Being chosen as the partner country for Fruit Logistica 2008 is proving a real shot in the arm for Morocco’s produce industry, which sees the honour as acknowledgement of its strident efforts in recent years to get up to speed and meet the strict requirements of its European import customers.
The accolade is certainly a step in the right direction for a country that is, by all accounts, doing its utmost to enhance its reputation. Many exporters are taking larger stands than usual at next February’s show, in a bid to display the significant investment they have made in recent years into Morocco’s agricultural sector.
“Competition [from other countries] has forced us to make enormous efforts to up our game, and today Moroccan growers want both to be recognised as providing high-quality produce, and also to show their knowledge off to the rest of the world,” explains Olivier Saint Georges, sales and marketing director for French organic specialist Pro Natura. The firm operates two production arms in Morocco - an orange and lemon grove in the Marrakech region, which was set up in 1996 and which yields 1,200-1,500 tonnes of fruit from the end of November to the end of April, and a winter vegetable plantation in Agadir, launched in 2000 and expected to produce 9,000t this winter, from October to the end of May.
The UK will receive 1,300t of Pro Natura’s Moroccan produce this season. “The UK is the third-largest market for Moroccan goods, behind France, which takes 2,500t, and Germany, which imports 2,200t,” says Saint Georges. “The UK market has always been receptive to Moroccan produce, but in the last few years Morocco has become more important because a number of companies have invested in production and are trying very hard to meet the high standards required by UK importers.”
While Morocco has traditionally targeted mainland Europe - especially France - for the bulk of its fruit and vegetable exports, shippers are finding the UK an increasingly receptive outlet, and most of the country’s key players are planning to build on sendings to the market this season.
Courgettes make up 52 per cent of Pro Natura Maroc’s UK volumes, oranges 27 per cent and tomatoes, cucumbers and peppers nearly 10 per cent, with the latter group of products enjoying a solid rise in demand.
“The start of the season has been a bit slow, but overall volumes should rise by 30 per cent compared with last year,” says Saint Georges. “Courgettes are seeing the largest progression in volume, because their high quality has really pushed up demand. Tomato volumes will be stable this winter, but climatic conditions in the last few years have had an impact on cucumber production, and volumes could therefore vary.”
Pepper volumes are developing well, according to Saint Georges, and Pro Natura is conducting a large research project in conjunction with seed breeders to find varieties that are robust and well sized. “We are also working on more diverse lines, such as cherry tomatoes, cocktail tomatoes, melons and potatoes,” he says. “The UK is a very important market for us, because of the growth of its organic category in the last few years and its structure.”
However, other firms are only just beginning to spot the potential of the UK market. “The UK is not particularly large for us at the moment, but it offers a lot of potential, especially for very high-quality products,” says Philippe Puech of tomato specialist Idyl. “It is likely to open up even more to Moroccan exports in the future, as our image improves and traditional European sources, such as Spain and the Canary Islands, continue to see overall volumes decline. Generally, the most demanding clients are those that offer the best returns - and the UK is very demanding.”
Idyl sent just five per cent of its production to the UK last season, while France absorbs 50 per cent of its volume, followed by Germany, Belgium, Italy and Russia. “Our overall volumes are quite stable this year, at 75,000t, although quantities of our smaller tomato varieties are up on last season,” says the firm’s Philippe Puech.
Idyl also won two Saveur de l’Année 2008 - Flavour of the Year - awards, one for its cocktail tomato and one for its Charentais melon. Marketed under the étoile du Sud - Star of the South - brand, the two specially selected varieties are grown on the coast in the south of Morocco.
Franco-Moroccan firm Azura kicked off its salad product campaign at the start of October, with its volumes of Galia and Charentais melons due to come on stream from the start of December. This season the firm has launched 11 new varieties across its range of melons, peppers, tomatoes and cucumbers, including the addition of six new lines to its Gourmet Tomato range: traditional varieties Coeur de boeuf (beefheart) and Marmande, Col’verde, Kumato, a cooking variety, and a new mix of cherry tomatoes comprising red and yellow cherry tomatoes, plum cherry tomatoes and stripey cherry tomatoes. The recent additions are grown on Azura’s new farm in Dakhla, situated in the south of Morocco, a region well suited to melon and tomato production thanks to its regular climate and high levels of sunshine.
Azura expects to export nearly 60,000t of produce this winter, and says the UK will receive an important chunk of this volume. “We hope to boost our market share there this season,” says a company spokesman, “and remain convinced that Azura has the advantages and the qualities to succeed in the UK. We are an integrated group - controlling everything from production through to marketing - and as a result we can easily adapt to client demands. For example, we can dedicate one or several of our farms to a specific market like the UK, and the organisation of our quality department enables us to respond to each separate certification need of our UK clients.” The company also exports to Germany, Austria, France, Italy, Poland, Russia and Scandinavia.
Morocco’s mild climate and low labour costs make it a competitive source for many importers. Dave Ashton of UK soft-fruit specialist BerryWorld explains to FPJ that Morocco is a more cost-effective source for strawberries than many of its competitors. His firm brings in Moroccan strawberries and raspberries from late December to April. “Moroccan fruit comes on stream about two to three weeks before Spanish, since the temperature is around 1-2°C higher, and our volumes from this source are increasing, because our grower is shifting production from Spain over the Mediterranean,” he says.
“The operational costs tend to be lower in Morocco - labour is cheaper and we do not have to airfreight product like we do from Egypt. Israeli and Egyptian fruit tends to dominate the Christmas market, but then Moroccan and Spanish volumes kick off in earnest and dominate until the end of February.”
It is too early to comment on Moroccan soft-fruit quality this year, according to Ashton, but he is keeping his fingers crossed for a successful campaign. “At this stage, I am optimistic we will start off on the right foot from Morocco,” he adds.
Fatiha Charrat, sales and marketing manager for exporter Delassus, says the UK is the “priority” EU market for her company. “This season we hope to send 25 per cent more volume than last year to the UK,” she tells FPJ. “Cherry tomatoes are our major line to this market, which absorbs 90 per cent of our 15,000t of production. Following this, we are hoping to ship 2,500t of clementines to the market this season. Our other orange varieties will be sent to the UK from January to June, and we are looking to ship 8,500t.
“However, citrus production this campaign is declining by 15 to 20 per cent,” says Charrat. “We have not had sufficient rainfall, which means fruit sizes will only fall in the small-to-medium range, especially on clementines. It is too late for this variety - sizing has already been determined. However, if we have some rainfall over the coming few days, it could really make a difference and help boost forecasts for Nour and other orange varieties.”
According to the Moroccan Centre for Export Promotion (CMPE), citrus exports to the UK constitute 10 per cent of total Moroccan sendings - but shipments to the market fell by almost 15 per cent in 2006-07, compared to 2005-06.
Russia is far and away the largest export market for Moroccan citrus, according to Charrat, and Delassus sends some 30,000t to the country each season. The Netherlands and Germany import most of the company’s potato volumes.
Morocco is swiftly shaping up as a viable alternative source to Spain and the Canary Islands for UK importers. “Climatic problems encountered in Spain in the last few years have pushed UK importers to look for alternative sources for produce,” says Saint Georges. “Our main rivals for our Moroccan produce are Spain, Italy to a certain extent, and Israel on some lines, but we can match them on all fronts: namely, product quality, certification standards, service and logistics.”
According to Azura, Morocco can hold its own in the face of stiff competition, thanks to its proximity to the European market, a climate that is well suited to production and its adaptability. “As long as suppliers can meet the demands of their clients and are able to adapt in terms of products and packaging, they can compete against Spanish and Canary product,” says the spokesman. “Azura offers an innovative range of produce and can guarantee reliable, regular supplies for the whole season. The UK really allows Moroccan companies to explore a market that is very receptive to new ideas and products. Each year we trial 200 new varieties, working with our customers to choose the varieties that best fit the needs of tomorrow.”
Azura pioneered the use of integrated pest management (IPM) in Morocco, according to the firm. “In partnership with Biobest, we have spent several years working on IPM, with the aim of integrating 100 per cent of our production this year. To reach this ambitious target, we have reinforced our technical team, and have also invested in specific training and farm management techniques.”
All Azura products are packed in the company’s 15,000sqm packhouse in Agadir. “To offer our clients better access to real-time order information, we have recently installed a new electronic system across all our sites,” says the spokesman. “Rising consumer interest in food safety has also led to us putting in place a dedicated quality service team.” Azura has made further investments in citrus groves, which are set to bear fruit in two to three years.
However, the recognition of the UK market and its European neighbours does not mean it is all plain sailing for Moroccan exporters - raw material price hikes, rising transport and logistical costs and a severe water shortage in certain regions are making life increasingly difficult.
“In the region of Souss, Pro Natura’s irrigation is controlled by computer to avoid wastage, and the Moroccan government has taken measures to preserve groundwater levels,” says Saint Georges. “But production expenses have risen significantly over the last three years, especially the cost of raw materials like seeds, fertilisers and packaging.”
Salah Atouf of the CMPE explains: “Last year we had a drought which affected our water reserves - this was bad news for the agriculture sector, which absorbs almost 70 per cent of these supplies. As a result, the government has implemented a water-saving policy, giving financial aid to growers who use a drip irrigation system.”
Azura has implemented techniques that stop plants from using more than the exact amount of water they need, according to the company. “We have succeeded in reducing the water consumption of a round tomato during production by 25 per cent,” says the spokesman.
However, insiders insist that Morocco’s industry offers a wealth of agricultural experience, and its professional and competitively priced workforce and proximity to Europe are clear advantages. The logistical offer has widened in recent years, and now people are looking at transport solutions that use less energy. Azura, for example, is trialling transport solutions by reefer container on shipping lines from Agadir
Pro Natura is no slouch when it comes to logistical innovations either. “In order to meet the demands of the UK market, we have put in place a strategy based on two axes - firstly, planting varieties that offer smaller-sized fruits with better taste than those we used to offer, and, secondly, in 2006-07 we launched a direct logistical route between Agadir and Portsmouth, which carried 90 per cent of our shipments to the UK last year,” says Saint Georges. “This season, we are launching two new shipping routes that will allow us to serve the UK faster, offering several different delivery days.”
All signs clearly point to a bright future for Morocco’s produce sector, fuelled in no small part by UK importers’ acceptance of the country as a viable supplier during the cold winter months.
Several UK companies have visited Delassus’s production since the start of the season, according to Charrat, which is a clear indication that Moroccan produce is playing an increasingly important part in the marketplace. “Importers are starting to realise that we can meet UK specifications in terms of food safety, respect for the environment and social/ethical standards.
“The UK is a stable market, with demand and prices rarely fluctuating. The buyers seem to know the farmgate price of produce, and look after the growers’ interests. It is also such a demanding market in terms of specifications that few producers could hope to meet the required standards, which makes it advantageous for companies like Delassus, that can,” she adds.
The continued growth of the organic market in the UK over the last few years and the diversity of outlets in the country will continue to make it an exciting target for Moroccan organic exporters, says Saint Georges. “We can supply supermarkets, organic box schemes and wholesalers in a market that is very professional and encouraging for producers - the UK is capable of shifting good volumes and working to a long-term plan, with loyal commercial relations and fixed-price programmes. “Essentially, the UK allows us to consolidate and develop our production projects,” he adds.
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