Join on WhatsApp 
Join on Telegram Rabat – Morocco’s vegetable and fruit market is plagued by monopolistic practices, argues a new report by the Competition Council, the country’s national capital market watchdog.
According to the report’s findings, intermediaries hold sway over price determination, raking in substantial margins at the expense of both producers and consumers.
Released today at the ongoing international agricultural forum in Meknes, the report indicates that a mere 32% of Morocco’s national territory is covered by vegetable and fruit markets.
In addition, the findings suggest an unequal distribution and outdated management methods employed in these markets.
The report, presented at a seminar organized by the Moroccan Confederation of Agriculture and Rural Development, paints a grim picture of market inefficiencies in Morocco.
Notably, the report reveals that only 30 to 40% of vegetables and fruits actually make it to Moroccan markets, with the remainder being offloaded onto unstructured parallel markets.
Local production accounts for a whopping 96% of the vegetable and fruit supply, leaving imports to make up a measly 4%. Despite this, the report notes a decline in the importance of vegetables compared to fruits in Moroccan households.
Producers are depicted as struggling to maximize their revenues due to rising production costs, unpredictable climatic conditions, and limited financing options.
The report highlights the significant shift in prices since 2022, with producers benefiting from increased prices attributed to inflation and harsh weather conditions.
It directly blames these market inefficiencies on intermediaries, whose dominance f in the value chain is said to have led to an imbalance in negotiation power.
Read Also: Morocco’s Competition Council Fines Fuel Companies $180 Million
The inflexible pricing mechanism, especially evident in wholesale markets like Casablanca, reflects the power disparity.
Installment sellers are accused of adjusting their prices based on wholesale market observations, perpetuating the pricing inefficiencies, the report explains.
It further points out the lack of transparency prevailing over the market, citing information disparities among producers, intermediaries, and consumers. It criticizes the prevailing commercial environment for hindering market anticipation.
The report concluded by urging stakeholders to address the systemic issues plaguing Moroccan vegetable and fruit markets to ensure fairer pricing mechanisms and increased transparency.
