Soft Wheat: National Production Struggling to Find Buyers
A Morocco’s cereal sector is facing a worrying situation. National production, estimated this year at nearly 90 million quintals, is struggling to find buyers. As a result, the marketing of soft wheat has slowed significantly due to a lack of demand.
Prices Frozen in the 1985–1990 Era. The alarm was sounded by the Moroccan Confederation of Agriculture and Rural Development (COMADER), which held what it described as an urgent meeting last Tuesday with the Interprofessional Federation of Cereal Activities (FIAC) and upstream industry associations.
Farmers’ frustration has reached a boiling point
«There are very few purchases, and prices are extremely low. Farmers are being forced to sell their soft wheat at prices dating back to 1985–1990. That represents a gap of 40 years. Meanwhile, the cost of inputs has increased seven- to tenfold, yet we continue to sell wheat at the same prices, between MAD 225 and MAD 240 per quintal. Farmers are furious. The situation is catastrophic for them” said Rachid Benali, farmer and President of COMADER. He added that many farmers have complained about purchase orders being rejected by flour mills.
Yet a moderation agreement had been concluded between the National Federation of Cereal and Legume Traders (FNCL), the Crédit Agricole du Maroc (CAM), and the National Federation of Milling Companies (FNM).
The agreement concerns the collection and marketing of Morocco’s domestic soft wheat production.
«The agreement set a benchmark price of MAD 280 per quintal. However, the offers currently proposed by milling companies remain below that level. Furthermore, mills require a very specific wheat quality», Benali explained. «The Ports Are Full of Imported Wheat» This year’s favorable agricultural season had raised hopes among farmers, who expected to offset part of the deficits and debts accumulated over the past six years.
Another explanation put forward by COMADER for the sluggish sales is the large volume of imported wheat already stored in the country. «The ports are full of imported wheat. Imports have been massive», said Rachid Benali. In response, COMADER has decided to bring the matter before the Ministry of Agriculture in an effort to help resolve the crisis. Contacted by L’Economiste, Omar Yacoubi, President of the National Federation of Cereal and Legume Traders (FNCL), which is affiliated with the General Confederation of Moroccan Enterprises (CGEM), declined to comment before a press briefing scheduled for Thursday, June 12, at 3:00 p.m. in Casablanca.
Structural Weaknesses Worsen the Situation
The sector’s structural challenges are further aggravating the crisis.
«There is a glaring shortage of cereal harvesting equipment. And when machinery is available, it is often old and extremely expensive. Soft wheat harvesting now costs between MAD 600 and MAD 800 per hectare, compared with around MAD 300 in the past», explained industry representatives. The rising cost of harvesting, combined with weak market demand, mounting imports, and inadequate purchasing prices, is placing additional pressure on farmers already struggling with years of accumulated losses. The situation has prompted calls for urgent intervention to ensure that domestic production can be marketed under conditions that are economically viable for producers.
K.S.
