THE IMPACT OF INTERNATIONAL FISH TRADE ON FOOD SECURITY IN MOROCCO

by

Mohamed Naji
Professor, Fisheries Department
Institut Agronomique et vétérinaire Hassan II
Rabat, Morocco

1. INTRODUCTION

With an economic growth reaching four percent per year, Morocco managed to reduce levels of malnutrition. Between 1980 and 1996, the daily food ration increased from 2 723 to 3 186 calories. This quantity is comparable to the one observed in some industrialized countries. This increase is attributable to the growth of food production and to the development of commercial exchange.

However, almost half of the population live in rural areas, where poverty and vulnerability persist, notably among those that practice traditional small scale agriculture and among the shepherds. Approximately two million people suffer from malnutrition. Only 50 percent of the Moroccan population have access to safe water and some 56 percent among them are illiterate. The environmental problems constitute a short term threat; there is a shortage of water for agriculture and pasture, and 61 percent of the land is severely degraded.

The Moroccan economic and social development policy has always had food security as one of the top priorities. Important efforts have been made to stabilize the food supply for the population, improve their living conditions as well as the purchasing power of households.

In spite of Morocco’s relatively high food production through fisheries, the national economy benefited more from the foreign trade than from the domestic supply of the fishery products. The level of fish consumption remained relatively low (estimated between 7.5 and 9.7 kg per capita). Hence, the question arises whether strengthening the liberalization of international trade actually improves the food security on a national scale.

The first part of this report describes the situation of the food security in Morocco, the contribution of the fisheries sector to the national economy and to fish products trade. The second part endeavours to analyze the situation of international trade of fish products, and its impact on the national food security.

2. FOOD SITUATION IN MOROCCO

2.1. The Food Security - A Concept with Multiple Facets

According to the World Food Summit held in 1996 "food security exists when all people, at all times, have physical and economic access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life”.

This definition includes four essential notions:

• the availability of food products;
• the stability of supply;
• the physical and economic access to food products;
• the preference of the consumers and the quality of the products.

2.2. Current Status of Food Security in Morocco

Moroccan economic and social policies grant the priority to agriculture and to the hydro agricultural structures and amenities (dams’ policy) to assure food security of the country, in particular in staple foods (cereals, sugar, oils, meats, milk and derivative products...). Until the beginning of the 1990s, the food security concept was conceived like being the achievement of the staple food self-sufficiency through domestic production. This perception showed its limits, because the state was not able, by itself, to support the extra cost required to realize this.

Food security in Morocco is conditioned by economic access and purchasing power on one hand, and stability of availability levels from the national production, on the other hand. Poverty concerns an important part of the population estimated at 5.3 million people, i.e. 19 percent of the total population. Morocco succeeded in assuring regular supplies to the local market of staple food, thanks to a social policy of the state.

A calorie-satisfactory, but unbalanced diet as it is based on cereals.

Table 1: Contribution of staple food products to Total Available and Ratio of needs cover (Average 1990-1999)

About 6 percent of the Moroccan population suffers from malnutrition, which is similar to the average for the countries of Near East and North Africa.

Table 2: Food security indicators for North African Countries

Source: FAOSTAT (1999) and WDI (2000)

3. THE CONTRIBUTION OF FISHERIES TO FOOD SECURITY

The contribution of the fisheries sector to food security in Morocco stays below its potential of production. There are three major types of fisheries in Morocco:

• High sea fishing by big industrial units equipped with onboard freezing systems;
• Inshore fishing by traditional ships (wood-made units) including seiners, trawlers and long liners;
• Artisanal fishing is practiced by a myriad of small boats along the coast.

Tabel 3: Fish products supply by category

Although production is relatively high, only a small share is available for direct human consumption. It is necessary to identify the quantity available for direct human consumption out of total production by taking into account imports, exports, losses and destination of processed products for human consumption or other uses.

During the period 1996-2001, fish products available for direct human consumption represented between 25 percent - 30 percent of total production, which increased from around 600 000 tonnes to 1 100 000 tonnes during the same period.

Figure 1: Fisheries nominal catch from 1991 to 2001

Figure 2: Domestic Availability and Availability for Human Consumption (x1000 tonnes)

• The availability for human consumption represents on average, only 21.5 percent of the total nominal production. This proportion is composed of fresh and canned fish.

• In 2000, the exports of fish products were 473 000 tonnes live weight, corresponding to 52 percent of the nominal production. A varied range of fish products is exported. The exports are dominated by cephalopods (mainly Octopus) with 63 percent of the total export value, canned fish with 14.56 percent and fresh fish with 11.47 percent.

• In the same year, the food import bill reached US$ 1.4 billion.

• Imports of food absorbed 18 percent of foreign currency earnings.

• The exports of fish products were equivalent to 72 percent of the cost of food purchases.

• The export of 1 kg of fish allows Morocco to import 3.92 kg staple food products.

Despite the high level of production, fish consumption levels remain low in Morocco. On average, the domestic consumption absorbs 24 percent of the nominal production. The domestic consumption of fish is competing with the demand of foreign markets and the fishmeal industry. In 2001, direct human consumption reached 268 000 metric tonnes of fresh fish, corresponding to 24 percent of the total production, while 45 percent of this production was reduced to fish oil and fishmeal.

Table 4: Fish products utilization and marketing by production sector

The analysis of fish products consumption shows that the Moroccan consumer has a very clear preference for fresh fish (96.81 percent of the total consumption). This total represents 29 percent of total meat consumption, where red meats account for 33 percent and poultry 38 percent.

Figure 3: Household consumption of fish by category of products (EL BASRI, 1998)

The consumption of fish products is lower in rural areas, but is moderate to high in coastal zones. Determining reasons for the weak household demands are:

• The low rank that fish occupies in the Moroccan food habits and preferences.

• The structures of production, processing, distribution and marketing, which are not well developed.

• The lack of availability of quality fish at a reasonable price, particularly inland, where cooling facilities are lacking or not well developed.

• The high price of fish in relation to income of large part of the population.

4. CONSIDERATIONS WITH REGARD TO THE IMPACT OF INTERNATIONAL TRADE ON FOOD SECURITY

The preliminary considerations may be directed to three different levels:

• National: What are the direct and indirect earnings or losses generated by trade on foreign currency, food availability, economic growth, environment, economic sustainability, economic and social welfare, level and quality of consumption and poverty alleviation?

• Sectorial: What is the effect on the different sectors of fisheries, the trend of fisheries resources and the economic aspects, production, price, income of fishermen, employment, and added value - keeping in mind the inter-connection between the different sectors?

• Consumers: What are the changes that occur in the levels/nature of the fish product consumption and other foods, the expenses of households, and the nutritional balance - whether for an individual or a household?

• While exports generate foreign exchange, they reduce the availability of a valuable and very nourishing food product for the Moroccan consumers.

• These returns will reduce the deficit of the commercial balance.

• The demand for fish from Morocco is getting stronger. Consequently, there is a serious threat of strain on the sustainability of the resources.

At a sectorial level

• The different operators of the fisheries sector, including trades will benefit in different ways from the earnings generated by exports.

High sea fisheries

• A positive impact on the income without seriously affecting the domestic protein supplies;

• An improvement of incomes for the minority of ship-owners, while the relative benefit for the fishermen will be lower;

• Indirect effect on food security by means of the foreign currency generated.

Inshore fisheries

• The majority of white fish with a moderate to high market value will continue to be exported to Europe.

• Species with a low market value will continue to be sold on the national market. However, the Moroccan consumers do not have sufficient purchasing power, despite the physical availability of products. Only an improvement of purchasing power could enhance fish consumption. Pelagic fish will play a major role in domestic protein supply.

Artisanal fisheries

• There may be an improvement in income and nutrition situation for the fishermen and all related operators.

Fish processing

• Fish industry will take advantage of increased trade because it utilises a low value abundant fish (small pelagics). The main challenge for this industry will be quality.

• The increase in foreign demand will permit the industry to target more value added processing and to use a part of the raw material from the fishmeal industry.

At a households level

• The households’ consumption of fish will be most affected by increased exports of fish products.

• However, the earnings of foreign exchange will permit an improvement in domestic availability of food products from other origins.

4.1 What to do? - Some Preliminary Ideas

At national level

• Increase the income for fishermen as prerequisite to ensure food security.

• International assistance is needed in order to improve the productivity, to insure a more equitable distribution of revenues, a better access to loans and reform of the sector in order to adequately support small producers.

• The transition assistance should include the search for new markets, production, and employment.

• It is necessary to assure that the trade of fish products will increase food security and improve social and economic development. It is likewise necessary to ensure that fish trade will not adversely affect the environment and natural resources or hamper the right to food, or negatively affect the nutritional needs of the population, for whom fish and fish products are crucial health and welfare factors.

• Distinguish between products of luxury consumption, which are exported and products of nutritional needs, which are domestically consumed.

At fisheries sector level

• Assure a more valuable utilization of catch and a better appreciation of raw material. Instead of using resources for fishmeal, it is better to direct it towards human consumption.

• Redirect the financial support dedicated today to sustain fishing to activities such as handling after harvest, processing and marketing of fish, including utilization of by-catch and market development for small pelagics.

• Improvement of productivity of fish production is necessary to ensure food security and to enhance competitiveness.

• Public and private investments should be strongly increased to reinforce the fisheries capacities. The investments should be directed toward:

  - Appropriate technologies and capacities for production and processing;
  - Education and training;
  - Development of the necessary infrastructure;
  - Reinforcement of existing research centres;

At household level

• Improve the cash income of consumers;

• Reorganisation of marketing, aiming at efficiency of operations and affordable levels of consumer prices.

6. CONCLUSION

The liberalization of international trade of fish products has a positive impact on food security in Morocco, not in a direct manner since the country is a net exporter, but through foreign exchange earnings, which allow Morocco to pay for a large part of the expenses due to the imports of staple foodstuffs.

However, it is crucial that Morocco protects the local populations against malnutrition; this could include the offer of inexpensive fish products. Improvement of consumers' incomes and development of marketing channels are prime prerequisites for repositioning the fisheries sector as a strategic nutritional reserve for Morocco.