Doha – The argan tree, a species endemic to Morocco, has long been celebrated for its ecological, social, and economic significance. The argan sector plays a crucial role in sustaining the livelihoods of millions of Moroccans, especially in rural communities. However, despite its immense potential, the sector faces a multitude of challenges that impede its sustainable development.
One of the primary concerns is the alarming decline of the argan forest. Over the past century, the natural argan forest area has dwindled from approximately 1.4 million hectares to a mere 820,000 hectares.
This drastic reduction can be attributed to a combination of factors, including the intensification of agriculture, rapid urbanization, infrastructure development, climate change, deforestation, and overgrazing by livestock. The degradation of the argan forest not only jeopardizes the biodiversity of the region but also undermines the livelihoods of communities that rely on it.
Another significant hurdle is the poorly developed cooperative organizations within the sector and the absence of collaboration among key actors. Many cooperatives lack adequate organization in terms of marketing and concentration, hindering their ability to effectively promote and sell their products.
The absence of dialogue and collaboration among cooperatives and other key actors in the sector compounds this issue, resulting in a fragmented and inefficient value chain. This weak or non-existent collaboration impedes the sector’s capacity to address shared challenges, pursue collective objectives, and develop a unified strategy for the promotion and protection of argan products.
The high certification costs associated with argan products pose an additional barrier for smaller cooperatives and producers. Obtaining the necessary certifications can be a costly endeavor, restricting the ability of these smaller entities to compete in the market and reach a broader consumer base.
Moreover, many cooperatives and producers lack experience in navigating the international market, including knowledge of export formalities, market dynamics, laws, and standards. This lack of expertise limits their ability to expand their market reach and capitalize on the growing global demand for argan products.
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The intervention of intermediaries at the upstream level of the value chain has contributed to soaring raw material prices in recent years. This price increase puts a strain on the margins of cooperatives and producers, making it increasingly challenging for them to remain competitive and sustainable.
Cooperatives also grapple with direct sales due to a lack of control over conditioning and packaging processes. This limitation hinders their ability to capture a larger share of the value chain and improve their profitability.
Furthermore, the liberalization of agricultural markets has intensified competition in the international arena. Moroccan argan producers must navigate this increasingly competitive landscape, which can be daunting without adequate support and resources.
In 2022, the argan sector in Morocco generated a turnover of over $100 million, with export values reaching $38 million. The sector currently boasts more than 850 women’s cooperatives and 500 private companies, primarily engaged in the processing, valorization, and commercialization of argan products.
Despite these challenges, the Moroccan government and various stakeholders have acknowledged the importance of the argan sector and have taken measures to address these issues.
The National Agency for the Development of Oasis and Argan Zones (ANDZOA) was established in 2009 to support the sustainable development of the sector. Additionally, the government has implemented several strategies and programs, such as the Green Morocco Plan and the Morocco Green Generation 2020-2030 strategy, to promote the rehabilitation and expansion of the argan forest, improve productivity, and boost exports.
Under these initiatives, over 180,000 hectares of argan forests have been rehabilitated, and 10,000 hectares of argan orchards have been planted in partnership with the Green Climate Fund (GCF). The government aims to continue these efforts, with plans to plant an additional 50,000 hectares by 2030 and rehabilitate 400,000 hectares of forest area.
The sector has also set ambitious targets for 2030, including increasing argan oil production to 10,000 tons, with 50% of the oil being exported in bottled form. There are also plans to certify 500 tons of argan oil under the Protected Geographical Indication (PGI) label.
