Citrus production has almost doubled to 2.2 million tons in the last five years, however, export has not followed suit. On the contrary, the amount exported compared to volume of production is strongly dropping : 25% compared to 40% five years ago. ''It is the effect of a more lucrative local market that is less demanding in terms of quality'', remarks an operator. However, this is not the only reason. Export has changed a lot over the last 10 years, mainly due to a strong concentration of smaller fruit harming the orange market. This has led to loss of market share and competitors such as Turkey and Egypt have a stronger hold over the European market. However exports have strongly been focused on the Russian market.
Morocco lost out on export due to competition from Egypt and Turkey and can now only guarantee a 6 month coverage of the markets (9 months 10 years ago). The result is that the small later fruit, as well as 85% of oranges, are sold on the local market. Two thirds of export are carried out over 2 months (November and December). Egypt has triple the amount of surface area for oranges than Morocco and Turkey. Egyptian oranges have the lion's share in the EU market due to a low-price market plan (which is actually now matched by the other exporters). Turkey exports half of its orange production and a quarter of its small fruits to the Russian market. Further competition comes from South Africa who export 77% of its citrus production, i.e. 1 million tons. Main destinations for South African oranges are: EU (39%), Middle East (19%) and Russia (12%) whilst USA only 6%.
Loss of market share
EU is the primary orange importer: 1.2 million tons. Clementine market is in a clear decline since 2009 but with profitable prices ($1,200/ton) compared to Russia ($1,000).
Orange export from Morocco to the EU has fallen 9% between 2009-2012 and small fruits nosedived 26%. For a few years now Morocco no longer exports to Saudi Arabia or other Gulf countries. These markets import 360,000 tons of oranges per year from South Africa and Egypt. Same for the Russian market where Egypt covers 40% of imports and South Africa 24%. Morocco only covers 10% in small fruits. This market experienced a rapid clementine progression (+43% between 2009-2013) but is now close to saturation. Turkey and Pakistan are also starting to export which makes the competition even more difficult.
