For a more valuable and integrated agriculture in Morocco Morocco Integrated Agriculture & Agribusiness Program Final Report
USAID Contract MOBIS IQC No. 608-M-00-05-00043-01
Disclaimer The author’s view expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States government.
Contents
EXECUTIVE SUMMARY 1 Morocco’s promise 7 helping fulfill morocco’s promise 8 transforming value chains 11 Fostering the enabling environment 37 Crosscutting Initiatives 43 IAA’s legacy 47
LEFT: Yamina Hachbay, secretary for the Beni Yâala Zkara Cooperative smiles as she performs a safety check on the modern aromatic and medicinal plants distillation unit. Using modern distillation methods has enabled cooperative members to increase their per kilo revenues five-fold. IAA program / HASSAN NABLAOUI
FRONT COVER: A young woman takes a break from picking strawberries. IAA provided training on good production and good hygiene practices to over 650 berry workers and regional extension agents. Over 89% of the participants trained were women. IAA program / ZINEB TAHMEHMACHT
INSIDE FRONT COVER: The Saiss region is home to Morocco’s most fertile lands and the economy is based largely on agriculture. IAA program / ELIZABETH ELLIS
BACK COVER: A herder watches over his flock in the Oriental region. IAA program / MOHAMED BENMALEK
CONTENTS III Strategic Objective 11: Moroccan Economy Successfully Responding to New Opportunities and Challenges of Free Trade
Intermediate Result 11.1: Increased Productivity in Agriculture and Agribusiness
Morocco Agriculture and Agribusiness Program Objectives: Strengthened Ability of Agriculture and Agribusiness to Compete in the Global Marketplace
Sub-Objectives: • Jobs created in agricultural sector • Incomes increased for farmers, workers, and entrepreneurs • Increased rural economic resilience
Results Results Results Results Module 1 Module 2 Module 3 Module 4 Improved public Increased Improved Enhanced capacity of policies and productivity and competitiveness agribusinesses, firms institutions in support variety in agriculture of agro-processing and institutions to of more competitive and livestock industries support competitive agriculture and production value chains agribusiness
Coordination with related USAID, U.S. government, and other donor activities
The objective of the Morocco Integrated Agriculture and Agribusiness Program is to foster value chain integration and improve the competitiveness of Moroccan agriculture and agribusiness with the objective of increasing sales and responding to opportunities in a more open trade environment. executive summary
Moroccan food products are While there is this unfulfilled of exceptional quality, as any potential, the opening of world visitor to Morocco can attest. markets and the lowering of The country is blessed with a tariff barriers through free trade wide variety of landscapes, soils agreements provide significant and ecosystems; resulting in a opportunities for Moroccan food great diversity of agricultural products. At the same time, the products and a significant livestock rapid urbanization and growth sector. There is also a developed of the middle class in Morocco food processing industry that are translated into a proliferation transforms agricultural goods into of supermarkets and significant products such as canned fruits and changes in food distribution vegetables, olive oil, couscous, and networks. The advent of modern consumerism means an increased yogurts. need for agricultural products However, Morocco is not to comply with standards of fully taking advantage of this food safety, hygiene, quality and tremendous bounty. Far too traceability. often, Moroccan agricultural Against this backdrop, and products are exported in bulk to to respond to opportunities Europe, where most of the value offered by the U.S – Morocco is added; Moroccan farmers and free trade agreement signed in processors fail to take advantage 2004, USAID Morocco initiated of specific opportunities and the Integrated Agriculture and market windows due to a lack Agribusiness Program (IAA). This of market intelligence; a great program, implemented between number of products unique February 2005 and September to Morocco or with specific is 2009 had the goal of improving L l E characteristics are not used to Moroccan competitiveness in their full potential; and institutional target agricultural value chains in lizabeth / E / and logistical constraints inhibit the order to add value and jobs in am gr o full development of the agricultural specific regions, and to capitalize pr aa I sector. on new market opportunities.
EXECUTIVE SUMMARY 1 The IAA challenge was to support Improving the farmers and food processors in competitiveness of evolving from a “production logic” agricultural value where they sell what they can chains produce to a “market logic” where The catalyzing principle of the they produce what they can sell. To program’s interventions was the meet this challenge, the IAA team use of a value chain approach worked in three regions (Oriental, focused on end markets. Another Saiss, and Gharb-Loukkos) and guiding principle of IAA was value five value chains (lamb meat, chain integration with forward and aromatic and medicinal plants, backward linkages made between olives, capers, and berries). The farmers and processors; and IAA Program also supported between processors and markets, institutional development and through efficient distribution policy reforms to improve the channels. enabling environment for more In the lamb meat value chain, competitive Moroccan agriculture the IAA Program successfully and agribusiness. introduced transformational changes such as the early weaning In April 2008, the Ministry of of lambs and improved animal feed Agriculture unveiled a new strategy that allowed sheep farmers to for agricultural development substantially improve their income, in Morocco named Plan Maroc while reducing the pressure Vert (PMV). This strategic plan on scarce rangeland resources. adopted many of the tenets of The program also facilitated the IAA Program: a decentralized, direct sales between the sheep value chain approach; a focus farmers of the Oriental and the on markets – both domestic Marjane supermarket chain for and international; the need to the yearly Aid El Kebir (feast capitalize on unique regional of sacrifice). This direct linkage products (produits du terroir); between producers and markets streamlining the conveyance of has transformed the value chain food from producer to consumer as farmers now understand the through organized intermediary benefits of operating through direct structures (aggregateurs); and sales contracts. Another major defining strategies to add value all achievement of the IAA Program along the chains. Many of the tools, has been the rehabilitation of the methodologies, results, and lessons Oujda slaughterhouse (the major learned from the IAA Program meat processing facility in the will serve the implementation of region) that will guarantee the the Plan Maroc Vert. In addition, production of meat that adheres to IAA supported the Ministry of international standards of hygiene Agriculture in developing new and food safety. Finally, the best procedures to help the reform of practices introduced in the lamb the institutions that will carry out meat value chain in the Oriental this new strategic vision. region have been successfully
2 EXECUTIVE SUMMARY replicated in the Rhamna region of processing, and marketing of olive south central Morocco. products are used to maximize the impact of significant investments, In the aromatic and medicinal plants such as the Millennium Challenge value chain, the IAA Program was Corporation’s (MCC), in the olive able to demonstrate a model of value chain. value chain integration with the implementation of an aromatic In the capers value chain, small and medicinal plants (AMP) farmers have been introduced to processing unit Jerada. The Beni sustainable harvesting practices, and Yâala Zkara cooperative, which are now able to sort their capers manages the plant, has evolved by size to increase their market from being a traditional, inefficient, value. Caper cooperatives have and unprofitable producer of also increased their profits five-fold AMP products to a modern and from 2.5 dirhams per kilo for raw, Key Results integrated actor in the value untreated capers to 14 dirhams per chain. Their profits per liter have kilo for treated and sorted capers. Sales : $56.1 million increased five-fold from 200 They have also joined together Investments : $22.6 million dirhams per liter to 1000 dirhams under a common marketing label per liter. And their products now For every dollar spent by to better meet volumes demanded adhere to strict international USAID on the Morocco IAA standards including organic by large processing units linked to Program, $5.66 was generated certification. international markets. in direct sales and investments. In the olive value chain, the IAA In the berries value chain, the IAA Program has worked with many Program introduced American actors in the Saiss region, from varieties of blueberries, raspberries cooperatives to modern producers and blackberries to Morocco; of olive oil, to improve their encouraged new investments competitiveness and foster lasting in the berries sector; trained market linkages. Cooperatives of the workforce in the Gharb small producers are now reaching and Loukkos regions on best markets directly and understand production practices for berries; how to make quality olive oil; assisted small farmers with Moroccan high quality olive oils certification; initiated a public- from the Saiss region are now private partnership for research; on supermarket shelves in the and provided valuable market United States; two training sites information to producers and have been set up in farm institutes investors. to teach agricultural workers best practices for the production of The constant thread in all these olives; a women-owned table olive activities was the improvement facility in Oujda is now certified in value chain competitiveness, to international standards and based on specific conditions thus better able to export; and and opportunities, and using a series of technical guides and participatory approaches that reports will help ensure that included partner institutions and best practices in the production, beneficiaries.
EXECUTIVE SUMMARY 3 USAID / KARIMA RHANEM
US Ambassador Thomas Riley, along with USAID Mission Director Monica Stein-Olson, admires a Beni Guil sheep which has been sold as part of the IAA Program’s successful Aid El Kebir marketing campaigns. For the first time cooperatives and herders are selling their animals through direct sales contracts with Marjane—Morocco’s leading supermarket.
Fostering a better provides valuable price, demand, enabling environment and regulatory information on for agriculture and major agricultural commodities of agribusiness interest to Morocco in key target However, working on value international markets. chains alone is not sufficient. The We have also worked to improve competitiveness of Morocco’s the capacity of the Ministry of agriculture and agribusiness also Agriculture for meaningful policy depends on an improved institutional analysis through training sessions and policy enabling environment. In on cost-benefit analysis and the course of its implementation, representative farm modeling. IAA undertook a variety of activities aimed at improving the capacity The IAA Program provided of institutions to facilitate a more significant support for the competitive agricultural sector. implementation of the Plan Maroc Vert (PMV) by conducting a detailed The IAA Program helped develop analysis of the processes managed a market intelligence system for by the Ministry of Agriculture the food export control agency and preparing a new manual of (EACCE). This web based system
4 EXECUTIVE SUMMARY procedures for the Ministry in line improving Morocco’s logistics and with its reorganization and with transportation, which are key issues the strategic orientations of the in competitiveness. PMV. The program also conducted Water is a critical issue for detailed value chain analyses using Moroccan agriculture, which USAID’s methodology that were is highly sensitive to drought. shared with the Ministry. Unfortunately, drought is becoming In 2007, a major daily in Morocco a chronic element in Morocco’s characterized the Ministry of weather conditions. The IAA Agriculture’s web site as “out of Program worked with experts order”. The IAA Program worked from the United States Drought on designing and developing a new Mitigation Center at the University web site for the Ministry that is of Nebraska to provide a road map able to clearly communicate all the for revitalizing a drought observatory Ministry’s activities. in Morocco that can be proactive in drought management. IAA also The IAA Program conducted a prepared a methodological guide detailed analysis on the access to on how to improve the valorization rural finance for small farmers. This of water in irrigated perimeters. study, done in conjunction with the Credit Agricole du Maroc, Thus, the IAA Program addressed the leading agricultural lender in the most critical policy and the country, was used to facilitate institutional issues facing the the implementation of the newly agricultural sector: rural finance, created Company for the Financing water, logistics and transportation, of Agricultural Development market intelligence, policy analysis, (SFDA) tasked with providing institutional procedures, and the financing to small and medium- capacity building of cooperatives. sized farmers. Taken together, these activities complemented the work done Through its subcontractor, Making in target value chains to create Cents, the IAA Program provided the conditions for success and training on basic business and sustainability. management skills to agricultural cooperatives in target value chains. This report tells the story of To multiply impact and ensure the IAA Program, through the sustainability, the program also description of its activities, but trained trainers from partner more importantly through institutions at the local level. the voices of beneficiaries and institutional partners. Beyond the The issue of logistics and numbers and results are the stories transportation for the berries value of lives changed, incomes raised, chain was addressed through a communities empowered, farmers detailed study of the key technical trained, deals concluded, and strides and institutional constraints made towards fulfilling Morocco’s at the Port of Tangiers, and promise. practical recommendations for
EXECUTIVE SUMMARY 5 The future of Moroccan agriculture rests heavily on the ability of young farmers to compete in the global market. USAID’s IAA Program has actively included rural youth in its technical trainings on improved production, processing, and marketing techniques. By involving youth, USAID is working to increase skills, improve livelihoods, and cultivate a new generation of farmers able to respond to international demands. chapter one Morocco’s promise
The promise of Morocco begins As a destination for trade and with its geographic variety, making travelers, Morocco’s history of it a rarity in the Middle East and hospitality and openness runs North Africa region. From the deep. The country was part of an four mountain ranges that cross historic route from sub-Saharan the country, to its plateaus and Africa to Europe, which was used plains, the country is resource- by caravans of gold and salt traders rich, especially in its highly diverse from at least the Middle Ages. And agriculture sector. With nearly now under the United States- 53,000 square miles of arable land, Morocco Free Trade Agreement, agriculture accounts for 80% of Morocco exports to the US totaled rural employment1. Morocco has $812 million in the first 11 months been an agricultural country for of 2008, up 42% compared to the millennia, with early appearances same period in 2007, according of some of the first known edible to the US-Morocco FTA web grains – such as wheat and bitter site. Roughly 18% of Morocco’s vetch - being traced to the country. export earnings are attributed to agricultural products.2 And the country’s riches are enhanced by its proximity to Europe and its Morocco is making significant range of climate zones. The World progress on several fronts and a Bank (2001, Policy Research paper) number of ambitious development broadly divides the country’s cereal plans have been launched in the production— the mainstay of tourism, industrial, social, and Moroccan agriculture to date—into agricultural sectors. The Plan Maroc six agro-climatic zones according to Vert provides a strategic framework their cereal “production potential”. under which the promise of The zones are favorable, intermediaire, Moroccan agriculture can make a difavorable sud, defavorable orientale, substantial leap forward, both in montagneuse, and saharienne. These modern intensive farming and small agro-climatic zones reflect topography scale agriculture. and, most importantly, rainfall, which decreases from north to south and from west to east.
1. USAID Contract #608-M-00-05-00043-01, Statement of Work, pg 7) 2. USAID Contract #608-M-00-05-00043-01, Statement of Work, pg 3) AM / MOHAMED BENMALEK MOHAMED / AM GR O PR IAA IAA
morocco’s promise 7 chapter Two Helping fulfill Morocco’s promise: The IAA Program
As part of its efforts to advance The strategic vision underlying the the agricultural sector and improve successes of the IAA Program is farmer incomes, the Ministry USAID’s value chain approach. At of Agriculture and Maritime its core, this approach promotes Fishery (MAMF) partnered with systemic competitiveness that USAID to design the Integrated results in increased economic Agriculture and Agribusiness (IAA) growth that benefits small Program. Working hand in hand enterprises and reduces poverty. with Moroccan partners at the The approach seeks to integrate national and local level, USAID’s small and medium enterprises into IAA Program provided technical globalized international, national assistance to foster value chain and local markets by linking large integration and improve the numbers of small enterprises into competitiveness of Moroccan selected value chains which have a agriculture and agribusiness with potential for growth.3 the objective of increasing sales Through a series of meetings with and responding to opportunities IAA partners at the regional and brought about by a more open national level, five value chains in trade environment. Other three regions of Morocco were objectives included job creation selected as the focus of the IAA in agricultural areas, increased Program: lamb meat and aromatic incomes for farmers, agricultural and medicinal plants (AMP) in the workers and agriculture-related Oriental region; olives and capers in businesses, and a reduced the Saiss region; and berries in the vulnerability of the country’s Gharb-Loukkos region. The overall agricultural economy. These goals theme of IAA’s technical assistance were especially urgent as Morocco was helping farmers and agribusiness seeks to capitalize on recent move from a production logic (sell free-trade agreements, and as the what you can produce) to a market agricultural sector faces increasing logic (produce what you can sell.) competition from international markets.
3. USAID’s value chain training material, accessed at: www.microlinks.org/valuechaingateway
8 helping fulfill morocco’s promise USAID’s VALUE CHAIN APPROACH
USAID’s value chain approach provides a clear methodology for driving economic growth while reducing poverty. The primary objectives of this approach are: • improve the competitiveness of value chains with large numbers of small enterprises, • improve the contribution of small firms in the value chain. • ensure that small and medium enterprises benefit from the value chain. So, what is a « filière » or value chain? A value chain comprises everything that is needed to take a product from its beginning to the final consumer or end market. A value chain is affected by the global and national business enabling environments and is comprised of input suppliers, producers, processors, wholesalers, exporters as well as national and “USAID’s value chain global retailers. In addition the value chains are affected by cross-cutting functions such as financial services and sector-specific services. approach is used to drive economic growth with poverty reduction through the integration USAID’s VALUE CHAIN FRAMEWORK of large numbers of micro- and small en- Global Enabling terprises (MSEs) into Environment Global Retailers increasingly competitive 4 value chains.” Local / National National Enabling Environment Retailers
Sector-specific providers Exporters Wholesalers
Cross-cutting providers Processors/Traders
Producers
Financial (cross cutting) Input Suppliers
4. Key Elements of the Value Chain Approach, from USAID microLINKS wiki, July 2009
helping fulfill morocco’s promise 9 AM / ZINEB TAMEHMACHT ZINEB / AM
GR Sheep from an IAA-assisted cooperative graze on pastoral rangelands. The IAA O
PR Program is working with nearly four thousand herders in the Oriental region
IAA IAA on improved production methods. chapter three transforming value chains
Each of the IAA Program’s five value chains – lamb meat, olives, capers, aromatic and medicinal plants, and berries - was at a different state of development when USAID launched the IAA Program in 2005. IAA’s assistance in upgrading and transforming these value chains centered around the following sub-objectives of the IAA Program : • Increased productivity and variety in agriculture and livestock production • Improved competitiveness of agro-processing industries • Enhanced capacity of agribusinesses, firms, and institutions to support competitive value chains Though all have shown successes, each chain has shown particular progress in various parts of its’ respective chain. Talia Reggadi, a member of the Tahadi Cooperative encourages her herd to move to a recently installed communal feed lot. IAA is disseminating its early weaning and quick fattening approach to cooperatives throughout the Oriental region. iaa program / ZINEB TAHMEHMACHT AND MEDICINALPLANTS preserve thenaturalresources oftheregion. plants valuechainswiththegoal ofhelpingherders andwild-crafterstoincrease theirincomeswhilehelpingto spontaneous aromatic andmedicinalplants. unemployment rates. Despitethesechallenges, theregion isdominatedby livestock production andisrichin rain-fed areas. border with Situated onthenortheastern Algeria, Morocco’s vastOrientalregion includessemi-aridandarid LAMB MEA ORIENT AL REGION The Orientalisrecognized asoneofMorocco’s poorest regions andischaracterizedby highrural T AND AR OMA their neighbors. quality and price as compared to between their products in terms of experienced little differentiation or meat quality. As such, herders on appearance and not by weight sales where animals are sold based exclusively on traditional markets for flock. Herders also relied almost of part a healthy lifestyle for their and rarely sought veterinary care as made limited use of animal feed heavily on stressed rangelands, which herders depended too revealed a disorganized chain in Morocco’s lamb meat value chain incomes. Barriers lam TIC The IAAProgram selectedthe lambmeatandaromatic andmedicinal b mea mor
to impr An early analysis of t occ oving Transforming value chain s |Lambmeat new production methods. production new try to willing were and markets new reaching in interested were who farmers two and cooperative IAA the 2005, (MAMF),in Fishery Maritime and of Agriculture Ministry the within partners regional its with lives. changing Working and incomes raising of goal ultimate the with chain value meat lamb the transform to approaches P IAA above, the listed barriers incomes. v Transformig rogram identified concrete concrete identified rogram alue chain/raisig P rogram identified one one identified rogram
In response to the the to response In algeria the 13 success story Sheep of the Oriental Conquer Supermarkets
USAID/Morocco, through its Integrated Agriculture and Agribusiness (IAA) Program, is helping sheep herders in the Oriental region of Morocco to increase their revenues through direct sales to supermarkets. For the past four years, the IAA Program has worked closely with herder cooperatives to secure direct sales contracts with Marjane, Morocco’s leading supermarket chain for the Islamic holiday of Aid El Kebir. Twelve cooperatives and eight branches of Marjane are signing direct sales contracts with leading supermarket chains throughout Morocco for the Islamic holiday of Aid El Kebir. In 2008, The IAA Program also worked with herders in the Rhamna region on direct sales. In 2009, thirteen cooperatives, three groups of farmers, and twelve supermarket branches have signed direct sales contracts for the fourth Aid El Kebir operation. HANEM R IMA IMA R IAA’s assistance to these cooperatives is focused on improving cooperative members’ lives by increasing the value-added margin to their products USAID / KA / USAID and linking the producers to markets. With secured sales contracts, the A herder from the Oriental region cooperatives will increase their sales revenues and will be able to contribute shows off a newly-sold sheep as part to the economic development of their local and regional communities. of the 2007 Aid El Kebir Operation at the Marjane in Mohammedia. To date, cooperatives have sold $1.6 million in sheep for the 2006, 2007, Herders sold their sheep for 44 and 2008 Aid El Kebir operations. This number is expected to rise to dirhams per kilo compared to nearly $2.9 million with the anticipated 2009 sales. The success and 38 dirhams per kilo in the local markets—an increase of nearly 9%. expansion of the Aid El Kebir operation is a concrete result of USAID’s assistance to the development of the lamb-meat value chain in Morocco.
14 Transforming value chains | Lamb meat The IAA Program introduced a Once herders mastered the number of innovative production new production methods and methods such as early weaning, were able to ensure high quality, quick fattening through a healthy animals, the IAA Program nutritionally balanced animal feed, worked closely with the herders and use of veterinary medicine to introduce them into modern to promote good health and markets through one-time “New production tech- hygiene in the herd. The program sales contracts with Morocco’s worked with regional partners supermarket giants Marjane and niques such as birth to establish collective feedlots in Metro. The premise of the sales spreading and collec- Ain Beni Mathar and Tendrara for contracts was to promote the lamb tive fattening enable use in collective fattening trials, as unique, high quality regional cooperatives to meet and rehabilitated the Ain Beni products (produits du terroir) to Mathar unit, now in use by multiple sophisticated urban shoppers for market requirements cooperatives. Early adopters of the Islamic holiday of Aid El Kebir. while increasing herder these production methods quickly An interesting dynamic of the lamb incomes and reducing realized a 60% increase in daily meat value chain in Morocco is weight gain in their herd, over a that 50% of all sheep are sold in degradation of pastoral 200% reduction in grazing time conjunction with Aid El Kebir each resources”. from six months to a year down to year while the remaining 50% are two to three months. This reduction sold throughout the year. These resulted in substantial savings direct sales contracts enabled on production costs. In addition herders to increase their incomes IAA’s herd maintenance assistance through the direct sale of high between the time an animal weans quality sheep to customers on a to being sold at market resulted in a per kilo basis rather than per head. 90% reduction in herd mortality.
Participation in Aid El Aid El Kebir Operation Sales Kebir Operation
3,940 $1,142,066 15 4000 1,000,000 No. of supermarkets Supermarkets($) TOTAL 2006-2009 : 1,974,536 $910,879 No. of cooperatives 3,558 Local souq ($) TOTAL 2006-2009 : 498,998 No. of animals 3500 Subtotal ($) TOTAL* 2006-2009 : 2,773,534 *Includes sales projections for November 2009 12 800,000 3000 TOTALS 2006-2009 : 2,773,534
10
2500 9 600,000 2,198 8 $729,745 2000 $506,215 $429,745 6 6 400,000 $368,600 1500 5 5 $395,507 $300,000 1,113
cooperatives $265,312
$231,188 1000 and 3 3 200,000 2 2 $130,196 $137,615 500 supermarkets of animals . . . . no In US$ 0 0 no 0 December 2006 December 2007 December 2008 November 2009 December 2006 December 2007 December 2008 November 2009
Transforming value chains | Lamb meat 15 iaa program / Mohamed Benmalek Freshly slaughtered carcasses hang in the newly renovated cold chamber at the Oujda slaughterhouse. USAID invested nearly $ 500,000 to upgrade management practices and install state of the art cold chambers.
Partnering for Progress: The Oujda Slaughterhouse
The Oujda slaughterhouse is the main facility for the the improvement of roads and green spaces around slaughtering of animals in Oujda and the surrounding the slaughterhouse. USAID, through the IAA Program, areas. At the time of its conception and installation in contributed nearly $500,000 through the following the 1950s, the slaughterhouse was a state of the art actions: facility. Since that time, population growth in the region, • the slaughterhouse upgrade feasibility study; coupled with increased meat consumption and a lack • the preparation of the technical drawings for the of investment has led to a gradual decline of the facility rehabilitation of the electric network; and stressed the facility’s ability to meet production volumes during peak seasons such as summer when • the rehabilitation of the cold meat storage rooms; many festivities take place and Moroccan living abroad • the purchase of compressors and cold air generators return home. (including installation); • training slaughterhouse staff on efficient and hygienic Since the IAA Program works in the lamb meat slaughtering techniques; value chain in the Oriental region, USAID saw this as an opportunity to work downstream of the value • designing equipment specifications for efficient chain in the critical component of transforming live slaughtering; and animals into quality meat that meets the strictest • the preparation of a slaughterhouse technical sanitary and hygiene conditions. In 2006, USAID management guide and extensive training of conducted a feasibility study for rehabilitating the slaughterhouse employees and management. slaughterhouse to allow for the eventual privatization As a result of USAID’s assistance through the IAA of the slaughterhouse. USAID entered into a collective Program, the Oujda slaughterhouse is better able to agreement with the Wilaya of Oujda, the Urban meet the needs of area residents and the expanding Commune of Oujda, and the Ministry of Agriculture demand resulting from tourism and regional to rehabilitate the slaughterhouse and prepare it for development. The completion of this integrated project eventual privatization. The rapid diagnostic of the provides the city of Oujda and the Oriental region with slaughterhouse conducted by IAA revealed deficiencies a modern slaughterhouse that meets the requirements in basic hygiene standards, lack of traceability systems, of hygiene and food safety, and that will ensure that poor management systems, insufficient transportation high quality red meat is produced in the region. As systems, and failure to conform to international the Government of Morocco moves to privatize production and sanitation standards. Under the slaughterhouse operations, the Oujda slaughterhouse collective agreement, the Wilaya of Oujda and the presents a great opportunity to become a pilot site Urban Commune of Oujda contributed $937,000 for the government to begin privatization of regional for the upgrade of the physical infrastructure of the slaughterhouses. This is especially important given the slaughterhouse; the rebuilding of the stockyards; importance of the red meat value chain for this region the repair and upgrade of the electrical circuits; the under the Plan Maroc Vert, and the major tourism upgrading of the wastewater conveyance system; the development taking place in the Oriental region. purchase of improved slaughterhouse equipment; and
16 Transforming value chains | Lamb meat Leaving a lasting dramatically with the widespread impact. Despite the initial adoption of early weaning and reluctance of Oriental herders quick fattening techniques and to engage in direct sales, word the exponential increase in animal quickly spread to neighboring feed sales. The improved fattening herders and cooperatives of the techniques have relieved pressure new production methods and on grazing lands, helping to ensure direct sales successes achieved sustained grazing resources for with USAID support. In fact, news area herders. Training on the of program successes extended prevention and treatment of far outside of the Oriental region. common diseases has reinforced At the request of the Govenor herder and cooperative capacity to of Kelaa des Sraghna of the care for their herds and preserve Rhamna region, the IAA Program wealth, while meeting the market introduced these proven methods demands for high quality meat. to herders in that region. By the Herder cooperatives are rapidly end of the Program, IAA worked evolving into dynamic small and directly with more than 20 medium-sized businesses while the cooperatives in the Oriental and mode of production in the Oriental Rhamna regions, including two region has shifted to a market- women-only cooperatives, and oriented system, demonstrated by reached more than four thousand nearly $2.9 million in sales of lamb rural households. meat generated from the Program- assisted Aid El Kebir operation After four years of USAID between 2006-2008 and projected assistance in the Oriental region, sales for 2009. productions methods have shifted
ANIMAL FEED SALES IN ORIENTAL REGION
119,773 T 120,000 50,000,000 Animal Feed (tons) Subtotal ($) $45,377,919.17 *Price of animal feed was higher than 100,000 average due to rising import costs 40,000,000
80,000
30,000,000
60,000
20,000,000 39,375 T 39,375 T $17,341,321.24 39,375 T 40,000 $14,281,088.08 $13,322,368.42 ) 10,000,000
tons 20,000 ( ($) feed
1,648 T $433,141.43
animal 0 0 subtotal 2006 2007 2008* 2009 totals 2006-2009
Transforming value chains | Lamb meat 17 Boufalja Bouroba, a member of the Beni Yâala Zkara Cooperative, proudly displays a fresh batch of rosemary essential oil. The cooperative has more than tripled its profits thanks to improved collection, processing, and marketing methods introduced through the IAA Program. Aromatic and medicinal plants
Barriers to improving Building on USAID’s previous support incomes. Morocco’s climate of the AMP sector through its AP3 creates perfect conditions for the Program, and in coordination with wild growth of a variety of aromatic HCEFLCD, the IAA Program assisted and medicinal plants on the country’s two cooperatives in obtaining rangelands and forests. In the harvesting rights on public lands for Oriental region, despite harsh soils 20,000 hectares and 25,000 hectares. and infrequent rainfall, several species In return, the cooperatives harvest of aromatic and medicinal plants no more than one third of the land are harvested by rural inhabitants each year on a rotating basis and including rosemary, thyme, sage, replant AMP to avoid over-harvesting. and artemesia. Several other AMP This public-private partnership species – many used as spices or has succeeded in encouraging the condiments such as coriander, cumin, private stewardship of public lands fennel, and saffron – are cultivated while improving the quality of life in regions across the country. As in in the region by increasing job other USAID-assisted value chains, opportunities for youth, increasing much of Morocco’s AMPs were sold incomes of cooperative members, as raw materials in bulk, reducing and adding value and diversification the income potential for collectors. to the products produced by Harvesting techniques put excessive the cooperative. IAA’s marketing stress on the land and plants, and old assistance is highlighted in the success equipment and traditional processing story on the following page. techniques impeded product quality. An important next step in the Despite these challenges, government AMP chain was the installation of figures have shown a steady increase a modern AMP distillation unit in in Morocco’s exports of AMP since Jerada. Combined with its marketing 2000, with exports reaching 890 and other capacity building assistance 5 million dirhams by 2005. for the cooperatives, the successful installation of the new unit was an Transforming the value important milestone in USAID’s chain/raising incomes. partnership with local and regional To help the AMP sector become governments especially Jerrada sustainable and competitive, the IAA Province, and in IAA’s strategy Program, in partnership with the to organize, professionalize, and Water and Forestry Department support integration of the AMP (Haut Commissariat aux Eaux et Forêts value chain in the Oriental region. et à la Lutte Contre la Désertification- The chart on page 21 compares the HCEFLCD) trained AMP cooperatives distillation methods employed by the and collectors in the Oriental region cooperative before and after USAID on sustainable harvesting techniques, assistance. As a direct result of which include cutting no more than 50 USAID’s assistance both cooperatives percent of a plant, as well as rotating have an increased awareness – and the selected harvesting sites each year real experience in the market - of the / HASSAN NABLAOUI HASSAN / am and planting additional hectares. added-value retained by cooperatives gr o r P IAA IAA 5. www.eacce.org.ma
Transforming value chains | aromatic and medicinal plants 19 success story Producers Protect and Enhance Medicinal Plants
The Beni Yâala Zkara rosemary cooperative of Jerrada has become a model that the Moroccan government wishes to duplicate in different regions, within its efforts to organize the aromatic and medicinal plants value chain and foster human development in the Moroccan rural areas. Members of the Beni Yâala Zkara cooperative benefited from USAID’s Integrated Agriculture and Agribusiness Program (IAA) financial and technical support through on-going training in production, marketing, administrative, and financial best practices. Currently, with the support of the IAA Program and its partners, the cooperative contributes to rural development in Jerrada through the creation of 150 to 200 jobs in local communities that collect or process rosemary. The cooperative also preserves natural resources by orienting wild crafters and supporting rosemary parcel cultivation and upgrades. With the help of the IAA Program, the cooperative purchased premises and modern equipment for rosemary distillation. IAA linked the cooperative to potential buyers at the national and international levels so it could diversify its customers and sell at better prices. Additionally, the cooperative sold 500 kg of certified organic rosemary to Bled Conserve of Taourit (90 km from Oujda) at a 40% premium above the going rate and another 20 tons to Baba Sidi Herbs in Marrakech at 9% above the local price. am gr o ‘’With IAA Program support, jobs have been created and several pr
iaa families’ living conditions improved,’’ says Tayeb Errezougui, president of the Beni Yâala Zkara rosemary cooperative. Cooperative president Tayeb Errezougui showcases rosemary products at the first International The IAA Program is working with other cooperatives in the AMP Agriculture Fair in Morocco. sector to better enhance and preserve valuable resources.
20 Transforming value chains | aromatic and medicinal plants EXECUTIVE SUMMARY 24 when they transform raw materials of sustainable harvesting practices into essential oil and dried herbs. The and the use of modern distillation IAA Program also provided training methods. The improved collection and resources for the cooperatives to techniques employed by rural become export-certified and receive inhabitants have helped to reduce organic certification. deforestation in the Oriental region and ensure the sustainability of the LEAVING A LASTING natural AMP resources found in IMPACT. Building in sustainability the Oriental region.The improved has been a key factor in USAID’s processing methods have increased support for the AMP value chain in the relative income derived from each Morocco. From raising community kilo of harvested rosemary for the awareness of the economic potential benefit of communities throughout of rosemary to reducing poverty the Oriental region. And USAID will and improving livelihoods through sustain the impact of its work in AMP the collection and sale of AMP, the sector through the National AMP IAA Program has sought to unify Strategy that has helped to re-focus Moroccan growers, processors and officials on the economic importance exporters for the benefit of Morocco. of the AMP value chain. This strategy, After four years of USAID assistance developed in close coordination with in the region, solid partnerships have the Water and Forestry Department formed between the public and (HCEFLCD), lays out a clear private sector for the promotion and roadmap for both the public and preservation of Oriental’s natural private sectors to support the rapid ressources. Improved production and development of the AMP value chain processing methods are the direct for the benefit of Moroccan citizens results of the increased adoption and businesses.
Traditional Processing Methods Income Potential versus IAA Methods distilations per day Price per liter bulk (dhs) Income 2,500 potential 2.5 200 per day 84,000 (bulk) (DHS) 8 600 0 30,000 60,000 90,000 120,000 150,000 Income 0 1 2 3 4 5 6 7 8 0 200 400 600 800 1,000 2,500 potential yield in liters per ton Price per liter retail (dhs) per day 140,000 (retail) (DHS) 5 200 0 30,000 60,000 90,000 120,000 150,000
17.5 1,000 Traditional Method IAA Method 0 5 10 15 20 0 200 400 600 800 1,000
Before receiving assistance from the IAA Program, AMP cooperatives employed traditional processing methods. Whole plants were picked and boiled in open iron pots. The resulting oil was poor in quantity and quality. By improving their collection and processing methods based on training received through the IAA Program, cooperatives were able to substantially increase both the quality and quantity of essential oils produced. These improvements have resulted in increased incomes for cooperatives and have contributed to the economic development of the Oriental region.
Transforming value chains | aromatic and medicinal plants 21 An olive farmer proudly compares his robust olives to those of another farmer. By adopting improved production and processing methods, olive farmers have increased their per hectare yields by 10%, improved their oil yields by over 40% and improved the quality of their oils resulting in an additional 10 dirhams per liter. SAISS REGION olives and capers
morocco
algeria
Bordered to the Southwest by the Middle Atlas mountains and to the Northeast by the Rif mountains, the Saiss region is home to Morocco’s most fertile lands. The economy of the Saïss region is largely based on agriculture with forty percent of rural families in the region deriving their subsistence from the agriculture sector. Here one finds many types of farming practices including traditional and modern farming systems as well as harvesting of wild- growing plants. The IAA Program selected the olive and capers value chains with the goal of aggregating small-scale producers, helping them improve production and processing methods, and linking them more effectively to markets.
olives
Olives are big business in olive expansion, industrial Morocco and a point of national decentralization, developing small pride, with olive trees covering and micro-enterprises, creating approximately 600,000 hectares, jobs and fighting poverty. or 60% of the country’s tree- planted area. Over 800,000 BARRIERS TO IMPROVING orchards provide income for INCOMES. Despite the positive workers on more than 400,000 trends in the Saiss region, an early plantations throughout Morocco. analysis of the olive value chain The Saiss region is one of the revealed wide gaps in quality most important olive-growing and production capacity, which regions in Morocco. It is home to frequently resulted in unsecured many small traditional pressing supply for large processing units. units and to the largest olive Additionally the majority of oil industrialists and producers exported olives and olive oil are in the country. About three shipped in bulk to Europe for quarters of the olives produced processing and marketing, leaving are pressed for oil while the rest Gibson growers with only bulk prices in
ave are treated and sold as table
/D their pockets and allowing much am olives. Strategically speaking, this gr added-value to escape Morocco. o r
P region is ideal for promoting IAA IAA
Transforming value chains | olives 23 These Arbequina olives will be transformed into the award-wining Zouina olive oil. This oil has been featured in US tasting panels and is being sold in US stores such as Krogers’s, Bigg’s, Publix, HEB, Fiesta Market, and Value Market. Iaa program / Elizabeth Ellis Ali Rajaa Fi Allah, a member of the Oued Eddahab Cooperative, proudly displays his olives. Oued Eddahab is one of two fully integrated olive pilot projects completed under the IAA Program. Cooperative members have adopted improved production, harvesting, and processing methods and are also providing business services to regional farmers by pressing their olives into oil.
Finally, the value chain analysis TRANSFORMING THE revealed poorly organized or VALUE CHAIN/RAISING dysfunctional farmer associations, INCOMES. Based on IAA lack of diversity in nursery stocks, analyses, USAID, in support of and outdated production and Morocco’s National Olive Plan processing practices. which calls for improving olive oil quality and doubling the total At the start of the Program, the olive production area, targeted IAA team undertook a variety of IAA Program activities to build studies to analyze the constraints capacity of farmer associations, and opportunities in the olive link them to processors and value chains. Key studies included markets, and upgrade olive and a comparison of the world’s most olive oil production, processing demanded olive varieties and their and marketing techniques. At yields, a GIS report identifying the production and processing potential areas for conversion from levels, IAA developed a series cereal crops to higher-value olive of practical technical guides on plantations, and a detailed guide for best production and processing
am exporting olive oil to the US market.
gr practices for farmers and o pr aa I
Transforming value chains | olives 25 success story USAID Assists first locally-produced shipment of Mustapha’s Fine Foods of Morocco to the US
USAID/Morocco, through its Integrated Agriculture and Agribusiness Program, assisted in the export shipment of the first locally-produced container of Mustapha’s Fine Foods of Morocco, valued at nearly $115,000. Over the past two years the IAA Program has been providing a wide range of technical assistance to Mustapha’s Fine Foods of Morocco to assist in the relocation of its production facility from Seattle to Meknès, Morocco. In addition, the IAA Program has AM / ELIZABETH ELLIS ELIZABETH / AM GR
O worked closely with Mustapha’s Fine Foods of Morocco to identify PR
IAA IAA and establish sales contracts with small-scale producers of high- quality agri-food products including IAA-assisted cooperatives. Mustapha Haddouch, owner of Mustapha’s Fine Foods of Morocco, After several hurdles, the production plant is fully operational and three displays a jar of harissa produced in his newly-opened processing facility in containers of Moroccan spices, olives, olive oil, harissa, and argan oil Meknès, Morocco. have been successfully loaded and shipped for export to the US valued “IAA’s help with sourcing products at nearly $350,000. Since the plant’s opening, Mustapha’s Fine Foods was tremendous and opened a lot of Morocco has become the largest employer in Meknès’ newly created of doors for me in terms of finding serious suppliers who have quality industrial zone with a current workforce of 25 employees. Through products. The bottom line is I am job creation and sales contracts with small-scale regional producers, confident that I will stay in business because I can finally achieve what Mustapha’s Fine Foods of Morocco is making positive contributions to has eluded me for so long” said the local economy and the Saiss region as a whole. As a catalyst for growth Mustapha Haddouch. and development in the region, Mustapha’s Fine Foods of Morocco is bringing hope for a better future to small producers in Morocco.
26 Transforming value chains | olives conducted numerous trainings for LEAVING A LASTING regional farmers and extension IMPACT. Technical assistance and agents within the Ministry training under the IAA Program of Agriculture and Maritime has helped to create examples Fishery. At the marketing level, of fully integrated farmer-owned the IAA Program provided businesses from production to sales. a wide range of marketing Farmer cooperatives have increased assistance including distribution their incomes through higher yields, of a guide on exporting olive improved quality, and the sale of oil to the United States, and the business services to regional farmers “Huiles d’Excellence” initiative for processing oil and re-selling the to commercialize high quality olive waste to industrial firms in Moroccan olive oil in the United the region. Producers understand “I recently attended an States. Two of these oils as well as quality and the market potential for spice mixes are now being sold their goods, with some high-quality olive oil seminar at UC in Krogers’s, Bigg’s, Publix, HEB, olive oil producers now reaching Davis and Zouina was Fiesta Market, and Value Market the U.S. market. Investment and featured by Darrell in the US. IAA also delivered investment opportunities in the Corti. I loved the oil and a wide variety of marketing value chain have been improved, support to olive cooperatives with new investments being more purchased it immedia- in preparation for the SIAM- tightly focused based on the IAA- tely. It is an amazing International Agricultural Fair in initiated processing capacity study. In bargain! I will encourage Morocco, and provided marketing collaboration with regional partners and outreach assistance to the and the IAA Program, two olive- others to buy as well.” Meknès consortium of private growing training sites in vocational Serkan Munsuz, Zouina sector olive oil producers, UDOM, training institutes in Meknès (ITSHM) customer.” (Union pour le Développement and Oujda (Zraib) demonstrate de l’Olivier de Meknès), in clearly the best production and preparation for the New York processing methods introduced by Fancy Food Show. And with IAA the IAA Program to regional farmers technical assistance, processed and youth seeking to develop food exporter Mustapha agribusinesses in the olive sector. Haddouch of Mustapha’s Fine By the end of the program, IAA Foods of Morocco, met and signed worked directly with more than 28 contracts with local producers in agribusinesses and cooperatives in the Saiss region, including olive oil the region reaching more than four producer Huileries of Sebou (see hundred rural households. story at left).
Transforming value chains | olives 27 Moroccan capers account for roughly 70% of the world’s capers and are a source of significant seasonal income to rural collectors in the Saiss region. IAA Program / HASSAN NABLAOUI integration and upgrade product andupgrade integration toimprove valuechain partners with sold inMoroccoby working and aretraded the way capers IAA Program, sought totransform INCOMES. USAID, throughthe V TRANSFORMIG THE and lackoflocalprocessing. unpredictable productionflows, spotty upstreamorganization, companies,sales tointernational chain weretobulk attributed value added-value inthecapers products inMorocco, lossesin with olives andotheragricultural a highvaluetofinalcustomers. As by size andsoldat they aresorted in bulk toSpainandItaly where grown inMoroccoaresold capers worldwide, of thevastmajority as theleadingproducerofcapers market. DespiteMorocco’s status more profitable -onthe world capers, smallisbeautiful-and INCOMES. Whenitcomesto BARRIERS TO IMPR Saiss region. inthe originate Morocco’s exports demand. Ofthis, 90% of nearly worldwide, supplying 70%ofworld is theleadingproducerofcapers region,Mediterranean Morocco are found throughoutthe capers wild-growing andcultivated andtangyflavour.sharp While garnish, arehighlyfor prized their are oftenusedasaseasoningor which tothrive. Capers, which found anidealenvironment in clay soilsdominate, have capers On gentlemountainslopeswhere capers ALUE CHAIN/RAISING OVING Transforming valueper s chain s |ca assistance. Nour asaresultofIAAProgram oftheCooperative experience on thenextpagefocuses onthe Fair (SIAM). The successstory 2008 International Agricultural timeatthe for thefirst berries andcaper retail-packaged capers Nour andChababZerhounsold retail experience. Cooperatives which helpedthemgainvaluable packaging, labelingandbranding for including thecooperatives support ofmarketing a range alsoprovided The IAAProgram purchase basedoncapersize. who buyers and international negotiationswithlocal contract throughdirect value capermarket were able toaccessthehigh- by size, sorted thecooperatives And by producingtreatedcapers into consideration. andwatercostsaretaken energy sellingtheminbulk when versus capers profitable tocalibrate itwasmost atwhatratios learned also members Cooperative capers, thancuredcapers. rather fresh less costly tocalibrate it iseasier, moreefficient, and todiscover members cooperative enabled fresh andcuredcapers sessionsusing training Practical members’and raise incomes. value-added withinthecooperative with processingtoretaingreater production successfully integrate how to region) todemonstrate Zerhoun andNourintheMeknès Chabab region andcooperatives Ben Malekand intheFès Azzahra four (cooperatives cooperatives sizingequipmentfor acquiring quality. focused on The Program 29 success story Increasing collector’s income through higher value markets
The Cooperative Nour, located in the heart of Morocco’s Saiss region, is not only in the business of selling its capers, but also of teaching other Moroccans about the crop that so many of them collect. While Morocco is the world’s largest producer and exporter of capers, many Moroccans have never tasted the pickled bud and certainly have never contemplated its numerous health benefits such as fighting cancer. The Nour Cooperative is a group of about 9 permanent members, but swells to 150 members during harvest time—about half of whom are women. No matter how good their product, all caper collectors in Morocco face a similar battle—a monopoly on the market. “Just one person dictates the price of our capers. It’s a difficult selling environment for small-scale collectors,” says Kaddour Nciri, Vice President of the Cooperative Nour. Despite this monopoly, caper collectors like Nciri remain optimistic, particularly as a result of the technical assistance provided by the USAID- funded Integrated Agriculture and Agribusiness (IAA) Program. Most llis E collectors sell their product in bulk at a daily rate by weight, giving them little incentive to pick the smaller capers. The IAA Program is elizabeth / /
am teaching collectors to pick capers when they are smaller (demand and gr o prices are higher for this size in international markets) and to sort and pr
iaa sell by size instead of bulk weight. In a good year, collectors can sell the smallest size capers for 30 dirhams/kilo, as opposed to 15 dirhams/ Prospective customers view the caper products offered by Cooperative kilo for the largest size, allowing them to double what they bring Noor at the 2008 Meknès agricultural home just by selling their product sorted instead of mixed. The IAA fair (SIAM). Members of Cooperative Noor explain to costumers the Program helped the Cooperative Nour purchase the first caper sizing health benefits of capers and how to machine made in Morocco to sort capers more quickly and effectively. integrate them into their diet. The Meknès Agriculture Fair in April 2008 was the first opportunity for this cooperative to show others their nicely sorted and higher quality product. The group has high hopes for selling its product widely and teaching others about the value of sorting along the way. Cooperative Nour remains hopeful that by sharing information, small-scale caper collection will live on.
30 Transforming value chains | capers The Program also worked with Moroccan producers to capture a local manufacturing company some of the added value that to design and fabricate the is normally lost to processors sorting machines. The Moroccan in other countries. In fact, sales International Agricultural Fair increase seven-fold per kilogram (SIAM) provided an opportunity for after the introduction of sizing USAID to display the caper sorting equipment and treatment methods equipment, which was manufactured compared with previous harvests for the first time in Morocco. Local of raw capers. And business training production of the machines is provided through the IAA Program contributing to the expansion of the has improved the cooperatives’ use domestic caper input supply market of analytical skills to make strategic while capturing new economic business decisions concerning investment in Morocco rather when to calibrate capers to than outsourcing the purchase to maximize their profits and minimize European companies. their production costs, when to sell products in bulk, and when to sell stored capers based on rising LEAVING A LASTING market prices. By the end of the IMPACT. With the new program, IAA worked directly processing methods in place, the with seven agribusinesses and cooperatives were able to adopt cooperatives in the region reaching a standard pricing method for more than 385 rural households caper production in which capers and producing over $1,696,000 in are sold by size rather than by domestic and international sales. weight and are treated rather than sold raw. This shift has enabled
Traditional Caper Sales Versus Processed Capers
15 14 DH
12 11
9 Traditional capers (raw, bulk) Treated capers (bulk) Treated capers (sorted) *Prices reflect averages received by 6 IAA-assisted cooperatives
3 2 DH
0 Price per kilo ( DH S)
Transforming value chains | capers 31 Tupy blackberries were introduced to Morocco by the IAA Program. Blackberries are in high demand in Europe and fetch nearly three times the price per kilo of Moroccan-grown strawberries. gharb loukkos region berries
morocco
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Situated on the Northwest coast of Morocco, the Gharb-Loukkos region is the primary producer of Morocco’s fresh and frozen strawberry exports. As strawberry production requires significant investment in both land and labor, it is an important contributor to the region’s economy.
Berries
Fresh and frozen strawberries climatic conditions to support have been one of Morocco’s high yields, and close proximity to main export products for several European markets when prices years. Strawberry production and are highest. processing employs a large number of people at the production, TRANSFORMING THE processing, and marketing stages. VALUE CHAIN/RAISING INCOMES. The IAA Program BARRIERS TO IMPROVING conducted an extensive market INCOMES. While world demand analysis for strawberries, for strawberries continues to blueberries, raspberries, and increase, berry production blackberries. Berry consumption in Morocco continues to be trends show a clear and dominated by a single variety increasing demand for alternative of strawberry and is facing stiff varieties such as blueberries, competition for its frozen product. raspberries, and blackberries. Other challenges include a lack The IAA Program worked with of traceability and certifications closely with international berry systems among small growers consultants and the Ministry and little mastery of production of Agriculture and Maritime techniques. But the berry sector Fishery (MAMF) to import also holds substantial market several varieties of blueberries, am gr opportunities, including relatively blackberries and raspberries for o
pr low labor costs, favorable soil and demonstration trials. The IAA iaa
Transforming value chains | berries 33 iaa program / Elizabeth Ellis ABOVE: Director Mustapha Ait Chit of Domaine Al Bassatine is the pioneer in Morocco for in-vitro berry mulitplication. Thanks to technical trainings provided by world-class berry experts through the IAA Program, Mr. Ait Chit was able to successfully multiply blueberries, raspberries and blackberries imported from the US through the IAA Program.
US Berry Varieties Program identified a few lead which Morocco has a competitive farmers and cooperatives willing to advantage to supply the European introduced by the participate in demonstration trials market and indicated probable IAA Program for the new varieties. The program profits by month. provided trainings on production Today several berry producers and harvesting to participants. are exploring cultivation of Blackberry (3) The trials clearly demonstrated Brazos, Raspberry (4) these alternative berry varieties, Rosborough, Autumn Britten, the ability of these varieties to expanding, or planning to Tupy Autumn Bliss, flourish in the Moroccan climate. Summit Red expand existing acreage. And On the marketing side, growers large Moroccan producers are were able to fetch higher prices for seeking strategic partnerships Blueberry (9) the alternative varieties than for with international firms to better Star, Sharpblue, Misty, Biloxi, strawberries. In addition, the berry Brightwell, Climax, Powdered position themselves as producers Blue, O’Neal, Gulf Coast marketing study completed by of alternative berry varieties in the IAA Program study identified the European market. Grower clear marketing windows in
34 Transforming value chains | berries Avi Weizman, director general of for GLOBALGAP certification Agro Gailes S.A.R.L., said working and were given detailed reports with the IAA Program “opened on action needed to obtain his eyes” to blueberries as a viable certification. Of the 35 action plans, product in Morocco, and he 32 were validated by the Program supports development of a variety and by small and medium growers. unique to the country’s climate. These audits provide farmers with a road map of the necessary steps to USAID’S technical trainings receive GLOBALGAP certification through IAA helped a nursery and remain competitive in the master in-vitro propagation berry industry. techniques, and sell alternative variety seedlings to interested Moroccan producers. LEAVING A LASTING Development of technical IMPACT. USAID’s technical competencies in blueberry, assistance under the IAA Program raspberry, and blackberry served as the catalyst for the multiplication techniques for introduction of new berry varieties nurseries, professional associations, among growers, primarily in the and agricultural extension agents Gharb-Loukkos region. Moroccan were also achieved through growers are now actively working targeted training. The IAA to diversify their berry production Program also helped launch a from mostly strawberries to national berry breeding program include newer, high-value varieties with public and private support such as blueberries, blackberries, that will enable the development and raspberries. By the end of of uniquely Moroccan varieties the program, IAA worked directly which will help strengthen with more than 26 agribusinesses Morocco’s position in the and cooperatives in the region. international market. While sales to date are estimated conservatively at $244,000, more The Program also helped small than $12 million has been invested and medium growers work in the berry chain by IAA-assisted toward improving their access to cooperatives and agribusinesses. credit through the creation of an These investments stand to innovative loan assistance package generate upwards of $116 million with Credit Agricole for small-scale in revenues over a 30 year period berry growers with farms between with a yearly average of $3.8 million. 3 – 6 hectares. The IAA Program further supported small farms by conducting audits of 35 small farms
Transforming value chains | berries 35 www.eacce.org.ma
Reliable price information is for agricultural and agro-industrial started in Morocco. Now large and vital for all the actors involved products. The system gives the small producers will have access to in a market. Through the IAA EACCE important information the same information,” Mohamed Program USAID provided valuable on foreign markets that it can Ziati, head of EACCE’s external capacity-building assistance to use to identify opportunities relations and communication the Établissement Autonome de for Morocco’s growing group of department, said. Contrôle et de Coordination des exporters. With EACCE’s new website, Exportations (EACCE) to develop “This project has been a revolution Moroccan exporters are better an upgraded website to add an for EACCE. The inputs are very able to anticipate market economic intelligence system important for the export sector opportunities, market trends, which permits the identification of and sectors within it. The [equal and identify their competitive competitive export opportunities distribution] of information has advantages.
36 fostering the enabling environment chapter four Improving the enabling environment
Getting the right tools for the Staff within MAMF requested trade proved a key to USAID’s assistance in conducting targeted work to improve the capacity policy analysis to support improved of MAMF and support its resource allocation. The IAA team decision-making process. As provided two critical training IAA component leader Zineb sessions to MAMF staff on cost- Tamehmacht put it, “[The point benefit analysis (CBA) which was] to bring people who know enables them to objectively analyze the tools to a place where they the financial and economic impacts can use them to help decision of resource allocations to various makers.” projects (see page 38). The IAA team also provided training on One tool critical to the move representative farm modeling to market orientation among which enabled MAMF staff to Morocco’s producers is timely, analyze the policy implications of accurate market data. USAID supporting the conversion from worked closely with the one type of crop to another—such information technology team at as from cereal to olives. Staff now the Établissement Autonome de know how to analyze multi-hectare Contrôle et de Coordination des regions by type of crop, resource Exportations (EACCE) to develop and labor requirements, and key an upgraded website which constraints to show differences includes an economic intelligence in profitability and resource system. This system enables requirements among differing crops. exporters to identify competitive Both CBA and representative opportunities for their agricultural farm modeling are key planning and agro-industrial products. The tools needed to support MAMF’s system also gives the EACCE vital ambitious Plan Maroc Vert. information on foreign markets to Graduates of these courses were provide to decision-makers, and able to apply their new skills the ability to better communicate immediately in existing projects opportunities to Morocco’s through budget and comparative growing group of exporters (see crop analyses which led to screen shot of updated site at left). improved resource allocations.
fostering the enabling environment 37 IAA PROGRAM / ZINEB TAMEHMACHT Professor Wally Tyner works closely with two professionals from the Ministry of Agriculture and Maritime Fishery during a USAID—sponsored training on cost-benefit analysis. Case study Improved allocation of budget resources
CHALLENGE The Ministry of Agriculture and Maritime Fishery (MAMF) is responsible for conducting numerous project evaluations. However, staff members have varying proficiency levels and could benefit from shared analysis methods. Cost-Benefit Analysis (CBA) enables users to evaluate a project’s economic advantages and therefore is a very useful tool for decision-making at the national level with regard to allocation of scarce resources. CBA allows for profitability analysis of investments and offers a clearer vision of the gains and losses resulting from proposed policy changes. Because of its utility, MAMF requested training for its staff on cost-benefit analysis and project evaluation in order to improve the level of analysis for future policy decisions made within the Ministry of Agriculture and Maritime Fishery.
INITIATIVE The United States Agency for International Development (USAID) through its Integrated Agriculture and Agribusiness program, completed two two-week training sessions on cost-benefit analysis for regional and national ministry staff charged with decision-making responsibilities. These trainings fall within the greater framework of technical assistance provided by USAID to the Moroccan government to improve public policies and institutions in support of more competitive agriculture and agribusiness.
RESULTS This training enabled ministry staff to enhance their analytical skills and improve their ability to conduct quality evaluations on international projects. The trainings had the added benefit of bringing together central and regional level ministry staff for a common purpose. As a result of this training a group of 34 staff members—divided equally between central and regional offices—have been trained on this important tool and share common methods for project analysis. The CBA tool was characterized as “precious” by a high-level Ministry official and feedback indicates that participants are already incorporating the knowledge they gained into their daily activities.
38 fostering the enabling environment As a result of these trainings, IAA training on basic business and improved the capacity of MAMF management skills to agricultural staff to conduct meaningful policy cooperatives in target value chains. analysis which seeks to improve Cooperatives received hands-on resource allocation and maximize training including practical business project impact. simulations which enabled them to identify organizational and MAMF’s Plan Maroc Vert (PMV) financial goals for their business calls for the massive reorganization and to develop realistic business of the Ministry to support PMV and marketing plans to meet those goals. New departments are goals. To multiply impact and ensure being created while others are sustainability, the IAA Program merging with existing departments. simultaneously conducted trainings Increased decision-making of trainers with partner institutions authority is being devolved to from the three target regions. These the regions and more attention trainers will serve as resources at is being given to the creation of the local level for others. regional development plans. At the same time, MAMF staff have The IAA Program also completed recognized that procedures within a study on “produits du terroir” Case study MAMF no longer reflect the new or regional speciality products in pillars of organizational structure and are support of PMV’s social agriculture Plan Maroc Vert often repetitive across multiple approach. The study defined the Improved allocation of budget resources MAMF departments. At the framework for identifying produits Pillar I: Modernizing to Minister’s request, the IAA Program du terroir. Through the study, IAA meet the needs of large-scale conducted a detailed analysis of identified 39 potential agricultural producers. all the processes managed by and agro-forestry produits du Pillar 2: Applying a “social MAMF. This analysis was a critical terroir in four regions of Morocco: agriculture” approach for sector first step to supporting MAMF’s Meknès-Tafilalet, Fès-Saiss, Loukkos, and Oriental. The study shows that development through crop reorganization. The second task the valorization of these produits diversification, intensification, undertaken in support of PMV by du terroir could contribute to and conversion to higher-value the IAA team was the creation the social agriculture approach crops for small and medium of a comprehensive manual of procedures which recognizes the advanced under PMV by increasing producers. MAMF’s reorganization in support incomes in rural areas with large of PMV goals. This manual will numbers of farmers. serve as a guide for MAMF as it Another significant contribution completes its reorganization and made in the policy arena is the continues to strive to meet the detailed analysis on access to rural goals outlined in Plan Maroc Vert. finance conducted by the IAA The IAA Program also shared Program. Working collaboratively the detailed value chain analyses with the Credit Agricole du Maroc, completed by the program with the IAA Program analyzed the role staff from the PMV. of both formal and informal finance In support of PMV’s “social used by small and medium farmers agriculture approach”, the IAA as well as their financing needs. Program through its subcontractor, The results of this analysis are Making Cents, provided intensive being used in the implementation
fostering the enabling environment 39 A field in the Gharb-Loukkos region is newly-sown with US blueberry plants. Through multiple trainings and the dissemination of hands-on production guides, the IAA Program is building the capacity of Moroccan growers to produce and export highly demanded blueberries, raspberries and blackberries to Europe during windows in which Morocco has competitive advantage. of the newly created Company is now looking into lowering this for the Financing of Agricultural tax to help support the nascent Development (SFDA) which blueberry value chain.The issue of is tasked by the MAMF with logistics and transportation for the providing financing to small and berries value chain was addressed medium-sized farmers. The analysis through a detailed study of the also included recommendations key technical and institutional for SFDA derived from best constraints at the Port of Tangiers, international practices in rural and and practical recommendations agricultural finance. for improving Morocco’s logistics and transportation, which are key Under the berry value chain, the issues in competitiveness. IAA Program addressed three enabling environment issues: 1) Water is a critical issue for assisting MAMF to submit an Moroccan agriculture, which application to USDA to export is highly sensitive to drought. berries to the US 2) addressing Unfortunately, drought is taxation of imported blueberry becoming a chronic element in plants and 3) a logistics and Morocco’s weather conditions. transportation study of the berry The IAA Program worked with value chain. The US requires all experts from the United States countries to apply for clearance of Drought Mitigation Center at their fresh products through the the University of Nebraska to US Department of Agriculture’s provide a road map for revitalizing Animal and Plant Health Inspection a drought observatory in Morocco Service (APHIS) which can be as well as a methodological an extremely long process. With guide on proactive drought IAA’s assistance, MAMF was able mitigation and management. In the to submit an application to APHIS Oriental region, IAA developed a for the export of Moroccan- methodological guide for public grown blueberries and raspberries. officials on how to improve the As Morocco seeks to become valorization of water in irrigated a world leader in blueberry perimeters to yield the greatest production, reducing taxation benefit from this precious on imported plants will be a key commodity. step to encouraging investment in this value chain. Early investors Thus, the IAA Program addressed in blueberries quickly realized the most critical policy and that because blueberry plants institutional issues facing the take more than two years to bear agricultural sector: rural finance, fruit, they do not meet current water, logistics and transportation, MAMF guidelines to benefit market intelligence, policy analysis, from reduced taxation under institutional procedures, and the admission temporaire (2.5%) like capacity building of cooperatives. raspberries and blackberries and Taken together, these activities are subjected instead to a much complemented the work done higher taxation rate of 17.5%. The in specific value chains to create am the conditions for success and gr IAA Program brought the issue o
pr to MAMF’s attention. The ministry sustainability. iaa
fostering the enabling environment 41 Fatna Al Gorari, President of the Tahadi Cooperative, weighs a newly-born ewe. Members of the Tahadi Cooperative are increasing their incomes through the adoption of the early weaning and quick fattening methods disseminated by USAID’s IAA Program in the Oriental region. chapter five Crosscutting Initiatives
Gender Integration IAA Program provided a wide The IAA Program has sought, range of assistance to Madame throughout the life of the Senhaji of Triffa Conserves to program to engage women and improve processing techniques men at all levels of targeted and establish a laboratory within value chains and capacity building the company for food safety assistance provided to institutional analyses. With IAA support, Triffa partners within the Ministry of Conserves completed all of the Agriculture and Maritime Fishery. requirements to receive the international HACCP certification. In the berry and capers value chains where the majority of the At the cooperative-level, the workforce is female with little IAA Program has partnered with formal training, the IAA Program women-led cooperatives in the provided a series of targeted Oriental region in the aromatic on-the-job training sessions on and medicinal plants value chain good production, processing, and as well as the traditionally male- hygiene practices. These trainings dominated lamb meat value provided practical, hands-on chain. Cooperative Ofoq, which learning which enhanced workers’ specializes in dried rosemary skills at both the production and leaves and essential oils, benefited processing levels in the value chain. from extensive practical training sessions on good harvesting In the olive value chain, the IAA practices and processing practices. Program sought out and provided They also received a series of support to women-owned trainings on business planning export businesses in this male- and marketing strategies to focus dominated field. The IAA Program their business and improve sales. collaborated with Madame Cooperatives Ikhlass and Tahadi, Benkirane to successfully launch both lamb meat cooperatives, and market her smooth, high- benefitted from IAA assistance on quality olive oil Terroirs du Saiss new production and management AM / ZINEB TAMEHMACHT ZINEB / AM in the US market under the label GR practices such as early weaning, O
PR Kirana. In the Oriental region, the quick fattening, and animal IAA IAA
crosscutting initiatives 43 Iaa program / ELIZABETH ELLIS
Mohamed El Marzouki, President of the Widad Cooperative, promotes his olive oil with a buyer at the Meknès agricultural fair (SIAM).The IAA Program helped several cooperatives establish business linkages at, and prepare for, SIAM, providing business services such as brand development and registration, purchase of bottles and branded labeling, bi-lingual marketing materials, and technical assistance from American food export specialists on site during the event. For two olive cooperatives, Widad and Oued Eddahab, participation in the 2008 SIAM marked the first time the cooperatives achieved retail – rather than bulk - sales of their products in the domestic market.
health improvement techniques customers and be paid on a per which are proven methods to kilo basis rather than per head increase revenues and improve basis as in the past. overall herd management. The Through these targeted IAA Program has also worked interventions and others taken with these cooperatives to link through the life of the program, them directly to markets for IAA has helped to increase the 2009 Aid El Kebir operation women’s skills, incomes, and programmed for November of equitable participation in the 2009. Like other cooperatives in development of competitive value the Oriental and Rhamna regions, chains throughout Morocco. these two cooperatives will sell their animals directly to Marjane
44 crosscutting initiatives Communications as well as potential investors in Communicating development Morocco’s canned food industry. results has been a key component The IAA Program also provided of USAID’s IAA Program. marketing and trade show Throughout the life of the IAA assistance to UDOM, the Union Program multiple communication for Olive Oil Development in the tools have been used to raise Meknès region. UDOM provides a awareness of USAID’s assistance federated structure for olive and from the American people olive oil producers in the Meknès to Morocco. The primary region to advocate for regulatory communication tools utilized by changes and work cooperatively the IAA Program include: technical to improve their respective newsletters, press coverage of businesses. IAA’s marketing and events and accomplishments, trade show assistance helped IAA Program website, success to promote Moroccan olive stories, highlights, conferences, oils in the US and included the program brochures and program introduction of two UDOM films which highlight beneficiary members’ olive oil in in the US testimonies and focus on program gourmet market. impacts at the farmer and At the ministry-level the IAA community level. Program fully re-designed the The IAA Program has also content and structure for the worked closely with program Ministry of Agriculture and beneficiaries including cooperatives, Maritime Fishery (www.agriculture. professional associations, as well gov.ma) itself as well as the quasi- as the Ministry of Agriculture to governmental export control improve communication tools and agency, EACCE (www.eacce. outreach. At the cooperative-level, org.ma). Through both of these IAA provided a wide range of websites, the IAA Program has marketing assistance including the helped to raise the awareness development of brands, logos, and of the Ministry and EACCE’s business brochures to improve beneficiaries concerning the marketing and sales across the numerous activities undertaken olive, capers, lamb meat, and AMP by both entities. The Program also value chains. helped both entities to highlight and expand demand-driven At the professional association- content from their beneficiaries. level, the IAA Program supported With both organizations the IAA the development of a revised Program built the institutional FICOPAM website and provided capacity of program staff to the English translation for the develop content, update the website. FICOPAM, is an industry- website, upgrade their content level association supporting and management systems, and provide promoting canned agricultural general maintenance to the products in Morocco. Revisions to website. the website have made it more useful for member organizations
crosscutting initiatives 45 Driss Baamer, President of the caper cooperative Chabab Zerhoun outside Meknès, is networking with other cooperatives in the Saiss region to form “Les Capres de Saiss.” He said the business planning training through the IAA Program, taken by all the cooperatives, gave them confidence that by acting together they could improve their sales figures, especially with the caper calibration equipment now in place at all four “Les Capres” cooperatives. Moving from a raw to a processed product, through new Program-supported capabilities for sizing, treating, bottling, and labeling, and being able to monitor the market were major leaps forward for Chabab Zerhoun and the other cooperatives. chapter six IAA’s legacy
Lessons Learned/ Identify lead farmers or firms Sustainability and demonstrate impacts A program as vast and diverse before scaling up. Change in as IAA has also learned valuable agriculture is difficult. Farmers and lessons that can be very useful to businesses are often reluctant to the Moroccan government as it modify time tested habits. It is implements the Plan Maroc Vert, important to invest time in gaining and to donors and investors in the trust of farmers and business agricultural projects in Morocco owners before trying to affect as they seek to expand the change in agricultural practices. opportunities for a more valuable In order to affect real change, it and integrated agricultural sector. is important to start with a small In this section, we present the group of farmers or enterprising key lessons learned during the businesses willing to try new implementation of IAA. solutions, under minimized risk conditions, before scaling up. By starting a dialogue early in the Human Capital program with stakeholders, sharing Use Moroccan talent. One information with them on a regular of the key assets of Morocco as basis, and developing personal it develops its agricultural sector relationships, the IAA Program is the wealth of highly qualified was able to convince some farmer Moroccans. The IAA Program has groups to try new practices. This made full use of this talent pool, is what the IAA Program did with with the overwhelming majority the Aid El Kebir operation for of consultants on the project sheep farmers. In the first year of being Moroccan. The Moroccan this program, only a small group of government and other donors farmers were willing to alter time- should take full advantage of honored production methods and llis E Moroccan expertise and should enter into a direct sales contract
lizabeth look inside the country first for with large supermarket chains. / E / am agricultural experts. Many were suspicious about getting gr o pr iaa
iaa’s legacy | LESSONS LEARNED 47 iaa program / Elizabeth Ellis ABOVE: President of Ofoq Cooperative in Talsint, Saadia Boutoulout, happily shows off her group’s stand at the Meknès Agriculture Fair in April 2008. success story New methods inspire hope for AMP cooperative
Sometimes a smile says it all, which was certainly the case for Saadia Boutoulout, president of an aromatic and medicinal plant cooperative in Talsint, Morocco. With impressive sales and a fine stand at the Meknès Agricultural Fair in April 2008, Boutoulout had more than one reason to be happy. The Ofoq Cooperative in Talsint is a group of 37 members who – at one time – made a living by collecting plants from the wild and selling them in bulk. “Everyone was doing it alone,” remarked Boutoulout. In 2007, the group was approached by the USAID-funded Integrated Agriculture and Agribusiness (IAA) Program to upgrade their harvesting and processing techniques in order to improve the quality of their products and increase revenues. The project taught members how to harvest plants sustainably, improve their distillation methods through the introduction of modern equipment, and to expand their product lines to include both retail and bulk packaging for dried herbs and essential oil. With the upgrade in production techniques, the community spirit started to change as well. “We now have goals together,” added Boutoulout. The group perceived their day to day work, as well as their transactions, in a more business-like manner. Household income levels of cooperative members have increased as well. With more money coming back into the community, an education system was established to ensure that children go to school. The cooperative’s presence at the Meknès Agriculture Fair in April 2008 is a perfect example of the tremendous progress the group has made. With the help of the IAA Program, the design and labels on all of the products were attracting even the most discerning of buyers. At the fair alone, the cooperative sold nearly $700 worth of product. “Before we started working with the IAA Program, everyone at the cooperative worked for themselves. Now we work together as a team with one common goal,” said Saadia Boutoulout, president of the Ofoq Cooperative in Talsint. The cooperative looks forward to receiving more technical assistance and training from the IAA Program. “We are thinking more strategically now, although we still have a long way to go,” remarked Boutoulout.
48 iaa’s legacy | LESSONS LEARNED paid and the transparency of the worked successfully with women- operation. And only one poultry owned businesses in the olive and company was willing to manufacture aromatic and medicinal plants value the recommended balanced sheep chains. Without exception, these feed for the fattening trials. Once leaders have shown a seriousness the first operation succeeded and and commitment to excellence farmers and feed suppliers were that is very encouraging. We highly able to forecast their economic recommend that future projects gains, many farmers and feed and initiatives target women-owned suppliers who had been reluctant businesses for technical assistance. to participate in the Aid El Kebir operation asked to be included the Identify opportunities to work following year. It is clear that the with entrepreneurs with solid time invested to gain the trust of business plans. There are many farmers and business owners is a entrepreneurs in Morocco that key element for success. already have strong business ideas, but need assistance with access Aggregate farmers. Small to finance, sourcing from serious farmers face a variety of challenges producers, developing market in improving their competitiveness, linkages, finding suitable equipment from lack of access to credit, to or seed providers, marketing, lack of market information, to the logistics, or other constraints facing use of poor production practices. a business. Technical assistance It is clear that the aggregation of programs are in a good position smallholders and their linkage to assist these entrepreneurs. The with larger structures are key to IAA Program helped the company improving their opportunities. The Mustapha’s Fine Foods of Morocco IAA Program worked successfully to secure multiple loans with the aggregate farmers in the capers and Crédit Agricole, set up a processing lamb meat value chains. By pooling facility in Meknès, and source high- resources together, small farmers quality products such as olive oil can meet buyer volumes, improve and capers dependably. As a result contractual terms with processors, of this partnership, Mustapha’s is and have access to lower cost now able to meet US demands technologies and inputs through for Moroccan food products more economies of scale. quickly and more reliably.
Work with women-owned Identify those who are ready businesses. Women play a key for change. One of the key role in agriculture and agribusiness lessons of IAA is that success in Morocco. However, they tend to can come quickly if the potential be underrepresented in positions of beneficiaries are ready for change. leadership. Nonetheless, there is an In the olive oil value chain in the increasing number of women-owned Saiss region, the IAA Program businesses in agriculture and food first targeted cooperatives in the processing. The IAA Program has Commune of Ain Jemâa. However,
iaa’s legacy | LESSONS LEARNED 49 these cooperatives were fraught processors had invested significantly with internal conflicts and were in new olive oil processing only asking for equipment with machinery and equipment, but no commitment to change. When ended up with significant unused the IAA Program encountered the capacity (70%) due to a lack Oued Eddahab cooperative, we of raw materials, or significant found a real partner, with engaged stocks of unsold olive oil due to leadership and a vision for change. a lack of market. It is imperative The implementation of the pilot for producers and processors to project with the Oued Eddahab conduct detailed market analysis cooperative was very successful and realistic business plans before because the group was ready to investing in new production, or embrace new ideas and to invest purchasing new equipment. their own resources and effort. Do your homework on target Use local technology markets and be patient. Even whenever possible. One of the though there is now a free trade keys to maximizing opportunities agreement between Morocco along agricultural value chains is to and the United States, and tariffs use local technology in production, have been eliminated on most storage, processing, and distribution. agricultural goods, introducing new The capers sorting equipment, products into the American market the distiller for aromatic and is very difficult. Exporters need to medicinal plants, and the locally- understand the requirements of produced animal feed for sheep entry into the US market including are all examples of the use of packaging and labeling requirements, local technologies that enhance USDA regulations, FDA regulations the added value in target value and other regulatory requirements. chains. In addition to the acquired In addition, it is important to link technological know-how, locally with a well known and reputable produced technologies are more distributor in the category of food sustainable and cost-competitive. products desired and to know which market segment to target (e.g., Markets and high end, ethnic, regional). The IAA Marketing Program worked with a well known olive oil distributor to introduce Know the market before high quality Moroccan olive oils in investing. Too often producers the US market through the “Huiles and processors of agricultural d’Excellence” initiative and assisted products make sizeable investments olive oil producers from the Meknès before having full knowledge of region make marketing contacts their market opportunities, the at the Fancy Food Show in New requirements of potential markets, York in 2008. The IAA Program also or their ability to respond to market worked with Talier Trading Group opportunities. The analysis of the to bring a series of Moroccan processing capacity for olive oil in agri-food products and high quality the Meknès region revealed that olive oils to US consumers as part
50 iaa’s legacy | LESSONS LEARNED of an African Foods set in Kroger’s, In the capers value chain, with IAA Biggs, Publix, HEB, Fiesta Market, encouragement, four cooperatives and Value Market. While the oils have joined together to form a GIE and agri-food products were (groupement d’interêt économique) successfully introduced, it takes and create a common label for time to make inroads in the highly domestic and international sales. By competitive US market. Moroccan federating, these cooperatives are exporters have to understand that better able to meet the volumes the US market is large and complex. demanded by both markets. There are many competitors and established brands. They cannot Trainings and Tools expect overnight success. A good strategy is to send a first product Provide thorough training shipment on consignment and to be on new technologies. The ready to be paid once the inventory IAA Program implemented a is sold. Thus, companies have to be processing facility for aromatic and willing to invest in marketing and medicinal plants in Jerada. The facility product promotion before realizing includes distillers and a boiler to significant sales. produce steam in order to extract essential oils. Our initial assessment determined that the Beni Yâala Members of professional Zkara cooperative preferred to use associations need to wood as the source of heat for the adopt common marketing boiler. While we provided extensive strategies. Moroccan professional technical training to cooperative associations targeting the US market members on the distillation process need to pool their resources for the extraction of essential and adopt common marketing oil, the training did not focus on strategies. The IAA Program assisted operational issues such as health members of UDOM (Union pour and safety. In June 2008, the boiler le Développement de l’Olivier de exploded because too much wood Meknès) with business linkages for had been used and cooperative olive oil at the Fancy Food Show members failed to monitor the in New York in July 2008. It was pressure. Fortunately, no one was clear from that experience that hurt in the incident, but this episode many Moroccan producers with underscores the need to provide small volumes, cannot all hope to thorough training on health and compete successfully in the US safety issues and to have multiple market. A more judicious strategy warning systems. A new diesel- would be to pool their resources fueled boiler has been installed at with a common marketing strategy the Jerada unit. This boiler contains for regional olives oils and to identify redundant safety features, an alarm a few well known distributors or system and an automatic shut-off private labels willing to carry their mechanism when the pressure gets products under one brand. This too high. In addition, cooperative strategy has the added advantage members have received extensive of reducing costs for bottling and training on health and safety issues, shipping for individual producers.
iaa’s legacy | LESSONS LEARNED 51 a trained mechanic has been hired, initiative. Our recommendation and an operations manual is on-site. is that programs need to secure key political support from high Ensure institutional readiness ranking officials and test institutional before transferring tools. readiness before transferring tools There are some tools and methods to Government institutions. the IAA Program has attempted to transfer to national institutions Dissemination that met with some resistance. Establish a visual record For example, we transferred the throughout the project. The Commodity Price Database (CPD), IAA Program started filming and a powerful tool for domestic market taking photos from the beginning. price information developed by It is very important to have a visual USAID in Latin America, to the record of activities, especially in Ministry of Agriculture’s Policy agriculture. By filming the constraints Division (DPAE). We also equipped at the beginning of the program, the regional agricultural office the actions during implementation, in Casablanca, where Morocco’s the results on the ground, and largest wholesale market is located, the impacts on people’s lives, the with computers and an internet program has a clear story to tell. connection so that market price This then becomes an important information can be sent to Rabat on tool for dissemination and for raising a daily basis. While the CPD system the awareness of decision-makers. is fully operational and the relevant We encourage other projects to information is sent to the DPAE, the start filming and taking pictures of system has not been operationalized field activities from the start. because of institutional resistance. Some government officials are reluctant to relinquish their exclusive Develop practical tools access to information and find for dissemination. The tools, many reasons to impede the open approaches, and methodologies used and transparent access to that during a project are often forgotten information. once results are forthcoming. However, to maximize impact of a A similar situation occurred with project and to foster dissemination, the work the IAA Program did on it is important to develop practical revitalizing a drought observatory dissemination tools in the form in Morocco. We provided technical of guides, fact sheets, and training assistance from the National materials. The IAA Program Drought Mitigation Center in produced a series of methodological the United States to Moroccan guides and value chain analyses that institutions to develop a model will be very valuable for institutional of institutional partnership for the partners and donors long after proactive management of drought. the close of the IAA Program However, we found that some as they support new agricultural key Moroccan institutions were development projects. not ready to cooperate on this
52 iaa’s legacy | LESSONS LEARNED Olive Value Chain Analysis (Saiss)
Local market Export market Final markets
Bulk Oil Bottled oil Bottled oil Bulk Oil Marketed products
Local souks Distribution GMS Groceries Exporters Local sale / distribution
Wholesalers
Traditional processing units Semi-modern processing units Modern processing units Oil Processing ( 89 units ) ( 46 units ) ( 21 units ) Olive
Souks Intermediaries Supply providers P rocessing service
Small producers Medium producers Big producers Producers
Input providers Equipment and machine Input providers & Informal nurseries Modern certified nurseries (farm input supply) providers distributors
Value chain maps, such as the olive map featured above, are helping staff within the Ministry of Agriculture (MAMF) to better understand the complex relationships throughout the value chain. By adopting the value chain methodology, MAMF staff are supporting the Minister’s vision for the Plan Maroc Vert.
Apply the value chain analysis value being added at both ends methodology. The value chain of the value chain. The adoption analysis methodology developed of the value chain approach as a by USAID is a powerful tool key element of the new Moroccan to analyze the constraints and agricultural strategy, Plan Maroc opportunities for meaningful Vert, confirms the judiciousness of change in target value chains. The applying the value chain analysis value chain analyses conducted methodology to guide agricultural by the IAA Program have been development programs. Although key to providing a cohesive the value chain analyses have been framework for program activities, one of the cornerstones of the engaging institutional partners, and IAA Program, the full analyses identifying specific opportunities were conducted in Year 3 of the for adding value throughout the program. It is preferable to conduct value chains. For example, the detailed value chain analyses at the direct market linkage established beginning of a program, as soon as between lamb meat producers target value chains are identified. and supermarkets resulted in
iaa’s legacy | LESSONS LEARNED 53 IAA Key Results
government of morocco (gom) partner contributions by region
Saiss 20% ($531,929)
ORIENTAL gharb-loukkos 49% ($1,317,819) Total gom contribution : 12% ($312,598) $2,685,983
cross-cutting 19% ($523,637)
A hallmark of IAA’s suc- cess has been close col- laboration with regional and central partners,
including leveraging beneficiaries Trained by IAA Program Area funds to support pro- gram objectives.
olives 33% (1386)
Total people trained : 4,236 cross-cutting Berries 22% (953) 25% (1044)
lamb meat 13% (549)
AMP : 4% (176) CAPERS : 3% (128)
54 iaa’s legacy | KEY RESULTS IAA Key Results
Sales and Investments Generated by IAA Program
40 $37.6
30 $28.5
20 $17.0
sales 10 Investments Total Sales : $56.1 $0.61 Total Investment : $27.6
In US$ millio n s 0 2006 2007 2008 2009 For every dollar spent by USAID on the Morocco IAA Program, $5.66 was USAID/Morocco’s return on investment (ROI) generated in direct sales and investments. 100
$83.7 80
60
GOM Direct Investment : $1.34 40 GOM In-Kind Investment : $1.35 USAID Investment : $14.8 Investment Generated : $27.6 20 $14.8 Sales Generated : $56.1 $2.7 Return on investment : 5.66
In US$ millio n s 0 GOM USAID ROI
iaa’s legacy | KEY RESULTS 55 The Path Forward economic growth in the agricultural for Moroccan sector. Building on His Majesty Agriculture King Mohammed VI’s vision for Despite the progress made and advancing a stable and prosperous successes realized under the IAA Morocco, national initiatives launched Program, there are still numerous in the last few years have given challenges and opportunities facing Morocco a strong strategic focus Moroccan agriculture. Economic for making much needed changes. progress in the agricultural sector These include the Plan Maroc Vert has not benefitted all Moroccans, (PMV), which represents Morocco’s especially the rural and poor, women first comprehensive, integrated and youth. And agricultural policy agricultural development strategy, and institutional reforms have not focusing equally on markets happened quickly enough or have and production, on traditional not enabled Morocco to keep pace and modern agriculture, and on with global changes, become more sustainable water use and growth, competitive, or to create more jobs the Initiative Nationale pour le for all Moroccans. Développement Humain (INDH), which has targeted youth and the The results and lessons learned disenfranchised, to ensure they under the IAA Program can, and have opportunities to become should, be applied toward future engaged and productive members USAID development assistance. of society; and the Pacte National In the current climate there are pour l’Emergence Industrielle (Pacte tremendous opportunities for Emergence), which presents an USAID to help Morocco achieve integrated strategy for accelerating accelerated, sustainable, and equitable growth and related job creation in
56 iaa’s legacy | THE PATH FORWARD iaa program / Elizabeth Ellis
ten targeted industrial and service clear roadmap of realistic, proven sectors. These reforms advanced reform efforts. Demonstrating the by His Majesty are focused on impacts, initially on a small scale, will decentralizing and devolving political, give USAID and its partners the economic, and social decision making buy-in needed to scale up successful to the regions. projects and initiatives. By applying the value chain methodology USAID Based on key lessons learned under will support MAMF’s efforts under the IAA Program, USAID and other the Plan Maroc Vert to encourage donors can contribute substantially competitive, equitable agricultural to the development of competitive, development that results in increased integrated agriculture in Morocco. incomes and jobs for all Moroccans. By using Moroccan talent, donors And finally, by developing practical will ensure that the tools and tools for dissemination, USAID will methodologies employed will remain leave behind critical resources for in Morocco long after the close of sustaining the successes achieved any project. By aggregating farmers under future development projects. donors will support Pilier 2 of Plan As USAID designs and implements Maroc Vert—advancing sustainable, its future programs in Morocco’s equitable social agriculture that agriculture sector, it should benefits small and medium farmers— incorporate lessons learned from not just big business. By working with this project and others to achieve those who are ready for change and by accelerated economic growth and demonstrating impacts before scaling expanded job creation for Morocco. up USAID will build a solid base with engaged farmers, businesses, and institutional partners with a
iaa’s legacy | THE PATH FORWARD 57 DVD index
MOROCCO IAA FINAL REPORT IN PDF annex A
HIGH VALUE DELIVERABLES annex b
METHODOLOGICAL GUIDES annex c
IMPLEMENTING PARTNER LIST annex d
MOROCCO IAA FILMS annex e