Supply/Demand Basics

  • MY 2019/2020 corn imports (2.9 MMT) grew 16% compared to the previous year, however COVID related demand destruction will have a long-term impact on imports.
  • Lack of rain resulted in increasing barley imports in 2020 (1 MMT).
  • DDGS and CGF import rose by 20% to 311 TMT in 2020 .
  • A price-sensitive market, however there is a focus on quality.

Country Overview

  • Open-market oriented economy with good diversity, Morocco has increased investment in its port, transportation, and industrial infrastructure to position itself as a hub for business throughout Africa.
  • Slow growth, held back by Covid-19 outbreak and a weaker agricultural sector due to rainfall deficits earlier this year.
  • Political stability and no security issues compared to neighboring countries in the east and the south. Potential to be conduit for trade to West African countries.

Trade and Market Share Overview

  • Argentinean and Brazilian corn imports control 90% market share. U.S. corn in third place with 7% market share.
  • EU. and the Ukraine are the main barley exporters to Morocco.
  • No barley exports from the U.S.
  • The U.S. is the leading supplier of corn co-products to Morocco with 83% market share  followed by Argentina with 13% and the Netherlands third with 6%.
  • Poultry and dairy sectors are the main consumers of imported corn.
  • Under terms of the U.S.-Morocco Free Trade Agreement (FTA) both beef and poultry meat from the U.S. are approved for importation to Morocco.

Policy Overview

  • U.S.-Morocco FTA provides the advantage of no tariff on corn and other feed products, compared to a 2.5% tariff applied to other export origins. This advantage is often below the price spread between U.S. and South America origins in 2020.