Moroccan Olive Oil Prices Soar Amid Drought and Speculation

The severe drought that has hit Morocco in the last two years, combined with thermal shocks and hail, has negatively affected olive oil production. This unfortunate situation for producers is "the joy of speculators" and intermediaries. In some regions, the price of a liter of olive oil should be around 100 DH.

To support domestic production and ensure the availability of olive oil on the local market, the Moroccan government has limited the export of olives and derived products. "The government has decided to subject the export of fresh or refrigerated olives, processed olives, olive oil and olive pomace oil to licensing," the Ministry of Agriculture announced in mid-October. This measure, in effect until December 31, 2024, aims in particular to stabilize consumer prices, support the olive sector and contribute to the food security of the Moroccan consumer, relays Barlamane.

The export restriction measure taken by the Executive will have an "immediate psychological effect" and will force speculators and intermediaries to "think carefully before deciding to store the goods in the hope of reselling them later at high prices," explains Rachid Benali, the president of the Moroccan Interprofessional Federation of Olive, specifying that as a result, "the price of olive oil should rather vary between 80 and 90 dirhams".

The expert adds that the olive oil prices that have reached 100 dirhams per liter at the beginning of the season could "stabilize and return to their normal level". For its part, the Ministry of Agriculture, based on current prices, indicates that the forecast olive production, estimated at 1.07 million tons for the fall of 2023, should generate a turnover of around 7.4 billion dirhams, an increase of 10% compared to 2022. By 2030, Morocco plans to reach a production of 3.5 million tons.