Recently, the Competition Council launched investigations following indications suggesting a possible increase in the prices of drinks served in cafes. An approach which aims, according to Ahmed Rahhou’s Council, to maintain a fair competitive environment. However, this CC initiative was not appreciated by professionals in the coffee sector.
Indeed, the National Federation of Café and Restaurant Owners in Morocco (FNPCRM) held an urgent meeting this Wednesday, May 1 to discuss the latest actions launched by the Competition Council, “ in which he considered opening an investigation into the possibility of increasing the prices of drinks in cafes”, qualifying it “inappropriate and irresponsible”.
After an in-depth debate on the steps taken by the CC and “ current challenges of the coffee market in Morocco“, as highlighted in the press release received by Hespress FRthe National Office of the FNPCRM expressed “ his astonishment at the declaration of the Competition Council”, emphasizing that this “ seems devoid of clarity and strategic vision“.
Thus, the Federation indicated that professionals expected that the CC “ clears up the confusion in the coffee market in Morocco, which has led to a significant increase in the price of coffee beans with an initial increase exceeding 35%, targeting the weakest and most vulnerable link in the chain of production“.
The Federation also attributes to the CC “ full responsibility for the current confusion that reigns on the coffee market in Morocco, for not having acted to analyze and regulate the competition situation on the Moroccan market, and for not having fought the monopoly and abusive exploitation of the dominant position on the national domestic market“.
Asked about this by Hespress FRNoureddine El Harrak, president of the Federation, underlined his disappointment with the latest action of the CC, noting that today, “ a single company monopolizes 99% of sales and purchases and the turnover generated by coffee in Morocco“.
“ We reject the distortion of the image of Moroccan professionals and all attempts to divert public opinion by accusing us of unethical and illegal practices, while these practices are blatant in other sectors, notably fuels, insurance, banks and others. Instead of focusing on that, we attack the weak link, while there is economic concentration and a monopoly prohibited by law which is practiced on a daily basis elsewhere.“, protests our interlocutor.
Thus, El Herrak affirmed that the Federation and professionals in the sector are fully aware of the provisions of Law No. 104.12 relating to price freedom and competition and of all practices contrary to the rules of competition, in particular agreements and alliances aimed at hindering this competition, which led the National Office at the start of this crisis to alert Moroccan professionals from all sectors of the Federation by various means of visual and written communication.
“ We have never encouraged professionals to increase prices. But the current situation requires this. Some added 50 cents, others added 1 dirham, some didn’t do it at all. Then everyone takes responsibility. But we defend the fact that if the professional adds this small amount, there is justification behind it”underlines El Harrak.
And to wonder: “When we see that coffee has increased between 30 and 90 dirhams in a period of time, this represents more than half that has been added per kilo. The price has increased by 50%. How do you expect a professional to buy coffee at 180 dirhams per kilo and sell it for less than 10 dirhams? There, we must not talk about quality. The professional who sells a coffee for less than 10 dirhams, don’t expect to drink quality coffee“.
Thus, the Federation expressed its total rejection “ of the silence of the CC on the explosive increase in the prices of fuels and all basic products, and for not having acted to regulate the situation of competition in the markets and for its silence on the proliferation of Food-Trucks in the places not reserved for them as well as in cars on all the roads and alleys of the Kingdom, and for having imposed exceptional taxes on professionals under several denominations other than those paid by ordinary citizens, which led to the collapse of a significant part of the sector“.
As a result, the National Office of the Federation called the Competition Council “ to fully assume its responsibility and direct its compass towards the entities that created this situation by monopolizing the coffee trade in Morocco and to limit their domination of the markets, and to put an end to this arrogant view of the sector as a component important part of the national economic fabric, both in terms of the workforce employed and in its capacity as a cog that operates daily and without interruption in a set of related sectors“.
