Morocco, which relies heavily on imports of agricultural products to produce compound feed for animals and poultry, would benefit from investing more in the production of these components to reduce its grain tariffs and counter inflation and economic crises.
It’s an open secret. Morocco is a major importer of essential grains for the production of compound feed for poultry and livestock. Imports from the US and Argentina, the two countries that hold a 95% market share for soybeans, account for 32% and 55% for corn, respectively. Not less than 80% of the compound feed is cereals. In 2021, animal feed products accounted for more than 60% of Morocco’s total imports from Washington. Obviously, in the event of inflation or external shocks, this has a negative impact on Moroccan producers, between 2020 and 2021, the epicenter of Covid-19. So invest in local production.
Also Read | Green hydrogen could turn Morocco into an agricultural country
To make Morocco less dependent on imports, Moroccan companies plan to intensify investments in the animal nutrition sector. This is the case of the OCP group. In September 2022, it announced an agreement with Spanish fertilizer producer Fertinagro Biotech for the initial acquisition of 50% of its subsidiary GlobalFeed.
A significant investment by the OCP Group
According to the world leader in phosphate products, “there is a need to address the food choices of the population, which is towards meat and products with a high protein content, especially in developing countries”. For Marouane Ameziane, Managing Director of Specialty Products and Solutions, a world leader in phosphate products, “This acquisition confirms OCP’s mission to diversify into phosphates and become a leader in the animal feed industry, responding to growing demand and expanding its offerings with durable specialty and custom products.” This choice is not accidental. Globalfeed, one of the animal nutrition specialists, has production units in Huelva, Spain with a capacity of 200,000 tonnes for phosphate-based products and 30,000 tonnes for iron sulphate-based products. Not to mention its extensive international business network.
This major equity investment by a Moroccan multinational should encourage other Moroccan companies to invest in the sector. Some of them, like Sofalim, a subsidiary of the Abdelmoula Group, seem to be heading in the same direction. Last year, it started construction of its second compound feed manufacturing plant in Perrecht. Products designed mainly for ruminants and horses.
Increase in meat consumption in Morocco
In June 2022, Jalar Holding, one of the leaders of the Moroccan market, announced an investment of 41 million dollars from the Japanese conglomerate Mitsui, which allowed it to strengthen its stake in the Moroccan company’s round table. tons. An envelope that allows it to accelerate its national and international development, especially in West Africa, Senegal and Mauritania.
Also Read | Water resources. The crisis is still here
It should be noted that the prospects for animal feed are promising in Morocco, especially due to the increase in meat consumption in recent years in the Kingdom. According to Statista, a renowned portal specializing in global statistics in various fields, the annual cost of meat consumption per capita in Morocco has increased from 92.9 dollars in 2014 to more than 110 dollars in 2023. According to FAO, the average consumption of red meat reached 17.2 kg/year in 2019, a significant change compared to Algeria (14.4 kg) and Tunisia (about 6 kg per capita). Clearly, a niche for exploitation.
Growth of the global animal nutrition market
Statistics for the global animal nutrition market are difficult to obtain. But according to India-based research center Mordor Insights, the global animal feed market is expected to grow at an annual rate of 3.2% between 2022 and 2027. “The Food and Agriculture Organization of the United Nations (FAO) has predicted an increase in demand of 1.7%. By 2050, demand for beef products, dairy products is expected to increase by 55% and beef demand by 70%. Rising demand for milk and dairy products in developing countries will drive the global market during this period. ,” said.
“Coffee trailblazer. Social media fanatic. Tv enthusiast. Friendly entrepreneur. Amateur zombie nerd.”
In the United States, there is growing hope for a happy ending to the public debt crisis
France: More than sixty migrants rescued in Channel
Fierce battle in US Congress over debt