Olive oil: Why exports are soaring
In the midst of drought, olive oil shipments hit a record high in 2024. From January to June 2024, exports of crude and refined olive oil reached 8,498 tons, compared with 4,859 tons during the same period in 2023, according to figures from the Foreign Exchange Office.
However, a decree issued by the Ministry of Commerce and published in the Official Gazette in October 2023 introduced new quantitative export restrictions. This measure was intended to limit shipments, ensure regular supplies to the local market and lower prices. A prior export license is required for any shipment of this product, this requirement being in place until December 31, 2024.
This decision was made at the request of industry professionals represented by Interprolive. «We asked to limit olive oil exports because of the price hike. Our aim is to supply the local market and stabilize prices», stressed Rachid Benali, President of the Moroccan Interprofessional Olive Federation (INTERPROLIVE), in a statement to L’Economiste. However, prices have soared this year, and continue their upward trend on the domestic market. Exports too, in both volume and value.
In the first 6 months of this year, shipments of olive oil reached 634,427,000 Dirhams (USD 63,442,700), compared with 216,265,000 Dirhams (USD 21,626,500), according to the Foreign Exchange Office. This raises a number of questions. Why have shipments risen instead of falling? What are the real reasons for the continuing rise in internal tariffs?
When questioned by L’Economiste, the president of INTERPROLIVE pointed out that some of the olive oil leaving the country this year has a very high acidity level, and is therefore not intended for direct consumption, but for the industry. He went one saying «There has also been an export of olive oil that is not in demand on the domestic market». According to Rachid Benali, this is «packaged extra-virgin oil, which Moroccans don’t like». There is therefore «no big market in Morocco» for this type of product.
The President of Interprolive, who is also President of COMADER (Moroccan Confederation of Agriculture and Rural Development), also pointed out that the volume exported is not very significant. «What does a volume of 8,000 tons exported represent for a production of 100,000 tons? It represents less than 10%. So we’re still exporting. Last year, if we hadn’t implemented the restrictions, the volume of olive oil exported could easily have reached 40,000 tons, because the price was attractive on the international scene», concluded the president of Interprolive.
For its part, Morocco Foodex, a public export control and coordination body under the aegis of the Ministry of Agriculture, gave a terse response when questioned. «Morocco Foodex shares COMADER’s opinion», said its Director of Promotion and Communication, Mehdi El Alami, in a statement to L’Economiste.
Khadija Skalli
