The horticultural sector in Morocco is a very important and dynamic sector. It is also of (potential) interest to many Dutch companies. Therefore, LAN Rabat has prepared a note with the state of play in this sector. This note mainly focuses on the production of vegetables, not on the production of red fruits/berries, which is also an important export product.
Introduction
Since the early 1980s, the Moroccan horticulture value chain has undergone remarkable growth, becoming a dynamic sector that contributes significantly to employment and the trade balance. The sector has created numerous jobs, not only in agricultural production but also through the development of support services such as logistics and processing.
Morocco's horticultural sector is facing a number of challenges, including climate change, evolving quality norms and external competition. This has led to an increased demand for innovation and new technologies to enhance productivity and competitiveness.
This note investigates recent developments in the sector, particularly focusing on greenhouse technologies, plant health, environmental challenges and strategic partnerships, with a particular look at those being set up with the Netherlands.
Current state of horticultural production in Morocco
In 2022, the cultivation area for horticulture in Morocco reached 40,000 hectares, with a total production of 2 million metric tons. Twenty-six percent (26%) of this production is exported, representing 42% of the total agricultural exports.
The Moroccan Ministry of Agriculture has reported a significant expansion in the area of protected cultivation: from 15,000 hectares in 2009, the greenhouse area has reached 20,000 hectares by 2020. The major growing regions include Souss-Massa, Gharb, and Loukkos. This expansion is driven largely by favorable climatic conditions, competitive labor costs, and competitive logistics costs.
Market dynamics and export competitiveness
Major crops grown under greenhouses are: tomatoes, green beans, melon, zucchini, pepper, eggplant, cucumber and banana (for the local market). Tomatoes occupy the largest area and also account for the largest volume of production/export.
Over 85% of Moroccan tomatoes exported (approximately 700.000 Tons in 2022) are produced in the Souss-Massa region.
Moroccan exports of fruits and vegetables have actually increased by 64% since 2018, with total export value rising from $729 million in 2016 to over $1.5 billion in 2021.
The majority of these products are exported to the European market. Despite increased competition from other countries, Morocco has become the EU's second-largest supplier of tomatoes in 2023, ranking just behind the Netherlands (Eurostat, 2023). France accounted for approximately half of these exports and the Netherlands and Spain imported 9% and 6% respectively. In 2023 the United Kingdom absorbed around 18% of the exports.
It is worth noting that the 2012 free trade agreement has facilitated Morocco's access to the EU market by providing, among other measures, a zero-duty quota of 285,000 tons of tomatoes between October 1 and May 31. This volume has not been reviewed since Brexit, with the UK granting Morocco an additional quota of 47,510 tones. During the other months, a reduced import duty is applicable.
To maintain its status as a leading global exporter of tomatoes and other produce, the Moroccan horticulture sector is focusing on product quality enhancement and leveraging cost advantages. Moreover, Morocco is diversifying its export destinations to include Eastern European, North American and GCC markets. European regulations concerning plant health and product quality are also influencing the export dynamics. The principal developments related to plant health and quality management will be presented in a separate section of this note.
Environmental challenges and water scarcity
The Moroccan horticulture sector is facing a number of challenges, including water scarcity, resource management, and unequal access to technology between smallholder and large-scale companies. In light of Morocco's arid climate and growing water demands, effective water and climate management and sustainable practices are crucial for ensuring the long-term viability of the sector.
While greenhouse expansion supports the sector's economic goals, it raises significant environmental concerns not the least of which is water management.
In Morocco, agriculture accounts for up to 80% of water consumption and 16% of cultivated land is irrigated. According to the Ministry of Agriculture, the area irrigated by groundwater has doubled in 25 years (1990-2015) and is estimated to represent up to 42% of the irrigated areas.
The development of irrigated basins and large hydraulic infrastructure has been beneficial for protected horticulture, but the increasing intensification of this sector, combined with the expansion of surfaces, has made it largely dependent on groundwater.
Consequently, the main challenge for the sector is to improve the sustainable and efficient use of groundwater resources (including groundwater monitoring, capacity building and water governance). The majority of horticultural production is expected to continue depending on the use of aquifers, making it crucial to ensure that these resources are used in an environmentally responsible and economically viable manner.
This is also in line with the Moroccan government's agricultural development strategies, which have emphasized sustainable development of the sector through water conservation, added-value improvement, and employment generation.
At the regional level, and despite its semi-arid climate, characterized by an average rainfall of 200 mm per year and an average temperature of 24°C, Souss-Massa is expected to remain the main horticulture center of Morocco with the majority of the total fruits and vegetables produced for export being grown in this region.
The development of production and the resulting high water demand for crops will continue to put pressure on groundwater for irrigation purposes.
To illustrate, the Chtouka plain aquifer, situated within the region, has recorded an annual deficit of 58 to 60 million m³ over the past two decades. In response to this situation, new technologies such as desalination have been adopted to secure the irrigation of 15,000 hectares (approximately 1,500 farms) in the region, as well as the supply of water to the greater Agadir region and its tourists.
The construction of the Chtouka desalination plant and its irrigation network required an investment of approximately 425 million euros. The water is allocated to crops with high added value and high water consumption, such as citrus and early vegetables. It is expected to accelerate the adoption of new and more efficient technologies, given the cost of desalinated water.
The desalination plant of Agadir uses mainly conventional energy sources and produces water at an approximate cost of 10 to 11 dh/m3. Currently, farmers in the Chtouka area pay a subsidized price of about 5.40 dh/m3 for irrigation. This cost is expected to decrease with the introduction of renewable energy sources and improved process efficiency.
Technology adoption
In terms of technology adoption, the horticultural sector is distinguished by a wide range of production systems, from open-field cultivation or low-tech plastic greenhouses to advanced production systems with climate control and soilless cropping. On the one hand, large companies and exporting groups utilize relatively sophisticated (plastic) greenhouses, designed to optimize water use, manage the environment, and implement precision irrigation. On the other hand, smallholders utilize low-tech Canarian greenhouses, which consist of plastic coverings, basic fertigation and ventilation systems.
The majority of exported fresh vegetables are produced in what could be considered as " mid-tech" greenhouses. The upstream production benefits from a strong connection to packing units, aggregators and integrated export groups which ensure the conditioning and provide access to export markets.
The organization of the sector has also played a role in the development and adoption of new technologies. The management of plant health, for example the serious problems posed by Tuta Absoluta and ToBRFV, and compliance with the ever-evolving quality standards and certification schemes are examples of how actors in the horticultural cluster work together to meet new challenges. For instance, the first Integrated Pest Management (IPM) trials were carried out as a collaboration project between local agricultural services such as ORMVA, INRA, private companies and local growers. They resulted into the dissemination and adoption of Integrated Crop Management (ICM) practices by a growing group of producers.
The adoption of insect-proof nets against new pests (for example the TYLC virus), the elimination of Methyl Bromide use, and the rapid development of soilless cultivation, as well as the segmentation of production with the introduction of new varieties, are other examples that illustrate the dynamism of the value chains to adopt new technologies and meet the demands of international markets.
Dutch-Moroccan collaboration
The objective of the Moroccan-Dutch collaboration in the horticulture sector is to enhance the sustainability of the horticulture sector. Amongst others, the Combi-track intervention strategy of the Netherlands Government in Morocco is focused on leveraging Dutch mid-tech greenhouse expertise and adopting innovative technologies that improve water efficiency, pest control, and optimize yield.
Furthermore, cooperation initiatives such as the Dutch-Moroccan Center of Excellence in Horticulture (CEH) address these challenges by showcasing and promoting water-efficient practices and working with knowledge institutes in the Netherlands to develop scalable technological solutions that support yield increases and quality improvement.
The goal of this project is not to duplicate existing Dutch production models but rather to use the Center as a research platform to develop innovative solutions adapted to local conditions while capitalizing on the transfer of knowledge and expertise from the Dutch horticultural sector.
These different initiatives shows how the Dutch-Moroccan collaboration has evolved significantly over the years. Initially, it involved a trade-off of inputs (seeds, equipment) with final products (fresh produce). However, more recently, there has been an increasing investment from Dutch companies in direct agricultural production in Morocco.
For instance, the Dutch company Agrocare initiated a new project in 2023 to cultivate tomatoes in an enhanced Canarian greenhouse in the Souss-Massa region. The project began with an 11-hectare greenhouse designed by Agrocare's team in collaboration with a Moroccan greenhouse builder. The company's objective is to reach 50 ha of own production and to aggregate a group of local farmers for an additional 50 ha.
As an integrated Dutch company, Van Oers United was one of the Dutch pioneers in the production and export of open-field fresh vegetables in the region of Agadir. In 2020 this entrepreneur started a new company under the name Fresh Grow, that manages 450 ha of open field crops (beans, spring onions and Brussels sprouts) in the Souss region.
Kamps Beans Morocco (KBM) is another producer of beans that has been active in the Agadir region and exporting them to the Netherlands since 2016.
The company manages currently a total of 1200 ha, which includes both KBM-rented farms and a group of out-growers. The company provides more than 3500 jobs in the region (2600 employees in the farms and 900 employees in the packing house).
In 2023, KBM made a strategic partnership with the Dutch Group Scherpenhuizen, who recently also acquired Primeale from the French Agrial.
These partnerships allow the company to benefit from a complete integration of the value chain from growing and processing to packaging and distribution.
Morocco's horticulture sector stands at a transformative juncture, with the potential for sustainable growth driven by consolidation, strategic collaborations and technological integration. Dutch-Moroccan partnerships, particularly in greenhouse development, can position Morocco as a model for sustainable horticulture in arid regions. Continued investment in resource-efficient technologies and supportive policies will be critical in navigating the sector's development.
Source: Agroberichten Buitenland