A report by Morocco's Competition Council has identified monopolistic practices within the country's vegetable and fruit market, highlighting the significant influence of intermediaries on price setting. This influence, the report argues, negatively impacts both producers and consumers by enabling intermediaries to secure large margins.
The findings, unveiled at an international agricultural forum in Meknes, reveal that only 32% of Morocco's territory is served by vegetable and fruit markets, with these markets suffering from uneven distribution and outdated management practices. Additionally, the report notes that a small fraction of produce reaches the markets, with the excess being diverted to unstructured parallel markets.
Local production dominates the supply chain, yet vegetables have seen a decline in household importance compared to fruits. The document outlines the challenges faced by producers, including rising costs, climatic unpredictability, and limited access to financing, while also noting a recent price increase benefiting producers due to inflation and adverse weather. The report attributes market inefficiencies to the disproportionate power of intermediaries and calls for measures to address these issues, aiming for fairer pricing and enhanced market transparency.
Source: moroccoworldnews.com