Despite efforts to import more red meats, the long-awaited drop in retail prices in several localities is still pending. Between high logistics costs and lack of regulation on intermediary margins, the local market is struggling to find a balance likely to relieve the consumer.
The import strategy seemed logical: bring in shipments of meat from various countries, at competitive prices, in order to supply the national market, increase supply and, consequently, cause prices to ease. However, the mechanism seizes up as soon as we look at the details, since wholesale prices can go up to 120 dirhams per kilogram for sheep meat and 90 dirhams for beef, at the same time as retail prices fluctuate. between 100 and 140 dirhams, laments Hicham Jouabri, regional secretary of wholesale red meat traders in Casablanca.
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Intermediaries, regional disparities, cold chain management, among others, automatically make the final product more expensive. Direct consequence: the consumer does not notice any significant decline in several butcher’s departments, while the structural difficulties of local production, exacerbated by the drought, reinforce the upward trend. “It should be remembered that the transport of imported meat, whether carcasses already slaughtered or live animals intended to be slaughtered in Morocco, involves complex and expensive logistics. Transporters must deal with rising fuel prices, the obligation to use refrigerated trucks to respect the cold chain, and all the costs linked to handling and specialized personnel. Certifications and veterinary checks are all steps, each of which generates its cost, adding to each other to inflate the final bill.», in the words of Hicham Jouabri.
Evolution of wholesale prices of red meat in Casablanca (Source: Casa Prestations)
Date | Prix de la viande bovine (dhs/kg) | Prix de la viande ovine (dhs/kg) |
---|---|---|
02/01/2025 | 80 – 89 | 100 – 120 |
25/12/2024 | 80 – 90 | 100 – 118 |
18/12/2024 | 80 – 91 | 105 – 118 |
11/12/2024 | 82 – 90 | 110 – 115 |
04/12/2024 | 88 – 91 | 115 – 120 |
27/11/2024 | 90 – 92 | 120 – 122 |
20/11/2024 | 91 – 93 | 125 – 127 |
13/11/2024 | 91 – 93 | 118 – 120 |
06/11/2024 | 91 – 94 | 125 – 130 |
30/10/2024 | 91 – 93 | 123 – 125 |
23/10/2024 | 91 – 93 | 111 – 120 |
16/10/2024 (date of publication of the circular authorizing the importation of fresh red meat) | 91 – 93 | 117 – 120 |
(The stabilization or slight drop in wholesale prices is not felt by butchers)
To illustrate this, Saïd Ratbi Bali, member of the National Association of Red Meat Producers in Spain, one of the countries Morocco has turned to to import this commodity, insists that even when the price of purchase at source seems very competitive, the additional costs linked to transport and logistics can increase the price by an additional 10 to 15 dirhams per kilogram, adding that currently, in Spain, the price per kilogram of meat fresh beef is around 80-85 dirhams, at a time when it is 70 dirhams in Portugal.
«These additional costs, directly passed on to the selling price, erode the comparative advantage which should have allowed Moroccan consumers to access cheaper meat. In other words, efforts to import come up against an inevitable economic reality: the greater the distance and transport constraints, the higher the total cost, eliminating the effect of a low initial price.“, he insists.
Inequality of distribution and declining local production
However, the context is not limited to the problem of transport. We must also raise the question of the inequality in the distribution of imported meats in the territory. Certain regions, or even neighborhoods, as in the case of Casablanca, better served by distribution circuits, can receive significant quantities of foreign meat. Others, on the other hand, remain partially or completely outside of this dynamic, so much so that residents see no difference in the price tag. “We thus observe that, in several districts of Casablanca, prices have fallen, reaching on average 80 dirhams per kilo for beef. But, as mentioned before, it all depends on the neighborhood», notes Hicham Jouabri.
Added to these obstacles are the structural difficulties of local production. Morocco, faced with several consecutive years of drought, sees its breeders struggling to maintain their herds. Pastures are becoming scarce, the price of fodder and livestock feed is increasing, and many breeders have no choice but to reduce their herds to avoid bankruptcy. This reduction in the number of animals available on the market mechanically contributes to the rise in prices, because the local supply contracts in sometimes significant proportions, just as explained by Mustapha El Khouli, president of the National Association of Producers of red meats, in a previous publication.
Inflated prices
Even by dumping shipments of meat from abroad onto this market, the structure of a sector weakened by the climate and production costs limits any chance of a significant rebalancing. Professionals, like Saïd Ratbi Bali, highlight the fragmentation of the red meat sector: “Between the wholesaler or the importer, the semi-wholesaler and the butcher, multiple margins pile up, which each link in the chain justifies by its own operating costs. This accumulation of intermediate margins inflates the final price, reducing the positive effect that meat offered at an initially lower price could have had. In this context, the absence of clear regulation and obligation of transparency on the origin of meat, traceability and price justification opens the door to speculative practices.»
Read also: Morocco is turning to the importation of fresh red meats: here is the list of authorized countries
Administratively, the import process itself is not without its hiccups. These are procedures that can be particularly cumbersome and time-consuming. Importers regularly complain, explaining that these bureaucratic blockages delay the arrival of the goods on the market. However, in a context where prices change quickly depending on supply and demand, any additional delay results in a time lag which nullifies the effectiveness of the supply strategy. “Result: we find ourselves faced with a buffer measure, which partially attenuates the effects of a marked imbalance, without correcting it in a lasting manner.», deplores an operator.
To escape this spiral, several avenues are proposed. Better organization of logistics could help streamline transport and storage, by pooling refrigeration infrastructure and optimizing routes to reduce fuel costs. Industry players are also calling for an overhaul of the regulations, which would aim to clarify permitted margins and encourage transparency. A clear display of the origin, age of the animals and health history would allow the consumer to make their choices. It would then be a question of stimulating competition based on quality, and no longer just on price.