Milk market in Morocco

Earlier Report Observations

Between 2018 and 2020, Morocco's milk market remained stable at around 2.7 million tons annually. This period was characterized by steady production supported by improved herd productivity and genetic gains, which increased yields. The COVID-19 pandemic in 2020 caused a slight dip in production and softened consumer demand, but the market's overall volume was largely maintained.

From 2021, the market entered a sustained decline. A sharp 88% surge in livestock feed prices between 2021 and 2022 severely raised production costs, leading to an 11% drop in domestic milk output that year. The situation worsened in 2022 when the war in Ukraine triggered a spike in costs for inputs, transport, and packaging. Concurrently, a consumer boycott of some dairy products destabilized the market and redistributed market shares, while milk collection volumes fell by 30%. These pressures caused production to plummet by 21% compared to 2019, pulling the total market volume down to 2.2 million tons. The government responded with support measures, including direct subsidies to farmers and the suspension of import duties on milk powder.

By 2023, the market volume had decreased further to 2.1 million tons. High production costs persisted, with the average price paid to farmers rising by over 28% between 2021 and 2023 to help offset expenses. The market structure became highly concentrated, with three companies holding 74% of the market share. Major multinational investors began considering an exit due to the sector's persistent challenges, and potential imports of fresh Scottish milk raised concerns for local producers, indicating ongoing structural pressures.

Production milk in Morocco

In kind, 2017-2020, K t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

Morocco's milk production in 2020 remained virtually unchanged from the previous year, totaling 2 718 K t. The largest increase occurred in 2018, with a modest growth of 0.1%.

Annual dynamics of production in Morocco in kind, 2017-2020, K t

Exports milk from Morocco

Exports in kind, t

Following two years of growth, Morocco's milk exports declined in 2020, reaching 1 413 t. This represented a sharp year-over-year reduction of 53.2%. Over the 2017-2020 period, exports increased by 9.1%, with a compound annual growth rate of 3.0%. The peak was recorded in 2019 at 3 019 t, which also saw the largest annual increase of 54.8%.

Annual dynamics of product's exports from Morocco in kind, 2017-2020, t

From 2017 to 2020, Mauritania, Ghana, and Qatar were the key partners for Morocco's milk exports in kind. Mauritania accounted for 41.2% of exports, Ghana for 18.6%, and Qatar for 10.6%. Together, these three countries represented 70.4% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Morocco in kind, 2017-2020

Exports in value, K $ US

The market exhibited significant volatility during these years. Milk exports from Morocco reached their highest value in 2018 at 3 296 K $ US, but fell to 1 225 K $ US in 2020, marking a steep 62.4% drop from the previous year. This resulted in a 2.7-fold difference between the peak and the low. The largest annual increase occurred in 2018, with a substantial rise of 114.0%.

Annual dynamics of product's exports from Morocco in value, 2017-2020, K $ US

Between 2017 and 2020, Mauritania, Ghana, and Niger led the structure of Morocco's milk exports in value terms. Mauritania contributed 30.7% of export value, Ghana 18.6%, and Niger 13.4%. Collectively, these three partners accounted for 62.7% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Morocco in value, 2017-2020

Imports milk to Morocco

Imports in kind, t

Milk imports to Morocco declined for the second consecutive year in 2020, totaling 10 553 t. This represented a slight decrease of 2.9% compared to 2019. Over the 2017-2020 period, imports increased by 14.7%, with a compound annual growth rate of 4.7%. The highest import volume was recorded in 2018 at 11 983 t, which also saw the largest annual increase of 30.3%. The largest decline occurred in 2019, with a drop of 9.3%.

Annual dynamics of product's imports to Morocco in kind, 2017-2020, t

From 2017 to 2020, France, the United States, and Spain were the leading sources for Morocco's milk imports in kind. France accounted for 55.3% of imports, the United States for 9.0%, and Spain for 7.3%. Together, these three countries made up 71.6% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Morocco in kind, 2017-2020

Imports in value, K $ US

In 2020, Morocco's milk imports in value terms reached 27 072 K $ US, reflecting a 6.9% increase compared to 2019. Between 2017 and 2020, imports grew by 30.9%, equating to an annualized rate of 9.4%. The largest annual decline was recorded in 2019 at 0.3%, while the largest increase occurred in 2018 with a rise of 22.9%.

Annual dynamics of product's imports to Morocco in value, 2017-2020, K $ US

Throughout 2017-2020, France, the United States, and the Netherlands played the leading roles in Morocco's milk imports in value terms. France contributed 55.5% of import value, the United States 8.6%, and the Netherlands 8.0%. Collectively, these three partners represented 72.1% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Morocco in value, 2017-2020