Morocco offers export bonus to boost citrus sales abroad

MOROCCO – Morocco has introduced a new subsidy program to support citrus exporters as the country tries to regain its footing in the global orange market.

The policy, approved by the government and published in the Official Bulletin on April 21, includes a flat-rate bonus of 1,000 dirhams (about US$107.7) per tonne of citrus fruit exported to the European Union, the United Kingdom, and select African countries.

The plan will span five agricultural seasons from 2024 to 2028 and will apply only to licensed packing units. It sets an export ceiling of 65,000 tonnes in the first year, which will gradually rise to 125,000 tonnes by 2028.

“The main idea is to try to encourage the export of oranges, which are being undermined by Egypt’s competitiveness. […] This is the first benefit expected from the new system,” said Kacem Bennani Smires, president of the Moroccan Interprofessional Federation of Citrus Fruits (Maroc Citrus), during an interview with Médias 24 on April 30.

Exports have declined sharply

Morocco’s orange exports have declined consistently in recent years. According to data from the United States Department of Agriculture (USDA), the country shipped only 60,000 tonnes in the 2023/2024 season, down from 117,000 tonnes in 2019/2020. This marks an average annual drop of 15.37%.

The decline has pushed Morocco further down the global rankings. The country now ranks 10th among the world’s orange exporters, behind countries like Egypt, South Africa, the U.S., Turkey, and China.

Stakeholders within the sector welcome the export bonus, but many say it will not fix deeper issues affecting the industry. “It’s good news, but it doesn’t solve everything. Due to the devaluation of their currencies, Egypt and Turkey remain significantly more competitive than us, even with the support we will receive,” said Bennani Smires.

Water scarcity and costs continue to threaten production

Apart from foreign competition, Moroccan growers are facing serious production challenges at home. Ongoing drought conditions have reduced output, while rising transportation costs are squeezing margins.

In 2023, citrus exports dropped nearly 70% to just 39,000 tonnes, according to the USDA. Since then, the country has struggled to surpass the 100,000-tonne mark.

Some observers believe that for Morocco to truly bounce back, more comprehensive changes are needed. These could include better logistics, improved water-use strategies, and new marketing channels.

The government recently took another step that could support these efforts. On May 3, officials signed a deal to improve cold chain infrastructure for perishable exports.

The agreement, made between the Ministry of Agriculture and a group of private logistics firms, aims to reduce post-harvest losses and meet international quality standards.

For now, the export subsidy may offer short-term relief, but experts say long-term success will depend on addressing both structural and environmental challenges.

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