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© EuroMed@Change 2013 1 © EuroMed@Change 2013 2 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 © EuroMed@Change 2013 3 © EuroMed@Change 2013 4 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 © EuroMed@Change 2013 5 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 http://www.ciheam.org/index.php/en/publications/watch- . Overview of the agro-food sector in the Euro- 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. 6 © EuroMed@Change 2013 6 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