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Table of contents

1. Mediterranean overview...... p.5 Building EuroMed partnerships Authors 2. Market trends and opportunities...... p.7 This guide is a Doing business toolkit dedicated to This Business guide has been prepared by Monica clusters, SMEs, or entrepreneurs interested in Airoldi, with contributions from Manal Tabet 3. Foreign direct investments...... p.11 developing business partnerships in the agri-food (preparation, proofreading) Zoé Luçon (FDI section, proofreading), Amina Ziane Cherif (maps), and 4. Key players...... p.14 sector in Morocco. It provides an overview of the Lauriane Ammouche (Layout), ANIMA. main opportunities available for the private sector, as 5. Recent national policies...... p.17 well as concrete and useful data to those interested The author would like to warmly thank the Regional 6. Selected programmes & initiatives...... p.19 to go further (contacts, agenda of events, etc.). Investment Centre of Meknes Region (Issam Badreddine) for all information provided. 7. Major business events...... p.21 References Disclaimer The Mediterranean Business Guide, focus on Agri- This publication has been produced with the support food in Morocco has been prepared by ANIMA of the European Commission. The contents of this Investment Network under the EuroMed@Change publication are the sole responsibility of ANIMA List of acronyms Project, a Preparatory Action initiated by the Investment Network and can under no circumstances European Parliament and implemented by the be regarded as reflecting the views of the European . ANIMA-MIPO: Mediterranean Foreign Direct Investments and Partnerships Announcements European Commission (DG Enterprise and Industry). Union”. Observatory implemented and managed by EuroMed@Change proposes new dynamics for SME Copyright ANIMA and cluster internationalisation between Europe and 4 © EuroMed@Change May 2013. No part of this . ADF: Agriculture development Fund targeted partner countries: Morocco, Tunisia, Egypt publication may be reproduced without express . EU: European Union and Lebanon. It is managed by four organisations authorisation. All rights reserved. from across Europe (ANIMA Investment network as . FAO: Food and Agriculture Organization

Project leader, the European Business Innovation . FDI: Foreign Direct Investment Centre Network, INNO AG and the Fondation Sophia . Ha: Hectare Antipolis as partners) and it coordinates with more than 45 associated regional business, finance and . MED 10 countries: Algeria, Egypt, Israel, innovation networks. Jordan, Lebanon, Libya, Morocco, Palestine, Tunisia, Turkey . NPEI: New Plan for Industrial Emergence . N.a. Non Available

Mediterranean overview

An increased pressure which requires rapid The sector is characterised by a predominance of developments investments from multinational companies, mainly European. Attracted by the size of the markets but Agri-food is one of the most strategic sectors in the attached to their independence, the latter have so far Mediterranean. The region is indeed facing a steady favoured traditional projects, either through the rise in food needs as a direct consequence of the FDI and partnership announcements in agri-food in establishment of local production facilities (dairy rapid population growth and recent changes in the MED 10 countries (nb of projects, ANIMA-MIPO) products or biscuits in Algeria, Egypt, Tunisia and consumption patterns. If Turkey achieved a relative Nb. of investments Nb of partnerships Turkey for France’s Danone, fruits and vegetables in self-sufficiency, the deficit continues to widen in the 38 39 Tunisia for Spain’s SanLucar, vegetal oil or sugar in other countries of the region (respectively 55% and 34 40 Algeria, Egypt, Morocco and Turkey for Saudi Arabia’s 29 85% of food consumption was imported in 2011 in 27 Savola, etc.) or through the take-over or the 30 Egypt and Lebanon for example), increasing their 27 acquisition of a controlling stake in local businesses 20 dependence on volatile international markets. The (Turkish confectionery brands Balaban and Dogan, “Arab Spring” - which initially took the form of a 19 7 and leading Israeli firms Osem, Materna and Tivall for 7 6 7 social unrest caused by a dramatic raise in food prices 4 5 5 Swiss Nestlé, Tunisia’s producer of vegetal oil and 3 3 2 - has highlighted the urgency of improving food margarine Gias Ingredient for German Dr. Oetker, security as well as the necessity to achieve a more 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 etc.). integrated development of territories. FDI project announcements in the agri-food sector by However, the sector attracts more SMEs year after MED country (total 2003-2012, ANIMA-MIPO) Stable investments trends year (+ 30% between 2010 and 2011) interested in In light of the strong growth potential of the opportunities presented by business partnerships 84 Mediterranean markets, foreign direct investment (commercial and technological). Last but not least, (FDI) in agriculture and agro-industry has remained the recent entry of investment funds into the market 65 relatively stable to date. 2011 was however a record (TGP Capital, Investcorp, APAX Partners, Riverside, year, with major investments in Turkey (partial Global Emerging Markets, Actis, Capital trust) 40 acquisition of local brewer EFES by Britain’s SABMiller, highlights the strong potential for growth of the 30 27 takeover of local alcoholic beverage producer Mey sector. 21 Içki by TGP Capital) and large projects in Egypt 16 10 6 (Nestlé) and Morocco (Lesieur). 3 1

TR MA EG TN AL IL SY JO LB LY PS

SOME USEFUL LINKS MORE USEFUL LINKS

. Food Security in the Mediterranean: a major geostrategic . CIHEAM’s Analytical Notes issue (2010), IPEMED http://www.ciheam.org/index.php/en/observatory/stu http://www.ipemed.coop/en/publications-r17/les-notes- dy-and-monitoring/analytical-notes Major assets and promising value chains to ipemed-c48/food-security-in-the-mediterranean-a-major- develop geostrategic-issue-a183.html . OECD-FAO Agricultural Outlook The Southern rim of the Mediterranean has important http://www.oecd.org/site/oecd-faoagriculturaloutlook/ . Mediterra 2012: the Mediterranean diet for sustainable strengths to shine in the agri-food sector, to start regional development (2012), CIHEAM - Presses de . Mediterranean Investment Map: sectoral guidebook with its excellent culinary reputation, Lebanon, Sciences-Po on public investment policies in the Mediterranean Morocco and Syria in the lead. The MED countries are http://www.ciheam.org/index.php/en/publications/medite (2010), ANIMA Investment Network gradually increasing the value added of their agri- rra-2012 http://www.animaweb.org/uploads/bases/document/I food sectors by developing the processing industry . Mediterra 2010: Atlas of Mediterranean agriculture, food, nv_MedInvestmentMap_ENG_Light_V2.pdf and packaging for export development. The recent fisheries and rural areas (2010), CIHEAM - Presses de . Med opportunities: 25 niches markets in need of Sciences-Po investment (2009), ANIMA Investment Network creation of agro-clusters (Morocco, Tunisia), including http://www.ciheam.org/index.php/en/publications/atlas- http://www.animaweb.org/uploads/bases/document/I laboratories and R&D centres, can support the mediterra modernisation of production equipments and the nv_25NicheOpportunities_ENWithCover_light_02- . CIHEAM’s quarterly Watch Letters, devoted to major 2010.pdf development of typical products (prickly pear, camel issues in Mediterranean food and agriculture milk, etc.). Finally, a number of niches with high . Overview of the agro-food sector in the Euro- http://www.ciheam.org/index.php/en/publications/watch- growth potential remain largely untapped. This is letters Mediterranean region (2005), ANIMA Investment notably the case of ingredients and processes Network . CIHEAM’s Briefing Notes http://www.animaweb.org/uploads/bases/document/ constituting the Mediterranean diet (horticulture, http://www.ciheam.org/index.php/en/observatory/study- Agriculture_en.pdf vegetable oils, processed vegetables, dairy products, and-monitoring/81-notes-dalerte aromatic and medicinal plants, etc.), of pre-cooked meals or organic farming.

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Market trends and opportunities

A wide variety of resources the world's fourth largest producer with 10.6% of Morocco has a long agricultural and rural tradition. Its market share), argan oil, citrus fruit (32.5% of production is extremely rich and varied, due to production is for export markets), spices, aromatic extremely favourable geographical, climatic, and medicinal plants and essential oils (exports demographic and economic conditions. The sector doubled between 2004 and 2009). Morocco also has represents almost 19% of national GDP (15% for a strong fishing industry, which currently represents 2 MOROCCO: KEY FIGURES IN THE AGRI-FOOD agriculture, 4% for agro-industry) and 16% of total to 3% of GDP, and as much as 12% of the country's SECTOR (source : AMDI) exports. It employs about 80% of the rural labour force total exports. Agricultural area and 21% of the industrial workforce. Its continued 95% of Moroccan businesses in the sector are SMEs, Total cultivated area 8.7 million ha progress is therefore crucial for the ongoing social and whereas an increasing number of large companies as Cultivated area 80% economical development and strengthening of well as several agri-food groups are currently rescaling Irrigated area 14% territorial cohesion within the country. their domestic business activities. Many multinational Weight in the economy The growth rate of agricultural production reflects the companies are strengthening their presence in the Contribution to GDP 19% positive effects of the government's public sector Moroccan agro-industrial sector. They include the Agri-food industry 4% policies in recent years. Such policies include the Green giants Danone and Nestlé in the dairy industry and Agriculture 15% Morocco Plan launched back in 2008, which has Coca-Cola, which is taking advantage of the thriving Export share 15.8% contributed to an almost 40% increase in national non-alcoholic beverage market by introducing its latest Contribution to the industrial sector agricultural production, and the National Pact for range of fruit juices. Production 29% Exported products Industrial Emergence (NPIE), which focuses on the High value-added production agro-industry, a high potential sector currently Citrus fruit €250m Morocco has a total 8.7 million hectares of land using undergoing rapid transition. The Kingdom has also Vegetables €170m for farming and 16 different regions that provide a introduced several measures to support the most Fresh tomatoes €150m range of opportunities to produce high value added competitive export products: subsidies and incentives, Fruit €150m crops. quality infrastructures, support for research and Conserved vegetables €134m development, irrigation and mechanisation. Olive trees are cultivated in many parts of the Imported products country, accounting for 60% of arboricultural land and Cereals €972m The country's top export products are processed 5% of agricultural GDP. The Green Morocco Plan Edible oils and oilseeds €410m fruit and vegetables (46% of agri-food exports, of includes olive oil cultivation as one of its national Sugar €294m which 30% are shipped to the European Union), olive priority sectors. Several projects aim to enhance the Milk derivatives €187m oil (and in particular extra virgin olive oil; Morocco is

qualityand competitiveness of Moroccan olive oil, with To optimise the potential of this major industry, their goal being to help the sector better resist Morocco plans to invest €800m to increase arable against international agricultural competitors (Italy, land area by 52% and increase citrus fruit production Spain and Greece). Efforts are being made to by 70% by 2020. The main growing regions are modernise the sector,both centrally and in Souss-Massa-Draa (40%), Tadla-Azilal, the Gharb and cooperation with producer associations. The Oriental regions (47%). Industrial production relies establishment of the Olive Tree agro-park, which mainly on a number of medium-sized companies, groups several local producers and aims to pool including Delassus, Domaines, GPA and the Agrisous several scientific research projects and raise cooperative. Meanwhile, Agrumes Maroc and ASPAM awareness of technological progress in the industry, is bring together the main producer associations. in this respect a true "success story" in the Meknès Morocco also has a potentially strong medicinal and region. Furthermore, the Green Morocco Plan plans aromatic plant sector: the country is home to 4,200 an increase in arable land by 76% in 2020. This different varieties, including 800 endemic species objective should bring about an explosion in the grown mainly in the Middle Atlas and Rif regions. This sector, with a 260% increase in production according industry offers a range of possible activities: medicinal to government estimates. The longstanding leader in herbs, aromatic herbs and plants, essential oils, the Moroccan oilseed market, the Lesieur Cristal perfumery and cosmetics, etc. The development of a group, 41% owned by the French companies Lesieur specific codex of aromatic plants and the introduction and Castel, is one of the heavyweights in the region. of scientific research programmes have moved the Four medium-sized companies also play an important sector upmarket. Morocco is now the world's 12th role: Aicha, Castel, Les Domaines and Sicopa, with largest exporter of aromatic and medicinal plants. local SMEs completing the list of main stakeholders in the sector. Another promising niche is the Moroccan date palm, totalling nearly 3% of world production. Several Another key area of Moroccan agriculture is the varieties cultivated in the Ziz and Draa regions have citrus fruit sector (clementines, navel oranges, already obtained the Protected Geographical Maroc late and mid-season oranges). They are Indication label (PGI). Morocco also produces a large popular on international markets and in particular on diversity of vegetables: tomatoes, peppers, European fruit stalls. This is a high value added type eggplant, courgettes, peas, broad beans, asparagus, of production that is becoming increasingly technical. potatoes, carrots and watermelon etc.

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Vegetable farming represents an important share of investment opportunities currently exist in the fish- irrigated agriculture in terms ofemployment and processing sector. Exports of preserved fish and fresh income generated by small-scale industry and services. fish increased in 2012 by 29.3% and 14.7% Production is concentrated in the Meknès-Tafilalet, respectively. Naturex, Mediterranean aromas taking on the Tangier-Tétouan, Gharb and Sous Massa Draa regions. world Sectors to be developed to meet domestic Livestock represents another mainstay of the demand Founded in 1992 in Avignon (Southern France), agricultural economy, accounting for 1.8 million jobs. It Different policies implemented by Morocco have Naturex, a company specialising in plant extracts, plays the essential role of raw material supplier to enabled the country to achieve food self-sufficiency has experienced rapid growth in its activities and several agro-industrial sectors (milk, meat, hides, in many areas, including red and white meat strong development on international markets. wool). Livestock breeding is carried out extensively and production, despite the sharp increase in consumption Its Moroccan subsidiary, also founded in 1992, is production in the sector is becoming increasingly due to population growth and rising living standards. now actively involved in the production of plant intensive. Thanks to recent efforts by the government However, this is not the case for commodities such as extracts for the food and nutraceutical industries (dietary supplements in the form of tablets, powder to diversify production, Moroccan currently has nearly cereals, dairy derivatives and sugar, where or gel). 25 million head of livestock: sheep, goats, cattle and imports are still required to satisfy domestic demand, Between 1999 and 2006, Naturex Morocco's camels. Domestic demand is constantly rising and is while the country's population growth is expected to production capacity almost doubled, with increased met largely by local production. Despite the enormous lead to further rises in consumption (19% by 2015 for recruitment as a result of the group's success: low potential for industrial concentration, the sector still cereals, for example). The development of these production costs (labour-intensive tasks) and remains quite fragmented: there are approximately sectors represents a genuine medium and long-term recognised quality supplies of aromatic plants fifty medium-sized companies, and a large regional challenge and this will be at the heart of future (Mediterranean herbs and plants such as rosemary group, Koutoubia, the market leader in white meat. Moroccan agricultural strategies to achieve food and almond and apricot kernels used for cosmetics, etc.). In 2007, the company increased the With 3,000 kilometres of coastline, Morocco also has independence. production capacity of its Nouaceur plant (in rich fishing reserves, representing a true economic Cereals are produced on 61% of agricultural land in Greater Casablanca). The factory, specialising in windfall for the country. In 2009, the government Morocco, accounting for 10 to 20% of agricultural GDP. solvent extraction and steam distillation, now launched the Halieutis Plan and inaugurated the first Cereal production suffers from the fact that arable land extends over an area of 2,500m². Also in 2007, the activity park dedicated to the fishing industry, is mostly divided up into small plots (80% of farms are French parent company increased its stake in its Haliopolis, located in Agadir. The aim is to improve the less than 5 ha in size). The sector is also highly Moroccan subsidiary to 96.35% by buying out the management and sustainability of fishery resources fragmented, with its 200 companies that all have minority stake of Proparco (approximately 7%). and enhance the country's competitiveness on relatively low production capacity. To modernise the Today, Naturex SA is poised to become the world international markets via increased exports. Several sector, existing farms need to be grouped together, leader in natural specialty additives with a turnover of €185m. The company is also expected to incorporate the ingredients division of the Spanish company Natraceutical, and therefore further 9 © EuroMed@Change 2013 expand its activities in the agri-food sector. 9

and industrial processing procedures need to be Protected Geographical Indication label (PGI). improved. The national plan's objective for 2015 is to Products that are currently labelled include Tyout cultivate approximately 4.4 million hectares of land Chiadma olive oil, each year, representing an annual cereal production « The Agropolis project in Meknès boosts the Meknes argan oil, clementines from Berkane, saffron of about 7 million tons. potential of the "Meknes-Tafilalet region: from Taliouine, Béni Guil lamb, Sefri Ouled Abdellah companies now have access to suitable In the dairy sector, while Morocco is able to meet pomegranates, prickly Pear from Aït Baâmrane, Kelâat infrastructures, training and research" domestic demand for milk (milk production represents M’gouna-Dadès roses, Tafraout almonds, Zaqqoum 2% of agricultural GDP), this is not yet the case for honey from Tadla Azilal, Boufkous dates and Aziza Mr. Hassan BAHI, Director of the Regional processed products: cheese, butter and yoghurt, dates from Bouzidi Figuig. Investment Centre in Meknès-Tafilalet for which domestic demand has been growing steadily The success of organic products and fresh for several years. The sector also offers other vegetables on international markets (especially in opportunities, for instance the development of camel North America and Europe) illustrates the positive products in the southern provinces. This sector has impact of measures introduced by the National Pact AGROPOLIS, A DEVELOPING AGROPÔLE already attracted the attention of some foreign for Industrial Emergence to develop these areas of companies, such as the German company Vitamol. The Meknes Agropolis was the first cluster to be created activity. Organic certifications are currently managed as part of the "Green Morocco" and "Emergence" Finally, sugar production, which is highly regulated at ministerial level. The regulatory framework is Programmes. Its aim is to strengthen the position of the and subject to price controls, currently satisfies only defined in the Programme for the Development of Meknès-Tafilalet Region as a centre of agricultural and 38% of the needs of the Moroccan population. The Organic Farming agreed upon with the Moroccan agri-food excellence. This project is the subject of local group Cosumar has a virtual monopoly. Association for Organic Production (AMABIO). This framework and development agreements that include an programme plans to increase the acreage dedicated innovative monitoring system coordinated by the The growing importance of local products and to organic farming. The area currently represents Regional Investment Centre. organic farming 3,800 ha; the plan is for a total of 40,000 ha in 2020, The first development zone, which extends over 130 Moroccan products are attracting greater interest mainly in the Souss Massa Draa and Abda-Doukkala hectares, includes an agro-industrial park, a logistics from international consumers who are increasingly regions. area, a centre for R&D and quality control activities as interested in "typically Mediterranean" products. The well as other nearby facilities. country has therefore decided to introduce various To date, more than 40 projects led by Moroccan and measures to promote local products, notably via the foreign investors have been granted permission to set up operations in the Agropolis. Some of them have already started work on developing their parcel.

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The need to modernise production techniques Investments in these areas provide many and distribution opportunities to improve the overall competitiveness The Moroccan agri-food industry is now facing a major of the sector and are encouraged by several challenge: how to modernise production and distribution measures, including the Fund for Agricultural methods in various areas of activity and how to promote Development and the Industrial Food Processing agricultural resources better while limiting imports? Platforms or Agro-Parks

To achieve this, major investment in the sector's infrastructures is required. The low levels of land use in THE DEVELOPMENT OF ORGANIC PRODUCTION: A 10- FOLD INCREASE IN LAND AREA BY 2020 Moroccan agriculture and the strong dependence of production on weather conditions mean that there is Morocco has a number of important assets that facilitate the development of organic" production: great need for technical innovation and high performance farming equipment. Now, "modern" . A traditional know-how very similar to techniques agriculture represents only 20% of cultivated land, the used in organic farming remaining 80% of land is dedicated to a more traditional . uncontaminated land ready for production form of agriculture, located in desert (oasis) and . soil and weather conditions that produce early and mountainous areas. Meanwhile, irrigated agriculture competitive products to satisfy foreign markets represents only 15% of cultivated land, although . several organic products exits, they simply lack irrigation is an important advantage for production. certification before they can be commercialised.

Production with high export potential benefits from these The programme contract signed between the State technical applications (for example citrus fruit, which and AMABIO (Moroccan Association for Organic occupy 47% of irrigated land) and accounts for 75% of Production) involves a total investment of €100m. It total agricultural exports. plans: . an increase in production from the 13,000 The Moroccan agri-food industry also needs to invest tons/year currently produced (vegetables, citrus fruit significantly in innovation and modernisation of its and processed products) to a total of 60,000 production and distribution processes. It needs to tons/year, with a production of 5,000 tons/year for develop an effective cold chain management system and white meat and 875 tons/year for red meat by 2020 modernise slaughter methods. . . an increase in organically cultivated land from 3,800 hectares to 40,000 hectares in 2020. By comparison, 32 million hectares are certified organic worldwide.

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Foreign Direct Investment

2011 and 2012: Record years for foreign a first Indian investment, however, was announced in investment in the agri-food sector 2011 in the fizzy drinks industry. Morocco is one of the most attractive countries in the Beverages, fruit and vegetables and fishing MED region for foreign direct investment (FDI) in agri- projects lead the FDI table Morocco: Announced FDI projects and partnerships in the agri-food sector (ANIMA-MIPO) food projects: since 2003, more than 60 FDI Three sub-sectors account for half of all agricultural announcements in the country have been recorded by and agri-food FDI announcements: beverages Invested amounts (€m) Number of FDI projects the ANIMA MIPO observatory, out of a total of 300 (alcoholic beverage projects are led by the French Number of partnerships 800 12 projects throughout the region. Nearly a third of these companies Castel and Pernod Ricard for example, 700 projects were in 2011 and 2012 alone, representing a 10 while soft drinks are a segment where the American, 600 8 total of €1 billion. The agri-food sector accounts Coca Cola, is particularly active), fresh and processed 500 for nearly a third of total FDI announced in fruit and vegetables, (where French and Spanish 400 6 300 Morocco across all sectors in 2011 -2012, an groups are largely represented) and fishery 4 unprecedented performance over the past decade. 200 products (conserved, frozen products and 2 100 This record figure is partly due to the move involving aquaculture). Two other areas are also popular with 0 0 the French food giant Danone, the leader in dairy foreign investors: the dairy sector, where Morocco still 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 products and mineral water, which increased its stake imports part of its domestic consumption of processed in Centrale Laitière, the top Moroccan dairy producer, products, and the production of oil, especially olive oil. Morocco: Main investor countries in agri-food in from 29.2% to 67%. Another major acquisition Morocco (no of FDI projects: ANIMA-MIPO) exceeding €100m was in 2012, in the biscuit sector, Some projects are taking place in promising niches, 25 and involved the American Kraft Foods. they include mushroom production for local consumption, horticulture, products made with 20 Europeans are responsible for the large camel's milk as well as animal feed. majority of these FDI announcements: they lead the 15 way with 70% of agricultural and agri-food 10 21 investments (the same proportion prevails in FDI 16 project rankings across all sectors in Morocco). The 13 5 Gulf countries and the United States run almost neck 5 6 3 2 3 to neck with about 10% of projects each, while 0 France Spain Other EU UAE Other USA MED Other emerging countries are so far less active in the area - Gulf countries

10 biggest FDI annoucement in the agri-food sector in Morocco (2003-2012, ANIMA-MIPO) Investor Origin Date Type Project €m Financial JV, The world leader to increase its stake from 29.2% to 67% in Danone France 2012 partial 550 Centrale Laitière, the country's front runner in dairy products acquisition Imperial Financial JV, French group Altadis to buy 20% stake in Régie des Tabacs Tobacco / France 2006 partial 362,12 (Morocco) for MAD 4bn Altadis acquisition Financial JV, The group buys for more than MAD 1.7 billion ONA's stakes in Castel France 2003 partial 149,35 Brasseries du Maroc (54.29%), and Branoma (12.77%) acquisition Financial JV, The company to acquire 41% stake in Lesieur Cristal, an Sofiproteol / France 2011 partial affiliate of the SNI (ONA) holding, the Moroccan leading 130 Lesieur Morocco: FDI and Partnership project announcements acquisition manufacturer of cooking oil in agri-food (2003-2013, Source ANIMA-MIPO) Acquisition, The food giant to buy out the remaining 50% stake in Kraft Foods USA 2012 total Morocco-based cookie maker Bimo, from SNI, the King's 116,4 privatisation investment holding company Acquisition, The bottling-to-real estate company engaged among other Jaipuria / RJ India 2011 total things in bottling operations in South Asia, to acquire Pepsi 75,9 privatisation Cola's Moroccan subsidiary The soft drink giant to launch an investment plan in 2012 to Coca-Cola USA 2012 Brownfield set up a new plant in Nouasseur and to expand existing 72,7 facilities in Oujda

Cobega Spain 2003 Greenfield Cobega spends USD 73 million for its 3rd bottling plant 64,53

The group to invest in olive oil production, beer production, Castel France 2007 Greenfield launching of Nicolas wine shops and to raise the capital of its 40,8 subsidiary SVCM United The Mediterranean Aquaculture Company, the subsidiary of Gulf Merchant Licenses and Arab 2011 the investment bank, to acquire a concession focused on 35 Bank PPP Emirates shellfish farming and transformation

Selected partnership announcements in the agri-food sector in Morocco (ANIMA-MIPO) Investor Origin Date Type Project The yogurt brand, affiliate of the American group, to ink a Commercial franchise agreement for Morocco with Fez-based Société laitière General Mills / Yoplait France 2012 partnership centrale du nord (SLCN)

Commercial Yoplait, in which the group has a 51% stake, to ink a producion General Mills USA 2011 partnership and distribution agreement for Morocco with local company SLCN The chocolate maker to open its first franchise store and choose Franchise, Casablanca in order to exclusively distribute products under its Yves Thuriès France 2011 shop, etc. trademark The dairy cooperative to sign a franchising agreement with local Franchise, Bestmilk for the production and distribution of products under the

Sodiaal / Candia France 2009 shop, etc. Candia brand Franchise, The dairy company to establish in Morocco thanks to a franchise Sodiaal France 2008 shop, etc. agreement with local Best Milk

Development Soprolives, a group-local Somed partnership, to develop an Nutrinvest / Sovena Portugal 2007 agreement integrated olive oil production project Franchise, The French food caterer opens its second Moroccan shop in Accor / Lenôtre France 2007 shop, etc. Casablanca after a first one in Rabat Franchise, The French small-size firm to open a traditional sweets V. de Lys France 2007 shop, etc. confectionery shop in Casablanca Development The Spanish olive oil producer to operate 330 ha of fields with Todolivo Spain 2007 agreement local partners, with 600 extra ha to be added soon

Franchise, Lebanese chocolate maker Patchi to open its first Moroccan shop Patchi Lebanon 2007 shop, etc. in Oumayma Sayeh street, Casablanca

Key players

Institutional stakeholders designed to support high value added agricultural sectors continuing education courses for specialists in life and The Ministry of Agriculture and Maritime Fisheries, and the building of partnerships with investors. earth sciences and technologies (engineers, veterinary surgeons and doctors of agricultural sciences). It through its Department of Agriculture, is responsible for Federations and professional associations developing the legal and regulatory frameworks for the contributes actively to efforts to modernise agriculture The National Food Federation (FENAGRI) is a major implementation of government agricultural policy. Its through its innovative research programmes designed to partner responsible for resolving various cross-sector areas of expertise include agricultural development, the meet the expectations and needs of a constantly problems arising in the agri-food sector. It represents improvement and modernisation of infrastructures, changing agricultural world. and defends the common interests of different agri-food rationalising the use of water resources for irrigation, as The National Institute for Agronomic Research is a industries, with the aim of promoting development within well as plant, animal and food safety assessment. The century old public body with a network of regional the sector. FENAGRI is in charge of drafting the agri-food ministry is supported in its activities by the General centres that are in charge of carrying out research for industry programme contract expected in 2013. Council for Agricultural Development, a permanent the scientific development of the agriculture sector. body responsible for agricultural policy and integrated Certification Private sector rural development at local and regional levels. It is also The National Office for Food Safety (ONSSA) works The two main fruit and vegetable exporting groups are assisted by Regional Agriculture Offices, in charge of as a safety regulator in charge of supervising plants, Fresh Fruit and Maroc Fruit Board. The agri-food sector is agricultural land use planning at regional level. animals and food products, from the raw materials stage dominated by three Moroccan giants: the ONA Group, to the end consumer. It also supervises the safety of The Ministry of Industry, Trade and New Holmarcom and Ynna Holding. Technologies, with help from the Department of products used for animal feed.

Foreign Trade, is in charge of the National Strategy for The Moroccan Standards Institute (IMANOR) is the Development and Promotion of Exports, "Morocco responsible for coordinating national standards and Export Plus". certification. It is also in charge of granting trademarks

Alongside the Ministry of Industry, the Ministry of rights, labels and certificates of conformity based on

Agriculture co-chairs the Monitoring Committee in charge Moroccan standards and normative guidelines. It also studies any general interest questions in the field of of implementing measures detailed in the agri-food component of the National Pact for Industrial Emergence. standardisation and certification.

The Agricultural Development Association (ADA) is Technology centres responsible for implementation of the Green Morocco The Hassan II Institute of Agronomy and Plan: it provides government authorities with action plans Veterinary Sciences in Rabat is a multidisciplinary polytechnic centre providing initial training and

Ministries and government agencies

Ministry of Agriculture and The Ministry is divided into two departments: the Ministry of Agriculture, in charge of the country's www.agriculture.gov.ma Maritime Fisheries agricultural policy, and the Ministry of Marine Fisheries in charge of managing marine resources. www.mpm.gov.ma Agricultural Development Agency ADA participates in implementation of the Green Morocco Plan. It provides government authorities with www.ada.gov.ma (ADA) action plans designed to support high value added agricultural sectors and community supported agriculture. Ministry of Industry, Trade and Maroc Export, or the Moroccan Centre for the Promotion of Exports, is an operational body responsible for www.marocexport.ma New Technologies (Maroc Export) the implementation of government policy on export promotion. Moroccan Agency for Investment AMDI is a structure designed to offer services and assistance to investors. It also deals with cooperation www.invest.gov.ma Development (AMDI) and coordination of promotional activities both in Morocco and abroad. Regional investment centres (CRI) The role of these centres is to develop the potential of Morocco's 16 regions by providing information http://www.cri.ma/ about the investment opportunities they offer. Within a single structure, they provide assistance for new entrepreneurs and services for investors. National Office for Food Safety ONSSA ensures that controls are carried out on foodstuffs and raw materials. It also supervises the www.onssa.gov.ma (ONSSA) protection of crops and veterinary checks. Moroccan Independent Export EACCE is responsible for ensuring that Moroccan food exports comply with international regulatory www.web2.eacce.org.ma/ Control and Coordination Agency requirements. (EACCE) National Interprofessional Cereals ONICL oversees the domestic supply of cereals, pulses and derivatives. www.onicl.org.ma and Pulses Board (ONICL) Main professional organisations National Food Federation FENAGRI offers information, business networking and support services to companies in the agri-food www.fenagri.org (FENAGRI) sector. Its role is to represent and defend the common interests of the different agri-food sectors, with the aim of promoting development within the sector. Moroccan Organic Producers AMABIO works on the development and promotion of organic products at national and international levels. www.amabio.org Association (A.MA.BIO) Its aim is also to ensure compliance with the Moroccan organic label in the following three areas: health, sustainable development and fair trade.

National Association for Land ANAFIDE is an NGO with recognised public benefit status focusing on agricultural and rural development. www.anafide.org Improvement, Irrigation, Drainage and It is Morocco's official representative on the International Commission on Irrigation and Drainage (ICID) Environment (ANAFIDE) and the International Commission of Agricultural Engineering (CIGR). Association of Producers and Exporting APEFEL's role is to defend and protect the interests of professionals specialising in the production and www.apefel.com Producers of Fruit and Vegetables export of fruit and vegetables. (APEFEL) Innovation stakeholders (Incubators, research centres etc.) The Olive Tree Agro-Park The Olive Tree Agro-Park is a centre of excellence and innovation providing services in technology transfer www.agropoleolivier.com and the development and promotion of the regional and national olive oil sector. Agro-Technologies Association in Souss The Agrotech SMD cluster is home to companies and research/training institutions working in the www.agrotech.ma Massa Draa (Agrotech) agriculture and agri-food sectors. National Institute for Agronomic INRA is a public institution for agricultural research with a network of research laboratories and www.inra.org.ma Research (INRA) experimental farms throughout the kingdom, including the experimental botanical garden in Rabat. Hassan II Institute of Agronomy and The IAV carries out R&D activities in the fields of agriculture and agricultural resources, rural development Veterinary Sciences (IAV) and land planning. It also performs research in fields such as agro-industrial processing, plant and animal www.iav.ac.ma biotechnologies and the use of microorganisms in such technologies. Finally, work is carried out in the field of veterinary public health and other agricultural production related services. National Institute for Medicinal and INPMA is an academic institution for applied research in the field of medicinal and aromatic plants. www.usmba.ac.ma/inpma/ Aromatic Plants (INPMA) Haliopolis Park in Agadir The Haliopolis Park is a project dedicated to the seafood processing industry and is part of the develop http://www.medz.ma/?Id=13&la ent programme involving the fishing industry cluster in Agadir. ng=fr&mod=1&RefCat=2&Ref=1 35&btn_back=1

Morocco agri-food business directory Directory supplied by the National Pact for Industrial Emergence (www.emergence.gov.ma) www.emergence.gov.ma/MMM/A groalimentaire/Pages/AnnuaireAg roalimentaire.aspx

Recent national policies

An aggressive strategy to boost agriculture and professionalise production, funded by national and territories international funds as well as the ADF. In 2012, the Since 2008, the Kingdom of Morocco has embarked on Ministry of Agriculture also launched a land ambitious incentive policies to boost the agriculture consolidation strategy for small farms. This cornerstone and agri-industry sectors. It aims to provide an represents a total investment of €450m per year to adequate response to growth in domestic demand, develop between 300 and 400 projects that could have reduce dependence on international markets and an impact on 600,000 to 800,000 farms. support integrated territorial development. To achieve This ambitious reform is presented in the form of 16 this, the country now has an Agricultural Agriculture Plans. They identify for each region, the Development Agency (ADA) responsible for sectors and priority investments according to the proposing action plans to support high value added opportunities and natural, social and economic agricultural sectors and building partnerships with constraints of each region. investors. Their various activities are part of two major programmes designed to support the sector: the Green The National Pact for Industrial Emergence Morocco Plan and the National Pact for Industrial (NPIE) was also launched in 2008 and aims to Emergence. consolidate agricultural businesses and encourage investment in the agri-food industry. This programme The Green Morocco Plan is an agricultural reform focuses on sectors with high export potential as well launched in 2008 including plans to invest €10 billion as target markets. The Morocco Export Plus The Green Morocco Plan (source : ADA) by 2020 to improve productivity within the sector. strategy targets two product segments in particular: There are two cornerstones of reform: preserved foods and olive products. Meanwhile, the Outlook for 2020 €10 billion 1. The development of a more productive and Morocco Investors programme aims to attract more Investments modern agriculture system in areas with high foreign investors and also focuses on sectors with high Jobs + 1.5 million agricultural potential, supported by private investment export potential such as citrus fruit, olives, fruit and GDP + €6-8 billion and the Agricultural Development Fund (ADF). This vegetables. The launching of 6 Agri-Food Industrial Exports + €90-350m cornerstone plans the creation of 700 to 900 projects Platforms (Agro-Parks) in the regions of Meknès, Initial results (2008-2012) with a total investment of €900 to €1,350m per year. Berkane, Souss, Gharb, Haouz and Tadla aims to Agricultural production + 40% provide modern infrastructures and logistics to Contribution to GDP + €15 billion 2. Community-based support for small-scale businesses in the sector, making the six major + 27% / 1,000 ha agriculture through projects designed to intensify and Mechanisation rate Drip irrigation + 30,000 ha

Agricultural investments incentives (source AMDI)

Principal measures and subsidies Hydro-agriculture 100% aggregation projects - agricultural regions more attractive. Such parks seek to funds purchases of agricultural equipment (subsidies development (localised 80% without aggregation combine industrial investment and technological between 30% and 60% for purchases aimed at irrigation systems) research in order to promote the agricultural sectors of increasing agricultural competitiveness such as Farming equipment 30-70% (aggregation) – 20- the future. The first Agro-Park project will be cultivating and manure spreading equipment), land purchases 50% operational in June 2013 in the Meknès region. improvement, creation of orchards, acquisition of Land improvement 30-50% seedlings, laboratory testing and the installation of A range of incentive measures Plantations (creation of Olive trees: €317 - €544 / ha recovery units. orchards) Reducing the number of small and scattered parcels of Citrus fruit: €1,089 / ha As far as the agro-industry is concerned, Article 17 of agricultural land, (or aggregation) is a condition for Acquisition of seedlings 80% the Investment Charter stipulates that government access to various investment support measures for Laboratory tests 50% can participation in the costs of land purchases, agri-food projects implemented by the Moroccan state. Recovery units 10% These measures are based on public-private external infrastructures and training up to 20%. Fixed amount for aggregation projects Subsidies can also be granted by the Investment partnerships, financial aid and tax relief. Plant sector €23 - €454 / ha Promotion Fund. The Emergence Pact also provides Animal sector €25.4 - €32 / head In terms of land policy, several incentives to promote banking support for five institutions: Crédit Agricole public-private partnerships provide the opportunity (€1.8 billion), Attijariwafa Bank (€2.3 billion), Banque for national and international investors to lease publicly Populaire (€1.8 billion), SGMB (€310m) and Crédit du and collectively owned land for a period of 40 years Maroc (€280m). Investment incentives are granted on (renewable for an additional 17 years) to develop large preferential terms: 5% interest rate on short-term Incentives for agri-food investments projects. In 2011, 560 investment projects benefited loans, 5.5% on medium and long-term loans. from these measures; nearly 100,000 ha were made (source AMDI) A wide range of products and services are also available by the State for major projects, representing Principal measures and subsidies available to farming professionals: production loans, a total investment of €2.2 billion and creating nearly Land purchases 20% assistance with marketing, investment, exports or 55,000 new jobs. External infrastructures 5% imports as well as business guidance. These support Training 20% The financial aid system, based on the reform of the measures are also aimed at intermediate sectors, for Agricultural Development Fund, encourages which the Pact provides financial assistance to Conditions private investment by subsidising hydro-agriculture businesses. - Investment of at least $24m (€19m) development projects (localised irrigation systems: well - Creation of 250 jobs drilling, water pumps, pool construction, filtration and As far as taxation is concerned, the main incentives - Guaranteed technology transfer water distribution, with grants of up to 80% ). It also for the agricultural sector include: - Contribution to environmental protection

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. reduction in import taxes (2.5%) for the majority of Morocco has restructured its tax system and taken steps agricultural products and materials; to provide all the necessary guarantees to investors. . exemption from VAT for the majority of agricultural They are guided in their projects by the Regional products and materials; Investment Centre (ICC) concerned. Articles 92 and 123 of the Investment Charter also grant Agriculture: a bottom up approach to a businesses in the agri-food industry a reduction on regulatory update import duties and VAT exemptions for amounts Programmes to develop and promote Moroccan food exceeding a minimum $24m (approximately €19m), production that were initiated by the Emergence Pact subject to signature of an agreement with the State and included the adoption of regulations on food subsequent approval by the Investment Committee. traceability. The latter include rigorous origin criteria An increasingly liberalised and attractive market and a strict labelling system that indicates a product's geographical origin and quality. The recognised labels for foreign investors ensure better recognition and better protection of local The free trade agreement between the EU and products. MOROCCAN HALAL LABEL Morocco for agricultural products and fisheries, The creation of the National Office for Food Safety which came into force in 2012, resulted in an increase in Following the example of several leading countries in this (ONSSA) and its regional network of research area (Turkey, Malaysia, France, Belgium), Morocco recently Moroccan exports of fruit and vegetables to the laboratories in 2009, ensure that the necessary created an official halal label. This label is intended to European market and reduced customs duties on both promote the Moroccan and international halal industry and infrastructures are available and capable of controlling sides. Morocco has reduced customs duties by 45% for meet the needs of a market that is growing at a rate of 10% quality. To certify the methods of quality control used in agricultural products (this figure will rise to 67% in per year. With a world population of 1.3 billion Muslims, the different structures (central, regional and local), the halal market accounts for 16% of the global food industry. 2022), 92% for agri-food and 90% for fishing. Europe ONSSA uses the NM ISO 9001, NM ISO 17020 and NM There are 17 million consumers in Europe alone. agreed to reduce customs duties by 56% for agricultural ISO 17025 standards as well as standards set out by the products (this will increase to 67% in 2017), 98% for The aim of the halal label is to enable Moroccan and OIE and the Codex Alimentarius. In 2011, the agri-food and 100% for fishing. In terms of FDI, international companies to win consumer trust by improving foundation of the Moroccan Standards Institute Morocco does not discriminate between domestic and traceability and manufacturing ethics. Its creation, following IMANOR led to the development of a national request from Moroccan exporting businesses, was handled by foreign investment in almost any sector. Foreign capital certification system for services and products offered by the Moroccan Standards Institute (IMANOR). The Moroccan represents a significant part of overall investment. With standard NM 08.0.800 outlines the requirements for Halal Moroccan companies and organisations that complies the adoption in 2005 of the Investment Charter, foods, based on the guidelines set out by the Organisation of with international standards. Islamic Cooperation (OIC).

Selected programmes & initiatives

UNIVERSAL AID SYSTEM IMTIAZ

Period: Underway Period: Underway

Budget: n.a Budget: n/a

Funding: Ministry of Agriculture and Maritime Fisheries Funding: Ministry of Industry and Commerce

Target / opportunity: Financing schemes Target/ opportunity: Financing schemes

Lead Executing Agency: The Ministry of Agriculture and Marine Fisheries and the Ministry of Lead Executing Agency: National Agency for the Promotion of SMEs Economy and Finance (Single Points of Contact at Provincial Departments of Agriculture and (ANPME) Regional Offices for Agricultural Development) Objectives: The Imtiaz Fund provides support to companies with strong

Access to finance to Access Objectives: The Universal Aid system aims at promoting investment in the Moroccan agricultural growth potential. It can grant €0.4m per company (donation by the State) or sector. The system addresses in particular hydro-agricultural and mechanization projects. 20% of required financing including VAT

Information: http://www.agriculture.gov.ma/pages/regime-des-aides-universelles Information : www.anpme.ma

OCP INNOVATION FUND FOR AGRICULTURE NABETOU FUND

Period: Underway Period: Underway

Budget: n.a. Budget: . € 23 m

Funding: OCP GROUP Funding: Azur Partners

Target / opportunity: Financing schemes , Incubation Target / opportunity: Financing schemes , Incubation

Lead Executing Agency: OCP Group Lead Executing Agency: Azur Partners

Objectives: The OCP innovation Fund promotes innovation and entrepreneurship in the Objectives: Nebétou Fund is dedicated to finance enterprises developing high agriculture and agro-industry sectors. The fund can grant up to €0.223m / €0.892m for start-up added value products, labels and brands belonging to the heritage and natural Access to finance to Access projects or projects under development; €1,338m / € 3,568m for infrastructure or structuring resources of the Moroccan soils. projects Information : http://www.azurpartners.ma/nebetou-fund Information : http://www.ocpgroup.ma/pages/ocp-innovation-fund-agriculture

Major business events

INTERNATIONAL AGRICULTURAL SHOW IN MOROCCO (SIAM) ANNUAL HALIEUTIS TRADE SHOW

Sector: Agriculture and agri-food, international trade Sector: Sea fishing, aquaculture, seafood promotion

Number of editions: 8 Number of editions: 6

Organiser: Ministry of Agriculture and Fisheries Organiser: Commissioner of the Halieutis Trade Show

Focus: International trade fair, thematic conferences, BtoB Focus: International trade fair

Participation 2012: 600,000 Participation 2012: Agriculture Next event: April 2014 (annual) Next event: February 2014

Information : www.salon-agriculture.ma Information : www.salon-halieutis.com

g r i c u l t u r e A

TERROIRS EXPO EXPO HALAL INTERNATIONAL Sector: Agriculture, Maghreb crafts and local Maghreb products

Sector: halal food industry, market trends, changes in consumer habits Number of editions: 3 Number of editions: 2 Organisers: Office of Fairs and Exhibitions in Casablanca (OFEC), Clic Organisers: Maghreb Centres de Contacts Events

Focus: Mediterranean trade show, conferences, competitions Focus: Regional trade fair

Participation: n/a 2012 Participation: n/a Nichemarkets Next event: 26-27 September 2013 Next event: n/a

Information : www.expo-halal-international.com Information : www.terroirsexpo.ma

CARREFOUR DES FOURNISSEURS DE L’INDUSTRIE ALIMENTAIRE (CFIA) SIFEL TRADE SHOW AGADIR Sector: Agri-food Sector: Fruit and Vegetables industry Number of editions: 3 Number of editions: 10 Organisers: GL Events Exhibitions Organisers: International Exhibitions and Conferences (IEC) Focus: expertise and innovative technologies in the agri-food sector Focus: International trade fair

Industry Participation 2012*: 3,600 visitors - Participation 2011*: 46,424 (3 days) Next event: 2014 (biannual) Next event: 2014 (annual) Agro Information : www.cfiaexpo.com/cfia-maroc Information : www.fr.sifelmorocco.com

MAGHREB FOOD EXHIBITION 2013 (MAFEX) CREMAI

Sector: Food ingredients, packaging, agro-industrial processes, finished products Sector: Hotel industry, restaurants, bakeries

Number of editions: 2 Number of editions: 6

Organisers: IEC, IFW EXPO Organisers: OFEC

Focus: conferences and specialist workshops Focus: International trade fair, conferences, national and

international competitions Industry

- Expected participation 2013*: 10,000 visitors Participation 2012*: 17,623 visitors Next event: 7-9 November 2013

Agro Next event: 2015 Information : www.mafex-morocco.com/en/ Information : www.cremai.ma

This guide is a Doing business toolkit dedicated to clusters, SMEs, or entrepreneurs interested in developing business partnerships in the Agro sector in Morocco. It provides an overview of the main opportunities available for the private sector, as well as concrete and useful data to those interested to go further.

It has been prepared by (name of the task leader) under the EuroMed@Change Project, a Preparatory Action initiated by the European Parliament and implemented by the European Commission (DG Enterprise and Industry).

EuroMed@Change proposes new dynamics for SME and cluster internationalisation between Europe and 4 targeted partner countries: Morocco, Tunisia, Egypt and Lebanon. It is managed by four organisations from across Europe (ANIMA Investment network as Project leader, the European Business Innovation Centre Network, INNO AG and the Fondation Sophia Antipolis as partners) and it coordinates with more than 45 associated regional business, finance and innovation networks.