Morocco relying on EU, Canadian wheat imports

The European Union and Canada supplied nearly all of Morocco’s imported wheat in the 2022-23 marketing year, according to a Global Agricultural Information Network report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture.

The report showed that the EU — mainly France — supplied 5 million of the 6.2 million tonnes of Morocco’s imported wheat, while Canada supplied just over 1 million tonnes.

In response to surging wheat prices, the Moroccan government in June introduced a support program for the import of 2.5 million tonnes of common wheat. The initiative aims to support importers by covering the difference between the cost of wheat and the reference import price of $263 per tonne.

The FAS said that, according to a trade source, two shipments of common wheat, totaling about 100,000 tonnes, are anticipated to arrive by the end of September. However, importers are facing payment difficulties as European banks are hesitant to support these shipments due to logistical issues and related risks.

Moroccan wheat production in 2022-23 is pegged at 2.5 million tonnes by the FAS, which forecasts similar output in 2023-24 at 2.55 million.

The report noted that wheat storage facilities in Morocco were unaffected by a devastating earthquake that erupted on Sept. 14, leading to the loss of several thousand lives and causing significant damage in the southern part of the country.

Tags: Canada, wheat, Morocco, EU