Moroccan Citrus Boom Challenges Industrial Juice Producers

Citrus production will increase by 29% compared to 2019, according to estimates from the Ministry of Agriculture and Fisheries. The market is flooded with new plantations of oranges, lemons or tangerines thanks to the Green Morocco Plan. A feat that will allow Morocco to exceed the 1.5 million ton mark, and strengthen its position in the ranking of the 10 main global producers of oranges, reports challenge.ma.

And while this is a boon for Moroccan agricultural exports, of which citrus fruits are a flagship product, this is not the case for industrial juice operators. The more oranges there are, the lower their price per kg and the consumer turns to homemade natural juice. And in the current case, orange juice accounts for more than 50% of industrial juices sold in Morocco, in all formats and all types combined.

With a year marked by the ravages of covid-19, the next season is likely to be quite complicated for the five main players who share this market of nearly one billion dirhams, especially an actor like the Alj group who had mandated an investment bank two years ago to sell its unprofitable subsidiary, Moroccan food processing.