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USAID/MOROCCO the AGRICULTURAL SECTOR of MOROCCO: a DESCRIPTION Oy Paul R. Crawford and Malcolm J. Purvis ANNEX C: COUNTRY D

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USAID/MOROCCO the AGRICULTURAL SECTOR of MOROCCO: a DESCRIPTION Oy Paul R. Crawford and Malcolm J. Purvis ANNEX C: COUNTRY D USAID/MOROCCO THE AGRICULTURAL SECTOR OF MOROCCO: A DESCRIPTION oy Paul R. Crawford and Malcolm J. Purvis ANNEX C: COUNTRY DEVELOPMENT STR&TEGY STATEHENT United States Agency for International Development Rabat Febriary 1986 FORWARD This Annex to USAID/Morocco's FY 1987 Country Dvelopment Strategy Statement is a USAID document. However, it is the work of principally two individuals. Dr. Falcolm Purvis, Chief of USAID's Agriculture Division, provided directicn to the orSanization of the report and to the interpretation of minch of the data. Paul R. Crawford, PSAID/Morocco A&ricultural Economist, undertook the bulk of the research, drafting, and editing of the report, including the synthesis of information contained in an enormous array of documentation. USAID is certain tha. this Annex will be of treat value to the Agency for International Developrent and others concerned with the development of Morocco's agriculture. Rob Case Mission Director USAID/Morocco February 17, 1986 THE AGRICULTURAL SECTOR OF MOROCCO: A DESCRIPTION TABLE OF CONTENTS TABLE OF CONTENTS GLOSSARY OF ACRONYMS AND DEFINITIONS iv I. INTRODUCTION 1 II. THE MOROCCAN ECONOMY: SITUATION AND OUTLOOK 2 1. Income and Employnent Trends 2 2. Growth of Morocco's Savings-Investment Gap 3 3. Growth of Morocco's Foreign Exchange Gap 5 4. External Borrowing/Debt Service 3 5. Economic Policy Reform 6 6. Prospects of Economic Adjustment and Growth 9 III. ROLE OF THE AGRICULTURAL SECTOR IN THE MOROCCAN ECONOMY 10 1. Social Importance of the Agricultural Sector 10 2. Economic Importance of the Agricultural Sector 10 3. Domestic Food Consumption 12 4. Poverty 16 5. Employment in Rural Areas 17 IV. STRUCTURE OF NOROCCAN AGRICULTURE 20 1. Morocco's Land Resources 20 2. Rainfall Distribution 20 3. Irrigation 2­ 4. Land Tenure and Distribution 27 V. INVESTMENT, SUBSIDIES, AND EFFECTIVE PROTECTION IN MOROCCAN AGRICULTURE 34 1. Trends in Public Sector Investment in Agriculture 34 2. Public Sector Subsidies in Agriculture 37 3. Effective Protection of Moroccan Agriculture 39 VI. CLIMATIC VARIABILITY AND THE EFFECTS OF THE 1981-85 DROUGHT 41 VII. CROP PRODUCTION 46 1. Morocco's Comparative Advantage in Agricultural 46 Production 2. Production of Cereals 46 3. Production of Other Crops 51 4. Agriculture Productivity and Potential 56 VIII. AGRICULTURAL INPUTS 58 1. Labor 58 Use of Improved Seeds 59 3. Fertilizer Distribution and Use 65 4. Pest Control and Pesticide Use 69 5. Mechanization 71 6. Supply and Demand for Credit 72 IX. PRODUCER PRICES 77 1. Cereals 71 2. Producer Prices for Other Crops 80 X. LIVESTOCK PRODUCTION 82 1. Importance of the Livestock Sector 82 2. Trends in National Production 84 3. Constraints to Livestock Production 89 4. Forage Production 95 5. Suppleaentation 98 6. Institutional Support for the Livestock Sector 98 XI. FORESTRY PRODUCTION 100 1. Importance of Forestry in Morocco 100 2. Fuelwood Demand and Supply 100 3. Grazing Pressure on Forest Land 101 4. Level of Forest Degradation 103 5. Reforestation Effortj 103 6. USAID Assistance to Forestry-related Activities 104 XII. FISHERIES PRODUCTION 106 XIII. AGRICULTURAL TRADE 109 1. Agricultural Imports 109 2. Agricultural Exports 112 XIV. THE ROLE OF THE PUBLIC SECTOR IN MOROCCAN AGRICULTURE 115 1. The Ministry )f Agriculture and Agrarian Reform 115 2. Agricultural Research 117 3. Agricultural Extension 120 4. Agricultural Education 122 5. Planning and Policy Analysis 124 XV. PARASTATALS 1. The Importance of Parastata]s in Moroccan Agriculture 126 2. Management of Irrigation Zones (ORMVAs) 126 3. Production and Distribution of Improved Seeds (SONACOS) 127 4. Fertilizer Production and Distribution (FERTIMA) 127 5. Cereal Distribution (ONICL) 128 6. Export Marketing (OCE) 129 7. Crop Production (SOGETA and SODEA) 129 8. Livestock Development (COMAGRI and SNDE) 130 9. Cotton Production (COMAPRA) 130 XVI. PRIVATE SECTOR AGRO-INDUSTRY 131 XVII. DONOiR ASSISTANCE TO MOROCCO'S AGRICULTURE SECTOR 135 1. USAID Assistance to Moroccan Agriculture 135 2. Other Donor Assistance to Moroccan Agriculture 138 XVIII. MOROCCO'S AGRICULTURE SECTOR ADJUSTMENT PROGRAM 146 ANNEX 1: STATISTICAL APPENDIX 149 ANNEX 2: BIBLIOGRAPHY 158 GLOSSARY OF ACRONYMS AND DEFINITIONS ADB African Development Bank CLCA Caisse Locale de Cr6dit Agricole CMA Coop6rative Marocaine Agricole CMV Centre de Mise en Valeur CNCA Caisse Nationale de Credit Agricole CNERV Centre Nationale d'Etudes et de Recherche sur la Vulgarib-ition COMAPRA Compagnie Maro.aine de Commercialisation des Produits Agricoles COMAGRI Compagnie Marocaine de Gestion des Exploitations Agricoles CRAFA Centre Rdgional d'Animation et de Formation Agricole CRCA Caisse R6gionale de Cr6dit Agricole CRSP Collaborative Rest arch Support Projezt CT Centre des Travaux DA Development Assistance (Funds) DE Dircction de l'Elevage DPA Direction Provinciale de l'Agriculture DPAE Direction de la Planification et des Affaires Economiques DPV Direction de la Production V6g~tale DVRA Direction d( la Vulgarization et de la R6forme Araire EEC European Economic Community EIB European Investment Bank ENA Ecole Natiouale d'Agriculture ENFI Ecole Nationale Foresti~re d'Ing~nieurs ESF Economic Support Furds FADES Arab Fund for Social and Economic Development FERTIMA Fertilizants Marocains FY Fiscal Year GDP Gross Domestic Product GOM Government of Morocco IAV Institut Agronomique et V6t6rinaire, Hassan II IBRD International Bank for Reconstruction and Development (World Bank) IFAD International Fund for Agricultural Development IMF International Monetary Fund INRA Institut National de la Recherche Agronomique KfW Kreditanstalt FOr Wiederaufbau MARA Ministare de l'Agriculture et de la R6forme Agraire OCE Office de Commercialisation et d'Exportation OCP Office Chdrifien des Phosphates ONICL Office National Interprofessionel de Cr~ales et L6gumineuses ORMVA Office R6gional de Mise en Valeur Agricole SCAM Soci6t6 Coop6rative Agricole Marocaine SCE Soci6t6 Cherifiene d'Engrais et de Produits Chimiques SNDE Soc6t6 Nationale de D6veloppement de l'Elevage SODEA Zoci6td de D6veloppement Agricole SOGETA Soci6t6 de Gestion des Terres Agricoles SONACOS Soci~t6 Nationale de Commercialisation des Semences USAID United States Agency for International Development WFP World Food Program c.i.f. cost, insurance, freirht to point of destination included Dh dirham f.o.b. free on board - the includes delivery and other charges FU forage units (the nutritional equivalent of I kg of barley) ha hectare kg kilogram MT metric ton qx quintal (100 kilograms) - 1 - I. INTRODUCTION The purpose of this document is to provide a comprehensive description of the agricultural sector in Morocco - its performance, problems, and potentials. It was prepared as a background document for the Mission's FY 3,87 Country Development Strategy Statement. This document is intended for ise by AID staff and its consultants. Officials of the Government of Moroc4:o were not directly involved in its preparation, nor did individuals outside if USAID review and comment upon it prior to its completion. This report presents a synthesis of information available from a number of primar) and secondary sources. As such, it should be useful as an introduction to Moroccan agriculture for individuals who are unfamiliar with it, and as a reference work for individuals needing additional information on speciic aspects of thac sector. To the extent possible, USAID has attempted to ensure that the information presented in this report is the "best available data'. Nevertheless, it should be noted that, as is the case in many developing countries, there is a general lack of reliable information, particularly statistical information, on Morocco's agriculture sector. That information which is available is often inconsistent, dated, and incomplete. For example, the last agricultural census was in 1973/74; the last nutrition survey was in 1971; there have been no recent household budget surveys; and the only information available on rural employment comes from a 1975 r':port. Further, published reports rarely indicate the basis ipon which the statistics that they present are developed. Given the apparent speed at which the agricultural sector in Morocco is changing, caution should be used in drawing conclusions from this data. To the extent of its ability, USAID has attempted to note weaknesses in the data base, and present the most current, conplete and accurate data available. It has attempted to reconcile inconsistencies in that data ani, when this has not been possible, point out inconsistencies and their implications. In preparing this report, USAID has relied heavily on a number of documents, in particular the 1985 World Bank Appraisal Report for the Agricu]l.iral Sector Adjustment Locn and a 1985 report, prepared jointly by the Ministry of Agriculture and a team of AID-funded consultants, which examined the structure of prices and incentives within the sector. We have also relied on reports by several teams of consultants to USAID that have recently examined subsectors within the agriculture sector, e.g. fertilizer and seed distribution, fisheries, forestry, and extensive livestock production. - 2 - II. THE MOROCCAN ECONOMY: SITUATION AND OUTLOOK Morocco, in the mid-1980s, is in an economic crisis. Growth in per capita income in the first half of the 1980s has been negative. In 1985, Morocco's foreign debt exceeded its annual GDP. To meet this crisis, Morocco, with the encouragement of the international donor community, has launched an ambitious program aimed at economic
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