The agriculture sector generates almost 13% of the country's GDP, and the share at the level of 11-13% has been maintained over the past 20 years. At the same time, the share of the labor force employed in agriculture has significantly decreased since 2000 – from 45% to the current 33%, which indicates a significant increase in labor productivity in the industry.
Despite this, many agricultural enterprises continue to use traditional agricultural practices, not always having access to modern types of fertilizers, plant protection products and opportunities to mechanize their work. The basis of the sector continues to be private small farms, which greatly complicates the expansion of financing and capitalization of the industry.
Crop production occupies about 8.7 million hectares of agricultural land, of which only 18% are subjected to artificial irrigation, animal husbandry accounts for about 30 million hectares. Rain-fed agriculture forms the basis of grain production, so this sector is highly dependent on the amount of precipitation, which varies greatly from year to year. For this reason, Morocco's self-sufficiency in grain crops can range from 30% to 75%, depending on the season. Nevertheless, the development of irrigation systems in recent years has significantly reduced the dependence on weather conditions for the production of vegetables and fruits in the country.
Cereals (especially wheat) form the basis of the Moroccan diet. Wheat production accounts for up to 70% of the total grain production in the country. Yields are highly dependent on weather conditions and can vary from 2.5 to more than 7 million tons. In the first case, most of the domestic consumption is imported wheat.
The second important component of crop production for both domestic consumption and export is the production of vegetables and fruits, as well as olives. At the same time, due to frequent weather shocks, production varies greatly from year to year and has rather stagnated in the last 5 years.
Over the past 10 years, the livestock industry has developed more steadily and successfully than crop production. From 2016 to 2020, the average annual growth in meat production was 5.1%. The poultry industry has shown the most dynamic development in recent years due to the vertical integration of some farms and the influx of investments aimed at modernizing the sector: egg production grew by an average of 8.1%, while the output of white meat increased by an average of 7.3% per year. At the same time, poultry meat accounts for about 60% of all meat production in Morocco.
Cattle in Morocco are mainly bred from cattle, as well as sheep and goats. Beef production in 2016-2020 grew by an average of 2.3% per year, lamb – by 2.4%, but in 2020 the production of both types of meat remained at the level of 2019. At the same time, stagnation has been observed in the dairy industry over the past 5 years – the level of milk production is balancing at around 2 550 – 2 600 million tons per year. Frequent droughts of the last decade have hindered the qualitative and quantitative development of dairy and beef cattle.
The fishing industry is one of the key sectors for Morocco's agriculture, and a significant part of production is exported. Nevertheless, the catch of fish and seafood in 2016-2020 decreased by an average of 1.5% per year, amounting to slightly less than 1.4 million tons by 2020. At the same time, aquaculture accounts for less than 0.1% of the total volume. The main problem of the fish farming industry in Morocco remains the depletion of fish stocks due to over-active fishing.
According to the ITC Trade Map, the total volume of imports of agricultural products of Morocco in 2021 amounted to US$ 7.9 billion, showing an increase of 16.7% compared to 2020 (US$ 6.8 billion). The average annual growth rate of imports during 2017-2021 was 10.6%.
By the end of 2021, the value structure of imports of agricultural products of Morocco was dominated by wheat (20.0%), corn (8.5%), beet and cane sugar (8.3%), soybean oil (8.1%), soybean cake and meal (3.6%).
Since 2017, wheat imports have grown by 28.6% to 4.7 million tons, but the highest volume of imports was in 2020 at the level of 5.5 million tons of wheat.
The reduction in wheat imports in 2021 is due to an increase in domestic wheat production against the background of favorable weather conditions during the growing season.
Corn imports in 2017-2021 were characterized by uneven dynamics. In 2017, 2.4 million tons of corn were delivered to Morocco, by 2020 the volume increased to 2.9 million tons, but in 2021 it decreased to 2.2 million tons against the background of a decrease in supplies from Argentina, Brazil and Ukraine.
The main exporting countries of agricultural products to Morocco in value terms in 2021 were Spain (11.3%), Argentina (10.3%) and Brazil (9.7%). The share of the top 10 countries accounted for 70.3% of imports of agricultural products of Morocco.
According to the ITC Trade Map, the total volume of exports of agricultural products of Morocco in 2021 reached 7.8 billion US dollars, which is 18.2% higher than the value of 2020 (6.6 billion US dollars). The average annual export growth rate in 2017-2021 was 7.7%.
The main contribution to the increase in the export of agricultural products of Morocco in 2021 was made by an increase in the supply of shellfish to Spain, fresh tomatoes and berries to the UK, as well as carob fruits (ceratonia) and shellfish to Italy, the basis of Moroccan exports of agricultural products are shellfish, fresh tomatoes, products and canned fish, frozen fish, beet sugar and cane, which accounted for about 43.9% of the country's exports in value terms in 2021.
In addition, Morocco exports berries such as cranberries, blueberries and other fresh berries of the genus vaccinium (3.9%), as well as raspberries, blackberries, mulberries (mulberry), loganberry (3.8%).
In 2021, the main importing countries of agricultural products from Morocco were European countries, including Spain (27.1% of the country's total exports in value terms), France (15.9%), the Netherlands (7.8%) and Italy (7.3%). In total, the top 10 importing countries accounted for 75.9% of Morocco's agricultural exports in 2021.
A significant increase in the grain harvest in the 2021/22 season, the main share of which fell on wheat and barley. In 2022/23, the Ministry of Agriculture of Morocco predicts the volume of wheat and barley production at the level of 3.2 million tons, which is 62% less than the harvest of the previous year (10.2 million tons).
The Moroccan government has raised the purchase prices for local grain from 2,800 dirhams (US$ 273) per tonne in 2017-2021 to 3,000 dirhams (US$292) per tonne in 2022 to support local wheat production. It also provided farmers with granaries at licensed facilities.
Rice consumption has been declining in recent years due to the development of a healthy lifestyle and the desire to consume more vegetables. Consumers also prefer couscous to rice.
Morocco is experiencing a structural shortage in the production of oilseeds, the needs for fat-and-oil products are almost completely met by imports. Demand for expensive brands of edible oils from the premium sector is expected to slow down.
E-commerce of meat products is gaining popularity in Morocco, which allows sellers to expand the geography of sales. In 2021, with the restoration of the catering sector in Morocco, the demand for ready-made meat products has increased significantly, especially in large cities such as Casablanca.
Nationwide milk consumption continues to be quite low, with a large share of consumption falling on urban residents.
The demand for dairy alternatives is expected to increase against the background of the desire of the population for a healthy lifestyle and a decrease in the cost of such products. It is predicted that processed cheese will retain a dominant role in the cheese market, despite the increase in its cost, which is explained by the low level of current product prices. Demand for cottage cheese is also expected to increase due to its beneficial properties against the background of the development of a healthy lifestyle trend and the popularity of this product among children.
Morocco is a major producer of fish and seafood, the country's needs for these products are almost completely covered by its own production. Canneries are actively modernizing production lines in order to increase the volume of products. The development of the hotel and restaurant sector, especially premium segment restaurants, is generating demand for seafood such as lobsters, oysters and crabs.
