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Olive farmers in Morocco's Fez-Meknes region are grappling with a severe economic downturn as the olive harvest season begins. The industry is witnessing a significant drop in olive oil prices, which currently stand at 35 MAD per liter, with projections suggesting a further decline to below 30 or even 25 MAD in the coming days. This price collapse is creating a critical imbalance for producers who are facing surging operational costs.
The prospect of a loss-making season is a major concern for farmers, particularly small-scale producers who typically rely on olive revenues to offset losses in other crops. In Taounate, one of the Kingdom's primary olive-growing provinces, the price per kilogram of olives has plummeted to approximately 3 MAD in some markets. Meanwhile, seasonal labor costs for harvesting have spiked to between 250 and 300 MAD per day, creating a financial burden that many producers find unsustainable.
In Moulay Yaacoub province, mill-gate prices for olive oil have dropped to between 31 and 33 MAD per liter. Aziz Douahi, a farmer in the Sabt Loodaya area, highlighted that the core issue is the 'stark disparity' between production expenses and sales revenue. Farmers must cover high wages for seasonal workers, transportation to mills, and processing fees, all while the market value of the finished product continues to erode.
Douahi noted that some producers are considering leaving their crops unharvested to avoid further financial damage. This leaves farmers with a difficult choice: absorb additional losses by harvesting and selling at current low rates, or delay the harvest in hopes of a price recovery, which risks compromising fruit quality.
Industry professionals attribute the price decline to several factors, including a surplus of supply in certain regions, significant carryover stocks from the previous season, and the impact of recent rainfall on market dynamics. In response to the crisis, farmers are calling for urgent measures to protect small producers. These include initiatives to reduce harvesting and milling costs, improving marketing channels, and empowering agricultural cooperatives to enhance product value and direct-to-consumer sales.
Source: TelQuel Arabic