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Doha – In recent years, the argan sector has emerged as a cornerstone in Morocco. It provides income to approximately 3 million people through the production of argan oil, fodder, wood, and under-forest crops. The sector has witnessed remarkable progress, with the value chain consisting of three main parts: production, processing, and marketing.
The production segment of the argan value chain is diverse, encompassing traditional family production, modern cooperative/union production, and private enterprises. This diversity has allowed for the inclusion of various stakeholders, fostering a more inclusive and resilient sector.
Multi-stakeholder approach drives sector growth
In terms of processing, the argan sector employs two extraction methods: traditional manual extraction and a more modern mechanized process. Cooperatives that have adopted the modern process have demonstrated better organization in terms of information on product valuation, costs, and marketing, enabling them to be more competitive in the market.
The argan value chain involves a wide range of actors, including households who collect argan fruits, women’s cooperatives that process the oil, economic interest groups and unions that aggregate cooperatives for packaging and marketing, private production companies, resellers and wholesalers, retailers, and government and non-governmental organizations that provide support. This multi-stakeholder approach has been crucial in driving the sector’s growth and development.
Despite the challenges faced by the sector, such as the decline of the argan forest, poorly developed cooperative organizations, high certification costs, lack of marketing experience, and soaring raw material prices due to intermediaries, the Moroccan government and stakeholders have implemented various measures to address these issues.
One of the most notable achievements has been the rehabilitation of 164,470 hectares of argan forest by 2020, representing 82% of the target set under the Green Morocco Plan. In addition, the planting of argan trees under the Argan Agriculture Program has covered an area of 2,160 hectares, contributing to the regeneration of the argan forest.
The sector has also seen significant growth in terms of production and export. In 2020, the production of argan oil reached 5,300 tons, representing 53% of the 2020 target, with 1,240 tons exported, generating a turnover of MAD 1.14 billion (approximately $114 million). This growth has been supported by the establishment of 235 valorization units, which have played a crucial role in the processing and marketing of argan products.
Cosmetic use of argan attracts global demand
The argan sector has also benefited from the growing demand for argan oil in both domestic and international markets. This increased demand has opened up new opportunities for the sector, including the development of new uses for argan oil beyond the food industry, such as in cosmetics and pharmaceuticals.
To further capitalize on these opportunities, the sector has focused on organizing cooperatives into unions and groups to improve their marketing power. This has enabled cooperatives to better negotiate prices, access new markets, and improve the quality of their products.
Additionally, the government has implemented measures to ban bulk exports of argan oil, ensuring that the value addition process remains local, thereby creating more job opportunities and supporting the livelihoods of those involved in the sector.
The Moroccan government has also recognized the importance of the argan sector in promoting sustainable development and combating climate change.
One such initiative is the Argan Biosphere Reserve Project, which aims to promote sustainable land management practices and improve the livelihoods of local communities. As part of this project, the government has supported the construction of 232 rainwater harvesting structures, such as check dams and water reservoirs, to optimize water resources management in the argan forest.
Also in this regard, the government has partnered with international organizations, such as the Green Climate Fund (GCF), to support the rehabilitation of the argan forest and the development of the sector. This partnership has resulted in the plantation of 10,000 hectares of argan orchards.
Read also: The ‘Blessed Tree’: Morocco’s Miracle Argan Oil
Looking ahead, the argan sector is poised for further growth and development. The new contract program for the argan sector, covering the period from 2021 to 2030, aims to rehabilitate an additional 411,000 hectares of argan forest, plant 50,000 hectares of argan orchards, and increase argan oil production to 10,000 tons by 2030, with 50% of the production being exported in bottled form.
The program also seeks to certify 500 tons of argan oil under the Protected Geographical Indication (PGI) label, further enhancing the value and reputation of Moroccan argan oil in the international market.
