Vegetal oil sector slowing down, four years after liberalization
Morocco, Economics, 6/5/2004

Four years after its liberalization, the sector of vegetal oil is slowing down, with only giant companies managing to survive while the sector comprised 108 production units before 2000, says specialized magazine "Alimentarius."

According to the magazine, the results expected from liberalization were not achieved and the good performance reported in the beginning was only provisional as the gap between operators in the same sector continues to widen.

All the sector is affected by the slump, including olive and argane oils as well as edible oil, says the magazine.

The rapidly increasing demand of edible oil was not accompanied by support measures, mainly increasing of sunflower-planted surfaces. Areas dedicated to oil seeds in the five last years (70,000 hectares) regressed by 35% compared to the average in the 1993-1997 period.

Likewise, the average harvest delivered to grinding mills also dropped by 33% from the 1993-1997 to 1998-2002 period, says the source.

For the publication, the creation of free trade areas, combined with effects of the informal sector and the rapid customs dismantling on oil-cake from 25% to 12.5, consecutive to the FTA with the USA are worsening the situation.

The author calls for a unification of the profession, the creation of the oil-seeds technical center and other support measures such as the liberalization of financial markets, lowering the energy cost and revising some fiscal provisions.

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