The Moroccan avocado sector maintains its buoyant momentum, breaking export records for the second year running and topping the 100,000 tonne mark this season. The growth in export volumes is impressive, almost double that of the previous season. However, average prices have fallen significantly. According to Abdelmoumen El Achkar, CEO of ECOMAC, the industry players have to gear up in terms of investment to safeguard value.
The exporter reports a successful season from a production point of view: "Moroccan supply achieved a strong performance, reaching 110-120 thousand tonnes this season, excluding non-exportable gaps. Weather conditions were suitable, which translated into very good quality. We expect to stay on the same track and achieve an even higher production next season."
The sharp increase in volumes has naturally led to a drop in prices this season, but other factors have contributed to driving prices down even further, according to El Achkar. He explains, "Competition between exporters has been fierce, sometimes unfair. New exporters join the sector every year, and many of them lack resources and proper thoughtfulness. We have watched in dismay as some exporters cross the inflection point to practically offer the merchandise. I estimate that this exporter profile has accounted for almost a third of export volumes this season, which inevitably influences the market and drives down prices. We're in a free market, and we can't stop them from working, but there are ways to act to preserve the value of the industry."
The impact on prices is significant, adds El Achkar: "average prices are down 30-35% from the previous season. Prices were at their lowest in December, falling by 50% compared to the same period of the previous season. There were also periods when prices increased, particularly towards the end of the season, but such prices are not representative of the season as a whole. This situation is highly problematic, particularly for exporters. While growers are maintaining satisfactory margins, it is the serious exporters who are bearing the brunt, especially those who run a season-long campaign and have to cope with fixed costs, salaries and social contributions, and taxes."
The significant growth in volumes in just a few years, while logistical capacities have not kept pace, leaves exporters exposed to price fluctuations. El Achkar adds: "A few years ago, export flows were regular and evenly distributed throughout the season. However, a new trend is emerging this season, with periods of peak exports followed by periods of stagnation. We had a peak in export volumes in November with good prices, a drop in December, another peak in January, followed by a near-stoppage for three weeks between February 25 and March 20. Speculative behaviour also contributes to the lack of regularity in exports."
"We need to change our strategy and give ourselves the means to achieve better commercial results. For instance, most of this season's exports should have taken place in November, when global market prices were high. The Moroccan avocado industry needs to invest in efficient machinery, increase the capacity of packing houses, and build more cold-storage rooms. Industry players are now faced with the crucial requirement of accompanying the increase in production with adequate logistical resources, as the safeguarding of the season's results depends on it," the exporter concludes.
For more information:
Abdelmoumen El Achkar
ECOMAC
Tel: +212 661-085166
Email: [email protected]
www.ecomacmaroc.com