Morocco’s Citrus Exports to Russia in Peril

Rabat – Morocco’s citrus exports made up 89.7% of all of Morocco’s agri-food exports to Russia, amounting to $42.1 million in 2021, according to OEC.

The US and its allies moved to cut Russia out of SWIFT (the international grid banks use to make transactions with other banks internationally), on Sunday, sanctioning Russia to scale back from Ukraine.

The decision puts Russia’s foreign trade in a questionable position. The nation’s trade with Morocco is mainly concentrated in agri-food products, with professionals in agri-food-export dependent regions weary that the local economy will become the next casualty in the new world order.

“Traders and farmers in the Souss-Massa region are likely to feel the strain of Russia going out of SWIFT as some traders there mainly deal with Russian suppliers,” a professional working in a food packaging station in Agadir told Morocco World News.

The local tomato and citrus production follows a quota system. “Transit agencies coordinate with their Russian clients and then fix quota with local farmers,” the professional explained.

“Once transit agencies can no longer export to Russia, production operations and the value they add to the local economy will go as well,” warns the professional.

“We don’t deal with the Russian Federation, however. Traders will most likely find a way around sanctions by sending their produce through a longer route to supply their usual clients in Russia,” the professional explained to MWN.

Morocco’s exports to Russia averaged an annual growth rate of 16% over the last 24 years, with citrus and other agri-food products making the bulk of Morocco’s exports to Russia.