Global Raw Material Costs Drive Up Moroccan Meat and Cooking Oil Prices

For the past eight months, international raw material prices have been soaring. According to the Fenagri, the price of wheat has increased by 45% since April 2020, that of corn by 77%, that of sugar by 89%, that of sunflower oil by more than 90% and that of soy by more than 80%. As a result, Moroccan cooking oil producers have passed on these increases to the consumer price, with an additional 2 dirhams. "Morocco does not have full coverage of oilseeds. Apart from sunflower cultivation, all other oil components are imported," explains Omar Najid, general manager of Comader, to La Vie éco. Cooking oil prices are likely to rise again in the very near future because the reserves made from the current and upcoming arrivals are made at cost price.

Red meat prices are soaring

The surge in raw material prices could also lead to an increase in red meat prices, because "87% of animal feed and fattening are composed of corn, barley and soybean meal, all imported products," explains Omar Najid. M’hamed Karimine, president of the Red Meat Federation (FIVIAR), does not fully share this view. He talks about the "available stock with the feed manufacturers that can cover up to 3 months". He also mentions the competition in which these industrialists engage to preserve their market share. "They prefer to compress their commercial margin by absorbing the increased production cost, rather than losing points on the market," he comments.

The poultry meat sector is also affected by the surge in raw material prices, as poultry feed is dependent on compound products, most of which are imported. "For now, the cost of poultry feed has only increased by 40 cents in total, while the international cost is around 1.2 dirhams," says Omar Najid. "The cost price has gone from 11 dirhams to nearly 12.5 dirhams, while the starting price has remained stable at around 10 dirhams. As a result, the breeder, who was already in an uncomfortable situation, is currently losing 2 dirhams instead of 1 dirham a few months ago," adds Youssef Alaoui, president of FISA.