Morocco Opens Market to Brazilian Olive Oil Amid Drought-Induced Shortage

This new partnership will strengthen agricultural cooperation between Morocco and Brazil, the Brazilian government notes in a note, recalling that the volume of trade between the two countries reached $1.23 billion in 2023, making the kingdom the third destination for Brazilian agricultural exports in Africa. Between January and September 2024, commercial transactions between Rabat and Brasilia have already exceeded $903 million, proof of the continued increase in Brazilian exports to Morocco.

Moroccan Minister of Agriculture, Maritime Fisheries, Rural Development, Water and Forests, Ahmed Bouari, announced last week the removal of customs duties on the import of virgin and extra virgin olive oil. A measure that is part of the government’s efforts to ensure the availability of this product on the domestic market and stabilize prices, in a context of a significant drop in domestic olive oil production due to difficult climatic conditions.

This season, Morocco is expected to produce around 950,000 tons, a decrease of 11% compared to the previous season and 40% compared to the annual production average, the minister announced, specifying that national olive oil consumption is between 130,000 and 140,000 tons per year. As a result, local production is not enough to meet domestic demand.

"The oil currently available comes only from the production of the previous season, while the stock for this season will be limited, which increases the likelihood of a price increase," the office of the Moroccan Interprofessional Olive Federation warned in turn, estimating that resorting to imports is not the solution to the drop in production and the rise in prices. It recommends strengthening local production rather than adopting an import policy that could have a negative effect on the local market and farmers.