exports Imports
Source: Office des Changes
Source: FAO [Link]
Market of pulses in Morocco
▪ Main pulses are beans, peas, lentils, and chickpeas

▪ Cultivated area of pulses since 2010 between 200,000 – 400,000 ha.

▪ Annual production pulses since 2010 on average between 250,000 – 300,000 tons

▪ Exports of pulses is limited (< 5%)

▪ Imports of pulses are 10x higher than exports

Exports/Imports of pulses (tons)
Production main pulses* (tons)
100.000
350.000
90.000
300.000 80.000

250.000 70.000
60.000
200.000
50.000
150.000
40.000
100.000 30.000

50.000 20.000
10.000
-
-
2015/2016
2009/2010

2014/2015
2012/2013
2011/2012

2013/2014

2016/2017
2010/2011

2017/2018

2010 2011 2012 2013 2014 2015 2016 2017 2018

Exports Imports
Source: Office des Changes
Note: (*) beans, peas, chickpeas, lentils [Link]
Source: Ministry of Agriculture, ONICL
Market of green beans in Morocco
▪ Annual domestic production of green beans around 170,000 tons

▪ Approximately 75% of production is exported

▪ Main export market is the EU (France, the Netherlands)

▪ Imports of green beans are limited to < 20,000 tons annually

Production of green beans (tons) Exports/Imports of green beans (tons)

250.000 160.000

140.000
200.000 120.000

100.000
150.000
80.000

60.000
100.000
40.000

50.000 20.000

-
2010 2011 2012 2013 2014 2015 2016 2017 2018
-
2010 2011 2012 2013 2014 2015 2016 2017 Exports Imports

Source: Office des Changes

Source: FAO [Link]
Market of citrus in Morocco Production citrus Morocco
(x 1000 ton)
3.000
▪ 125,000 ha. of citrus production
2.500
▪ 13,000 citrus producers
2.000

▪ 90,000 permanent jobs

1.500

▪ Citrus production by region: 1.000

• Souss-Massa: 32%
• Gharb: 20% 500
• Oriental: 16%
• Tadla: 13%
• Haouz: 14%
Source: Ministry of Agriculture
• Loukkos: 1%
• Other regions: 4% Exports of citrus (1000 tons)
700
▪ Citrus season in Morocco runs from around mid-October until June 650

600
▪ Annual production between 2 – 2.6 million tons
550

▪ Citrus production increased strongly since 2009 500

450

▪ Citrus production: 65% sold directly on the market; 5% for industrial 400
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
processing; 30% for direct exports [Link] Source: Ministry of Agriculture
 Market of red fruit in Morocco
▪ Total cultivated area of red fruit (strawberry, raspberry, blueberry) in Morocco is 8,400 ha.

▪ National production of red fruit is currently around 197,000 tons

▪ Strawberry production 148,000 tons annually

▪ Cultivated area 3,300 ha., 600 farms

▪ Two-third of strawberry production exported (fresh and frozen), one-third for local
consumption

▪ Raspberry production in Morocco since 2004

▪ Annual raspberry production around 26,000 tons of which 90% is exported (fresh and frozen)

▪ Blueberry production in Morocco since 2008

▪ Annual blueberry production around 22,000 tons of which 95% is exported (fresh and frozen)

▪ EU market is main destination Moroccan red fruit exports (95%)

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Market of frozen fruit and vegetables in Morocco
▪ Foreign demand for Moroccan frozen agricultural products is around 75,000 – 80,000 tons annually

▪ Main foreign demand is for Moroccan frozen raspberries and strawberries

▪ Moroccan imports of frozen fruit and vegetables are limited to around 1,000 tons annually

Moroccan exports frozen fruits and vegetables (tons) Moroccan imports frozen fruits and vegetables (tons)
90.000 2.500

80.000
2.000
70.000

60.000
1.500
50.000

40.000
1.000
30.000

20.000
500
10.000

0 0
2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017
frozen vegetables frozen fruits frozen vegetables frozen fruits
Source: Office des Changes
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Thank you for your attention

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