Global Country Study Report

On
Agriculture and Processed Foods Industry of Morocco
Business Opportunities for Goa / India

Submitted to
Institute Code: 750
Institute Name: S.R. Luthra Institute of Management
Under the Guidance of
Ms. Esha Pandya
(Assistant Professor)
In partial Fulfillment of the Requirement of the award of the
degree of Master of Business Administration (MBA)
Offered By
Gujarat Technological University
Ahmedabad
Prepared by:
Students of
MBA (Semester - III)
Group No.1
Month & Year:
December, 2014
1

Students Declaration

We, following students, hereby declare that the Global/ Country Study
Report titled Agriculture and Processed Foods Industry in (Morocco) is a
result of our own work and our indebtedness to other work publications,
references, if any, have been duly acknowledged. If we are found guilty of
copying any other report or published information and showing as our
original work, or extending plagiarism limit, we understand that we shall be
liable and punishable by GTU, which may include Fail in examination,
Repeat study & re-submission of the report or any other punishment that
GTU may decide.

Enrolment No.

Name

137500592057

Krishna Mistry

137500592074

Smit Patel

137500592077

Vinay Patel

137500592080

Nilam Pittaliya

137500592102

Kishan Solanki

137500592114

Vikas Ghori

Place :

Signature

Date :
2

Institute Certificate
Certified that this Global Country Study and Report Titled Agriculture

and Processed Foods Industry in (Morocco) is the bona fide work of

attached student list with enrolment numbers, who have carried out their
research under my supervision. I also certify further, that to the best of my
knowledge the work reported herein does not form part of any other
project report or dissertation on the basis of which a degree or award was
conferred on an earlier occasion on this or any other candidate. I have also
checked the plagiarism extent of this report which is

% and the

separate plagiarism report in the form of html /pdf file is enclosed with this.

Signature of the Faculty Guide/s

(Esha Pandya, Assistant Professor)

Signature of I/C Director

(J.M. Kapadia)

Plagiarism Report - for Integrated Report of all Groups

PREFACE
To become a manager in future passing the theoretical subjects is not enough.
The subjects are the bases for our carrier from which we can strengthen our knowledge
to apply it in real world. The GCSR project provides the platform of opportunity to know
the current market situation, various factors affecting the industrial and economic
performance and the behavior of environment. It gives the opportunity where we can
apply the theory knowledge in real world and so that we can be a successful manager in
future. This changed the market structure, character and focus of marketing strategies.
MBA is a course where unlike many other courses practical studies are
accompanied together with theoretical studies, case analysis and preparation of various
reports, giving presentations on various topics are a vital part of the practical studies in
this course.
The preparation of the GCSR is one such part of the practical studies here. For
this purpose we are required to select one particular topic related to a country or trade
and prepare a report through study research. So, we go for detailed study of country
Morocco, with Agriculture and Processed Foods industry.

EXECUTIVE SUMMARY
Morocco is a constitutional monarchy in which the King possesses much more authority
than either the judiciary or the legislature. The Moroccan Constitution provides for a
monarchy with a Parliament and an independent judiciary.
Moroccos economic growth fluctuates heavily with agricultural output, which is largely
determined by rainfall, as only 16 percent of total arable land is irrigated.
The Moroccan economy improved in 2013, with overall growth of 4.7% supported by
good agricultural results. Indeed, agricultural value added increased by 21%, compared
to a fall of 2.5% in non-agricultural activities.
Many high value food products are not known to the Moroccan consumer, which means
there is room for many new products.
The local food industry is upgrading and becoming more demanding on quality and
regularity of supply.
Limited purchasing power of the Moroccan population. An estimated 10 % of the
population (3 million) is able to buy imported products regularly.
Traditional distribution networks are still predominant for many food products,
especially in rural areas.
Most importers are located in Casablanca and imports by container are mostly done
through the port of Casablanca.

ACKNOWLEDGEMENT
No task is a single mans effort cooperation and coordination of various people
at various places goes into successful implementation. It is great pleasure to have the
opportunity to extend our heart-felt thanks to everybody who helped us through the
successful completion of this project.
We wish to take this opportunity to express our deep gratitude to the persons
that have helped, encouraged, inspired and enlightened us with their constructive ideas
and overall support towards the completion of this project successfully.
We are highly indebted to Asst. Prof. Esha Pandya for her guidance and constant
supervision as well as for providing necessary information regarding the project & also
for her support in completing the project.
We would like to express gratitude towards all members of S.R.Luthra institute
of management for their kind co-operation and encouragement which help us in
completion of our project.
We also would like to express our special gratitude and thanks to Dr. J.M.
Kapadia for giving us such attention and time.
Our thanks and an appreciation also goes to our group members and classmates
in developing the project and people who have willingly helped us out with their
abilities.

INDEX
Topics

Page No.

STEEPLED analysis of Morocco

Overview of Industry, Trade and Commerce in Morocco

11

STEEPLED analysis of India

19

Business potential between India and Morocco

24

Present trade relation during last 3-5 years by selected industry, as well

31

as bilateral investment
SWOT Analysis

36

SWOT analysis of agriculture industry in India

36

SWOT analysis of FoodProcessing Industry of India

40

SWOT analysis of Goa

44

Bibliography

47

Tables
Name of Table

Page No.

India Export of Agro Food Products to Morocco

16

India Import of Agro Food Products from Morocco

18

Three Year Export Statement of Principal Products

35

STEEPLED analysis
STEEPLED analysis of Morocco
Social

Decisions making is authoritative rather than consultative.

Characterised as a highly collectivist society in which large families and their

extended networks are highly valued.

Moroccan women are becoming more involved in business activities.

Technological

Industry remains dominated by the public sector, with the universities employing
58% of researchers.

In 2005 the Moroccan king launched Techno polis Rabat, the project is expected to
create 20,000 job opportunities.

Economic

Pay a special attention to the countrys liberal reforms, foreign trade, bilateral trade
agreements, Tangier free trade zone, FDI and the general investment climate.

Moroccan government also has trouble cutting spending because it is a leading

provider of needed investment capital.

Environmental

Central government performs the task of defining and implementing national

environmental policy and deals with sectoral environmental concerns in separate
organizational and institutional frameworks.

Has set itself the task of working out the legislative framework and an effective
juridical regularization of environmental protection.

Political

Multiparty political system.

Moves to democratise public life and make government and public institutions
operate more transparently.

Efforts have been made to boost the governments openness and improve its
relations with citizens.

Legal

Broadly aims to strengthen the role of the prime minister, legislature, and judiciary;
to promote human rights, womens equality, and Berber cultural rights; and to
encourage decentralization.

Demographic

There are no official figures about the exact ethnic origins of all Moroccans, but the
implicitly accepted idea inside and outside Morocco is that Moroccans are
essentially mixed Arab-Berbers.

About 95% of Moroccans are considered to be Sunni Muslims religiously or

culturally.

Morocco is usually considered as a strong indicator of non-religiosity or of a secular

life style that departs from Islam and traditional life style in general.

10

Overview of Industry, Trade and Commerce in Morocco

Introduction

Population

35 million
0-14 years: 27.8% (Male 45,14,623/ Female 43,82,487)
15-64

Age structure

years:

66.1%

(Male

1,03,35,931/

Female

1,07,85,380)
65 years and over: 6.1% (Male 881622/ Female 1068318)
Total: 26.9 years

Median age

Male: 26.3 years

Female: 27.4 years

Population growth rate

1.054%

Birth rate

18.97 births/1,000 population

Death rate

4.76 deaths/1,000 population

Ethnic Groups

Arab-Berber 99%, other 1%

Arabic (official), Berber languages (Tamazight official),

Languages

French
Muslim

99%

(official),

Christian

Religious

community.

GDP growth

3% 2012-13

GDP per capita

$ 2,999 2012-13 (lower middle income)

11

1%,

Tiny

Jewish

Literacy

67.1% (male 76.1%, female 57.6%)

Unemployment

9% 2012-13
Clothings and textiles, Electronic components, Inorganic
chemicals, transistors, crud minerals, Fertilizers(including

Key Exports

phosphates), Petroliam product, Citrus fruits, Vegetables,

Fish
Crud petroleum, textile

Key imports

fabrics, telecommunication

equipment, wheat, gas and electricity, transistors, Plastics

France, Spain, Us, China, Saudi Arabia, Brazil, Italy, India,

Major trading partners

Russia, Germany

Currency

Moroccan dirham (MAD)

Exchange rate

1 MAD = 7.03 RS.

Religion

Sunni Islam
The tune of Hymne Cherifien was already in use in

National Anthem

Morocco when it was a French protectorate, along with a

different set of lyrics.

Flag

12

Economic Scenario
Moroccos economic growth fluctuates heavily with agricultural output, which is largely
determined by rainfall, as only 16 percent of total arable land is irrigated. In the past,
growth has varied from 11 percent to minus 1 percent largely because of the lack of
rainfall. Moroccos rainfall during the 2012/2013 season significantly improved
compared to the previous season. The government is expecting cereal production for
the 2012/2013 season to be around 7 million MT, and hence a 4.3 percent GDP growth
rate. According to the Ministry of Agriculture, the Moroccan grain harvest for
2011/2012 reached 5.1 MMT, down 40 percent compared to the 2010/2011 harvest of
8.36 MMT. The 2011/2012 cereal production level reduces the GDP growth rate to 2.4
percent.

Moroccos soft wheat production in the 2011/2012 season totaled 2.74 million tons,
down 34.3 percent from the previous season, while durum wheat production totaled
1.13 million tons, 38.9 percent lower than the previous crop.

Political Stability
To protect local producers from foreign competition, the Government of Morocco set in
the 2012/2013 season a 17.5 percent import duty on common wheat. The 17.5 percent
duty was implemented during the harvest and collection period going from June 1, 2012
until September 30, 2012. Effective, October 1, 2012 until December 31, 2012, Morocco
suspended import duties on common wheat and implemented an import restitution
scheme. Import duty on durum wheat (80 percent) was also suspended effective
October 1, 2011 until the December 31, 2012. The suspension of wheat import duties is
intended to offset the increase in wheat prices in the international market.
In April 2008, the Ministry of Agriculture announced its new strategy for agricultural
development in Morocco. In its fourth year of implementation, the strategy has been
13

successful in increasing the overall agriculture production level by 38 percent. The

Green Morocco Plan strategy calls for reform of water policy, food standards,
marketing, etc.

Latest news and Development

The Moroccan economy improved in 2013, with overall growth of 4.7%

supported by good agricultural results. Indeed, agricultural value added
increased by 21%, compared to a fall of 2.5% in non-agricultural activities.

The manufacturing industries experienced weak and irregular growth in

2013. They contributed less than 15% to GDP and grew by 0.6% compared
to 2012, with value added varying wildly across different manufacturing
sectors. Certain industries mainly the automobile and aeronautical
industries experienced significant increases in exports: more than 20%
and 14%, respectively.

Growth in non-manufacturing industries was very weak in 2013 and at

times was even negative for certain sectors. Phosphate production, a
stronghold of Moroccan industry, fell by more than 2%, reflecting lower
external demand.

The tertiary sector continued to support Moroccan growth in 2013, but at a

slightly slower rate than in 2012, reflecting the slowdown in the growth of
value added in the public sector. For the most part, telecommunications
and commerce were the basis for growth in value added in the tertiary
sector.

14

Top Industries and Companies

Top Agriculture industries in Morocco
1) Groupe Zniber (Les Celliers de Mekns, Diana Holding)
2) Centrale Laitire
3) AGRUMCO
4) Univers Gnisses
Top service industries in Morocco
1) Bourse de Casablanca
2) RMA Watanya
3) Maroc Telecom
4) Credit Agricole du Maroc
Top manufacturing industry in Morocco
1) Nemotek Technologie
2) Akwa Group
3) Complexe Textile de Fes

15

Export Import statics:

India Export of Agro Food Products to Morocco
2012-13
Product

Qty(Mt)

2013-14

Value(Rs.lac)

Qty(Mt) Value(Rs.lac)

Dairy Products

362.22

655.37

968.00

1,958.42

Natural Honey

266.00

324.61

337.66

502.42

Pulses

216.00

111.66

818.00

420.30

Fresh Grapes

493.73

542.41

400.00

353.36

Other Cereals

1,375.00

225.66

1,794.33

346.65

609.53

174.11

951.00

258.32

37.00

24.78

239.10

256.76

Basmati Rice

106.00

78.82

262.50

227.47

Non Basmati Rice

225.00

57.07

715.71

197.77

0.00

0.00

51.60

125.74

Guargum

40.00

130.98

78.10

120.92

Mango Pulp

75.76

37.30

164.16

98.75

Floriculture

12.46

38.54

31.72

79.89

Cereal Preparations

18.36

26.65

28.72

35.47

Miscellaneous Preparations
Other

Processed

Fruits

Vegetables

&

Dried & Preserved Vegetables

16

Cocoa Products

35.00

132.31

4.92

31.52

105.21

35.53

12.26

20.56

28.40

13.89

43.20

18.33

Fruits & Vegetables Seeds

1.00

80.94

0.52

13.12

Casein

7.00

27.46

0.00

0.00

Other Fresh Fruits

0.50

0.10

0.00

0.00

4,014.17

2,718.19

6,901.50

5,065.77

Jaggery & Confectionery

Cucumber and Gherkins( Prepd. &
Presvd)

Total

Source: DGCIS Annual Export

17

India Import of Agro Food Products from Morocco

2012-13
Product
Dried

&

2013-14

Qty(Mt) Value(Rs.lac) Qty(Mt) Value(Rs.lac)

Preserved

52.07

57.34

49.52

58.26

20.53

14.51

10.30

14.12

0.00

0.00

0.00

1.23

1.58

2.20

0.09

0.75

Cocoa Products

0.00

0.00

0.01

0.07

Cereal Preparations

0.00

0.00

0.00

0.00

0.13

0.31

0.00

0.00

Floriculture

0.30

0.81

0.00

0.00

Other Fresh Fruits

0.00

0.00

0.00

0.00

Pulses

0.00

0.00

0.00

0.00

Total

74.61

75.17

59.92

74.43

Vegetables
Other Processed Fruits
& Vegetables
Fruits

&

Vegetables

Seeds
Miscellaneous
Preparations

Cucumber
Gherkins(

and
Prepd.

&

Presvd)

Source: DGCIS Annual Export

18

STEEPLED analysis of India

Social analysis
India is one of the oldest civilizations with a kaleidoscopic variety
and rich cultural heritage. India is the largest producer of pulses, milk, tea,
cashew and mangoes and buffalo meat. People employed in agricultural sector
are less educated & living in rural areas. The foreign direct investment (FDI)
equity inflows in food processing industries during April 2000-July 2014 stood at
US$ 5,949.21 million, as per data released by Department of Industrial Policy and
Promotion (DIPP). India a majority of the farmers come under the category
of s m a l l a n d m e d i u m f a r m e r s a n d a r e s o l e l y d e p e n d e n t o n t h e
l o c a l m a r k e t r a t h e r t h a n international market. The prices of their product
are determined by local variables rather than international markets, so the
trade liberalization may lead to an adverse impact on the Indian
a g r i c u l t u r e s e c t o r a n d w o m e n m a y s u f f e r . In year 2014, 84% rural
women engaged in agriculture activity. Also, as globalization shifts
agriculture to capital and chemical intensive system, women bear
disproportionate costs of both displacement and health hazards.

Technological analysis
1. Agriculture produces refinement equipment such as, cleaners, graders and
driers for on-farm operations as well as industrial operations.
2. Processes and equipment for parboiling of rice, preparation of puffed rice and
flaked rice.
3. Development of processes and equipment for processing of pulses to produce
dhal for higher recovery and better quality.
4. Development of driers using agricultural residues, by-products and solar energy.

19

5. Adoption and development of processes, and equipment for production of

protein rich produces such as full fat soy flour, soy drink/ soy milk, soy paneer
(TOFU) and soy fortified baked products.

6. Processes and equipment for production of high quality ground spices and spice
mix, development of raw materials and processes for production of instant
sweets, curries, snack foods, instant soft drinks, idli, Dosa, sambhar
mixes/powders, egg powder, production and packaging of milk products such as
shrikhand, butter milk, paneer, ghee and sweets.
7. Equipment for high recovery of sugarcane juice, processes for production of
high quality jiggery and liquid jiggery.
8. Improved technology for processing of jute sticks to yield jute fibre and
impregnation, preparation of jute based textile materials and bags.
9. Control of stored grain insects by using chemical and physical methods, storage
structures for on farm, trade, and process plant level operations.
10. Processing and canning of meat, meat products and fish.

Economical analysis
In Agriculture and food processing industry provides 51% employment of
the total workforce in 2012. Agriculture sector is the largest employer in India's
economy but contributes a declining share of its GDP (13.7% in 2012-13). Indian
economy is growing and to sustain this growth agriculture sector has to perform
well. How to produce more of agriculture produce with limited natural resources
in sustainable manner for ensuring food and nutritional security and increasing
income of farmers, are major challenges for the Nation.

20

Political analysis
Internal Political/Economic Events Increasing economic disparities among regions
are emerging as a political risk capable of provoking serious socio-political tensions
that could lead to localized violence from time to time. The states likely to be
advancing economically are: Gujarat, Haryana, Kerala, Maharashtra, Punjab and
Tamil Nadu. Those likely to be lagging economically are: Assam, Bihar, Madhya
Pradesh, Orissa, Rajasthan and Uttar Pradesh
Any outbreak of hostilities between India and its neighbors could disrupt trade
and negatively affect the solvency of some importers. India could benefit greatly
from free trade & Policies. Some of initiatives are: Most of the processed food
items have been exempted from the purview of licensing under the Industries
(Development & Regulation) Act, 1951, except items reserved for small-scale
sector and alcoholic beverages. Food processing industries were included in the
list of priority sector for bank lending in 1999.

Legal analysis
Agreement on the application of Sanitary and Phytosanitary Measures (The SPS
Agreement concluded under GATT in 1994) came into effect in 1995 for developing
international standards to ensure the safety of food for consumers and to prevent the
spread of pests or diseases in animals and plants. These measures protect
human/animal life from risks arising from additive contaminants, toxins or diseases
causing organisms in their food. The objectives of SPS can be accomplished in several
ways as indicated below.
1. Requiring product to come from a disease free area
2. Inspection of products
3. Specific treatment of processing of products

21

4. Setting allowable maximum levels of pesticide residues or permitting the uses of only
certain additives in food.

Environmental analysis
(a) National plan for improvement and extension of agro-processing technology at farm,
traditional small industry and modern industry levels should be prepared. The plan
should take into account the diversity in resources and needs of different regions in the
Country. It should include programme details and implementation schedule for the first
four or five years.
The progress of plan implementation should be periodically reviewed to allow
adjustments and corrective measures, and to develop programme details for the years
beyond the period under review.

(b) Thrust areas for research and development should be identified and medium term
research and development programme should be prepared and implemented to
support the national plan for improvement and extension of agro-processing technology
at different levels. Treatment and utilization of effluents from agro-processing industry
should be included in the R.& D. programme.

(c) Emphasis should be put on the establishment of new agro-industrial plants in the
production catchments to minimize transport cost, make use lower cost land and more
abundant water supply, create employment opportunity in the rural sector and utilize
process waste and by-products for feed, irrigation and manure.

(d) Infrastructure in the production catchments selected for agro-industrial

development should be improved. Because of uncertain grid power supply to rural
areas, decentralized power generation using locally available resources may become an
integral part of agro-industrial development. Similarly, if the raw materials and

22

processed products are perishable or semi-perishable in nature, cold chain will have to
be established.

(e) The national plan should provide for management of agro-industrial activities in the
catchment area, both by private companies and individuals as well as cooperatives.

(f) Financial incentives and support should be provided on liberal scale to promote the
modernization of agro-processing industry and for establishing new such industries in
production catchment

g) Arrangements to supply market information to the farmer and agro-processor should

be put in place.

Demographic analysis
The demographic trend and lifestyle patterns of the society that a retailer
intends to serve, decide the retailers strategy. Traditionally, children seldom
accompanied their parents while grocery food shopping. Apart from quality and
range of products, value for money and attractive displays, the human touch has a
vital role to play. There is also emphasis on schemes and promotions, which, as
the study ratifies, do pull customers. Further the trend is towards more
convenience and flexibility in terms of exchange/ return policies, which play a vital
role in encouraging the purchase of Smart, polite and courteous sales people
might make all the difference for a store, which is like any other in terms of its
Product offerings.

23

Business potential between India and Morocco

Advantages and Challenges for market entry in Morocco

Advantages:

Many high value food products are not known to the Moroccan consumer, which
means there is room for many new products.

The local food industry is upgrading and becoming more demanding on quality
and regularity of supply.

Increasing middle class. Increasing number of women working outside the home.
Modernizing lifestyle.

Fast developing modern distribution channels offering room to develop new

branded products.

Western culture attracts youth. FAS/USDA offers free trade servicing to

exporters visiting Morocco.

Challenges:

French continues to be the predominant business language. Moroccan importers

traditionally do business through European brokers and traders.

Many products that are common in the India are not known in Morocco.

24

Limited purchasing power of the Moroccan population. An estimated 10 % of the

population (3 million) is able to buy imported products regularly.

Traditional distribution networks are still predominant for many food products,
especially in rural areas.

EXPORTER BUSINESS TIPS

Most importers are located in Casablanca and imports by container are mostly
done through the port of Casablanca.

In all major ports and airports, the Ministry of Agriculture has one-stop shops for
importers to clear all kinds of imported agricultural products. The entity in
charge is the DCQ (Direction du Contrle de la Qualit) which is a regional
representative of the National Office for Food Safety (ONSSA).

To clear Customs, importers are required to present a sanitary certificate for all
animal food and fresh fruit and vegetable products they import. A local
laboratory analysis done by official laboratories may also be required to clear
customs.

Moroccans use only the metric system for measurement.

Although an increasing number of Moroccan importers can communicate in

English, French is still the predominant business language. Exporters with French
capabilities or French written promotional materials will definitely have an
advantage in communicating with importers.

Imports and distribution of food and beverage products in Morocco are handled
both by regular importers as well as importers who operate on an opportunity
basis. Regular importers market their products through their own sales force
(typically to hotels, supermarkets, wholesalers) and through independent wellestablished wholesalers (in case of small shops, restaurants). U.S. exporters

25

interested in selling consumer-ready food or beverage products should find a

local importer to access the retail market. Importers normally have in-depth
knowledge of specific importing procedures.

Telecommunications are generally adequate. Internet and email are available in

most hotels and "Cyber Caf" shops throughout Morocco. Phone calls from
hotels can be excessively expensive but cell phone and reusable phone cards can
be purchased locally at a very reasonable price.

The holy month of Ramadan is not a holiday but business slows down
significantly because Muslims fast during the day. Most restaurants close during
this month, alcohol is not served and people are not allowed to smoke during
the day. Exporters should avoid visits during Ramadan but if travel during this
period is unavoidable exporters should concentrate their meetings in the
morning. Surprisingly, consumption of some products (such as honey, sugar,
butter, vegetable oil, dairy products, etc.) increases during Ramadan. In 2012,
Ramadan started mid-July.

MARKET SECTOR STRUCTURE AND TRENDS

Although the retail food outlets in Morocco continue to be dominated by a large

number of small grocery stores (an estimated over 90 percent of stores are less
than 225 square feet large), the number of supermarkets has been increasing
considerably in recent years and more are under construction, especially in large
cities. Today, in addition to the estimated 200 small self-service shops (2
registers, 1000 ft2 - 3500 ft2) there are above 50 large supermarkets, of which
29 are large and comparable to large supermarkets in the United States. All
supermarkets are privately owned and some have been opened by multinational
chains or as a joint venture with Moroccan investors. Also, over the last few

26

years a number of modern self-service retail outlets, including convenience

stores, opened in major cities and this trend is likely to continue in the future.

Importers still play a major role in the introduction, marketing, and distribution
of imported foods throughout the country. Except for the two largest
supermarket chains that, in addition to buying from importers, have also been
importing directly through their buying platforms in Europe, all supermarkets get
their products either directly from importers or from wholesalers. It is not
uncommon that importers are also wholesalers. Many importers prefer direct
contact with suppliers as they feel that middlemen complicate transactions,
lower profits, and could work with competitors. Most Moroccan importers like
to buy on samples. Internet sales are virtually non-existent for food products.

Moroccans are regularly exposed to Western culture in their daily life, especially
through television (an estimated 1 million TV satellite dishes). Thus, the steady
Western influence on Moroccan lifestyles is expected to result in even higher
demand for consumer-oriented products in the future.

The Moroccan food industry is dominated by a large number of small family

enterprises that average less than 50 employees. The government still owns
some food processing units such as sugar processing mills, and alcoholic
beverage manufacturers. Moroccan processed food exports are mostly
processed and canned fruits and vegetables, and processed fish, including
canned fish.

27

High Value Products for Food Processing Sector:

India has a greater potential to export semi-finished products and products for
industrial uses such as milk powder, cheese, processed nuts, and other
ingredients. Although local processors have improved and diversified
significantly their production over the past few years, the range of products they
are putting on the market is still very small and is unlikely to fulfil all the
demand. The local producers are becoming more quality-conscious; Indian
suppliers can play a major role in fulfilling the demand for regular quality
products. Most food processors purchase their ingredients from well-established
importers or from local agents of multinationals. Very few large processors
purchase their ingredients directly from exporters abroad. Thus, INDIAN
exporters are advised to go through local suppliers of ingredients to be able to
use their distribution network. The local industry is committed to develop
further in the future to withstand stiffer competition. Many local producers
(biscuit plants, confectioneries, canneries, etc.) have started offering a new
range of products to maintain their market share and compete with imported
products.

High Value Products for Hotels, Restaurants, and Institutional (HRI):

In 2011, Morocco received about 9.34 million visitors, mostly tourists from
Europe but also from the India, and about 4.4 millions Moroccans leaving
overseas. The GOMs ambitious plan to reach 10 million tourists by 2010 was
achieved by more than 90 percent though the current global economic
slowdown. Recently, the GOM launched a revision of this plan aiming to reach 20
million tourists by 2020. However, large modern hotels are still popping up
throughout the country, which is expected to boost the demand for food
28

packaged for services. In addition, the annual (July-August) visit of about 4

million expatriate based in Europe boosts consumption significantly, especially in
the tourism sector.

Although there are over 839 graded hotels in Morocco, the potential market for
INDIAN consumer-oriented products consists essentially of more than 60 upscale
hotels (5 stars) concentrated mostly in Agadir, Marrakech, Casablanca, Rabat,
and Fes, about 38 tourist villages and clubs, and over 149 hotels graded as 4
stars. Other hotels target lower income customers and dont offer regularly
imported food and beverages to their clients. Most hotels purchase their food
products from local distributors that are also in some cases importers. INDIAN
suppliers should try to work with these distributors to enter this market, as
hotels and hotel chains managements are rarely willing to get involved in import
operations because of the small volume involved.

Categorized Moroccan, Asian, Western-style and other specialty restaurants, in

Morocco are estimated to about 409 units. Restaurants categorization is
mandatory as stipulated by the law 61-00 that regulates touristic establishment
status. These restaurants do or may potentially use imported products on a
regular

basis.

Most

of

these

restaurants

buy

directly

from

local

distributors/importers because of the low volume involved. INDIAN exporters

are strongly encouraged to go through the established importers that have their
own sales forces.

Export of Seafood Products to Morocco:

Although Morocco is a net exporter of fish products over $782 million in 2011,
there is a window for some Indian seafood products. The demand should come
mostly from the upper class hotels and restaurants located in major cities. The
per capita consumption of fish is low in Morocco and consists mostly of fresh
low-priced pelagic species such as sardines. Inadequate distribution channels
29

have been a major limiting factor to increased fish consumption. Thus, few
importers have appropriate facilities and refrigerated trucks to supply frozen
food to supermarkets. Also, few supermarkets have equipment to handle and
exhibit frozen or refrigerated fish. It is estimated that less than 40 percent of
Moroccan families have refrigerators at home.

New exporters are advised to work closely with already established frozen food
importers that are also distributors in order to use their distribution network and
experience. The volume of seafood used by hotels and restaurants remains
relatively small and thus it is still more beneficial for them to purchase from local
distributors. Indian suppliers can work closely with the local distributor to carry
on promotional activities in selected hotels, restaurants, and supermarkets.

30

Present trade relation during last 3-5 years by selected industry,

as well as bilateral investment
The commercial and economic trade partnerships concluded between Morocco and
many countries made the kingdom a natural platform for the European, US, African and
Asian markets. Morocco is now more open to foreign business than ever. The reform
program has led to advances in terms of export-promotion efforts, including everything
from improvements in the legal framework and administration, to laws on investment,
finances and taxation.

IndiaMorocco relations
MoroccoIndia relations refer to the bilateral ties between Morocco and India. Morocco
has an embassy in New Delhi. It also has an Honorary Consul based in Mumbai. India
operates an embassy in Rabat. Both nations are part of the Non-Aligned Movement.

In the United Nations, India supported the decolonization of Morocco and the Moroccan
freedom movement. India recognized Morocco on June 20, 1956 and established
relations in 1957. The Ministry of External Affairs of the Government of India states that
"India and Morocco have enjoyed cordial and friendly relations and over the years
bilateral relations have witnessed significant depth and growth.

The Indian Council for Cultural Relations promotes Indian culture in Morocco. Morocco
seeks to increase its trade ties with India and is seeking Indian investment in various
sectors. The bilateral relations between India and Morocco strengthened after the
Moroccan Ambassador to India spent nearly a week in Srinagar, the capital city of
Jammu & Kashmir. This showed Moroccan solidarity with India in regard to Kashmir.

31

Political Relations
Relations between India and Morocco go back to the 14th century when the famous
traveler and writer from Tangier, Ibn Batuta travelled to India. His writings on medieval
Indian society are as much an important source of historical information about India to
the Indians as to the Moroccans. In modern history, India was active in the UN
supporting the Moroccan freedom movement and recognized Morocco on June 20,
1956 when it became independent of the protectorate arrangements with France.
Diplomatic Missions were established in 1957.
Over the years, India and Morocco have enjoyed cordial and friendly relations and
bilateral relations have witnessed significant growth. Vice President Dr.Zakir Hussain
visited Morocco in 1967 and King Mohammed VI, when he was Crown Prince, visited
India to participate in the Non-Aligned Movement Summit in 1983 and, later in 2001
and in 2003, as the King of Morocco. Former Prime Minister Shri Atal Behari Vajpayee
visited Rabat in 1999. Visits at Ministerial and official level have taken place regularly
between the two countries.
The Moroccan Minister for Foreign Affairs and Cooperation, Mr. Taieb Fassi Fihri, visited
India in April 2011 and met with Honble External Affairs Minister Shri S. M. Krishna. A
number of bilateral and international issues of mutual interest were discussed during
the meeting.
The Secretary General of the Moroccan Foreign Ministry, Mr. Nasser Bourita traveled to
India in the first week of April 2012. During the visit, he held wide ranging talks with
senior officials of the Ministry of External Affairs.
In June 2012, Shri E. Ahamed, the Honble Minister of State for External Affairs, Govt. of
India, visited Morocco. During the visit, Honble MOS(EA) met separately with Mr.
Youssef Amrani, Minister-Delegate to the Foreign Minister of Morocco, Mr. Saad edine
El Otmani, Minister for Foreign Affairs and Cooperation, Mr. Abdelkader Amara,
Minister of Industry, Trade and New Technologies and Mr. Mohamed El Ouafa, Minister
32

of National Education. A number of measures to strengthen and deepen the bilateral

relationship between India and Morocco as well as issues of bilateral, regional and
international importance were discussed during these meetings.

Commercial Relations
In October 2010, Honble Minister of State for Commerce and Industry, Shri Jyotiraditya
Scindia visited Morocco. During the visit, the Honble MOS(C&I) met with the Moroccan
Minister for External Commerce, Mr. Abdellatif Maazouz and discussed various aspects
of bilateral trade and commerce. The Honble MOS(C&I) also participated in the World
Economic Forum for Middle East and North Africa held in the city of Marrakech. .
The 4th India-Morocco Joint Commission was held on 28-29 April, 2011 in New Delhi.
The meeting was co-chaired by Shri Anand Sharma, Honble Minister for Commerce &
Industry and the Moroccan Minister for External Trade, Mr. Abdellatif Maazouz. During
this visit, Mr. Abdellatif Maazouz also met Shri Sharad Pawar, Minister of Agriculture &
Shri Virbhadra Singh, Minister for Micro, Small & Medium Enterprises. The meeting of
India-Morocco Joint Economic Council chaired by CII of India and the CGEM of Morocco
(Confederation General of Moroccan Enterprises) also took place in New Delhi on 29
April, 2011.
For long, India has been one of the major markets for Moroccan phosphate and its
derivatives. Other main items of export to India are metallic ores and metal scrap, semifinished products and inorganic chemicals. The main items of Indias exports to Morocco
are cotton yarn, synthetic fiber, transport equipment, pharmaceuticals, agricultural
implements, chemicals, spices and manufactured metals. The balance of trade has been
in favor of Morocco because of imports of phosphoric acid and rock phosphate by India.
The quantum of bilateral trade, which was US$ 1.63 billion in 2010, reached US$ 2.04
billion in 2011 (including Indias exports to Morocco at US$ 587.2 million and Indias
imports from Morocco at US$1.45 billion). The trade turnover between the two
countries stood.

33

An India-Morocco joint venture in fertilizer sector in Morocco, called IMACID, located at

Jorf Lasfar, about 150 Kms south of Casablanca, was set up in November 1999 between
M/s Chambal Chemicals & Fertilizers Ltd. of the Birla Group and Office Cherifien des
Phosphates (OCP) on the Moroccan side to produce phosphoric acid. In 2005, Tata
Chemicals Ltd. joined as a third equal partner in this joint venture. At present, the JV is
producing around 430,000 MT per annum of phosphoric acid, nearly all of which is
imported by India. The Moroccan phosphate organization, OCP, has invested in Paradip
Phosphates Ltd. in India.
Among other business activities, TATA Motors has a plant in Casablanca for
manufacturing bus bodies. Ranbaxy has a technical collaboration with Afric-Phar for
distribution of their finished products. It has set up their manufacturing plant for
medicines in Casablanca and commercial production is expected to begin. PepsiCo India
has acquired the beverage makers entire franchise bottling operations in Morocco.
Indian industry and business associations CII, FICCI and ASSOCHAM have institutional
arrangements with Moroccan industry and business associations. A number of trade
delegations from various industry and export promotion councils of India, such as led by
ASSOCHAM, CAPEXIL, TEXPROCIL and EEPC have been visiting Morocco periodically.
During these visits, a number of trade promotion activities such as expositions, buyerseller meets, etc., are organized.

34

Three Year Export Statement of Principal Products

Product

2011-12
Qty(Mt)

2012-13

Value
(Rs.lac)

Qty(Mt)

2013-14

Value
(Rs.lac)

Qty(Mt)

Value
(Rs.lac)

34772.39

17181.04

40278.34

FLORICULTURE
Fruits /
Vegetable

17168.0

15226.55

28804.43

Floriculture

0.00

36532.27

0.00

42344.58

0.00

45589.08

Total

15226.55

65336.7

17168

77116.97

17181.04

85867.42

Seeds

FRESH FRUITS & VEGETABLES

Fresh

0.00

290433.14

0.00

328833.37

0.00

511747.78

Fresh Fruits

0.00

255715.45

0.00

329512.33

0.00

436426.05

Total

546148.59

658345.7

948173.83

Vegetables

PROCESSED FRUITS AND VEGETABLES

174205.0

Pulses

Processed
Vegetables

106584.24

201709.0
0

127999.52

343496.0
0

173699.69

0.00

105992.69

0.00

111965.56

0.00

131661.87

0.00

165725.15

0.00

196876.65

0.00

255633.25

174205

378302.08

201709

436841.73

343496

Processed
Fruits &
Juices
Total

560994.8

ANIMAL PRODUCTS
Meat &
Preparatio

0.00

1411093.3

0.00

35

1790320.1

0.00

2724690.6

n
Dairy
Products
Poultry
Products
Total

0.00

61060.15

0.00

176877.30

0.00

376307.61

0.00

38835.20

0.00

46013.11

0.00

50941.12

1510988.6

2013210.5

3151939.3

OTHER PROCESSED FOODS

Guargum
Spirit &
Beverages
Groundnut

707326.0

1652386.7

406323.0

2128700.2

601756.0

1173403.1

0.00

149436.96

0.00

196206.88

0.00

246156.51

832619.0

524644.77

535637.0

406536.21

511663.0

321205.91

0.00

383377.55

0.00

496265.55

0.00

688189.44

1539945

2709846.0

941960

3227708.9

1113419

2428955.0

Misc
Processed
Items
Total

CEREALS
Basmati
Rice
Wheat
Other
Cereals

3178235.

1544969.0

3459919.

1940938.8

3757377.

2930012.1

740747.0

102326.85

6514815.

1052900.1

5559837.

925710.59

4073694.

549305.

5441306.

818061.46

4609238.

713237.03

3997734.

865912.76

6688035.

1444880.6

7018575.

1749316.2

5256781.1 20945027

6318275.9

NonBasmati
Rice
Total 11990410

3062513.9 22104075

Source: DGCIS Annual Export

36

SWOT Analysis
SWOT analysis of agriculture industry in India
Strengths
The Indian agriculture is large, competitive and well developed, offering products at low
prices. The sector experiences a constant demand, as Indians have a strong preference
for fresh rather than processed foods and for local spices and ingredients (The World
Bank, 1997). Provides employment for a large Indian population, living in rural
territories. Recent advances in technology and government initiatives support the
development of the sector. In pursuance of the government policy to strengthen and
promote IT led governance, the department of agriculture and cooperation has been
taking various measures to promote the use and application of technology with the aim
of making agriculture online for the use of farmers, exporters, and traders, etc.

Weakness
One of the major weaknesses present for the agricultural sector in India is in the lack of
government support. Unlike in East Asian countries, the shift of the labor force from
agriculture to non-agriculture in India is peculiarly slow, largely attributable to rigid
labor laws in both the agricultural and industrial sectors. Gliessman (1989) also
highlights the need for pressing on with reforms in agriculture, in particular, trade
liberalization and export promotion strategies. Becker and et al. (1992) also claim that
though India spends on agriculture nearly twice as much as some East Asian economies,
this level of spending on agriculture does not translate into a significantly higher
sectoral performance. Inadequate road linkages also remain a major constrain for the
development of well- functioning agricultural markets. A continuing fragmentation of
land-holdings, poor maintenance of existing irrigation systems and declining soil fertility
37

in some areas are other factors. Another weakness is based on seasonality and the fact
that agricultural sector output heavily depends on the annual monsoon, as less than
one-third of cropland is irrigated. The main food grain crops, for example, and some
cash crops (oilseeds, cotton,
jute and sugar) depend on the south-west monsoon (This brings 80% of India's rain,
usually within a three-month period from June to mid-September. The 2002 south-west
monsoon was disastrous, causing the autumn grain harvest to fall by 18% year on year.
In 2004 the sector stagnated in comparison to the previous year when the best
monsoon rains in a decade generated growth of around 10% in the agricultural sector.
Excessive rainfall in 2005 caused severe flooding in Maharashtra.
Opportunities
A growing population, rapid economic development, and political and social demands
exceed the mandate and capabilities of any corporation in an emerging economy, and
India is no exception to this. A growing population has made industrial development one
of the Indian government's highest policy priorities; it is an important element of
economic development as it assists in raising national income at a more rapid pace. It is
also a precondition for continued agricultural development. Palmer-Jones and Sen
(2003) state that the government continues to play a major role in assisting farmers
through agricultural credits, subsidies, price support schemes and extension services.
Although there are no food security concerns at present, better agricultural productivity
will hold the key to stable growth in food production, given the limits of the resource
base. There is an opportunity for the economic growth to benefit more people only if
the country raises agricultural productivity, improves its system of general education to
help the millions who must leave farming, and encourages labor intensive
manufacturing industries.

38

Threats
About one-fifth of the country, 69m, is covered by forests and woodland, and one-half
of this area is reserved for the production of timber and other forestry products.
However, there are increasing concerns from environmentalists and local government
over the rapid depletion of forest areas, ecological factors, and scarcity of natural
resources. As income rises, India is becoming an increasingly important market for
processed foods, especially in the cities and among young people. Aware of quality and
international brands, consumers are less likely to support national products, and are
more vulnerable to pay premium prices for foreign products of better quality. This
represents a potential substitution to the local products, impacting the production
levels of agriculture sector. Food support prices for wheat and rice have given farmers
little incentive to diversify and have filled government storage facilities to overflowing,
while keeping the market price of food grains artificially high. Current agricultural policy,
which supports cereal production, is exceedingly expensive and will be unable to deal
with the likely scenario of a shift in consumption from cereal food towards non-cereal
food. A lack of market infrastructure also hampers the movement of crops, leading to
sudden shortages. India has considerable potential as an exporter of rice, cotton, many
types of fruit and even flowers, but this has so far not been tapped (Yeoh and Siang,
2006). The introduction of high-yield crop varieties and new fertilizing and irrigation
techniques over recent decades ' the so-called Green Revolution ' dramatically increased
productivity in some regions. India has been self-sufficient in food since the mid-1970s,
maintaining buffer stocks adequate to meet demand despite failed harvests and
seasonal fluctuations.

39

SWOT Analysis of FoodProcessing Industry of India

Strengths

Abundant availability of raw material

Priority sector status for agro-processing given by the central Government
Vast network of manufacturing facilities all over the country
Vast domestic market

Weaknesses

Low availability of adequate infrastructural facilities

Lack of adequate quality control & testing methods as per international
standards
Inefficient supply chain due to a large number of intermediaries.
High requirement of working capital.
Inadequately developed linkages between R&D labs and industry.
Seasonality of raw material

Opportunities

Large crop and material base offering a vast potential for agro processing
activities
Setting of SEZ/AEZ and food parks for providing added incentive to develop
Greenfield projects
Rising income levels and changing consumption patterns
Favorable demographic profile and changing lifestyles
Integration of development in contemporary technologies such as electronics,
material science, bio-technology etc. offer vast scope for rapid improvement and
progress
Opening of global markets

40

Threats

Affordability and cultural preferences of fresh food

High inventory carrying cost
High taxation
High packaging cost

41

Agriculture in Goa
Introduction:
Goa is a tiny State located on West Coast of India, spread over in an area of 3.61 sq. km.
The State is flanked on the east by Sahyadri Mountains and on the West with Arabian
Sea. The Northern tip of Goa borders Maharashtra State while Southern area is
bordered by Karnataka State. Goa is a rich treasure of biodiversity. The State of Goa was
ruled by Portuguese for nearly 450 years till it was liberated in 1961. For last 50 years of
Liberation, the State has made a remarkable progress in agriculture sector besides
various other spheres of economic upliftment. The GSDP of Goa stands at Rs. 80,000
per annum. Though tourism and mining are at forefront in terms of employment
generation, agriculture has been providing livelihood support to almost 12% of the
population. The Agriculture along with Forests in Goa is instrumental in keeping Goa
green and cover nearly 6 5% of the total area of the State.

In the last fifty year of liberation, the State has seen major changes in the agriculture
sector. At the time of liberation, nearly 70% of the population was involved in
agriculture as their full time occupation. Paddy was the predominant crop of the State
followed by Cashew and Coconut. The cropping pattern is changing and today, we have
Cashewnut which is cultivated in nearly 55,000 Ha with paddy covering about 31,000
Ha. The cultivation of horticultural crops is gaining importance due to the better returns,
lower risk and tolerance of these crops for part time farming.

Climate and Rainfall:

Goa receives rain from the South - West monsoons. The average rainfall is 2800 mm.
rainy season is spread over four months from June To September. Occasional thunder
showers are experienced in May and October. Goa experiences warm and humid
tropical climate. The summer temperature ranges from 240C to 360C. In winter, the
mercury hovers between 210C and 300C.
42

Humidity:
The average relative humidity is 75.90%.

Altitude:
In Goa, the land elevation ranges from sea level to 1,022 meters. The highest point is
the Wagheri Hills in Sattari taluka. The Ghat section of NH-4, rises to 650 meters MSL
near Anmod.

Soils:
The soils of Goa are mostly lateritic (81%). They are sandy loam to silt-loam texture,
well drained and highly acidic (5.5 to 6 .5 pH). These soils have moderate organic carbon
and are poor in potash.

About 11% of the soils located along the seacoast and esturaries are sandy-to-sandy
learns. They include the Ker lands and beach fronts. The remaining 8% of the soils are
alluvial in nature. The Khazans and adjoining areas have alluvial soil with high water
tables and are subject to inundation by saline water.

43

SWOT analysis of Goa

Strengths
Goas biggest strength is the high literacy rate in the State. Its medical infrastructure
also puts it way ahead of most other States in India as reflected in the health
achievements of the population.
The small size of the State makes it possible for Goa to become a model state of the
country. The high political participation and involvement in local affairs can increase
self-regulation in the community and make devolution and decentralization effective.
Weaknesses
The growing population and an unregulated tourism growth has placed unsustainable
demands on the natural resources of the State.
Mining which has had its positive economic effects has also placed large costs on the
environment and health of the local population.
The rising cost of living has also disturbed the staple diet and nutrition basket of the
local population.
Opportunities
Goa has a large educated manpower with the ability to read and write in English. This is
a big asset that would help it to integrate into the global knowledge economy.
The clean environment, presence of few nonpolluting industries and a large medical
infrastructure provides potential for health tourism which needs to be tapped carefully
without overdrawing on the natural resources.

44

Threats
Economic growth has also seen a number of structural changes in Goa. There has been a
growing inequality in the State and this needs long-term policy solutions. The decline in
nutritional status both due to higher prices during some peak tourist season and
lifestyle changes also needs to be taken note of.
The declining sex ratio is a matter of grave concern. There is growing incidence of
suicides, violence and crime especially against women, senior citizens and children
which needs to be addressed.
As incomes in the State have grown, so has vehicular traffic. Inadequate traffic
supervision of vehicles and road rage is leading to a large number of casualties and fatal
accidents on Goas roads.

45

Prospective Company for preparation of business plan for

semester 4
As our subject of study is Agriculture and processed foods industry in Morocco
and India we have gone through in details. We have found that there is potential for
future business related to exports to Morocco. So we have selected some of the
manufacturers based in Surat to study further business plan.

HARSHAD MANGO PRODUCTS PVT. LTD.

6/32, BLOCK 6, ROOM NO.32, JIVAN DARASHAN SOC., UDHANA,
SURAT
Gujarat
Pincode : 394210
Fax : 3111925
Mobile No. : 9824157579
Telephone No. : 2416090
Email : harshadmango@yahoo.com
BINDAL EXPORTS PVT. LTD.
270, BINDAL HOUSE, SURAT-KADODARA ROAD, KUMBHARIA,
SURAT
Gujarat
Pincode : 394210
Fax : 26400705
Mobile No. : 9909906988
Telephone No. : 2640700
Email : muralee@bindalexports.com
EURO INDIA FRESH FOODS PRIVATE LIMITED
609, PRINCESS PLAZA, SARDAR CHOWK, VARACHHA ROAD,
SURAT
Gujarat
Pincode : 395006
Fax : 2913021
Mobile No. : 9909996912
Telephone No. : 2913021
46

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3. <AERI (2010) Agricultural Economics Research Institute 'Agricultural Economic Report
2010'; Report 2010-054; July 2010; ISSN 0924-0764>.
4. 15 11 2014 <http://agricoop.nic.in/Annualreport2013-14/artp13-14ENG.pdf>.
5. 16 11 2014
<http://agriexchange.apeda.gov.in/IR_Standards/import_regulation_details.aspx?URL=F
oodandAgriculturalImportRegulationsandStandardsCertificationRabatMorocco5232013.
pdf>.
6. 16 11 2014
<http://agriexchange.apeda.gov.in/IR_Standards/import_regulation_details.aspx?URL=F
oodandAgriculturalImportRegulationsandStandardsCertificationRabatMorocco5232013.
pdf>.
7. 16 11 2014 <http://agricoop.nic.in/Annual%20report2012-13/ARE2012-13.pdf>.
8. 17 11 2014
<http://www.apeda.gov.in/apedawebsite/six_head_product/PFV_OPF.htm>.

47