MOROCCO – The Moroccan government has temporarily suspended its support program for ovine imports, a move with potential implications for meat prices in the kingdom.
The program, which provides financial assistance to importers of sheep and goats, aims to stabilize meat prices, particularly during significant periods like the Eid al-Adha holiday.
A source at the Ministry of Agriculture, Maritime Fishing, Rural Development, Water, and Forests revealed the suspension in late December, emphasizing the development of a new program with revised criteria that will be launched in the coming weeks.
Industry professionals acknowledged the success of the existing support program in achieving its goals. However, concerns were raised over potential negative impacts on prices as a result of the interruption in support.
Data from the Office des Changes indicated a substantial surge in Moroccan imports of live animals, reaching 2.64 billion dirhams at the end of November 2023, a significant increase from 534 million dirhams in the same period in 2022.
The rise in imports is attributed in part to the government’s support program, which has made importing live animals more profitable for businesses.
The temporary halt in support is anticipated to lead to a decrease in ovine imports, subsequently exerting upward pressure on meat prices.
Industry insiders predict a potential increase of 15 to 20 dirhams per kilogram following the cessation of support measures.
Reactions to the government’s decision are mixed within the industry. Some argued that the move is necessary to protect the domestic livestock sector, while others expressed concerns that the suspension may harm consumers by leading to higher meat prices.
Morocco’s livestock sector boasts a substantial herd, including over 31 million heads, with 21.6 million sheep, 6.1 million goats, 3.3 million cattle, and 183,000 camels.
The long-term impact of the temporary suspension remains uncertain, but it is evident that the decision has the potential to disrupt the Moroccan meat market and lead to increased prices for consumers.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. HERE
