On the Road to Morocco: Exporters Find New Markets
By Quintin Gray
Morocco was the first country to diplomatically recognize the United States promising to assist President George Washington against pirates. Today, via the icongraphy of money, Morocco continues to pay homage to the First President: Moroccans purchase $113 million in U.S. bulk commodities and $146 million in total agricultural imports.
Morocco has been liberalizing its economy and trade. There is little government involvement in imports and food processing. This is especially true for consumer-oriented foods. The government still heavily subsidizes edible oil, sugar and some wheat flour at the retail level to make them accessible to those with low incomes.
A Look at the Moroccan Market
Half of Morocco’s 30 million people live in rural areas. About 55 percent of them are less than 25 years old. A growing middle class and shrinking family size signals a modernizing society.
While Moroccan home cooking remains mostly traditional, change is coming. There is a tendency for young families to be curious about trying Western-style lifestyles and cuisine, especially in urban areas.
As in the rest of the world, more Moroccan women are beginning to work outside the home, providing more income for the family. But naturally, this added income comes at a cost in lost time for domestic chores.
The demand for convenience foods is strong in major cities such as Casablanca, Rabat, Marrakech, Fes, Agadir and Tanger which have developed distribution and tourist industries.
About 10 percent of the population, or 3 million people earn enough to buy imported products. They tend to live in urban areas.
Exporter Business Tips
Morocco’s importers, who are mostly located in Casablanca, are an important resource for breaking into this market.
To clear customs, imports must have a sanitary or phytosanitary certificate issued by a Moroccan official at the point of entry. Exporters may find that when they ship to Morocco, especially for the first time, official laboratories may do an analysis before the product can clear customs.
Knowing what the government requires can strengthen a product’s position. Exporters are encouraged to call up the FAS Home Page at and click on "Attache Reports." Search for the report describing standards and regulations in Morocco by AGR number MO9013.
U.S. exporters should also be aware that Moroccan importers may not be familiar with products that are common in the United States. Also, your Moroccan business partners may not be familiar with U.S. grades, standards and terminology.
They therefore appreciate pictures and brochures. Many also require samples before making a sales commitment.
As for practical matters, Moroccans use the metric system for measurement and, while most importers can speak English, French is still the dominant language. Telecommunications are generally adequate, with Internet and E-mail available from most hotels. Phone calls from these hotels can be extremely expensive, however.
Exporters interested in selling consumer-ready foods or drinks can profit by choosing a local importer with access to hotels and restaurants, wholesale and retail markets.
The banking system is well developed. Most banks are private and have correspondent banks in Europe and the United States. Foreign currencies are made available to importers within two working days with the proper documentation.
Although the use of letters of credit is common, many importers prefer to shift to using of payments against documents after the first few transactions. Advance payments are prohibited by current exchange regulations. Importers regularly get 60 or 90 days’ financing from their suppliers.
A Winning Strategy for Morocco
U.S. exports of consumer-oriented products will continue to be dampened by high freight costs and shipping time. There are no direct shipping lines between Morocco and the United States. Consolidated shipments can turn the odds in favor of export, but Europe still has a transportation advantage.
The Moroccan food industry is dominated by a large number of small family enterprises that average less than 50 employees. The government still owns some food processing units such as sugar refineries, tobacco mills and breweries.
Moroccan food exports consist mostly of fresh fruit, fresh vegetables and canned products, especially fish. Morocco is primarily a market for bulk commodities, but there is some potential for high-value products.
Ingredients a Key to Export Success
The best prospects for the United States are semi-finished products such as milk powder, cheese, processed nuts and other ingredients. As local producers become more quality conscious, U.S. suppliers can play a major role in providing a consistent supply of high-quality products.
While a few large food processors import their ingredients directly, most work through an importer because of the small quantities involved.
Many local producers of biscuits, candy or canned foods are offering new products to stay competitive and they are looking for flavorful, high-quality supplies to make the right impression on consumers.
Reaching the Food Industry
There is one area of Morocco’s food service sector where U.S. imports have real growth potential. American-style fast-food outlets have recently become among the most successful businesses in Morocco. McDonald’s, Pizza Hut, Domino’s and other well-known U.S. franchises have been popping up everywhere. More outlets are scheduled to open in the near future in response to demand for Western-style foods.
The rapid growth in this sector is also a signal of major economic changes in Morocco. As the country prospers, more people can afford fast-food meals. In addition, as more women work outside the home, convenience becomes more attractive.
The development of fast-food outlets in Morocco has resulted in an increased demand for consistent quality in food ingredients that local industry often fails to provide.
While other opportunities exist in the retail food sector, they are best approached through a top-notch importer or distributor.
Although there are over 500 hotels in Morocco, the potential market for U.S. exporters is much smaller, namely the five-star hotels in the major cities. About 33 of the hotels cater to the 2 million tourists who visit Morocco each year.
Most hotels purchase their food products from local distributors that are also, in some cases, importers. U.S. suppliers should try to work with these distributors; restaurants generally don’t import directly because of the small volume they require.
Surprising Success With Seafood
Although Morocco is a net exporter of fish products, there is a window for some U.S. seafood. The demand will come mostly from upper-class hotels and restaurants in major cities.
New U.S. exporters are advised to work closely with established frozen food importers that are also distributors, since Morocco has a shortage of cold storage.
U.S. suppliers who aspire to open this market should work closely with local distributors. Help them help you by providing promotional activities in selected hotels, restaurants and supermarkets.#
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The author, who is director of the Agricultural Trade Office in Saudi Arabia, previously served as Agricultural Attaché at the American Embassy in Rabat. Current contact information: Tel.: (011-966-1) 488-3800 ext. 1560; Fax: (011-966-1) 482-4364; E-mail: AgRiyadh@fas.usda.gov
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