The Competition Council confirms the domination of intermediaries over the prices of fruit and vegetables

The Competition Council confirms the domination of intermediaries over the prices of fruit and vegetables
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The report presented by the Competition Council, on the sidelines of SIAM in Meknes, confirms that the coverage of wholesale fruit and vegetable markets in Morocco only concerns 32% of the national territory.
During the 16th edition of the International Agricultural Show in Morocco (SIAM), the Minister of , Fisheries, Rural Development, Water and Forests, Mohammed Sadiki, unveiled new directions for the sector agricultural sector during a meeting organized by the Moroccan Confederation of Agriculture and Rural Development (COMADER).
At the heart of this meeting, the Competition Council presented its report, this Friday, April 26, 2024, on the wholesale fruit and vegetable markets. To this end, the minister highlighted the adoption of the strategy focused on the value chain in the agricultural sector, thus making it possible to optimize the flow of products from producer to consumer. He also announced the development of a law aimed at organizing interprofessional federations bringing together all the players in the sector, thus providing a contact person for each link in the chain with whom the ministry will be able to communicate more effectively. At the heart of this meeting, the Competition Council presented its report, this Friday, April 26, 2024, on the wholesale fruit and vegetable markets. To this end, the minister highlighted the adoption of the strategy focused on the value chain in the agricultural sector, thus making it possible to optimize the flow of products from producer to consumer. He also announced the development of a law aimed at organizing interprofessional federations bringing together all players in the sector, thus providing a contact for each link in the chain with whom the ministry will be able to communicate more effectively.
The said report indicates that only between 30 and 40% of fruits and vegetables produced in Morocco arrive on specialized markets, the rest being marketed through parallel and unstructured circuits. He also emphasizes that 96% of the fruit and vegetable supply is provided by local production, with imports representing only 4%.
Regarding prices, the study examines producer-to-consumer prices, finding that producer sales prices represent only between 30 and 40% of the final price at which products are sold to consumers.
The Competition Council confirms that intermediaries capture the largest share of the final price that the consumer pays to buy fruits and vegetables, stressing that transparency is absent due to disparities in information between producers, intermediaries and consumers, as well as a commercial environment which does not favor forecasts, taking into account the situation of the fruit and vegetable wholesale markets.

For his part, Mr. Sadiki highlighted, in his speech, the encouraging progress observed in the production chains, whether in terms of production, valorization or logistics. However, he noted that the marketing chain remains the weakest link. To remedy this, the ministry is working in close collaboration with the inter-professional federation on the development of program contracts aimed at strengthening the marketing chain in particular.
As a reminder, this component is essential as part of the “Generation Green” strategy, which is based on two major pillars, notably giving priority to the human element and ensuring the sustainability of the agricultural sector. The latter, for its part, includes four axes, of which the valorization of value chains is the main one, aimed at optimizing the use of inputs, production factors and increasing added value.
Given the role of wholesale markets in the fight against middlemen, the minister mentioned that a comprehensive study carried out by the ministries of Agriculture and the Interior aims to develop a master plan for wholesale markets and weekly markets. For wholesale markets, the objective is to create a centralized wholesale market in each of the 12 regions in the Kingdom, serving as a distribution point.

It should be noted that the major challenges of these markets lie in three dimensions, namely, an obsolete legal framework which no longer corresponds to realities and current functioning, making it impossible to professionalize the organization and functioning. Then, logistics, at the heart of the “Generation Green” strategy, with 12 markets planned, 5 of which are already funded. Finally, the functioning of markets, which must be taken care of to guarantee their efficiency and accountability.

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