Agriculture in Morocco - Overview

Morocco is a large country with approximately 8.7 million hectares of useful agricultural land. The agricultural sector is characterized by small-scale production, with 75% of farms having less than 5 hectares. Small farm size leads to diversified production, including both crops and livestock, but it also increases vulnerability to climate and market forces. Challenges faced by the sector as a whole include frequency of droughts, soil erosion, water scarcity, overgrazing, limited infrastructure and technical resources, population pressure, lack of government support, and international pressure to liberalize trade.

Major products include wheat and barley, locally produced and consumed meat, milk, and eggs, and a wide variety of fruits and vegetables, especially olives, tomatoes, almonds, citrus, and strawberries. Cereal production is concentrated in rainy sections of the Northwest, with more citrus, olive, and grape production on the Atlantic coast. Cereal production uses 80% of the arable land, mostly barley and wheat and a smaller amount of corn. The next biggest use is legumes with 4% of the total, including chickpeas, fava beans, lentils, and peas.

Morocco has high agricultural potential, unlike many other Arab countries that produce little of their own food (Saudi Arabia, for example, imports 98% of its food). Morocco is self-sufficient in meat and is aiming for self-sufficiency in dairy, with some support provided by government initiatives in this area. It produces two-thirds of the grain it consumes, with the rest imported from France and the United States. Morocco produces enough fruit and vegetables to supply the domestic market and export to the European market, especially fresh citrus and early vegetables such as potatoes and tomatoes. Agricultural products make up 11% of the total export trade for Morocco, and the country imports cereals, wood, leather products, dairy, vegetable oils and cattle feed from the EU. There is a structural trade deficit in agricultural products, since imports equal twice the value of exports.

Agriculture is completely tax-exempt and accounts for approximately 15% of the GDP, but employs about 40% of the population. Nearly three-quarters of the poor live in rural areas. Agricultural growth is very susceptible to climate: during the years 2002-2003, the sector grew by 12% annually due to favorable conditions, this dropped to 2% with bad conditions in 2004.

NAFTA and Fresh Produce – How International Trade Agreements Shape Your Shopping Cart

The North American Free Trade Agreement took affect in January 1994 and by 2008, it eliminated all duties and quantitative restrictions to trade between Canada, Mexico, and the US. Between 1992 and 2004, fruit and vegetable imports from Mexico tripled, increasing the availability of fresh fruit in the United States. It is a perfect example of how policy shapes what we eat.

US-Mexico Agricultural Trade

In 1990, the US imported just $1.4 billion worth of horticultural products. In 2012, US agricultural imports from Mexico totaled $16.4 billion, with fresh fruit and vegetables accounting for over 40% of this total. The US imports $18.9 billion worth of agricultural products to Mexico, especially grains, red meat, dairy, and soybeans. Agricultural trade between the two countries increased substantially after NAFTA came into effect.

The Mexican Produce Industry

Mexico is a major producer of tomatoes, cucumbers, bell peppers, eggplant, squash, citrus, grapes, melons, mangoes, avocados, strawberries, limes, and bananas. It has been a key supplier of produce for several decades, though it increased in importance after NAFTA. The Mexican fruit and vegetable export industry is shaped by foreign demands – variety and seasonal preferences, import restrictions relating to chemical residues, and other government restrictions. For example, some marketing order regulations, discussed in a previous post, apply to imports as well as domestic production, and restrict the amount of produce that can reach the market. The Mexican government does not directly subsidize fruit and vegetable production, but does provide subsidized and preferential water allocations, a serious constraint to production in some regions.

Mexico was able to take advantage of the opportunity NAFTA provided by expanding production and meeting standards as demanded by US markets. A USDA report explains that

“The vibrant Mexican produce industry has taken advantage of NAFTA and

improved production, investments, and marketing to increase fresh produce

exports to the United States. The strong export growth of Mexican produce

is also aided by successful phytosanitary negotiations.”

 NAFTA also encouraged US firms to invest in production in Mexico, since they were virtually guaranteed a market in the States. Many American companies are currently involved in fruit and vegetable production for export.

NAFTA Increases Produce Imports

Overall, Americans are eating more fruits and vegetables, and imports are playing a larger role. The United States is the world’s largest fresh fruit and vegetable importer, and much of this produce comes from Mexico, especially during the winter. Between 2004 and 2006, Mexico supplied three-quarters of tomato, pepper, and cucumber imports and one-quarter of grape and tropical fruit imports. Those three vegetables make up 60% of the US import market, and volume tripled between 1992 and 2004. The US is also Mexico's main customer: from 1991 to 2001, the US purchased 98% of Mexican vegetable exports. 

The American demand profile for fruit has changed a lot over the past 20 years. In 1990, bananas made up 60% of fresh fruit imports, coming primarily from Colombia, Costa Rica, Ecuador, Guatemala, Honduras, and Panama. These countries are still the largest providers of fresh fruit (their exports are ¾ bananas), but the percentage of bananas in US fruit imports has dropped to 28%. Tropical fruits, such as pineapple, mango, and papaya, are a faster-growing sector. Mexico is the leading supplier of both mangoes and papayas, with 56 and 76% of the market share respectively.

From 1992 to 2004, the value of fresh grape imports rose by 61%. Chile provides 71% of the total value of US grape imports, but Mexico is the second largest supplier, with 26%, and exports during a key period in the season when Chilean production drops and US grapes have yet to hit full production. Thus, changes in policy as well as rising demand for a wider variety of fruits and vegetables have increased US reliance on Mexican produce.

Criticism

Despite the benefits for American consumers, some American producers are unhappy with the effects of trade liberalization. In 1996, Florida tomato producers charged Mexico with dumping below market price tomatoes in the US, thus leading to lower prices and hurting the domestic industry. This lead to a series of suits and agreements, and the establishment of a minimum tomato price. Some also criticize this move towards year-round availability as keeping consumers out of touch with seasonality and the joys of fresh, local produce; others say greater availability of fruits and vegetables can only be good. 
While this post has focused on benefits that NAFTA has brought to American consumers and Mexican producers, it is important to consider other negative impacts of liberalizing agricultural trade between the two countries. It has been disastrous in many ways for Mexicans, especially the millions of Mexican farmers who were pushed off their land and outcompeted by subsidized US grain. The increased foreign investment that I mentioned has also done relatively little to benefit Mexico, as wages are low, and the jobs that were created in the manufacturing sector were not enough to compensate for the loss of livelihoods in agriculture.

Conclusion

            Overall, NAFTA has had positive impacts on the American diet. Americans are eating more fruits and vegetables, and many types of produce, even fragile, highly perishable berries, are available nearly year-round. For the most part, imports have grown to meet rising demand, rather than to replace domestic supply. Thus, according to the USDA Economic Research Service, “volume has increased while prices in general have remained stable, and consumers have gained access to significantly more produce without paying higher prices.” However, these gains came with losses for some American producers and many Mexican producers of other agricultural products.

Field Trip: Organic Farm in Tuscany

Last week I visited an organic farm in Tuscany, near Florence. Fattoria Poggio Alloro has been certified organic for twenty years and is family-owned and operated.

Products

On the farm, they grow grapes used to produce eleven types of wine and a total of 200,000 bottles. They also produce olives for oil, durum wheat for pasta, wildflower honey, beef, pork, rabbits, chickens, saffron, and other vegetables. 

The farm has 1500 olives trees and several different types of olives including Correggiolo, Moraiolo, and Leccino. Olives are hand-picked in November and cold-pressed to produce high-quality oil. 

Crocuses for saffron are also hand-picked in November and dried near the fireplace. They keep bees which visit many different types of flowers to produce miele millefiori - honey of one thousand flowers.

I got to taste their delicious homemade pasta

They raise Tuscan and Cinta Senese pigs, which are used to produce homemade salumi including prosciutto, salami, pancetta, capocollo, and finocchiona. The meats are aged over twelve months with no additional additives. 

They raise a special breed of cow called Chianina, one of the oldest and largest breeds in the world. It is now in danger of extinction, after being raised in this region for over 2000 years. In order to label the beef as Chianina, they are required to know the genealogy for the past four generations.

 Their cows are fed an organic diet of hay, barley, oats, and corn, and allowed to wander through pastures and around the lake. They have a closed breeding program, which means that they do not buy outside cattle and that all calves are born on the farm.

Chianina beef is used to make the famous dish bistecca alla fiorentina, T-bone steak seasoned with salt, pepper, and olive oil and grilled over wood or charcoal until just rare. Walking though the markets in Florence, I saw huge pieces of deep red meat labeled as "fiorentina."

Practices

Since the farm is certified organic, they cannot use any synthetic fertilizers or pesticides. I spoke with one of the daughters of the family that runs the farm, and she told me more about their practices. At Fattoria Poggio Alloro, they use copper and sulfur as fungicides on the grapes, and for control of some insect-borne diseases. There is not much they can do about the insects themselves, except supporting populations of insect-eating native species like frogs and ladybugs. 

In their vineyards, they use organic fertilizers and extensive pruning practices. They expect relatively low yields, but a very high-quality product. The organic certification is EU-wide, so they can sell their products labeled as organic in any of the EU countries. The regulatory agencies test both soil and agricultural products to ensure that organic practices are followed.

Current Events: Study Finds Limited Response to Public Health Threats from Industrial Food Animal Production

A study published early this year by researchers at Johns Hopkins University's Center for a Livable Future found that health departments often lack the staff, funding, or jurisdiction to address public health issues raised by Industrial Animal Food Production. 

Industrial Animal Food Production involves large numbers of animals raised together in extremely close quarters, and has become the main form of animal production in the US. Health and environmental concerns raised by this type of production include concentration of huge amounts of manure within small geographic areas, emission of toxic and allergenic air pollutants, surface and ground water pollution, and need for storage and transportation of excess waste. There are regulations in place to prevent water contamination, but many facilities fail to comply. Industrial Food Animal Production facilities are disproportionately located in low-income communities.


Researchers conducted interviews with Health Department staff and community members in counties with industrial hog facilities. They found that when people called Health Departments with concerns about odor, water pollution, or other issues, Health Department staff were able to do very little to address them, citing lack of jurisdiction, resources, and expertise. Political barriers are also significant. Community members felt that their concerns were not resolved and that Health Departments took no action to do so. The agencies that do have jurisdiction over this type of production often do not have a public health focus.


The authors concluded that an increased role for Health Departments in addressing issues related to Industrial Food Animal Production could have a positive impact on public health. This could be achieved through increased funding and education, as well as changes in the political climate that discourages agencies from taking actions against industrial agriculture.

Read the original article here:

http://www.plosone.org/article/info%3Adoi%2F10.1371%2Fjournal.pone.0054720

Fry JP, Laestadius LI, Grechis C, Nachman KE, Neff RA (2013). "Investigating the Role of State and Local Health Departments in Addressing Public Health Concerns Related to Industrial Food Animal Production Sites." PLoS ONE 8(1): e54720

Exotic Fruit in Germany

I don't usually think of the words "exotic," "fruit," and "Germany" in the same sentence, so when I wandered through markets and grocery stores there, I was amazed at what I found. There are things I've seen in the US - lychees, star fruit, cherimoyas - things I've heard of but never seen - mangosteens, rambutans, snake fruit - and then things I've never even heard of - sapodillas and tamarillos.

A mangosteen from Indonesia

The Victualienmarkt in Munich had a particularly impressive variety of produce from Asia, South America, Africa, and elsewhere in Europe: bergamot and Buddha's hand, jackfruit, durian, and Physalis, longans and Dragon fruit, and more that I can't remember or pronounce. I stopped at a stand selling snake fruit and rambutans, both of which I wanted to try.

A rambutan, native to Indonesia and Malaysia

 I talked with the vendor, a young man with a huge pair a headphones around his neck and an extensive knowledge of exotic fruit. He told me that rambutans are a wild relative of the lychee, which is widely available in grocery stores, and likened the flavor of snake fruit to that of pineapple.  I asked him where he gets the different kinds of fruit he sells. He explained that they are shipped directly from Thailand and South America, and go to the fruit warehouse in Munich, the second largest in Europe (after Paris). He gets deliveries from there, he said.

A peeled rambutan - the flavor is delicate, sweet, and floral.

Where does the demand come from for exotic fruit in Germany, I wondered. According to the vendor, Germans were interested in new varieties of fruit, especially more well known types like mangoes and pineapples. I paid for the fruit; he slipped his headphones on and turned back to a crate of kiwanos.

The scaly brown  peel of snake fruit looks incredibly like the skin of a snake

Demand for exotic fruits in Europe, as well as the US, has grown in recent decades. Higher incomes, increased travel and immigration, and larger changes in markets (oranges and bananas were hard to come by in Cold War East Germany) have all played a part. Europe supplies most of its own fruit - about 85% - with the rest coming from elsewhere in the world, especially Mediterranean countries.

Snake fruit, or salak, is a palm fruit native to Indonesia and Malaysia

The EU uses a variety of measures, including quotas and tariff-rate quotas, to limit imports and protect its own fruit producers. There are also preferential trade arrangements with some exporting countries, especially former colonies. For example, lower tariffs on specified quantities of citrus are granted to Brazil, Morocco, South Africa, and Israel, and to the Czech republic, South Africa, Brazil, and Chile for apples.

A tamarillo, native to South America

Another factor limiting exotic fruit imports to Europe are strict EU regulations governing size, quality, labor, and sanitary concerns. These are known as non-tariff trade barriers, meaning that while they are not direct taxes on imported goods, they still act as limits to trade. There are many procedures and requirements that can act as non-tariff trade barriers: sales taxes, minimum custom values, packaging and labeling specifications, discriminatory agreements, and temporary import bans.

In the same family as tomatoes, tamarillos have a similar, but sweeter, flavor

In the past, there have been trade disputes in which developing-country exporters argued that the restrictions ultimately served European economic interests rather than addressing actual health or labor concerns. Although some of these developing countries have preferential trade access, as mentioned above, non-tariff barriers constitute a significant restriction to trade. Inability to comply with regulations set by importing countries can be devastating. In 1997, the EU banned shrimp imports from Bangladesh, resulting in losses of approximately $65 million. These were short-term losses: many smaller farmers and transporters also had trouble adapting to repeated changes in packaging regulations.

In order to support growth of export-oriented growth in the agricultural sectors of developing countries, the EU should remove any non-tariff barriers that exist for reasons other than health and safety. Developing countries also have a role to play in creating a fairer trade environment. In a 2007 policy brief, the Asia-Pacific Research and Training Network on Trade (a UN initiative) stated that

"Least Developed Countries must demand WTO compliance and more transparent and effective control of non-tariff measures. They should also demand that standards in no way shall be set beyond the required scientific limit."

In the process, perhaps we'll see even more kinds of incredible fruit.

Current Events: Agricultural Land Conversion Reduces Vegetative Productivity

A study published this month and highlighted in Nature Geoscience found that in the majority of cases, conversion of land from natural ecosystems to agriculture results in a reduction in Net Primary Productivity (NPP), a measure of the amount of vegetative growth and the ecosystem's ability to store carbon.

Researchers at the University of Montana used satellites to help estimate the NPP of natural systems and compared that with estimates of agricultural NPP. They found that productivity is reduced in 88% of farmed land globally, by about 7%. The biggest reductions happen where tropical rainforest or savanas are cleared for farmland. The exception is a small amount of intensively managed, irrigated, or fertilized land that has higher productivity.

This research is important because demand for agricultural production is expected to double by 2050, with huge implications for climate and carbon storage. The investigators hope their research can be used to identify and avoid practices that result in the most damage to plant ecosystems and their ability to store carbon.

University of Montana Site: http://news.umt.edu/2014/02/pressrelease-basepage3.aspx

Current Events: 2014 Farm Bill!

The Agricultural Act of 2014, long overdue, would make significant changes in farm policy. This bill is expected to cost $956 billion over the next ten years, with savings of $16.6 - $23 billion from cuts. It has passed both the House and Senate, with the support of many industry as well as conservation groups, and is expected to be signed by President Obama this Friday.

Ending Direct Payments

These are annual payments made to farmers based on historical production of program crops, whether or not the farmer is planting that crop in a given year or planting anything at all. These cost about $5 billion per year, and were not meant to be a permanent program when they began 18 years ago as a way to ease farmers off other subsidies. While some farmers, especially Southern cotton, peanut, and rice farmers, will be hurt by the shifting emphasis from direct payments to insurance, many farmers will benefit from greater coverage and higher payouts. Part of the idea with the shift is eliminating payments to farmers who don’t need them and refocusing support to instances where farmers have actually suffered losses. Farmers will choose between two types of programs, Agricultural Risk Coverage or Price Loss Contract, which provide different structures for payments when prices fall below a five-year average, in the case of ARC, and below a price floor set by the government, in the case of PLC.

Expanding Federal Crop Insurance

Crop insurance has become the central part of support to agriculture in the US, even more so now with the elimination of direct payments. Subsidized insurance coverage is expanded to protect farmers when prices drop below a certain level, and for the losses that occur before insurance kicks in, known as “shallow losses” (yes, its basically insurance for what insurance doesn’t cover). For example, if corn prices fall below $3.70 a bushel, or if wheat prices fall below $5.50, farmers will receive payments. This bill raises the price floors for all 14 crops covered under the insurance, meaning that payments will kick in sooner if prices fall. This is the PLC program mentioned above.

These programs may cost less than the direct payments, but if we see more weather events like the last few years – droughts, extreme heat, late planting due to cold springs – insurance payouts could be very expensive.

This version of the farm bill also requires basic soil and wetland protection steps for farmers to qualify for insurance. These types of requirements are extremely important for limiting soil erosion, protecting wetlands, and reducing use of marginal land for farming. There is also a “Sodsaver” provision, which limits subsidies for farming on fragile grasslands. Unfortunately, this program only applies to six Midwestern states, rather than nationally.

Cutting Funding for Food Stamps

Funding for the Supplemental Nutrition Assistance Program (SNAP), which accounts for over three-quarters of program expenditures, was cut by $800 million per year, $8 billion over the next ten years. This amounts to about 1% of its total funding. The cuts, pushed for by conservative lawmakers, are expected to reduce benefits to over 850,000 households who are also enrolled in a federal heating assistance program. They will lose about $90 per month in SNAP benefits.

Increased Research Funding

The new Farm Bill provides $512 million over the next five years for agricultural research, $400 million of which will focus on specialty crops – fruits, vegetables, and tree nuts. One-third of this $400 million must be spent on citrus diseases, a big win for that industry. As a way to raise additional funds, Congress created the nonprofit Foundation for Food and Agriculture Research, which will receive up to $200 million in government funding that can be matched by outside donors. Funding for research on organic production was also increased, to $100 million.

Animal Rights Victory

Representative Stephen King of Iowa (R), pushed an amendment that would have blocked a California law requiring all eggs sold in the state to come from chickens raised in non-confining cages. It passed in the House version but was dropped in the Senate. Critics said his amendment could have invalidated hundreds of state laws on animal protection and food safety. King argued that it violated the interstate commerce clause, which seems to be a classic fallback argument when someone’s profitability is at stake. In this case, it was that of the Iowa egg producers who support Representative King.

Hemp Production

Supporters of industrial hemp (which has very low levels of THC; it’s not the same as marijuana) helped pass a provision allowing colleges and state agencies to grow and conduct research on hemp in the nine states where it is legal under state law – growing or using it is currently illegal under federal law. This is a huge victory for everyone, since fast-growing, hardy hemp can be used to make building materials, paper, clothing, food (the oil is an excellent source of essential fatty acids and very low in saturated fat), and as a replacement for some petroleum-derived oils and chemicals. (It’s another story entirely, but the prohibition of hemp production has ultimately benefited oil, timber, and other industries while denying the American people use of an incredible, highly versatile plant that has been appreciated by human societies for thousands of years.)

            Many groups were happy with this Bill, for the increased conservation measures, research funding and crop insurance it provides; many were unhappy with cuts to food stamp funding, the end of direct payments, and the continuation of country-of-origin labeling for meat (the industry claims it increases costs). I was especially happy to see increased funding for fruit and vegetable research, legalization of hemp production, and conservation requirements for crop insurance. It will be exciting to see how the Agricultural Act of 2014 shapes food production, policy, and trade in the coming five years.

Since there is increased research funding for citrus diseases, here is a delicious recipe for citrus-watercress salad:

Citrus-Watercress Salad

4-6 oranges (you can substitute 3-4 grapefruits or 10 clementines)
1 bag watercress
3 tbsp. orange juice
1 tbsp. white vinegar
1 tbsp. minced shallot
1 tsp mustard
½ c olive oil

Directions
1.  Make the vinaigrette: add orange juice, vinegar, shallot, and mustard to a blender and blend until thoroughly combined. With the blender running, slowly pour in olive oil. You can also just shake it all together in a jar.
2. Section the oranges: cut off a thin slice from the top and bottom, and with the fruit sitting on a flat side, cut a section of the peel off with a curving downward motion of your knife. Work around until all the peel is off. Then, holding it in your hand, make two cuts on each side of a section so you can remove 
3. Place the watercress in a bowl, top with orange sections and vinaigrette. Toss gently and serve.