Basic bakery products are widely consumed by Moroccan citizens and occupy a special place in their eating habits, especially during this period of Ramadan when they become the necessary delicacy during this holy month.
This year more than others, the bakery and confectionery sector (4,000 bakeries including 2,500 modern and 1,500 artisanal at the national level) finds itself more affected by the high prices of raw materials. Wheat prices surged on world markets following India banned the export of its staple grains. The benchmark wheat index rose 5.9% in Chicago, its highest level in two months.
In Morocco, production (common wheat, durum wheat and barley) fell by 32 million quintals during the 2021/2022 agricultural campaign, i.e. a drop of 69% compared to the previous campaign which recorded a production among record productions. In detail, cereal production can be summed up as follows, 17.6 million Qx of soft wheat, 7.5 million Qx of durum wheat and 6.9 million Qx of barley, according to the Ministry of Agriculture, Maritime Fisheries, Rural Development and Waters and Forests.
Also there is no doubt that Morocco must import annually from abroad to compensate for the lack. The United States, France, Ukraine and Canada are its main suppliers. It imports between 60 and 75 million quintals of cereals (soft wheat, durum wheat, barley). Also, the Executive in a concern to protect the purchasing power of Moroccans has taken measures so that the continuous rise in the prices of raw materials does not have repercussions on the internal market.
This is how, despite the high prices of raw materials, the professionals maintain the stability of the price of bread at 1.20 per unit, but this does not prevent them from asking the Ministry of the Interior and the Ministry of Agriculture to open a dialogue with them, pointing out that official data shows that this price has been exceeded since 2015.
The President of the Federal Council of the Moroccan Federation of Bakeries and Pastries, Noureddine Lafif told Hespress “that prices will stabilize during the month of Ramadan, and that products will be available in abundance”. But according to him, “all this will be done to the detriment of professionals who, on their side and in the face of the economic situation, suffer enormous losses”.
Lafif added that “during the month of Ramadan the structured sector through the informal sale of products in homes, or even markets, is hard hit”, noting that “professionals suffer during this month from unfair competition , in addition to fiscal measures that empty their pockets”.
The union official considered that “the benefits of bread making are false, in reality they are rather losses in view of the increases which have affected the various raw materials for years”, regretting the absence of any dialogue despite the requests made to the ministries. Interior and Agriculture.
Of all the types of cereals, soft wheat constitutes 80% of national consumption, and part of the national needs is covered by imports. According to data obtained by Hespress from the Ministry of Economy and Finance, the import of soft wheat is carried out by more than 30 importers. The Executive had taken a number of measures to maintain price stability for ordinary bread and other cereals, including the suspension of customs duties on imports of durum and soft wheat, from November 1, 2021.
But the professionals of the sector would not return any more in their account from where the discontent. This is readily attributed to rising international prices for a number of materials, such as energy material prices, in addition to continued disruptions to global supply chains and international shipping traffic.
However, on the ground the reality seems to be different, at least in certain metropolises where the sector seems to be in a state of grace. This is how we regularly see the arrival of new national and foreign brands. The market is only becoming more competitive and people are happy to move from the small neighborhood baker and itinerant pastry chef to real businesses and the industrialization of bread-making.