Dairy in Morocco

On-farm milk production before processing represents 7.5% of the agricultural GDP in Morocco, worth about $850 million. Milk and other dairy products are produced on approximately 790,000 farms, providing year-round employment for 770,000 people. Just 5% of these are considered specialized dairy operations: the vast majority are smallholders that produce cattle for both milk and meat. For these farms, the sale of calves is very important economically. The sector has seen large changes since the 1950’s, and major manufacturers, as well as the Moroccan government, have invested in growing the dairy sector through product innovation, advertising, and marketing.

Dairy Consumption

Demand for milk is limited in large part due to low per capita income. Per capita dairy consumption is relatively low – 36 liters per year – and most consumption is in the form of plain milk, since yogurt and cheese are more expensive and seen as luxury products. Consumption varies from 90kg per capita in wealthy urban households to around 18kg in poor households. Future developments in milk consumption will be closely linked with economic development and wealth distribution in the country.

Types of Supply Chains

There are three kinds of dairy supply chains in Morocco. The largest is the Centrale Laitière Maroc, which controls about 50% of the market and is closely linked with French dairy giant Groupe Danone. Centrale Laitière produces a range of high-quality milks and milk products. It is the only manufacturer to distribute nationwide, and it benefits from its partnership with Danone for product development and innovation.

Pasteurized milk from the Centrale Laitière

The second type of supply chain operates through cooperative systems, with over 1000 collection centers throughout the country. Copag (Coopérative Agricole d’Agrumes), a competetive co-op based in Southern Morocco, controls approximately 20% of total volume of milk produced in the country and produces supermarket quality milk. It collects from 170 individual farms and 14,000 smallholders through collection centers.

The third chain is the informal processing and marketing of milk and milk products directly to consumers through peddlers and small workshops known as mahlabates. This system operates mostly in dairy basins around urban centers, and hygiene can be an issue. Milk is supposed to be pasteurized by law, but this is not always the case.

Traditional Moroccan cheese sold through informal chains

Effect of Government Policy on Milk Yields

Prior to the 1950’s, cattle herds were mostly local beef-oriented breeds, with low milk yields. During the period of colonization from 1912 to 1956, specialized dairy farms emerged, with greater reliance on European dairy breeds such as Pie Noire and Tarentaise. However, milk production did not increase substantially until the 1970’s, when the government initiated a plan to boost production. The dairy development plan included feed subsidies, expansion in forage land, irrigation projects, extension education, and importation of improved breeds like Holsteins, resulting in a doubling of milk production. These policies shaped the current dairy industry. For example, specialized dairy production concentrated in the newly irrigated regions, and now nearly 80% of cattle are improved breeds.

Structural adjustment policies in the 1980’s lead to the gradual phasing out of government involvement from the dairy industry and a greater role for private companies, cattle breeder associations, milk collection cooperatives, and autonomous veterinary and AI practices. Milk yields continued to increase: between 1970 and 2005, production increased from 400kg to 1200kg per cow.

            Today, milk production and collection and veterinary and insemination services are almost entirely private, while the government administers research, extension education, and food safety regulation. Unfortunately, educational extension services have suffered as the industry transitioned from state-run to privately controlled. The government also taxes milk imports to protect the domestic industry, and imports account for less than 20% of the market. Agriculture is tax-exempt in Morocco, which allows Copag, as a cooperative, to pay higher farm-gate prices to its farmers for their milk. Farmers benefit from a stable milk price which, given the low consumption, has potential for growth in the coming years.

Challenges

The Moroccan dairy industry faces a range of issues. One of the most important challenges is improving yield and quality of milk production. The government is decreasing the size of its role in the sector, meaning that the industrial sector, which already collects 60% of all raw milk, will have a key role in establishing and ensuring the fulfillment of quality standards. Not all collection cooperatives are well managed, leading to issues with efficiency and quality.

Milk yields can vary a lot with environmental conditions such as drought, making small farmers vulnerable to climate. While a significant amount of production occurs in irrigated areas, drought in rain-fed areas can reduce forage availability and require the use of more feed concentrates. This increases the price of production, and represents a high ‘virtual water’ cost. Adequate nutrition in general is also an issue, and leads to reduced yields and reproductive difficulties for imported breeds.

As mentioned above, the health and safety of milk products is not totally consistent. The Centrale Laitière produces high-quality, milk conforming to international standards, but it is impossible to fully regulate the informal supply chains, which often sell unpasteurized milk, cheese, and traditional fermented milk products. This poses a risk for bacterial infections, as well as potential heavy metal contamination. Most outbreaks of food-borne illness of other contamination issues come from the informal supply chain.

A yogurt drink traditionally served with couscous

 

Continued development of the dairy industry has the potential to benefit the country in many ways: higher per cow milk yields improves production efficiency and reduces environmental impact, an expanding sector creates important agricultural jobs and can boost household income, more industry involvement could raise milk quality and safety, and a greater domestic supply could provide more high-quality animal protein in marginal diets of poor Moroccans. In order to do this, both the government and private sector actors will need to invest in milk collection organization and infrastructure, extension education, and creation of domestic demand to support growth.

Current Events - Immigration and the Agriculture Labor Force

Immigration is yet another example of the impact that all spheres of policy can have on the food system. The majority of farmworkers in California’s rich Central Valley are immigrants from Mexico and Central America, and many of them are illegal – approximately 2.5 million people live without papers in California alone. The irony is that while politicians debate immigration reform, stricter laws, and building walls, our country relies on underpaid immigrants to bring cheap fruits and vegetables to the table. The reality is that we need them, and farmers are increasingly calling for solutions such as agricultural visas that ensure a reliable, stable workforce. 

A combination of factors is making it harder for growers to find enough labor to harvest: an aging workforce of immigrants currently in the US, increased border security that has deterred new arrivals, and the constant fact that Americans do not want these jobs. Last year alone, the tightened supply led to wage increases of about $1 per hour. Unfortunately, this doesn’t really mean better wages and labor conditions for farm workers. Business-oriented lobbying groups report that this increase makes it harder for farmers to compete with foreign produce (see last post about NAFTA and Mexican produce!), resulting in a $1.4 billion loss as imports fill the gap between production and growing domestic demand.

Farmers and the congressmen who represent them show growing support for legislation that would offer a path to citizenship for undocumented immigrants. While Republicans as a whole tend not to be in favor of immigration reform, those representing the Central Valley are some of its strongest supporters. They, too, argue that the current system means losing business to foreign competitors, not giving away jobs Americans want. Creating a legal framework for immigration could simultaneously provide a steady supply of labor, support domestic production, and ensure better treatment of workers.

Moroccan Argan Oil

The story of argan oil, touted as a solution to both rural poverty and environmental degradation, illustrates the importance of coupling economic and social development with sustainable practices. In this case, “conservation through commercialization” supported economic gains for local people, but did not result in greater protection of the argan tree.

The Argan Tree

Argania spinosa is a hardy tree endemic to Morocco and little known outside of it. It is the second-most numerous tree species, and approximately 20 million argan trees grow over 7500 hectares in the semi-desert southwest of the country. With a life-span of 150 to 200 years, the argan tree can withstand extreme heat and drought thanks to deep root systems and other adaptations. It produces fruits slightly larger than walnuts, which contain one to three almond-like kernels inside a tough shell. The argan tree has deep cultural significance to the Berber people, who use the wood for fuel, leaves and pulp as food for goats, and the oil for cosmetic and culinary purposes. This unique tree plays an important socioeconomic role, providing livelihood for approximately 3 million people through the sale of nuts and oil.

Argan Oil

Argan oil is slightly darker in color than olive oil with a reddish tinge. It is used for both cooking and in cosmetic products including lotions, soaps, and sunscreen. The oil is high in vitamins A and E and essential fatty acids, and has been found to contain antimicrobial and antioxidant compounds. Research has demonstrated some cholesterol-lowering properties, and has linked consumption of argan oil with a reduced risk for some cancers, cardiovascular disease, and diabetes.

In the past two decades, the popularity of argan oil exploded due to favorable research findings about its culinary, health, and cosmetic properties. It has been showcased as an ingredient by top chefs and is gaining popularity as an ingredient in luxury cosmetics in the US and Europe. This demand lead to higher prices – it is currently one of the most expensive edible oils in the world – and increased production. 

Cooperative Oil Production and Benefits

The vast majority of argan oil is produced by cooperatives of women, by hand. Due to the hardness of the nut – sixteen times harder than a hazelnut – the production of oil is difficult. Attempts at mechanization have met with limited success, and while parts of the process can be mechanized, cracking the nuts with traditional hand methods is still the most effective. Once the hard shells are cracked, the kernels are roasted, crushed to a paste, and kneaded to bring the oil to the surface. The protein-rich residue is used as feed for goats, or mixed with honey to make amlou, a thick, peanut-butter like paste served with bread for breakfast.

Before the establishment of cooperatives in the 1990’s, oil producers had limited access to high-value markets due to poor infrastructure and indirect participation in the market for argan fruit. By combining traditional knowledge with increased production efficiency and market access, cooperatives have been very successful in expanding the market for argan oil and increasing the wages earned by producers. As of 2010, there were over fifty co-ops in southwestern Morocco producing argan oil for international and domestic markets.

Berber women are the primary producers of argan oil, and have benefited greatly from the success of the co-ops. In 2010 in the Essaouira region, women were earning about six Euros per day working through co-ops, ten times what they had earned producing it on their own. This brings them greater economic freedom, and households that had access to argan trees are more likely to send girls to secondary school. Larger organizations, including the Union des Cooperatives des Femmes de l’Arganeraie, link smaller co-ops together and aim to provide education and conservation training to the women involved.

Sustainability Issues

            The Moroccan government supports the development of the industry, and plans to triple production by 2020. However, with the increases in price and production have come more intensive harvesting practices that may not be sustainable. Researchers at UC Davis found that the while the argan oil boom benefited locals economically and increased the availability of education for girls, it sped up degradation of the forests. Argan nuts are being harvested more aggressively, sometimes reducing the crop of the following year. Households also tend to buy more goats with the earnings from increased sales, which can lead to tree damage when the goats overgraze. Many individual households have become more vigilant protectors of the fruit, but it has not spurred broader investment in the health of the argan forest.

This is a worrying trend. The argan tree has an important environmental function as a barrier to the encroachment of the Sahara desert. Its deep roots help anchor soil against wind and water erosion, and can even help supply water to nearby plants. It is also a foundation species for over 1,000 other plants and animals in the ecosystem. Because of its ecological importance, UNESCO declared the Argan forest an international biosphere reserve in 1998. Despite the recognition of its ecological role, numbers are dwindling – nearly one-third of the argan forest has been lost in the past 40 years.

The UC Davis researchers point out that conservation is not as simple as increasing demand for a traditional product. The success of commercialization in spurring conservation depends on how closely linked local benefits are with regeneration of the resource, on property rights and sovereignty within the communities, and on how households invest the economic gains. Argan oil has been touted as a win-win product, empowering women and alleviating rural poverty while encouraging protection of a valuable natural resource. The economic and gender equity gains are very real, unfortunately, the environmental benefits aren’t evident. It is essential that the government, NGO’s, and production cooperatives fully address the sustainability of argan oil production so this resource can continue to benefit people and the environment in the future. Unless this happens, the reduction in poverty and greater access to education will also be short-term gains of over-exploitation.

Read more about Argan oil here

Read the full UC Davis article here

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