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Morocco aims to secure five-month wheat stock amid price drop
Morocco is leveraging declining global wheat prices to bolster its reserves and meet domestic demand for the next three to five months. The move comes as the country continues to grapple with the effects of a persistent six-year drought.
Capitalizing on lower wheat prices
Abdelkader El Alaoui, President of the National Federation of Mill Owners, revealed that Morocco is taking advantage of the international decline in wheat prices, particularly soft wheat, which is a staple for producing bread and pastries.
Global grain prices have been falling since May. According to El Alaoui, the reference price for delivering wheat to mills ranges between MAD 250 ($27.9) and MAD 255 per quintal. This price halts government subsidies, which are only activated when the cost rises above MAD 270 ($30) per quintal.
The subsidy system compensates millers for the difference between the import cost and the field delivery price, ensuring affordability for consumers.
Improved cereal forecasts and rainfall impact
The UN Food and Agriculture Organization (FAO) recently reported a global decline in wheat export prices, citing subdued demand and favorable crop conditions. Minister of Agriculture Ahmed Bouari noted in May that Morocco’s cereal production is expected to reach 44 million quintals this year, a 41% increase compared to 2024.
This improved outlook is partially attributed to significant rainfall in March and April, which reached 295 millimeters. The increased agricultural output is expected to boost the sector’s growth rate to 5.1%, a turnaround from last season’s 4% decline.
Addressing the drought challenge
Although the recent rainfall brought relief, Morocco’s agriculture sector remains under pressure due to the ongoing drought. The government has implemented measures to address the crisis, including canceling the Eid Al Adha sacrificial ritual in June to conserve resources.
With wheat reserves previously estimated to cover only four months of consumption, Morocco’s efforts to secure additional stockpiles come at a critical time.