From Michigan to Morocco -

Michigan farmers promote U.S. soy and build relationships in North Africa

Earlier this year, a group of 15 Michigan soybean farmers and staff traveled to Morocco to learn more about the relationship between Moroccan feed and food producers and U.S. agricultural products - specifically U.S.-grown soybean meal. This experience provided farmers the opportunity to see firsthand where their soybeans go and how they are used to feed a growing nation.

Morocco, which is situated on the northwest corner of the African continent, is the 4th largest economy in Africa. It is located within the Mahgreb region of Africa, which also includes Algeria, Libya, Mauritania and Tunisia. Morocco is the largest importer of soybean meal in the Middle East and North Africa (MENA) region, and one of the top 15 importers of U.S. soybean meal overall.

The group started their visits in Casablanca and made their way south to Marrakesh as well as the foothills of the Atlas Mountains and the Agafay Desert. They got to experience both urban and rural parts of the country and meet with leaders in the food and feed sectors.

Morocco's population is on the rise and with that comes an increased demand for meat protein options. (Morocco is home to 37 million people, and its population is projected to hit 46 million by 2025.) This provides many potential market opportunities for U.S. soybean meal. An added benefit to trade with the U.S. is that all U.S. imports to Morocco are duty free due to the United States-Morocco Free Trade Agreement (FTA).

Livestock Industry Continues to Expand

The country has the largest compound feed production system in Maghreb markets, and their livestock sectors continue to see expansion and advancements. Poultry is the largest sector of their livestock industry. In fact, over 55 percent of protein consumed in Morocco is poultry.

According to 2020 numbers from the United States Soybean Export Council (USSEC), Morocco raises a combined total of 5.3 million dairy and beef cattle, 21 million sheep and goats and 413 million chickens and turkeys annually, with those numbers projected to rise.

"As a livestock farmer myself, it's been rewarding to see the value the poultry integrators here place on U.S. soybean meal as a key feed ingredient," shared Brian Pridgeon, MSC's representative on the United States Meat Export Federation (USMEF).

Shift in Food Preferences

In addition to growing demand for protein, there is also a shift occurring related to food production and processing practices. Historically, poultry is processed in a wet market setting, allowing consumers to choose their meat directly. They have confidence in the harvest of the animals and know they are getting a fresh product. That said, preference is slowly starting to shift. Many younger people and those in urban areas are developing a preference for meat available in more traditional supermarkets and grocery stores, which has been processed in a more conventional way.

This shift is also facilitating the need for larger poultry farm operations to meet the demand for these processing facilities. This all points to a direct opportunity for increased soybean meal demand. Additionally, this is allowing growth in the feed mill space. Many of the larger feed mills in Morocco are working on vertical integration including broiler houses and hatcheries. or store large quantities of feed. However, they are seeing more demand for bulk feed as larger operations are constructed. In addition to poultry feed, the feed mills also produce feed for cattle, sheep, goats and aquaculture along with pet food products.

The group was able to visit three feed mills: Alf Mabrouk Company Feed Mill, Alf Afriquia Feed Mill and Turkey Processor, and Alf El Fellous Mill. The managers of the facilities discussed the preferences and needs of their customers. Much of their feed is bagged, as the farms are small and don't have the means to transport continued on following page...

Preference for US Soy

During the visits to feed mills, flour mills and training facilities for both the food and feed sectors, the group repeatedly heard about the strong preference and demand for U.S. soy over competitors because of the superior quality of the soybeans and meal raised here. U.S. soybeans have a better amino acid profile, which is critical when balancing livestock rations, and in many cases viewed as more important than crude protein content. Because U.S. soybean meal is known for its quality, Khalid Benabdeljelil, the USSEC country representative in Morocco, says the U.S. holds about 60 percent of soybean meal market share.

US Partnerships Foster Trust and Grow Demand

Another important part of the trip was learning about the investments of U.S. agriculture organizations in Moroccan food and feed endeavors. The group heard presentations from the United States Soybean Export Council, United States Department of Agriculture - Foreign Ag Service (USDA-FAS) and USA Poultry and Egg Export Council (USAPEEC) about ways they work with the Moroccan government and Moroccan companies to bolster the agriculture industry and improve the food sector.

They also visited the Wheat Training Center, which is supported in part by U.S. Wheat Associates. The facility trains technical workers on bakery and food service work, flour milling, culinary arts and pasta and couscous production.

Investments by U.S. organizations in these facilities and training programs helps build relationships with Moroccan food and feed manufacturers and provides a conduit for continued demand of American-grown agricultural products. "Investments by American commodity organizations in the Moroccan workforce and agriculture sector directly advance our U.S. commodity markets, and it's been a great opportunity to see this in action," shared MSC President Mark Senk.

"Building relationships with the buyers of our products is something they value almost as much as quality and price," he continued. "Sharing more about farming in Michigan helps make connections that will continue to grow for years to come."

Because of it's location on the Atlantic Ocean and proximity to Europe, Morocco serves as a gateway for many products to much of northern Africa. Casablanca is home to the Tangier-Med Port, the world's 23rd largest port. Located on the Strait of Gibralter, the port has the capacity to handle nine million containers and is located along many maritime routes connecting Europe, Africa and the Americas.

Morocco also has a strong European influence and is much more Western than most of Africa. Because of its advanced industry and economy, as well as its geography, it serves as a great connector between U.S. agriculture organizations and other growing markets for U.S. ag products.

Zoopole

Training and Investments in the Workforce

The Moroccan workforce is over-saturated and the country struggles with high unemployment. The government has invested in programs to help counteract this by strengthening the middle class and providing opportunities for people to succeed in rural and agrarian areas. There is a focus on making farming a reliable way to make a living and also an emphasis on improving the sustainability of Moroccan agriculture.

King Mohammed VI's most recent agricultural strategy plan, called "Al Jayl Al Akhdar Plan" (Green Generation) 2021-2030, emphasizes the need for skilled workers to help grow and protect the food supply. The plan also focuses on investing in training opportunities and leveraging partnerships to expand offerings for the students looking to gain training and hands on experiences before entering the workforce. continued on following page...

One example of this type of hands-on educational opportunity is Zoopole. Zoopole is a diversified livestock training facility that offers courses on artificial insemination, milk quality control, butchery, feed ration development, food safety, animal handling and more. They offer short courses for industry professionals as well as more robust training for young people entering the workforce.