Вы находитесь на странице: 1из 47

MoroccanFisheryProductsExportsontheWorldMarket

2012

MoroccanFisheryProductsExports
OntheWorldMarket
Tableofcontent
ListofacronymsinFrenchandEnglish___________________________________________________________________________________ 4
Introduction ________________________________________________________________________________________________________ 5
1.Overviewoftrendsininternationalfisheryproductstrade ________________________________________________________________ 6
1.1.Mainproducingcountries_______________________________________________________________________________________ 6
1.2.Mainexportingcountries _______________________________________________________________________________________ 7
1.3.Mainimportingcountries_______________________________________________________________________________________ 8
1.4.Tradeflow ___________________________________________________________________________________________________ 8
2.TrendsandmapofMoroccanfisheryproductsexports __________________________________________________________________ 10
2.1.Trendsinfisheryproductsexports_______________________________________________________________________________ 10
2.2.Analysisofthebreakdownofexports ____________________________________________________________________________ 10
2.3.Mapofexportsbymainmarketandproduct(20082011) ___________________________________________________________ 12
2.4.Explanatoryfactorsfortrendsinfisheryproductsexports:breakdownintoperformanceeffectandstructuraleffect ___________ 13
3.TrendsinMoroccanfisheryproductsexportsontheinternationalmarket ___________________________________________________ 16
3.1.TheEuropeanUnionmarket ___________________________________________________________________________________
3.1.1.TrendsinMoroccanfisheryproductsexportsontheEUmarket___________________________________________________
3.1.2.MainEUcountriesimportingMoroccanfisheryproducts:Spainastopclient ________________________________________
3.1.3.Thefrozencephalopodsmarket ____________________________________________________________________________
3.1.4.Thefishcanningmarket ___________________________________________________________________________________
3.1.5.Thefrozencrustaceansmarket _____________________________________________________________________________
3.1.6.Thefreshfishmarket _____________________________________________________________________________________

16
16
17
17
19
20
21

3.2.TheAfricanmarket ___________________________________________________________________________________________ 22
3.2.1.TrendsinMoroccanfisheryproductsexportstoAfrica __________________________________________________________ 22
3.2.2.Thecannedfishmarket ___________________________________________________________________________________ 23
3.3.TheAsianmarket ____________________________________________________________________________________________ 25
3.3.1.TrendsinMoroccanfisheryproductsexportstotheAsianmarket_________________________________________________ 25
3.3.2.TheJapanesemarketforfrozencephalopods _________________________________________________________________ 26
4.Dynamicsofworlddemandforfisheryproductsbycountryandbyfishspecies:casestudiesofmainspeciesexportedbyMorocco_____ 26
4.1.Pelagics ____________________________________________________________________________________________________ 27
4.3.Prawns _____________________________________________________________________________________________________ 31
4.4.Freshfish ___________________________________________________________________________________________________ 31
5.AssessmentofexportdestinationsfavoredbyMoroccanfisheryproducts,basedonworldmarkettrends _________________________ 33
6.StrengthsandWeaknessesofthesectorofMoroccanfisheryproductsexports:SWOTanalysis__________________________________ 34
6.1.WeaknessesandthreatsregardingtheimprovementincompetitivenessofMoroccanfisheryproductsexports________________ 34
6.2.StrengthsandopportunitiesforimprovementincompetitivenessofMoroccanfisheryproductsexports _____________________ 36
Conclusionandrecommendations _____________________________________________________________________________________ 43
Rfrencesbibliographiques__________________________________________________________________________________________ 46
Annexes __________________________________________________________________________________________________________ 47

MoroccanFisheryProductsExportsontheWorldMarket

2012

Listoftables

TABLE1:GENERALOVERVIEWOFWORLDFISHERYMARKETINTHELAST3YEARS ................................................................................... 6
TABLE2:BREAKDOWNOFMOROCCANFISHERYPRODUCTSEXPORTSACCORDINGTOPROCESSINGANDTOSPECIESINMADMILLION
(20082011AVERAGES) ...................................................................................................................................................... 11
TABLE3:TRENDSINMOROCCANFISHERYPRODUCTSEXPORTSBYDESTINATIONBETWEEN2000AND2011 ........................................ 11
TABLE4:MATRIXANDBREAKDOWNOFFISHERYPRODUCTSEXPORTSBYMAINMARKETSANDPRODUCTSINMADMILLION(20082011
AVERAGES) ........................................................................................................................................................................... 12
TABLE5:MAPANDBREAKDOWNOFMOROCCANFISHERYPRODUCTSEXPORTSBYPRODUCTANDDESTINATIONBETWEEN2008AND
2011(INMARKETVALUE) ..................................................................................................................................................... 13
TABLE6:TRENDSINANNUALGROWTHGAPSINFISHERYPRODUCTSEXPORTS ...................................................................................... 15
TABLE7:IMPACTOFPERFORMANCEEFFECTINACCOUNTINGFORANNUALGROWTHGAPSINFISHERYPRODUCTSEXPORTS ................... 15
TABLE8:IMPACTOFSTRUCTURALEFFECTINACCOUNTINGFORANNUALGROWTHGAPSINFISHERYPRODUCTSEXPORTS ...................... 15
TABLE9:RANKINGOFMAINEUCOUNTRIESIMPORTINGMOROCCANFISHERYPRODUCTS(2011) ....................................................... 17
TABLE10:SPANISHIMPORTSOFFROZENCRUSTACEANSBYMAINCOUNTRIESOFORIGIN(TONS) .......................................................... 21
TABLE11:MOROCCOSMAINCUSTOMERMARKETSINAFRICAANDTHEMIDDLEEAST ........................................................................ 23
TABLE12:NIGERIANIMPORTSOFCANNEDFISH(TONS)....................................................................................................................... 24
TABLE13:ORIGINOFNIGERIANIMPORTSOFCANNEDSARDINESBETWEEN2006AND2010(TONS) ................................................... 24
TABLE14:SYRIANIMPORTSOFCANNEDFISH(KG) .............................................................................................................................. 25
TABLE15:CURRENTSITUATIONOFMAINEXPORTDESTINATIONSFORMOROCCANFISHERYPRODUCTS,ANDMARKETSWITHTHEHIGHEST
DEMANDAROUNDTHEWORLD(2010) ................................................................................................................................. 33
TABLE16:SWOTANALYSISOFMOROCCANFISHERYPRODUCTSEXPORTS ........................................................................................... 37

MoroccanFisheryProductsExportsontheWorldMarket

2012

Listofgraphs

GRAPH1:MAINCOUNTRIESPRODUCINGFISHERYPRODUCTSIN2009(CAPTUREFISHERIES) ........................................................ 7
GRAPH2:MAINCOUNTRIESEXPORTINGFISHERYPRODUCTSIN2009 ..................................................................................... 7
GRAPH3:MAINCOUNTRIESIMPORTINGFISHERYPRODUCTSIN2009..................................................................................... 8
GRAPH4:TRENDSINMOROCCANFISHERYPRODUCTSEXPORTS ........................................................................................... 10
GRAPH5:BREAKDOWNOFTRENDSINGROWTHGAPINFISHERYPRODUCTSEXPORTSINTOPERFORMANCEEFFECTVALUEAND
STRUCTURALEFFECTVALUE ........................................................................................................................... 14
GRAPH6:TRENDSINFISHERYPRODUCTSEXPORTSONTHEEUMARKET(VOLUMEANDMARKETVALUE) ....................................... 16
GRAPH7:TRENDSINSPANISHIMPORTSOFFROZENOCTOPUSBYMAINCOUNTRIESOFORIGIN(TONS) ......................................... 18
GRAPH8:TRENDSINTHEPRODUCTIONOFCEPHALOPODSINMOROCCO(TONS) ..................................................................... 18
GRAPH9:TRENDSINSPANISHIMPORTSOFFROZENSQUIDANDCUTTLEFISHBYMAINCOUNTRIESOFORIGIN(1000TONS)............... 19
GRAPH10:FRENCHIMPORTSOFCANNEDSARDINESBYMAINCOUNTRIESOFORIGIN(1000TONS) ............................................. 19
GRAPH11:GERMANIMPORTSOFCANNEDSARDINESBYMAINCOUNTRIESOFORIGIN(1000TONS)............................................ 20
GRAPH12:SPANISHIMPORTSOFCANNEDSARDINESBYMAINCOUNTRIESOFORIGIN(1000TONS) ............................................ 20
GRAPH13:TRENDSINLANDINGSOFPRAWNSINMOROCCO(TONS)..................................................................................... 21
GRAPH14:TRENDSINSPANISHIMPORTSOFFRESHDEMERSALFISHBYCOUNTRYOFORIGIN(1000TONS) ................................... 22
GRAPH15:TRENDSINEXPORTSOFCANNEDANDSEMICUREDPELAGICSTOTHEAFRICANMARKET(VOLUMEANDMARKETVALUE).... 22
GRAPH16:TRENDSINMOROCCANEXPORTSOFMAINFISHERYPRODUCTSTOTHEASIANMARKET(VOLUMEANDMARKETVALUE) .... 25
GRAPH17:TRENDSINJAPANESEIMPORTSOFFROZENOCTOPUSBYMAINCOUNTRYOFORIGIN(1000TONS)................................ 26
GRAPH18:DYNAMICSOFWORLDDEMANDFORCANNEDPELAGICS ...................................................................................... 28
GRAPH19:DYNAMICSOFDEMANDFORFROZENCEPHALOPODSONTHEWORLDMARKET.......................................................... 30
GRAPH20:TRENDSINDEMANDFORPRAWNSONTHEWORLDMARKET ................................................................................ 32
GRAPH21:TRENDSINDEMANDFORFRESHFISHONTHEWORLDMARKET.............................................................................. 32

MoroccanFisheryProductsExportsontheWorldMarket

Listofacronyms
inFrenchandEnglish

CAPI

: IndustrialFishApprovalUnit

DPM

: DepartmentofMaritimeFishing

FAO

: FoodandAgricultureOrganization

SWOT

: Strengths,Weaknesses,Opportunities,andThreats

OFIMER : NationalInterprofessionalOfficeofFisheryandAquacultureProducts
OC

: ForeignExchangeOffice

2012

MoroccanFisheryProductsExportsontheWorldMarket

2012

Introduction

Thefisherysectorplaysamajorsocioeconomicroleandisoneofthepillarsofthenationaleconomy.The
foreign currency inflow and the wealth it generates means it is a strategic sector, not only in sustaining
macroeconomicstability,butalsoinmakingadynamiccontributiontothecountrysdevelopmentinterms
ofemployment(withmorethan660,000jobsthatprovidealivingforsome3millionpeople),foodsecurity
andincome,aswellasincreatingmomentumforothersectorsofthenationaleconomy.

Thankstoitsabundantfisheryresourcesanditsprivilegedgeographicalposition,Moroccoisoneofthetop
African countries in the production and export offishery products. In 2011, Moroccan exports offishery
products amounted to MAD 11.7 billion, comprising 58% of food products exports and 6.8% of overall
exports.

Whilesignificant,theseachievementsdonotyetreflectthepotentialofasectorthatoffersconsiderable
opportunities to boost export competitiveness. Indeed, given the considerable fishery resources of our
coastline, the closeness to potential markets, notably in Europe, the free trade agreements signed with
foreign partners, and the large experience gained by Moroccan operators in processing and packaging
fisheryproducts,Moroccohasasolidcompetitiveadvantageontheinternationalfisheryproductsmarket.
Moreover,theimplementationofmajorsectorbaseddevelopment plans, such asthe HalieutisPlan, the
GreenMoroccoPlan,theEmergencePlan,theRawajPlanandtheLogisticsPlan,aswellasthestructuring
measuresundertaken,shouldcontribute,directlyandindirectly,toimprovedcompetitivenessinthesector
offisheryproductsexports.

Nevertheless, the sectors improved competitiveness can only be achieved by better understanding the
sectors potential, capitalizing on the sectors strengths, addressing its weaknesses and constraints to its
development,andfinallyputtinginplacespecificandadequatepublicsupportmechanisms.

To this end, this document aims to assess the performance of Moroccan fishery products exports, and
identifyopportunitiesforfurtherdevelopment.Firstandforemost,thisdocumentwilldrawupamapof
the fishery products export sector by analyzing the breakdown of exports in terms of products and
markets, and trends in the sector. Then, the focus will be on the assessment of the performance of
Moroccan fishery products exports on the international market, and on breaking down trends into
structure and performance effects, with a special interest in the main products exported and the main
targetmarkets.

Thestudyofmarketswithademandforfisheryproductsaroundtheworldwillalsobeincluded,toassess
theexportdestinationsMoroccohaschosenandidentifydestinationswithstronggrowthpotential.

ThefinalpartofthisdocumentconsistsofaSWOTanalysisofthefisheriesexportsector,andwillhighlight
thesectorsconstraints,weaknesses,opportunitiesandthreats.

MoroccanFisheryProductsExportsontheWorldMarket

2012

1.Overviewoftrendsininternationalfisheryproductstrade

The study of recent production trends in the fishery and aquaculture sector around the world, has
confirmed the ongoing growth in overall production worldwide (fish, crustaceans and molluscs), which
reached 145 million tons in 2009. However, in the last ten years, production in capture fisheries has
levelledoff,withanannualaverageof90milliontons,whileproductioninaquaculturehasgrownfrom38
milliontonsin2000to55.1milliontonsin2009.

World fishery production is increasingly processed through international marketing channels (38.5% in
2009against25%in1976).AccordingtotheFAO,exportsoffishandotherfisheryproductsreached$95.4
billionin2009,4%morethanin2007andnearlydouble1998exports($51.5billion).Suchatrendisthe
resultofanincreaseininternationaldemand,especiallyinrichcountriesthatcurrentlyreceivearound80%
ofexports.

Table1:Generaloverviewofworldfisherymarketinthelast3years

2007
2008
2009
20101estim.
milliontons
Production
139.8
142.3
145.1
147.7
CaptureFisheries
89.9
89.7
90
89.8
Aquaculture
49.9
52.5
55.1
57.2
Marketvalueand
52.9
52.2
54.9
55.3
Volume(in$million)
92.8
102
95.4
101.9
Source:FAO

Tradeinfisheryproductsincludesalargerangeofproducts.Intermsofvalue,prawnsremaintheproduct
most in demand, with 15% of all fishery products traded worldwide in 2009. The other top species
exportedcomprisesalmonandtroutwith14%ofoveralltrade,groundfish(hake,cod,...)with9.4%,and
tuna with 8.3%. Moreover, in 2009 fishmeal and fish oil accounted for 3.8% and 1.1% of exports
respectively.

1.1.Mainproducingcountries

World fishery production largely depends on a number of major producing countries, such as China and
Peruwhichhavetoppedthelistsince1999,withrespectivesharesof16.6%and7.7%in2009.Indonesia
comesthirdafterovertakingtheU.S.Ain2007.Foritspart,Moroccocurrentlyproducesaround1million
tons,whichamountsto1%ofworldproduction.

Official FAO statistics do not go beyond 2009, given that as of 2010 the FAO faced more difficulties in
gathering national statistics on fisheries. Some data gathering programs on national fisheries have probably
been discontinued or reduced, like other publicly funded schemes, as a result of the 2009 world recession.

2012

MoroccanFisheryProductsExportsontheWorldMarket

Graph1:Maincountriesproducingfisheryproductsin2009(capturefisheries)

Source:FAO

1.2.Mainexportingcountries

Chinaisbyfarthelargestexporteroffisheryproductswith10.6%ofoverallfisheryproductsexportsthat
amountedto$96billionin2009.Norway,Thailand,andVietnamfollowbehindwith7.4%,6.5%,and4.5%,
respectively. Furthermore, the contribution to world fishery products exports of developing countries is
considerable,withnearlyhalfoftheoverallvolumeexported.Nevertheless,thesecountriesremainheavily
dependent on markets in the developed world that offer the main export opportunities for fishery
products.

Graph2:Maincountriesexportingfisheryproductsin2009

En milliards de $

Chine
Norvge
Thailande
Vietnam
USA
Danemark
Chili
Canada
Espagne
Netherl
Maroc

10

12
10,2

7,1
6,2
4,3
4,1
4
3,6
3,4
3,1
3,1
1,5

Source:FAO

2012

MoroccanFisheryProductsExportsontheWorldMarket

1.3.Mainimportingcountries

Thelargestpartofworldexportsoffisheryproductsisheadedfordevelopingcountries,withnearly80%of
overall fishery imports in 2009. The U.S.A tops the ranking of importing countries with 13.8% of overall
worldimports,apositionJapanheldfor30years.In2009,Japancamesecondwith13.2%,followedbyEU
countries led by Spain and France with 5.9% and 5.6%. In this regard, the U.S market should offer
opportunitiesforMoroccanexportersunderthefreetradeagreementsignedbyMoroccoandtheU.S.A.

Graph3:Maincountriesimportingfisheryproductsin2009
0
USA
Japon
Espagne
France
Italie
Chine
Allemagne
Royaume
Netherl
Danemark

En milliards de $
6
8

10

12

14

16

13,8
13,2
5,9
5,6
5
4,9
4,6
3,6
2,7
2,7

Source:FAO

1.4.Tradeflow

With regard to fishery trade between geographical regions, most of the trade takes place between
developed countries, despite the fact that an increasing share of fishery products traded is supplied by
developingcountries.Thelargestshareoffisheryproductsexportedbydevelopedcountries,expressedin
market value (80% in 2009), is destined for other developed countries. Likewise, nearly half of fishery
productsimportsbydevelopedcountriescomefromotherdevelopedcountries.Specialmentionismade
of the significant trade level between European countries, as 84% of exports by the European Union in
2009weredestinedforothercountrieswithintheUnion.

Trade between developing countries accounts for a mere 25% of the value of fishery exports in these
countries.Thistradelevelremainslow,giventheadvantagesderivedfromregionalagreementssignedin
differentregionsaroundtheworld(Africa,LatinAmerica,andAsia).

Inthisregard,itappearsthatobstaclestothegrowthinfisheryproductsexportsfromdevelopingcountries
havemoretodowiththecapacitytoabidebyimportrequirementsregardingqualityandfoodsafety,than
with customs duties. Furthermore, measures on sustainable development adopted by some major
importingcountriestopromotethehealthofanimalstocks,environmentalnorms,andsociallyfairtrade,
havesomewhatheldbacksuchgrowth.Finally,thelack,ortheweaknessof,appropriateinfrastructureand
logisticsinproducingcountriesisanotherobstacletothepromotionoffisheryproductsexports(seeBox1:
Caseofthesardinemarket).

MoroccanFisheryProductsExportsontheWorldMarket

2012

Box1:TrendsontheinternationalsardinemarketandperformanceofMoroccan
exports

According to FAO statistics, the international sardine market has seen significant changes in the last
two decades. In 1988, three countries dominated the sardine market: Peru, Japan, and Chile. After
1988, landings of pilchard, the better quality of sardine, dropped rapidly (1.5 million tons in 1997),
whilepilchardcatchesinMoroccoremainedatthesamelevel.

Furthermore,thefishingofsardinella,thelesserqualityofsardine,developedattheendofthe1990s
alongtheWestAfricancoastline,particularlyintheterritorialwatersofSenegalandMauritania,with
the arrival of European freezer trawlers. Frozen sardinella is a cheap source of proteins for African
countriesaswellasagoodrawproductforthecanningindustry,replacingpilchard.

Moroccoiscurrentlythefirstproducerofsardines(Sardinapilchardus)withnearlyhalfofallsardines
landedintheworld,followedbySpain.However,aroundthreequartersofMoroccosproductiongoto
byproducts,whichdoesnotyieldthebestreturn.Astoprocessingdestinedforhumanconsumption,
itisessentiallycenteredoncannedsardines,eventhoughtheconsumptionoffreshsardinesisonthe
increase,especiallyinMorocco.

On the world market, sardine is marketed in two main ways, canned sardines and fresh or frozen
sardines. Morocco is by far the worlds top exporter of canned sardines, but its production volume
fluctuatessignificantlyasaresultofirregularsupplytoprocessingunits.InEurope,themainproducers
areSpainandPortugalwith25,000tonseach,followedbyFrancewith10,000tons,eventhoughthe
productioninEuropeanUnioncountriesisinsteadydecline.ButSpainandFrancearetheconsumer
marketsforcannedsardines.

Forfreshorfrozensardines,mostofthetradetakesplacewithintheEuropeancommunity,Portugal,
Spain and Italy being the main exporting countries. Moroccos supply to the international market
remainslimited,duetothefollowingfactors:
- significantneedsofthecanningindustryinthecountry;
- reducedlandingsfollowingtheimpositionofbiologicalrestperiods;
- mediocre product quality due to the shift to remote fishing areas in the south and to the
inadequate upgrading of fishing fleets, which means that fish catch is not processed and
preservedingoodconditions.

Recent efforts made in different regions of the world to modernize and upgrade equipment and
production should improve product quality and competitiveness, and help develop new products to
meetchangingdemand(e.g.:filletedsardines).Inthisregard,othermoremarketableopportunitiesfor
sardine are emerging, besides canning, especially in the growing market of readytoeat fishery
products,suchasterrines,pts,marinades,andothernewproducts.

2012

MoroccanFisheryProductsExportsontheWorldMarket

10

2.TrendsandmapofMoroccanfisheryproductsexports

The exclusive Moroccan economic zone is endowed with large and varied fishery resources, comprising
around500speciesdistributedalongthecountryscoastline,withsmallpelagicspeciesaccountingforthe
largestpartofproduction(over80%ofallcatches).

In terms of trade in fishery products, Morocco is one of the most dynamic exporting countries. Canned
sardineisitsshowcaseproduct,grantingMoroccoitspositionasaworldleaderonthismarketaswellasa
significantshareoffisheryproductsexportsaroundtheworld.

2.1.Trendsinfisheryproductsexports

Moroccanfisheryproductsexportsenjoyedanupwardtrendbetween2004and2010,bothinvolumeand
market value, with a peak of MAD 13.2 billion in 2008. The decline in market value seen in 2009 (7%),
despite the steady increase in the volume of exports (+10%), is mainly due to the drop in prices on the
internationalmarket.Moreover,asizabledropinthevolumeofexportsoccurredin2011(40%involume
and9%inmarketvalue),reflectingafallinfisheryproduction,especiallyinpelagicfishproduction.

Graph4:TrendsinMoroccanfisheryproductsexports

Source:DepartmentofMaritimeFishing

2.2.Analysisofthebreakdownofexports

Themarketvalueofexportsisessentiallyderivedfromthreemainproducttypes:frozenproducts(41%),
cannedandsemicuredproducts(38%),andfreshproducts(13%).

As seen in the table below, the introduction of a variable in the analysis of this breakdown leads to the
conclusionthatfourproductsmakeup77%ofallexports.Theseproductsarefrozencephalopods(27%),
cannedpelagicscomprisingmainlysardines(37%),freshfish,whitefishandotherfishtypes(8%),frozen
crustaceans,mainlypeeledprawns(6%).

2012

MoroccanFisheryProductsExportsontheWorldMarket

Table2:BreakdownofMoroccanfisheryproductsexportsaccordingtoprocessingandtospeciesin
MADmillion(20082011averages)

11

Pelagics
Whitefish
Cephalopods
Crustaceans
Other
Total

Fresh

Frozen

cannedandsemi
cured

fishoiland
fishmeal

115
(1%)***
371
(3%)***
74
(1%)***

601*
(5%)***
149
(1%)***
3436
(27%)***

4634**
(37%)***

1006
(7%)***

532
(4%)***
498
(4%)***

725
(6%)***
174
(1%)***

1590
(13%)***

5085
(41%)***

4707
(38%)***

1007
(8%)***
Source:OC

*Despitemakingupasmallpartoftheoverallvalueoffisheryproductsexports,thevalueofexportsoffrozenpelagics,whichincludemainly
frozensardines,hasincreasedinthelasttenyears.
**Thisprocessingtypemostlycomprisescannedsardinesand,toalesserextent,semicuredanchovies.***Averagepercentageofoverall
valueoffisheryproductsexports(20082011).

Moroccanfisheryproductsaresoldinmanycountriesaroundtheworld,andhavemadeinroadsintoAfrica
in recent years. But the European market remains the main outlet for nearly 70% of Moroccan fishery
productsexports.

As to exports to Africa, they nearly tripled between 20002011, from MAD 570 million to MAD 1,530
million,peakingatMAD1,900millionin2009.TheAfricanmarketstilloffersenormousopportunitiesfor
Moroccanexports.

ItshouldalsobenotedthatfisheryproductsexportstoAsia,notablytoJapan,havedroppedoverthelast
tenyears,tostandatMAD727millionin2011,againstMAD2,700millionin2000(73%).

Table3:TrendsinMoroccanfisheryproductsexportsbydestinationbetween2000and2011
year
2000

Destination
UE
RestofEurope

Asia
MiddleEast
America
Africa
Oceania
TOTAL
InMADmillion

6376
71

2001

2002

2003

2004

6088
168

6015
109

6237
226

5107
90

2005

Average
2000
2005

6991
299

4971
111

Average
2006
2011

2006

2007

2008

2009

2010

2011

7938
329

7967
346

9017
477

8334
491

8630
557

8242
517

8268
446

2700

1966

2659

1450

417

952

1532

831

1069

1117

973

961

727

946

174

297

256

326

264

214

220

369

324

333

449

403

230

351

430

363

549

587

723

437

512
1559

346

332

310

358

323

341

278

571

771

805

908

914

1096

662

1354

1361

1656

1561

1902

1535

15

18

21

24

25

39

17

36

28

32

24

44

60

9640

10174

9528

11287

11458

13183

12422

13221

11747

10254

7139

9932

7789

37
12135

Source:DPM

2012

MoroccanFisheryProductsExportsontheWorldMarket

12

2.3.Mapofexportsbymainmarketandproduct(20082011)

The largest part of Moroccan fishery products is exported to the European Union (77% of the overall
marketvalueoffisheryproductsbetween2008and2011).Asshowninthetablebelow,exportsheaded
forEuropecomprisefrozenproducts(notablycephalopodsandcrustaceans)with45%,cannedandsemi
curedpelagicswith30%,andfreshfishwith17%.Geographicalproximityisoneofthemainfactorsforthe
predominanceoftheEuropeanmarket.

Africaisthesecondlargestmarketwith11%ofoverallexports,overtakingAsiawhoseimportsofMoroccan
fisheryproductsbegantodropin2003.

However, exports to the African market mostly comprise canned pelagics which make up 86% of all
exports,duenotablytogeographicaldistanceandlackofadequatetransportlogistics.

AsimilarconcentrationisnoticeablewiththeJapanesemarketwherefrozenproductsmakeup76%ofall
fisheryproductsexportstoAsia.

Table4:MatrixandbreakdownoffisheryproductsexportsbymainmarketsandproductsinMAD
million(20082011averages)

Pelagics
Whitefish

Cephalopods

Crustaceans
Other

Total

E.U(MAD8,560)
Canned Fishmeal
Fresh Frozen
and
and
semicured fishoil
43
157
24871
523

Africa(MAD1,654)
Canned Fishmeal
Fresh Frozen
and
and
semicured fishoil

128
1425
35

Fresh

Asia(MAD900)
Canned Fishmeal
Frozen
and
and
semicured fishoil
52
15

340

131

40

74

27993

5525

532

7254

473

54

1462
2

3877

2559

526

193

1426

35

102

687

1ThisfigureessentiallycomprisescannedsardinesexportednotablytoFranceandGermany,withsomeexportsheadingfortheItalianand
Spanishmarketsinrecentyears,aswellassemicuredanchoviesdestinedforItaly,Spain,andFrance.
2In2011,theNetherlandshaveovertakenSpainasthefirstmarketforthisproduct.
3and4ThemainbulkoftheseexportsareheadedforSpain.
5ThismarketisdominatedbyJapan.

This analysis shows that the breakdown of Moroccan fishery products exports by product and market
producestherankingbelow:

2012

MoroccanFisheryProductsExportsontheWorldMarket

Table5:MapandbreakdownofMoroccanfisheryproductsexportsbyproductanddestination
between2008and2011(inmarketvalue)

13

Frozencephalopods

Cannedpelagics

Freshfish

UE

Africa

20%*

*
8% %

5%*

22%*

Asia

11%*

Frozencrustaceans

6%*

*Averagepercentageforeachproductoneachspecificmarket,intheoverallmarketvalueofMoroccanfisheryproductsexports.

2.4.Explanatoryfactorsfortrendsinfisheryproductsexports:breakdowninto
performanceeffectandstructuraleffect

Tounderstandtheperformancesandcounterperformancesoffisheryproductsexportsoverthelastten
years,exporttrendsarebrokendownintotwoeffects:structuraleffectandperformanceeffect(cf.Annex1).

Thestructuraleffectisobtainedbydisregardingtheimpactofdifferencesinperformancefromoneperiod
to the next, and takinginto account differences in the breakdown by product only. The structural effect
obtainedismademanifestwhenthegrowthrateofacountrysexportsincreasesordrops,duetogreater
exposuretoatypeofproductwithagrowingorshrinkingmarket.
The performance effect is obtained by disregarding structural divergences, taking into account rises and
falls in performance only. The effect measures the increase or decrease in exports, other things being
equal,thatisanunchangedbreakdownbyproduct.

Thus,thebreakdownoftrendsinfisheryproductsexportsbetween2002and2011yieldstheconclusion
that growth trends are primarily the result of a strong performance effect. The structural effect only
explainsthegrowthgaptoalesserextent.Forinstance,forapositivegrowthgapof56.3pointsin2005,
comparedto2004,thestructuraleffectonlyaccountsfor0.1point,whiletheperformanceeffectaccounts
for56.2points.

2012

MoroccanFisheryProductsExportsontheWorldMarket

14

Graph5:Breakdownoftrendsingrowthgapinfisheryproductsexportsintoperformanceeffectvalue
andstructuraleffectvalue

Structure

performanceeffect
structuraleffect
growthgap

2002
5,2%
6,3%
11,5%

2003
11,3%
0,5%
11,9%

2004
23,1%
4,4%
18,7%

2005
56,2%
0,1%
56,3%

2006
12,8%
2,0%
10,8%

2007
19,2%
0,2%
19,0%

2008
13,2%
0,2%
13,4%

2009
24,2%
1,4%
22,8%

2010
12,6%
2,0%
14,6%

2011
16,1%
0,1%
16,2%

Structuraleffectandperformanceeffectbyproduct

Thefindingsofthebreakdownofgrowthgapsinfisheryproductsintostructuralandperformanceeffects
fromoneyeartothenextpresentedinthetablesbelowshowthat:
thestructuraleffectbyfisheryproducttypeexportedbetween2000and2011
Showsarelativelystabletrend,whichindicatesthatthebreakdownoffisheryproductsremained
stableorunchanged.
Given its low impact, the positive structural effect has not helped close the negative growth gap
seenoverseveralperiods.
The positive performance effect achieved in 2005 compared to 2004, and in 2010 compared to
2009, is theresult ofthepositive contributionoffrozen products,whilegrowthachievedin2008
comparedto2007isattributedtoimprovedperformance,firstincannedproducts,andsecondin
frozenproducts.

2012

MoroccanFisheryProductsExportsontheWorldMarket

15

Table6:Trendsinannualgrowthgapsinfisheryproductsexports

Growthgaps

20022001 20032002 20042003 20052004 20062005 20072006 20082007 20092008 20102009 20112010

Cannedproducts

1,2%

0,8%

3,6%

6,2%

0,3%

8,2%

7,0%

Semicuredproducts

0,1%

0,8%

1,5%

1,0%

0,2%

1,1%

Fishmealandfishoil

7,7%

5,4%

3,0%

3,8%

0,6%

2,3%

Frozenproducts

24,2%

21,0%

7,4%

38,2%

8,4%

Freshorlivefish

3,8%

2,2%

3,3%

6,3%

1,7%

3,6%

1,5%

9,3%

1,2%

0,2%

0,7%

0,0%

3,5%

1,3%

1,3%

6,5%

5,5%

5,9%

21,1%

12,5%

1,5%

0,8%

4,0%

1,8%

0,9%

0,5%

Other

0,1%

0,0%

0,0%

0,8%

0,2%

1,1%

0,2%

1,2%

0,9%

0,5%

Total

11,5%

11,9%

18,7%

56,3%

10,8%

19,0%

13,4%

22,8%

14,6%

16,2%

Table7:Impactofperformanceeffectinaccountingforannualgrowthgapsinfisheryproducts
exports

Performanceeffect

20022001

20032002 20042003 20052004 20062005 20072006 20082007 20092008 20102009

20112010

Cannedproducts

2,0%

0,6%

3,9%

5,7%

1,0%

8,2%

7,1%

3,6%

1,3%

9,2%

Semicuredproducts

0,2%

0,8%

1,6%

1,0%

0,0%

1,1%

1,2%

0,2%

0,8%

0,0%

Fishmealandfishoil

12,2%

5,9%

3,5%

3,9%

1,4%

2,4%

3,6%

2,3%

0,6%

6,5%

Frozenproducts

23,5%

20,8%

10,9%

38,8%

10,7%

5,7%

5,4%

21,0%

11,6%

1,4%

Freshorlivefish

4,0%

2,2%

3,2%

6,2%

1,5%

0,7%

3,9%

1,4%

0,9%

0,5%

0,1%

0,0%

0,0%

0,7%

0,1%

1,1%

0,3%

1,2%

1,0%

0,5%

5,2%

11,3%

23,1%

56,2%

12,8%

19,2%

13,2%

24,2%

12,6%

16,1%

Other
Total

Table8:Impactofstructuraleffectinaccountingforannualgrowthgapsinfisheryproductsexports

Structuraleffect

20042003 20052004 20062005 20072006 20082007 20092008 20102009 20112010

20022001

20032002

Cannedproducts

0,8%

0,1%

0,3%

0,6%

0,6%

0,0%

0,1%

0,1%

0,2%

0,03%

Semicuredproducts

0,1%

0,0%

0,1%

0,1%

0,1%

0,0%

0,0%

0,0%

0,1%

0,01%

Fishmealandfishoil

4,6%

0,5%

0,5%

0,2%

0,7%

0,1%

0,2%

1,0%

0,7%

0,00%

Frozenproducts

0,7%

0,2%

3,6%

0,6%

2,3%

0,2%

0,5%

0,0%

0,9%

0,01%

Freshorlivefish

0,2%

0,0%

0,1%

0,1%

0,2%

0,1%

0,0%

0,4%

0,0%

0,02%

Other

0,0%

0,0%

0,0%

0,1%

0,1%

0,0%

0,1%

0,0%

0,0%

0,02%

Total

6,3%

0,5%

4,4%

0,1%

2,0%

0,2%

0,2%

1,4%

2,0%

0,07%

Thus,itappearsthatthemakeupofMoroccanfisheryproductsexportshasnothelpedovercomeeffects
linked to counterperformance on the international market. Indeed, even if the structural effect remains
positive,itistooslighttocountertheperformanceeffect.

2012

MoroccanFisheryProductsExportsontheWorldMarket

16

3.TrendsinMoroccanfisheryproductsexportsontheinternationalmarket
3.1.TheEuropeanUnionmarket
3.1.1.TrendsinMoroccanfisheryproductsexportsontheEUmarket

Trends in Moroccan exports of frozen cephalopods to the EU market between 2000 and 2011 show a
considerableincreaseinmarketvaluebetween2004and2008,leapingfromMAD330milliontoMAD760
millionoverthisperiod,thankstotheincreaseinvolumeexported,notablytoSpain.Thedropinmarket
valueseenin2009and2010isduetothefallinthepriceofoctopus.Inthisregard,itshouldbenotedthat
MoroccanexportsoffrozencephalopodstoSpaininmarketvalue,compriseoctopus(75%)andsquidand
cuttlefish(25%).Moreover,despitethe14%dropinexportvolumeseenin2011,comparedto2010,the
marketvalueoftheseexportsincreased(+16%).

Likewise,exportsofcannedandsemicuredpelagicsrosesteadilybetween2000and2010,followingthe
increase in tonnage exported to the EU, combined with the rise in prices seen since 2005. The drop
registeredin2011isduetoafallintonnageexported.

As tofrozen crustaceans, thegrowing market valueofexports since2004 is essentially attributed to the


risingpricesoffrozenprawnsontheinternationalmarket,concurrentwithagrowingdemandforsucha
product.

Exportsoffreshfishhavedevelopedsteadilybetween2000and2009,bothintermsofvolumeandmarket
value, and registered an increase in market value of 55% in 2010 and 16% in 2011, following the rise in
pricesontheinternationalmarket.

Graph6:TrendsinfisheryproductsexportsontheEUmarket(volumeandmarketvalue)

ValueinMADmillion
4000
3000

Volumeintons
80000

Cons et semicons de plagique


Poisson frais
Cphalopodes congels
Crustacs congels

60000

2000

40000

1000

20000

Cons et semicons de plagique


Poisson frais
Cphalopodes congels
Crustacs congels

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source:DepartmentofMaritimeFishing

2012

MoroccanFisheryProductsExportsontheWorldMarket

3.1.2.MainEUcountriesimportingMoroccanfisheryproducts:Spainastop
client

17

TheEuropeanmarketisstillthemainmarketforMoroccanfisheryproductsexports,withSpainatthetop
with46%ofallexportsheadedfortheEU,followedbyItalywithnearly16%.

Intermsofspecificproducts,SpainisMoroccosfirstclientforfrozencephalopodsandcrustaceans,witha
71% share. In 2011, the Netherlands overtook Spain to become the top client for fresh fish with a 44%
share. For canned and semicured fish, four important markets stand out: Spain, Italy, France, and
Germany.

Table9:RankingofmainEUcountriesimportingMoroccanfisheryproducts(2011)

ShareinvalueofexportsheadedfortheEU
Shareinoverallexports
Spain

46%

Italy
Netherlands
France
Germany

16%
12%
8%
6%

Shareinexportsof
Shareinexportsof
Shareinexportsof
frozenproducts
freshproducts
cannedproducts
Spain
71% Netherlands 44% Italy
29%
Italy
Netherlands

Portugal

14%
5%
3%

Spain
Portugal
BLEU

41%
6%
6%

Spain
France
Germany

18%
17%
15%

Shareinexportsof
semicuredproducts

Italy

29%

Spain
France

28%
28%

Source:DepartmentofMaritimeFishing

3.1.3.Thefrozencephalopodsmarket

WhileJapanremainsthetopimporterofcephalopodsintheworld,SpainandItalyareclaimingincreasingly
largersharesofthemarket.OverallSpanishimportsoffrozencephalopodscomingfromdifferentregions
oftheworldessentiallycomprisesquidandcuttlefish(88%)andoctopus(12%).

FrozenoctopusmainlycomesfromWestAfrica,withMoroccotoppingthelistofexportingcountrieswith
an average market share of nearly 55% in the last decade, followed by Mauritania. However, despite
growingdemandforfrozenoctopusfromSpainoverthesameperiod,Moroccosmarketsharesuffereda
sizeable drop between 2001 and 2004, to stand at 42% in 2004 compared to 62% in 2001, following a
reduction in the countrys production of octopus (see Figure 8). Subsequently, Moroccos market share
pickedupsomewhatandreached47%in2010.

2012

MoroccanFisheryProductsExportsontheWorldMarket

18

Graph7:TrendsinSpanishimportsoffrozenoctopusbymaincountriesoforigin(tons)
50

Ma roc

45

Ma urita nie

Chine

Portuga l

Tota l

40
35
30
62%

25

55%

20 61%

49%

47%

50%

50%

54%
46%
47%

42%

15
10
5
0
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source:Comtrade

ItshouldalsobenotedthatfishinglevelsinMorocco,oneofthemainproducersofoctopusintheworld,
havereachedtheirlimits.Suchadevelopmentwilllimitsupplytofreezingplants,resultinginanincreasein
pricesinviewoftheevergrowingdemandforoctopus.

Graph8:TrendsintheproductionofcephalopodsinMorocco(tons)

Source:DepartmentofMaritimeFishing

New trade regulations on the fishing of undersized octopus will also have an impact on production and
exports,helpingreplenishfishstocks.However,theseregulationswillinitiallycutthelevelofsupply.

Withregardtosquidandcuttlefish,theFalklandIslandswereSpainstopsupplierofsquidandcuttlefishup
until2008(30%ofimports).Indiatookoverthistoppositionin2009and2010,witha26%marketshare.
Consideredoneofthemainsuppliersoftheseproducts,Morocconeverthelesssufferedasignificantdrop
inmarketshareoverthelasttenyears,slidingfrom20%in2000to10%in2010.

2012

MoroccanFisheryProductsExportsontheWorldMarket

19

Graph9:TrendsinSpanishimportsoffrozensquidandcuttlefishbymaincountriesoforigin(1000tons)
180

Autres

Prou

Mauritanie

Chine

Inde

Maroc

Falkland

160
140
120
100
80
60
40
20
0
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source:Comtrade

3.1.4.Thefishcanningmarket

InMorocco,fishcanningismainlycenteredonsardines(91%),mackerel(7%),andtuna(2%).Intermsof
destination,Europereceivesnearly44%ofMoroccoscannedfishexports,followedbyAfricawith39%,the
MiddleEastwith12%,andfinallytheAmericancontinentwith5%.

ImportsofMoroccancannedsardineshaveasignificantplaceonEUmarkets,especiallyinFrance,Spain,
andGermany.In2010,outof33,000tonsofcannedsardinesimportedbythese3countries,23,000tons
camefromMorocco(70%).ThesemarketsareimportantoutletsforMoroccancannedsardines,absorbing
nearly20%oftheoverallvolumeofexportsofthisproduct.Moroccoenjoysadominantpositiononthese
markets,eventhoughitsdevelopmentisdependentondemandineachofthesecountries.

Thus,theFrenchmarketmainlyreceivesimportsfromMorocco(a67%marketshare)andfromPortugal
(20%).SpainandItalyssharesonthismarketarelimited,andhaveevendroppedoverthelasttenyears,
eventhoughFrenchimportsofcannedsardineshavesteadilyincreasedoverthesameperiod.In2010,out
ofatotalof16,700tonsofcannedsardinesimportedbyFrance,11,300tonscamefromMorocco,while
Portugalsuppliedmostoftheremainingvolume.

Graph10:Frenchimportsofcannedsardinesbymaincountriesoforigin(1000tons)
25

Maroc

Portugal

Espagne

Italie

Total

20
15
74%

10

59%

65%

76%

77%

70%

71%
67%

70%

66%

50%

5
0
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source:Comtrade

2012

MoroccanFisheryProductsExportsontheWorldMarket

20

WithregardtoGermany,Moroccoremainsitsmainsupplierofcannedsardines,withanaverageshareof
64%ofGermanimports,eventhoughMoroccossharehassteadilydecreasedsince2006(89%ofoverall
Germanimports).

Graph11:Germanimportsofcannedsardinesbymaincountriesoforigin(1000tons)
16
Maroc

Portugal

Italie

Total

14
89%

12
89%

10

84%

86%

89%

92%

85%

79%
82%

73%
64%

6
4
2
0
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source:Comtrade

AstoSpain,Moroccoremainsitsmainsupplierofcannedsardines,withashareofnearly95%ofSpanish
imports.However,Moroccossharedroppedslightlyin2007and2008,standingat77%inthelatteryear,
compared to 97% in 2006. This drop was offset by the increase in Moroccos share on the Portuguese
market.Since2009,MoroccosshareontheSpanishmarkethasrecoveredandreachednearly90%in2009
and2010.

Graph12:Spanishimportsofcannedsardinesbymaincountriesoforigin(1000tons)

9000
Maroc

8000

Portugal

Italie

Total
89%

7000
90%

6000
5000
4000

97%

97%
94%
98%

98%

97%

89%

95%

77%

3000
2000
1000
0
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source:Comtrade

3.1.5.Thefrozencrustaceansmarket

Spanish imports of frozen crustaceans come from different countries, headed by Argentina (15%), the
UnitedKingdom(10%),andChina(9.6%).Spanishimportshaveincreasedsteadilyoverthelasttenyears,in
responsetogrowingdemand.However,despitethisgrowthindemand,Moroccosshareon theSpanish
marketdroppedfrom7%in2000to4%in2008,andwaslosttoothercompetitorsonthemarket,suchas
Argentina,Belgium,andChina.

2012

MoroccanFisheryProductsExportsontheWorldMarket

21

Table10:Spanishimportsoffrozencrustaceansbymaincountriesoforigin(tons)

Countrieswithin
U27
Unitedkingdom
France
Portugal
Belgium
Countriesoutside
U27
Argentina
China
Morocco
Mozambique
Tunisia
Totalimports

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Marketshare
(20002010)

TCA
M

16290
5743
3963
2468

17380
3766
4154
2366

20866
3350
3945
3589

21750
4743
4227
2960

20956
4286
2551
2909

18746
4980
3031
3575

17470
4182
3159
4818

18678
7284
4255
3622

15451
5301
4806
4814

15159
3950
4183
3921

14736
4455
4859
4175

10%
3%
2%
2%

1%
3%
2%
5%

33441 29987 20745


5399 24698 34052 28552
36251
2909
1305
2927 26759 29214 28269 27311
25841
9313
9299
6575
7337
6764
7681
7353
6469
4175
3850
3714
4584
4633
5652
4016
3415
2575
2000
2185
2078
2278
1628
1139
1187
159093 177911 176776 190555 216313 218035 204312 193669

42709
22745
5405
4147
2327
202397

15%
10%
4%
2%
1%
100%

9%
2%
7%
2%
6%
3%

18732 37337
17862 14856
10771
9660
5152
4627
4276
2599
143708 162059

Source:Comtrade

This drop in Moroccos market share is attributed to the fall in the countrys production of prawns that
makeupthebulkofMoroccanexportsoffrozencrustaceanstoSpain.Indeed,followingthereductionof
fishstocksandtheintroductionoffishingquotas,landingsofprawnshavebeencutbyhalfinrecentyears,
falling from 8,606 tons in 2000 to 4,200 in 2008. Although its production of prawns picked up in 2009,
Moroccohasnotbeenabletoregainitsmarketshare,achievinglessthan3%in2009and2.5%in2010.

Graph13:TrendsinlandingsofprawnsinMorocco(tons)
10000
8000
Courbe de
tendance

6000
4000
2000
0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Source:DepartmentofMaritimeFishing

3.1.6.Thefreshfishmarket

Morocco is, alongside France, Italy, the United Kingdom, Namibia, Greece and Denmark, one of Spains
mainsuppliersoffreshfish.UnlikeDenmark,whichexportsmainlysalmonandtunatoSpain,Moroccos
exportsoffreshfishtoSpaincomprisemainlydemersalfish.Moroccosmaincompetitorsonthismarket
segmentareFrance,Italy,Namibia,andtheUnitedKingdom.

TrendsinmarketsharesofSpainsmainsuppliersofdemersalfishshowMoroccosimprovedperformance
up to 2005, with a market share of 15% in the same year, compared to 8% in 2000. Since then, the
countrysmarketsharehasdeclinedsteadily,tostandat8%in2010.WhileItalyhasalsosufferedasimilar

2012

MoroccanFisheryProductsExportsontheWorldMarket

22

decline, dropping from 18% in 2006 to 14% in 2010, Frances market share has picked up significantly,
climbingfrom14%in2006to21%in2010.

Graph14:TrendsinSpanishimportsoffreshdemersalfishbycountryoforigin(1000tons)
180

Autres

Grce

Royaume-uni

Maroc

Italie

France

160
140
120
100
80
60
40
20
0
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source:Comtrade

3.2.TheAfricanmarket

3.2.1.TrendsinMoroccanfisheryproductsexportstoAfrica

ExportsofcannedandsemicuredpelagicstoAfricahaveincreasedbetween2000and2011,despitethe
dropsinvolumeexportedin2007,2009,and2011.However,pricesofexportcannedandsemicuredfish
haveincreasedslightlysince2005.

Graph15:TrendsinexportsofcannedandsemicuredpelagicstotheAfricanmarket(volumeandmarket
value)
ValueinMAD
2000

Volumeintons
80000

Cons et semi-cons de plagique

1500

60000

1000

40000

500

20000

Cons et semi-cons de plagique

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

2012

MoroccanFisheryProductsExportsontheWorldMarket

Averagepriceofexportcannedandsemicured
pelagicsinMAD1000/tons

23

23,3
19,0

19,3

19,7

19,7

19,5

20,1

24,9

24,9

24,6

27,2

21,2

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source:DepartmentofMaritimeFishing

OntheAfricanandMiddleEasternmarkets,Moroccanexportscompriseonlycannedsardinesandareonly
headedforNigeria,Angola,andSyria,withmarketsharesfluctuatingfromyeartoyear.

Table11:MoroccosmaincustomermarketsinAfricaandtheMiddleEast

Parts dans les exportations totales de conserves de sardines

Syria
Nigeria
Angola
Guinea

2006

2007

2008

2009

2010

6%
1%
4%
0,50%

3%
5%
3%
1%

5%
6%
7%
1%

8%
5%
1%
3%

6%
8%
5%
1%

Source:Comtrade

Sharesinoverallexportsofcannedsardines

3.2.2.Thecannedfishmarket

IntermsofoutletsforMoroccancannedfishontheAfricanmarket,Nigeriastandsout.Nigeriaisoneof
themostpopulatedcountriesinAfrica,wherefishistheprimaryfoodsourceforanimalproteins.Nigerians
consume2.1milliontonsoffish,butonlyproduce30%ofit.

NigeriaisthelargestimporteroffishinAfricaandoneofthelargestimportmarketsforsmallpelagicsin
theworld,withvolumesimportedinthehundredofthousandtonsayear.Nigeriaalsoimportsfrozenfish,
suchasmackerel,sardinella,hake,herring,mullet,caughtontheWestAfricancoast(Senegal,Mauritania),
and in the North Sea. Nigerias main suppliers include Spain, the Netherlands, Russia, Denmark, Ireland,
andNorway.

MoroccanfishexportstoNigeriabasicallycomprisecannedsardines,amarketshareof15%to40%.Thisis
mainlyduetodeficientlogisticsandpooreffortstopromoteMoroccanproductsonthismarket.

2012

MoroccanFisheryProductsExportsontheWorldMarket

24

Table12:Nigerianimportsofcannedfish(tons)

2000

2001

2002

2003*

2006

2007

2008

2009

2010

Overallimportsofcannedfish

804

748

3.651

4.011

4.750

5.676

9.573

23.455

Overallimportsofcanned
sardines

126

429

110

233

1.502

1.961

2.794

1.974

5.525

Importsofcannedsardines
fromMorocco

129

459

188

822

Inthelastyears,theoriginofNigeriasimportsofcannedsardineshaschangedfromoneyeartothenext.
From2006onwards,Nigeriahassignificantlyincreaseditsimportsofthisproduct,with1,502tonsin2006,
compared to 233 tons in 2003, and Morocco has become one of its main suppliers. Nevertheless,
Moroccos market share remains relatively modest and volatile; fluctuating from 30% in 2006 to 10% in
2007,thenbackto30%in2008.In2009and2010,Moroccodidnotfeatureamongthemainsuppliersof
theNigerianmarketandfellbehindothercountriessuchasSouthAfrica,Singapore,andAustralia.Inthis
regard,MoroccanexportersshouldfocusonNigeria,acountrythatoffersgreatpotentialforgrowth,and
shouldprovidestableandsustainableexports.

Table13:OriginofNigerianimportsofcannedsardinesbetween2006and2010(tons)

2006
2007
2008
2009
2010

Morocco
Spain
China
Thailand
SouthAfrica
India
Total

459
288
353
126
97
95
1.502

Bangladesh
China
Morocco
Belgium

Total

909
Morocco
Bangladesh
421
188 ArabEmirates
China
151
Brazil

1.961 Total

822 Bangladesh
632
China
India
553
Australia
207
Ireland
84

2.794

Total

2472
Bangladesh
China
1509
SouthAfrica
510
Singapore
351
Australia
308
France
114
Brazil
105
1.974 Total
5.525
Source:Comtrade
675
362
222
333
149

BesidesAfrica,MiddleEastisabigmarketforMoroccanexportsofcannedsardines(seeBox2)

2012

MoroccanFisheryProductsExportsontheWorldMarket

25

Box2:ThecannedsardinemarketintheMiddleEast

IntheMiddleEast,Moroccoscannedsardineexportsareexclusivelyheadedforonecountryintheregion,
Syria.MoroccoenjoysadominantpositionontheSyrianmarket,andbasicallymeetsallthedemandfor
canned sardines. Over the last decade, Moroccos share of the Syrian market for canned sardines was
nearly95%.

Table14:Syrianimportsofcannedfish(kg)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Overallimportsofcannedfish
6.202 12.115 12.799 13.50 11.696 17.028 16.424 13.628 22.288 17.548

Overallimportsofcannedsardines
6.990 7.729 9.473 5.026 9.122 8.426 7.566 10.567 8.011

ImportsfromMorocco(100%sardines)
3.510 6.990 7.723 9.173 5.026 8.765 7.647 7.167 10.303 7.567

Source:Comtrade

3.3.TheAsianmarket
3.3.1.TrendsinMoroccanfisheryproductsexportstotheAsianmarket

Dominated by Japan, the Asian market was since the 1990s the main importer of Moroccan frozen
cephalopods.However,since2002thevolumeofMoroccanexportshasdroppedsignificantly,followinga
sharpfallinexportstoJapan.Thisisduetoadrasticreductionincatchesofoctopuscausedbylongperiods
of overfishing. Consequently, if this trend continues, the drop in exports of cephalopods to the Asian
market means that exports ofMoroccan octopus risk being outpacedby exports from more competitive
producers,suchasMauritania.

Graph16:TrendsinMoroccanexportsofmainfisheryproductstotheAsianmarket(volumeandmarket
value)
MarketvalueinMADVolumeintons
3000
2500

Cphalopodes congels

100000

Cphalopodes congels

80000

2000
1500

60000

1000

40000

500

20000
0

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source:DepartmentofMaritimeFishing

2012

MoroccanFisheryProductsExportsontheWorldMarket

26

3.3.2.TheJapanesemarketforfrozencephalopods

On the international market, Japan remains the main importer of cephalopods, despite the strong
fluctuations seen from year to year and clear downward trends resulting from the economic recession
grippingthecountry.

Thus,Japanimportsonaverage60,000tonsofcephalopods,mainlyfromMoroccoandMauritania,outof
the average 300,000 tons produced annually around the world over the last ten years. In market value,
MoroccanexportsoffrozencephalopodstoJapancompriseessentiallyoctopus(90%).

Furthermore,aspresentedinthegraphbelow,trendsinJapaneseimportsofoctopusbymaincountryof
originhighlightthedeclineofthemarketshareofMorocco,hithertorankedasthetopsupplier.Moroccos
market share dropped from 68% in 2001 to 14% in 2010, including a drastic low in 2004 with a market
share of 10% of all octopus imports. Mauritania and China, Moroccos two main competitors on the
market, have capitalized on such a setback, significantly increasing their respective market shares from
18%and3%in2000to35%and24%in2011.

Graph17:TrendsinJapaneseimportsoffrozenoctopusbymaincountryoforigin(1000tons)

140

Ma roc
Chine
Tota l des importa tions

120

Ma urita nie
Vietna m

100
80

62%
68%

60

58%
40
38%
20

10%

10%

18%

22%

24%

24%

24%

14%

0
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Source:Comtrade

ThedeclineinMoroccanexportsofoctopustotheJapanesemarketresultsfromafallindemandcaused
by the economic recession, as well as from a drop in octopus production in Morocco due to the ever
increasingpressureonfishstocks.Indeed,landingsofcephalopodsinMorocco,comprisingmainlyoctopus,
shrankfrom108,000tonsin2001toaminimumvolumeof30,000tonsin2004.Furthermore,despitethe
increase in production seen in recent years, with 89,000 tons in 2009 and 54,548 in 2010, Moroccos
marketsharehascontinuedtodeclineasaresultoffallingdemandontheJapanesemarket.

4.Dynamicsofworlddemandforfisheryproductsbycountryandbyfishspecies:case
studiesofmainspeciesexportedbyMorocco

The performance of Moroccan fishery products exports is dependent on external factors linked to the
dynamicsoftheinternationalmarket (supply,demand, trade), amongotherfactors.Thissectionaimsto
analyzetrendsininternationaldemandforfisheryproductsbycountryoverthelastdecade,basedoncase

MoroccanFisheryProductsExportsontheWorldMarket

27

2012

studiesofthemainproductsexportedbyMorocco.Thiswillhelpidentifyandrankthemainimporters,as
wellasthemainpromisingmarkets,toboostMoroccanexportsoffisheryproducts.

4.1.Pelagics

Forpelagics,thestudywillbelimitedtocannedsardinesandsemicuredmackerelwhichmakeupthebulk
ofMoroccanexports.

ThedynamicsofworlddemandshowthattheRussianRepublichasbeenthelargestimporterofcanned
sardinesintheworld(70,000tonsin2001),followedbytheUnitedStates,Colombia,andUkraine.Since
2001,Russianimportshavedecreasedto leveloffaround30,000tons between2006and2009.In2010,
Russianimportspickedupagainandrosebynearly18%.

South African imports of canned sardines have steadily and significantly increased since 2006, reaching
37,000tonsin2010.In2009,SouthAfricawasthelargestimporterofcannedsardinesintheworld,whileit
iscurrentlythesecondlargestimporterbehindRussia.

WorldimportsofsemicuredmackerelaredominatedbySriLanka,with16,700tonsin2010,followedby
theUnitedStates.Recenttrendsindemandforsuchaproductaroundtheworldhighlighttheemergence
of new markets, notably France and Nigeria, with imports that have been multiplied by 10 over the last
decade, to reach 5,000 tons in 2010. Elsewhere, the demand for canned mackerel remains strong and
relativelystableinJapan,Jamaica,andinEurope,especiallyinItaly,theUnitedKingdom,andSpain.

2012

MoroccanFisheryProductsExports ontheWorldMarket

28

Graph18:Dynamicsofworlddemandforcannedpelagics

Ranking of the ten largest importers in 2010

Trends in demand within importing countries

Growing Markets

En 1000 T

Canned sardines

South Africa is, since 2008,


one of the first markets for
canned sardines with a
constantly increasing demand.

En 1000 T

En Tonnes

semi-cured mackerel

25000
20000

Sri lanka
Italie
Jamaica
ghana

USA
Nigeria
Royaume Uni

France
Japon
Singapoure

15000
10000
5000
0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Sri Lanka and the United States


are among the largest
importers, with a more or less
stable dynamic. France and
Nigeria, whose demand
increased 10 fold over the last
decade, are two markets
offering growth opportunities
for semi-cured mackerel.

MoroccanFisheryProductsExportsontheWorldMarket

29

2012

4.2.Frozencephalopods

Octopus
With more than 116,000 tons in 2000, Japan was the largest importer of frozen octopus in the world.
However,itssharewascutbynearlytwothirds,tostandat45,000tonsin2010.Conversely,SouthKoreas
importsmorethandoubledoverthesameperiodandreached65,000tonsin2010,makingitthelargest
importerintheworld.

European countries are also among the largest importers of frozen octopus, with Italy still in the lead,
followedbySpain.Recenttrendsindemandinthesetwocountriesshowasteadyincrease,withrespective
growthratesof36%and25%between2000and2010.

Squid
Chinaisalargeimporteroffrozensquidontheworldmarket,withimportsof370,000tonsin2008.In
2009,itsdemanddippedasaresultoftheworldeconomicrecessionwhichaffectedhouseholdspending.
In2010,Chineseimportsstoodatnearly251,000tons.
Insecondplace,SpainandItalyremainthetopEuropeanimportersoffrozensquid,withrespective
volumesof167,000and106,000tonsin2010,anincreaseof33%and11%comparedto2009.

2012

MoroccanFisheryProductsExports ontheWorldMarket
Graph19:Dynamicsofdemandforfrozencephalopodsontheworldmarket

30
Rankingoftoptenimportersin2010
Trendsindemandinmainimportingcountries

En 1000 T

10

30

40

50

60

70

Avirtualstabilityofimportsonthe
globalmarketduetoasupply
problemfollowingontheOctopus
overfishingindifferentregionsof
theworld.

En 1000 T

65

Rep. of Korea
Italy
Japan
Spain
Portugal
USA
Thailand
Greece
China
France

Octopus

20

48
45
36
16
12
8
7
3
3


En 1000 T

Squid

China
Spain
Italy
USA
Thailand
Japan
Rep. of Korea
Philippines
Greece
Portugal

50

100

150

200

250

Chinaisthelargestsquidmarket,
witha32%declinein2009dueto
theglobaleconomiccrisis.Itis
followedbySpainandItaly.

KoreaandThailandaremarkets
withgreatermomentuminrecent
years.

300

251
167
106
60
51
40
32
18
17
16

GrowingMarkets

MoroccanFisheryProductsExportsontheWorldMarket

31

2012

4.3.Prawns

Overthe lasttenyears, economicgrowthintheUnitedStates hasboostedtheconsumption of,and the


demandforprawnsinthecountry.Indeed,importsofprawnsrosefrom380,000tonsin2000to530,000
tonsin2010,makingtheUnitedStatesthetopimporterofprawnsintheworldoverthelastdecade.The
UnitedStateshaveoutpacedJapanwhichhasseenitsimportsdropsteadilyfrom390,000tonsin2000to
263,000tonsin2010.

With regard to the eight other main importers of prawns around the world, demand has essentially
stabilizedoverthelasttenyears,exceptinSpainwhereimportshaverisenbynearly25%overthesame
period.

4.4.Freshfish

For more than ten years, Malaysia and Spain were the largest importers of fresh fish in the world, with
imports in the region of 130,000 tons. However, in recent years their imports have declined steadily.
Conversely,demandinThailandhasgrownsince2003,leapingfrom6,000tonsto124,000tonsin2010,
makingThailandoneofthethreelargestimportersoffreshfishsince2008.
OtherEuropeancountriesalsocontinuetofeatureamongthemainimportersoffreshfish,withItalyinthe
lead,followedbyFranceandPortugal.Despiteitsmodestimports,Irelandhasseenitsdemandforfresh
fishrisesignificantly,from1,500tonsin2008to39,000tonsin2010.

2012

MoroccanFisheryProductsExports ontheWorldMarket

Graph20:Trendsindemandforprawnsontheworldmarket

Rankingof10mainimportersin2010
Trendsindemandforproductinmainimportingcountries

32

0
USA
Japan
Spain
France
China
Italy
Rep. of Korea
Canada
Denmark
Russian Federation

100

200

300

400

500

600

600

USA
China
Canada
France

500

530

263

400

202

Japon
Italie
Russie

Rep core
Danemark
Espagne

TheUnitedStatesand
Japanarethetwomain
importersofprawnsinthe
world,whileSpainisa
buoyantmarket.

300

132
115
92

Marketswithhighestdemand

200
100

92
74
65

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

62

Graph21:Trendsindemandforfreshfishontheworldmarket

Rankingof10mainimportersin2010

Freshfish

En 1000 T 0
Malaysia
Spain
Thailand
Italy
France
USA
Portugal
Ireland
United Kingdom
Singapore

20

40

60

80

100

120

140

Trendsindemandforproductinmainimportingcountries
160

250

138
125
124

200

En
1000 T
Thailand
Italie
Portugal
Singapour

Malysie
France
Irland

Espagne
usa
Royaume uni

ThailandandIrelandare
newpromisingmarketsfor
freshfish,althoughinthe
caseofIrelandthevolume
importedislesssignificant.

150

80
57
51
42
39
32

100
50
0

29

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Marketswithhighestdemand

MoroccanFisheryProductsExportsontheWorldMarket

33

2012

5.AssessmentofexportdestinationsfavoredbyMoroccanfisheryproducts,basedon
worldmarkettrends

According to the analysis presented in the table below, Moroccan fishery products exports are mainly
headedfortheEUmarketaswellasafewAsianandAfricancountries.Marketswithahighdemandfor
theseproducts,suchastheUnitedStatesandotherAsianandAfricancountries,areunderexploited.

Table15:CurrentsituationofmainexportdestinationsforMoroccanfisheryproducts,andmarkets
withthehighestdemandaroundtheworld(2010)

Mainproductsexportedby
MainexportdestinationsforMoroccan Marketswithhighest
Morocco
products
demand
Cannedsardines
Africa:NigeriaGuineaGhana
1. RussianFederation
2.
SouthAfrica
EU:FranceSpainGermany
3. UnitedStates
Syria
Semicuredmackerel
EU:Italy
1. SriLanka
Spain
2. UnitedStates
3. Japan
4. Italy
Frozenoctopus
EU:Spain
1. Rep.ofKorea
Italy
2. Italy
Japan
3. Japan
4. Spain
Frozensquid
EU:Spain
1. China
Italy
2. Spain
3. Italy
Japan
4. Thailand
Frozencrustaceans
EU:Spain
1. UnitedStates
Netherlands
2. Japan
3. Rep.ofKorea
4. China
Freshdemersalfish
Spain
1. Malaysia
Japan
2. Thailand
3. Spain
4. Italy

Moroccocommandsaleadingpositionincannedsardinesontheworldmarket,andthebulkofitsexports
are destined for a few European countries and a few African countries (Nigeria, Guinea, and Ghana).
However, trends in world demand show that South Africa was the largest importer of canned sardines
around the world in 2010, while the Russian Federation and the United States have, for more than ten
years, featured among the largest importers. Morocco exports modest volumes of canned sardines to
these markets with high demand, and there are, therefore, great opportunities to be seized on these
growingmarkets.

MoroccanFisheryProductsExportsontheWorldMarket

34

2012

Similarly, Moroccan exports of semicured mackerel are headed for countries with low demand, such as
ItalyandSpain,andnotforcountrieswithhighdemand,suchasSriLanka,theUnitedStates,Japan,and
Italy.

ThisanalysisalsoshowsthatforMoroccanfisheryproducts,Asiaisaregionwithhighgrowthpotential.For
instance, the Republic of Korea and China are among the largest importers of octopus and squid, but
MoroccanexportsoftheseproductstoAsiaarefocusedonJapan.Withregardtofreshfish,Malaysiaand
Thailandfeatureamongthelargestimporterswithhighgrowthpotentialmarkets.

Thus,toenableMoroccanproductstoreachSouthEastAsianmarketsintheverynearfuture,measures
mustbetakentoboostMoroccanexportstotheregion,notablyregardingtheeasingofproceduresand
therevisionoftariffsagreements.

TheUnitedStatesmarketalsooffersgreatopportunitiesforthewholerangeoffisheryproductsexported
by Morocco. Addressing logistical issues such as transport can boost trade with a country ranked as the
largestimporteroffisheryproducts.

6.StrengthsandWeaknessesofthesectorofMoroccanfisheryproductsexports:SWOT
analysis

The sector of fishery products exports enjoys assets and opportunities, and has a large potential for
development.Nevertheless,themarketingoffisheryresourcesstillneedstobeoptimizedalongtheentire
valuechain.

6.1.Weaknessesandthreatsregardingtheimprovementincompetitivenessof
Moroccanfisheryproductsexports

The breakdown of exports by product underscores the predominance of a limited number of species
(octopus, squid, cuttlefish, prawns, sardines, and anchovies) and product ranges (canned and frozen).
Moroccan exports remain centered on two traditional markets, Spain and Japan. Together these two
countriesaccountfor83%ofthemarketvalueofMoroccanexportsand68%oftheirvolume.Suchadual
rigidityintermsofproductsandmarketsisthemainweaknessofthesectorsexports.

WhiletheliberalizationofworldtradehasbroughtdowncustomsbarrierstograntaccesstotheEuropean
market,othertypesofbarriershavegraduallybeenintroducedandarehavingasignificantimpact.These
include the strict regulations on quality and traceability which Moroccan fishery products exports are
subjectto,especiallyexportsheadedfortheEuropeanmarket.

Besides traditional challenges, such as heavy geographical concentration, limited number of partners,
limited product ranges, the competitiveness of exporters is also undermined by weak export logistical
chains.Highlogisticalcostscanhamperanypolicytopromoteexports.

MoroccanFisheryProductsExportsontheWorldMarket

35

2012

Forinstance,MoroccanfisheryproductsexportstoAfricaarelimitedtocannedpelagics,whichmakeup
90%ofthemarketvalueofexportstoAfrica.Suchaconcentrationintermsofproductrangeismainlydue
togeographicaldistanceandthelackofdirecttransportlinks.Likewise,Moroccospoorshowingonlarge
markets with high demand, such as the United States and the Russian Federation, results in many ways
fromsuchlogisticalconstraints.Inthisregard,thecreationofadirectmaritimelinkwiththesecountries
shouldhelpreachintendedexportdestinations.

The issue of logistics is even an obstacle to the improved competitiveness of exports destined for
neighboring countries. Indeed, the high costs of crossing the Gibraltar Straits undermine the
competitivenessofexports,whencomparedtothelowercostsincurredbyMoroccoscompetitors.

These logistical difficulties also affect product delivery timeframes. Recent developments in the
competitive environment have exposed the shortcomings of a strategy based primarily on production
costs.Whatisimportantisnotonlytokeepproductioncostslow,butalsotobemoreresponsiveandto
managethetimelineformarketingproductseffectively.

Box3:Newlogisticsstrategy

Logistics is a crucial facet of the countrys economic competitiveness, given the significant costs it
generates,whichcanundermineproductcompetitiveness.

Publicauthoritiesarefullyawareofthesestakes,andthelogisticssectorinMoroccohasrecentlyadopted
a new national strategy, to support sector based plans already implemented such as Green Morocco,
Emergence, Halieutis, Rawaj, and the energy strategy, which are all parts of a transversal and
integratedapproachtothecompetitivenessofthecountryseconomicfabric.Thenationalstrategyforthe
developmentoflogisticalcompetitivenessisthesubjectofthe20102015programcontract,andaimsto
cut logistical costs by 20 to 15% of GDP, a ratio similar to that of emerging countries such as Brazil and
Mexico.

Thenewlogisticsstrategy,designedtobettermanageandoptimizetheflowofgoodsforimportaswellas
forexport,restsonthedevelopmentofbasicinfrastructurelaunchedinthelasttenyears,aspartofthe
major projects policy. The TangerMed and Nador West Med port complexes, those of Safi and Dakhla
currentlyunderstudy,thedevelopmentofrailroadsconnectingtheseports,thedevelopmentofairportsin
theCasablancahubandintheregions,theextensionofthehighwaynetworkwhichwillconnectallcities
withmorethan400,000inhabitantsandconsistof1,800km,areallthemorevisiblecomponentsofthis
policyanditscoherence.

The new strategy also entails the liberalization and the revision of the institutional framework of the
transportsector,especiallyforthetransportofgoods,whichwaslargelyopenedtocompetitionin2007,
with the implementation of several reforms pertaining to ports, maritime transport, and road and rail
transport.

MoroccanFisheryProductsExportsontheWorldMarket

36

2012

6.2.StrengthsandopportunitiesforimprovementincompetitivenessofMoroccan
fisheryproductsexports

InMorocco,opportunitiestodevelopfisheryproductsexportsareconsiderable,especiallyinthecurrent
climate amid a remarkable growth in demand for fishery products worldwide, and the stagnation of
catches around the world (aquaculture excluded). Indeed, despite a decline in resources worldwide, the
consumptionoffisheryproductsaroundtheworldisincreasingsteadily.

The proximity of markets with high demand, particularly the EU market, the largest importer of fish
worldwideandMoroccoslargestclient,isamajoradvantageintermsofthesignificantsavingsmadeon
transportcosts.Besides,Europeanconsumersdemandforparticularfisheryproducttypesthatarelabour
intensive, such as readymade meals, gives Morocco another notable advantage because it can rely on
labouratcompetitivecosts.

Furthermore,theglobalizationoftradeaswellasthefreetradeagreementssignedbyMorocco,offernew
marketprospectsforMoroccanproducts.Customsagreementsgranttheseproductsprivilegedaccesstoa
marketofonebillionconsumers,and57%ofworldimports(seeBox4).

Box4:Moroccosfreetradeagreementsforexports
EU
tradeagreementforagriculturalandfisheryproducts
Entryintoforcein2000
Agreementscope:creationofafreetradezonein2012
Market:500millionconsumers
40%ofworldimports
.
USA
Freetradeagreement
Entryintoforcein2006
Market:300millionconsumers
15%ofworldimports

Turkey
Freetradeagreement
Entryintoforcein2006
Market:70millionconsumers
lessthan1%ofworldimports

Jordan,Egypt,andTunisia
Freetradeagreement
Entryintoforcein2006
Market:95millionconsumers
lessthan1%ofworldimports

2012

MoroccanFisheryProductsExportsontheWorldMarket

37

TheMoroccanexportsectorcouldclearlybenefitfurtherfromsuchopennesstotrade.Indeed,despitethe
highqualityoffishspeciesexported,Moroccanproductsarenotconveyedtotheexportmarketinoptimal
conditions,eventhoughqualitynormsarebecomingincreasinglystringent.Combinedwiththewealthin
fishresourcesalongtheMoroccancoast,theopennesstointernationalmarketsgivesMoroccoaclear
competitiveedge,ifinternationalmarketrequirementsonthesustainabilityofsupply,andthequalityand
traceabilityofproductsarefulfilled.

Table16:SWOTanalysisofMoroccanfisheryproductsexports

Strengths
- extensivefisheryproductioncapability
- underexploitedpelagicsstockinthesouthAtlantic
region(ZoneC)
- goodproductimageoftheMoroccansardine
(Pilchardus),recognizedforitsexceptionalquality
worldwide
- leadingpositiononthesardinemarket
- Proximitytomarketswithhighdemand.

Opportunities

Weaknesses
Irregularsupplytoprocessingunits
poorrationalmanagementoffishresources
highconcentrationontheforeignmarket
limitedproductrange
limitedinnovationandresearchanddevelopment
lackofaggressiveandconcertednationalstrategy
topromotetheexportsofMoroccanproducts
- DeficientlogisticstosupplyAfricancountriesand
othercountrieswithhighdemand.

Threats

- freetradeagreements
- emergenceofnewcompetitors
- strongincreaseinworlddemand
- morestringentrequirementsforproductquality
- Depletionofstocks.
- emergenceofnewimportingmarkets(Africa,
MiddleEast,UnitesStates)
- politicalwilltodevelopexports
- ImplementationoftheHalieutisstrategy.

Furthermore,givenitssignificantsocioeconomicstakes,thesectorofcoastalandtraditionalfishingisan
essentialcomponentoftheMCA2Morocco.AnamountofnearlyMAD1,367millionhasbeenearmarked
toupgradethesectorinallitscomponents,fromfishingtomarketing.

A new integrated development strategy for the fishery sector in Morocco, called the Halieutis Plan, has
been launched. The strategy is articulated around three major areas: the sustainable exploitation of
resources and the promotion of responsible fishing, the development of efficient fishing to optimize
product quality, and the improvement of competitiveness to conquer new market shares. In terms of
strategicandstructuringmeasures,theHalieutisPlanentailstheimplementationofmanagementplansfor
fishery(octopus,prawns,andpelagics),thedevelopmentofaquaculturewhichcantakesomepressureoff
fishstocks,andthecreationofpolesofcompetitiveness.

Millenium Challenge Account.

MoroccanFisheryProductsExportsontheWorldMarket

38

2012

Diagram1:Halieutisstrategyforthedevelopmentandcompetitivenessofthefisherysector

Sustainability
Performance
Competitiveness
sustainableexploitationof
wellequippedandwellorganized wellmarketedandcompetitive
productsonthemostpromising
resourcesforfuturegenerations sectortooptimizequality,from
markets
thelandingoffishtothe
consumersplate
promoteanddisseminate
developinfrastructureand
facilitatetheindustrysaccessto
scientificknowledge
equipmentforfishlanding
primaryresources
managefishingonaquotabasis grantspecificportareastofishing guidetheindustrytowardsthe
andmanagethemefficiently
mostprofitablemarkets
upgradeandmodernizefishing enhancetheattractivenessoffish setup3polesofcompetitiveness
techniques
marketsandindustrialfish
forfisheryproductsinthe
approvalunits(CAPI)
countrysnorth,centre,andsouth
Makingaquacultureakeydriver Structuringandboosting

ofgrowth
wholesaleandretailmarkets

Clarifyandextendlegalprovisions
Ensureeffectivecontrolandtraceabilityalongtheentirevaluechain
Enhanceskillsandattractivenessofjobsinthesector
Organizetherepresentativityofallprofessionalgroupsinthesector

BesidestheobjectiveofachievingMAD21billioninGDP,theHalieutisstrategyaimstomultiplyturnoverin
exportsoffisheryproductsby2.6,toreachMAD3.1billionby2020.Thestrategyisalsoexpectedtoboost
Moroccosmarketsharearoundtheworld,from3.3%in2007to5.4%by2020.

SignificantprogressintheimplementationoftheHalieutisPlan

Aftertwoyearsofimplementation,thenewstrategyforthefisherysectorhasmadesignificantprogress
withthelaunchofseveralprojects,some14projectsaccordingtothesupervisingministry.

Instancesofgoodprogressmadeincludethemanagementoffishresources,followingtheimplementation
of management plans for small pelagics, prawns, hake and seaweed, over 2010. Since June of the same
year,theDepartmenthasbannedtheuseofdriftnetstoprotectmarinebiodiversityandvulnerablespecies
thatmaybecaughtaccidentally.Tothisend,controlmeasureshavebeenreinforced.
Other measures taken comprise the creation of the agency for the promotion of aquaculture, the
designationofaglobaloperator,withtheNationalFisheryOfficeactinginthiscapacitysinceJune 2010,
theupdateoflegalprovisions,andthelaunchofpolesofcompetitiveness,oneinAgadirandtheotherin
Tangier.

Intermsofinitialresultsofthenewstrategyonlandbasedfishprocessing,thecanningindustryincreased
its supply by 72% over the first eleven months of 2010, while its turnover for exports reached MAD 4.5

MoroccanFisheryProductsExportsontheWorldMarket

39

2012

billion. However, the freezing industry dropped by 16%, causing a fall in fish oil and fishmeal that it
previouslysuppliedinabundance.Thesearethemostnotableissuestobeaddressed.

Similarly,thefishprocessingindustrysufferedasharpdropinvolumesprocessedin2011(45%)inallits
branches, except in freezing. Such a drop was notably due to a decrease in landings of pelagics, which
affectedsupplytocanningunits(59%).

Diagram2:InitialresultsoftheHalieutisstrategyforlandbasedfishprocessing

Source:DepartmentofMaritimeFishingNationalFisheryOffice

Buildingfurtherconsensusamongthesectorsoperatorsandprofessionalgroups

Thefisherysectorismadeupofdifferentoperatorsandprofessionalgroupswithintereststhatareattimes
divergent.Itis,therefore,essentialtostartbybuildingconsensusamongthedifferentoperators,togain
theirsupportforthedifferentreformsinitiatedtodevelopthesector.

In this regard, after two years of implementation of the Halieutis Plan designed to address a number of
issues and failures in the sector, operators and professional groups have expressed some reservations,
whichmustbetakenintoaccount,buthavenotfundamentallychallengedthePlan.

Withregardtothemanagementofresources,operatorshavehighlightedthelackofaneffectiveresources
management policy, a lack that can lead to an uneven exploitation of stocks and limit the efficiency of
measuresimplementedaspartofthenewstrategyupuntilnow.

Operators have also pointed out that human resources, fundamental to the development of the sector,
havenotbeensufficientlytakenintoconsiderationintheHalieutisPlan,andthatinternalcommunication
has been lacking. Indeed, operators consider that the new strategy has not fully addressed a number of
issues such as training, providing support to fishermen during periods of suspension of fishing activities,
minimumincome,aswellassocialprovisionstomakethesectormoreattractive.

MoroccanFisheryProductsExportsontheWorldMarket

40

2012

Similarly, according to the sectors operators, the Halieutis Plan has not dealt with the issue of the
geographicaldistributionoffishingasitshouldhave,giventhatfishingisfartoointensiveinthenorthand
underdevelopedinthesouthofthecountry.

Lackoforganizationindistributionnetworksaswellaslogisticalconstraintshavealsobeenunderlinedas
obstaclestotheimprovementofthesectorscompetitiveness,whichshouldbeliftediftheobjectivesof
theHalieutisPlanaretobeachieved.

Inanefforttobringtogetheralltheoperatorsofthesectorandtobuildfurtherconsensusaroundthenew
strategy, a special fair named Halieutis was created under the high patronage of His Majesty King
MohamedVI,andheldinAgadirfromJanuary26thto29th2011.Thesuccessofthisgreateventbodeswell
fortheadoptionandtheimplementationoftheHalieutisPlaninthefuture.

Aquaculture:providingleveragetodiversifyMoroccanexports

IntheHalieutisPlan,thefourthprojecttoensuresustainabilityaimstodevelopaquaculturesignificantly
andmakeitadrivingeconomicsegmentforgrowth.InMorocco,aquaculturehashighpotentialandwill
aimtoachieveaturnoverofmorethanMAD2billionby2020.

Aquacultureiscurrentlyunderdeveloped,withsometenunitsproducingbetween1,000and1,500tonsa
year(lessthan0.1%ofallfisheryproduction),dividedintofish(88%)andshellfish(12%).Thesegmenthas
tocontendwithawholerangeofissues,suchasthescarcityandprohibitivepricesofusableareas,thelack
oflegalprovisions,anditsheavydependenceontheinternationalmarket.Suchadependenceresultsfrom
supportpoliciesadoptedbysomecountries,andthecustomsbarriersputupbyimportingcountries,which
significantly undermine fair competition. Besides these constraints, aquaculture is known as a capital
intensiveventurethatrequiressignificantinvestmentandworkingcapital.

Nevertheless,aquaculturecancapitalizeonthesameopportunitiesasseafishing,especiallywithregardto
the proximity of importing markets, new prospects offered by economic openness, as well as to the
increaseindemandforfisheryproducts,domesticallyandinternationally.

Inadditiontothesegeneralopportunities,Moroccoisendowedwithconsiderablepotentialwhenitcomes
tositessuitableforaquaculture(lagunas,bays,highseaoroffshore,coastallowlandareas).Manypotential
sitesarestillunderexploited,especiallyalongtheMediterraneancoast.

Besidesnaturalassets,aquacultureinMoroccocancountonlargenumbersofworkerswithfishingskills.
Forinstance,inareaswherefishingistoointensive,fishermencouldberedeployedtodevelopaquaculture
intheseareas.

MoroccanFisheryProductsExportsontheWorldMarket

41

2012

According to international benchmarks3, and based on the experience of countries well advanced in
aquaculture, the development of aquaculture in Morocco can only be achieved through the
implementation of coherent strategies with specific objectives, sufficient financial means, and an
appropriatelegalandregulatoryframework.

Thestudyofinternationalbenchmarksshowsthatcountrieswithstrongperformancesinaquaculturehave
implementedcoherentstrategieswithspecificobjectives,andprovidedthesectorwitheffectivemeansas
wellasthenecessarylegalandregulatoryframework.Themainlessonstobedrawnfromtheanalysisof
experiencesworldwidecanbesummarizedasfollows:

1. Coherentpoliciesforthesectorsdevelopment
In most of the cases studied, national governments, in consultation with fishing industry professionals,
have adopted coherent policies for the development of aquaculture. These policies often set production
targetfiguresoverthemediumorlongterm,andproposeactionplanswiththemeanstoimplementthem
andachieveobjectivesset.

2. Legalprovisionsspecifictoaquaculture
Countries that have significantly developed aquaculture, such as Spain and Chile, have legal provisions
specifictothesector.Theseprovisionsensurethecoherenceofthedifferentfacetsofaquaculturepolicy
(resources, markets, structure, research, training, employment, social relations ...), as well as the
coordinationbetweenthesectorsdifferentactorsandgreaterinvolvementinresearch.

3. Integrationofaquaculturetorelatedsectorssuchasseafishing
Severalcountriesseeintegrationasaprocesscontributingtothedevelopmentofaquaculture.Itisthecase
withEUcountriesthatencouragetheredeploymentofseafishingworkersinaquacultureinareasaffected
bysignificantdropsincatches.

4. Financialassistancetobusinesses
Mostcountriesprovidedirectfinancialassistancetodevelopbusinesses,inviewofexpandingproduction
capacityand/orenhancingthecompetitivenessofexistingproductionunits.Spainalsoprovidesassistance
onriskmanagementtoaquaculturebusinesses.Thus,producersofseabream,seabass,turbot,mussels,
and trout in seawater, have access to fish harvest insurance schemes covering different risks (marine
predators, diseases, variations in temperature,bad weather conditions, accidents, changes in salinity, oil
slicks, chemical and biological pollution). These schemes are provided by the Spanish insurance group,
Agroseguro,whichreceivessubsidiesfromtheSpanishgovernmentandautonomouscommunities.

5. Supportingscientificresearchandtechnologytransfers
All the countries studied allocate important resources to research and development. They allhave some
typeofnationalinstituteforresearchanddevelopment inaquaculture. Mostofthemallocateresources
3

Comparison between neighboring Mediterranean countries (France, Spain, Egypt), Asia (Vietnam), and
South America (Chile), presented in a study published by the Department of Studies and Financial Forecasts
in 2008 on the analysis of the sector of sea fishing and aquaculture in the new context.

MoroccanFisheryProductsExportsontheWorldMarket

42

2012

fortechnologytransfers,giventhatitisessentialtotheinnovationprocessthatleadstotheadaptationand
useofnewtechnologyandotherresearchanddevelopmentfindings.

6. Bettersanitarycontroltoensurequalityofaquacultureproducts
The health and safety of aquaculture products is one of the major and primary concerns of government
interventioninthedifferentcountriesstudied.Mostofthesecountrieshavesetupnationalprogramsfor
the health of aquatic animals, to support an integrated approach to such an important aspect of
aquaculture,providenecessarysanitaryservicestotheindustry,aswellastakecontrolmeasuresandput
inplacequickresponsemeasuresincaseofanyepidemicemergency.

Inmostofthesecountries,normsandstandardsarebeingreinforced,whichisanaddedsellingpointfor
the exports of the countries in question, but a supplementary hurdle for fish products imports to these
countries.

7. Sustainabledevelopmentforthesector
Allthecountriesstudiedsupportthesustainabledevelopmentofthesector.However,thetypeofsupport
provided varies from one country to another and involves a series of advantages and socioeconomic
benefits. These benefits include, amongst other things, the fact that aquaculture is a reliable source of
food, that it creates jobs and wealth, that it attracts foreign currency, that it contributes significantly to
regionaldevelopment,andthatitcontributestotheuseoflandandcoastalareas.

MoroccanFisheryProductsExportsontheWorldMarket

43

2012

Conclusionandrecommendations

The analysis of the recent performance of Moroccan fishery products exports shows that they fare
differently,dependingonspeciesandmarkets.

The breakdown of Moroccan fishery products exports basically shows the preeminence of four main
products that account for 80% of all the sectors exports, and that include frozen cephalopods (27%),
canned pelagics comprising mainly sardines (37%), fresh white fish (8%), and frozen crustaceans, mainly
peeled prawns (6%). These exports are generally headed for EU countries and some African and Asian
countries,withmarketsharesthatdifferaccordingtothemarketandtheproducttype.

IntheEuropeanUnion,whichreceivesnearly70%ofMoroccanfisheryproductsexports,Spainremainsthe
mostimportantoutletwith46%oftheoverallvalueofthesectorsexports.ExportstotheEUcomprisethe
fourmainproductsexported,withfrozen cephalopodsandcannedpelagicsenjoying anupwardtrendin
recentyears.

In terms of positioning on the EU market, Morocco is the leading exporter of canned sardines, and is
considered as one of the main suppliers of frozen octopus to Spain. For fresh fish, and despite a strong
potential for production, Morocco does not fare so well on the EU market, with a mere 14% in market
share. Nevertheless, in view of the drop in the market shares of its main competitors, especially with
Frances declining resources, good opportunities to conquer new market shares are emerging. It is
important to note that tariff conditions Moroccan products are subjected to on most EU markets have
improved,followingtheMoroccoEUassociationagreementwhichcameintoforcein2000,andthe2012
MoroccoEU trade agreement. These agreements notably pertain to the exemption from customs duties
forfarmingandfisheryproducts,whichwillgiveMoroccanproductsprivilegedaccesstoabuoyantmarket,
providedthatqualitynormsandstandardsaremet.

AsiaisahighpotentialmarketforMoroccanproducts,butfisheryproductsexportsarelimitedtofrozen
octopus and mainly headed for Japan, which receives 5% of all Moroccan fishery products exports and
remains a major importer of crustaceans, molluscs, and shellfish. Moreover, Moroccos position on the
octopusmarketmaybeunderminedbyitsmaincompetitors,ChinaandMauritania,whichhaveincreased
their market shares since 2004. The Asian market could serve as a hub to reexport products to other
countriesintheregion,suchasThailand,Malaysia,andSouthKorea,thelargestimporterofoctopussince
2010. In order to better market Moroccan products across SouthEast Asia, measures regarding the
simplificationofprocedures,therevisionoftariffsagreements,andtheupgradingofcanningunits,must
betaken.

As for Africa, Moroccan fishery products do not fare too well with less than 11% of the overall value of
fisheryproductsexports,despitethecontinentsstrongdemandfortheseproducts.Potentialforgrowthis
high, especially for canned and semicured products. Moreover, if logistical obstacles, notably regarding
transport,aretosomeextentovercome,tradewiththeAfricanmarketcanpickupandreachthelevelof
tradewiththeEU.

MoroccanFisheryProductsExportsontheWorldMarket

44

2012

Outsidethesetraditionalmarkets,Russiastillremainsthelargestimporterofsardines,theMoroccancore
product.Moroccoisthelargestsardineproducerintheworld,butithasnotmadeanyimpactonamarket
with imports worth $ 40.5 million in 2010 and mainly coming from Ukraine (50%). Ironically, Moroccan
exportsdoreachsmallmarketsintheEastEuropeanregion,suchasHungary,acountrywhoseimportsof
sardinesdonotexceed$4million.However,Moroccanexportsofcannedmackereltotheregionarenon
existent. More recently, South African imports of canned sardines have soared, and South Africa was
rankedlargestimporterin2009andsecondlargestimporterin2010.

Today,theUnitedStatesisthelargestimporteroffishandfisheryproducts.TheAmericanmarketshould
offeropportunitiestoMoroccanexporters,giventheadvantagesandpossibilitiesentailedinthefreetrade
agreementbetweenMoroccoandtheUS.Thepromotionofexportstosuchalargeandbuoyantmarket
will no doubt require efficient cost control and good management of transport times, which obviously
dependonthedevelopmentofspecificlogisticalservicesforfisheryproductsexports.
Generally, Morocco should adopt international benchmarks regarding strategies pursued by our main
competitors, and draw inspiration from the experiences of other countries to come up with measures,
especiallyintermsoforganizationandtrade,toboostthesectorsexports.

Onthebasisoftheanalysisproposedinthisstudy,andwiththeaimofachievingabetterpositioning
for Moroccan fishery products on the international market, several avenues can be explored to make
progress:

1. Technologicalinnovation
Withregardtoproductinnovation,products adaptedtothe requirementsofclientsand tothedifferent
uses of products must be developed. To this end, the following pathways to development could be
explored:
- optimizethemarketingofpelagics,andusethevaststocksavailabletoincreasethepart
whichisprocessedintohighaddedvalueproducts;
- furtherprocessingoffrozenproducts,currentlysoldafterbasicprocessing;
- boostinghighqualityfreshfishexports,inhighdemandontheinternationalmarket,by
increasing the production of high quality fish and widening the range of species
produced;
- developing innovative products, especially readymade dishes and marinades, to
respondtonewconsumptiontrends,targetnewmarkets,andcreatemoreaddedvalue;
- complyingwith clients sanitary and quality norms, and developingMoroccan labels to
improvemarketability.

2. Prospectingnewmarkets
Giventhe costsandlogisticsofprospectingnewmarkets,notablyforsmallandmediumsizebusinesses,
businessesinsearchofnewmarketscanbegivensupportthroughtheeffectiveuseofsupportmeasures
forming part of the strategy for export (information, export fairs, marketing and communication
campaigns,creationofaplatformforexports...).

MoroccanFisheryProductsExportsontheWorldMarket

45

2012

3. Organizingexportactivities
BoostingMoroccanexportsrequiresaplatformforfisheryproductsexportssetuptofacilitateMoroccan
businesses access to growing export markets. The platform can essentially pool Moroccan fishery
production,identifydemandonexportmarkets,establishcontactswithimporters,investors,government
servicesandforeignbusinesses,aswellasimprovethevisibilityofMoroccanbusinessesabroad.

4. Developinglogistics
Toenhancethecompetitivenessofnationalfisheryproducts,notablyontheAfrican,MiddleEastern,and
US markets,itisimperativetooptimizeaccesscostsandimprove connectivity betweenour country and
these destinations. The implementation of the national logistics strategy must be speeded up, and the
improvement in infrastructure and outreach, especially toward the African market, must be further
consolidated.Effectively,thisstrategyaimstosetup3agroprocessingandmarketingplatforms,inAgadir
(55haby2015),Laayoune(5haby2015),andDakhla(15haby2015).

Thestrategywillsignificantlyboostfisheryproductsexportsbycuttinglogisticalcosts,thankstooptimized,
secure,andstandardizedmanagementoftheflowofgoods.

Withregardtomaritimetransport(95%offoreigntrade),Moroccomustmodernizeandupgradeitsfleet
toenhanceitscompetitivenessinthefield,andreduceitsdependenceonthefluctuationsincargocosts
worldwide.Itshouldalsoimproverepairandmaintenanceservices,inkeepingwithinternationalnorms.

Furthermore,Moroccoshould,inconcertwithitsAfricanpartners,bothbilaterallyandmultilaterally,aim
to upgrade different modes of transport available. In this regard, constraints relating to cumbersome
regulations and administrative procedures generate additional transport costs in Africa, and must,
therefore,belifted.

5. Developingaquaculturetosustainfisheryproduction

The development of aquaculture can help sustain fishery production and relievepressure on fish stocks.
Thefollowingmeasurescouldbetaken:
- designingacoherentandconsensualpolicyforthesector,withsetobjectivesandthespecific
meanstoimplementit;
- designing an adequate legal and regulatory framework which reflects the constraints and the
potentialofthesector;
- developingacomprehensivesystem(norms,control,institutions...)toguaranteethesafetyand
healthofaquacultureproducts;
- Designingacommunicationstrategytopromotetheimageofthesectoranditsproductsinthe
eyesofconsumers,andforpublicopinionatlarge.
- Taking action inspired by, and in keeping with, the more general approach to sustainable
development.

MoroccanFisheryProductsExportsontheWorldMarket

2012

Referencesbibliography

46

Agritrade.Novembre2009.Pche:accsaumarch:aspectstarifairesetnontarifaires.
Actesdusymposiuminternational,Dakar(Sngal).2428juin2002.Unquartdesicledegestion
despcheriesdecphalopodesenAfriquedelOuest:Enseignements&propositions.
Commission Europenne, Direction Gnrales des Affaires Maritimes et de la Pche. 2009.
Analyse de lapprovisionnement et de la commercialisation des produits de la pche et de
laquaculturedanslUnionEuropenne.
FAO.2010.Situationmondialedespchesetdelaquaculture.
FAO.2009.AnnuaireStatistiquedespchesetdelaquaculture.
FAO.2009.Regardsurlapcheetlaquaculture:casduNigria.
FAO.Novembre2008.PerspectivesdeLalimentation:Analysedesmarchsmondiaux.
FAO. 2006. Le commerce international des produits de la pche: situation et principaux faits
rcents.
FAO.March1999.Globefishresearchprogramvol58.Theworldmarketforsardines.
MinistredesAffairesEtrangre,Maroc.2006.Activitsetmarchsprometteurslexportation.
MinistredelAgricultureetdesPchesMaritimes,Maroc.2009.PchesMaritimes:Unenouvelle
stratgiepourunsecteurfortpotentielstratgique(PlanHalieutis).
IFREMER, Dpartement des conomies maritimes, Paris. 2007. Evolution des Besoins
dapprovisionnement en poissons du march europen: analyse du dficit global et focus sur le
marchdupoissonfrais.
OFIMER.2008.Bilandesimportationsetdesexportationsfranaisesdesproduitsdelapche.
OFIMER.2003.Lemarchdupoissonblanc.
PEDROSLAMOOTERO,InstitutoGalegodePromocinEconmica.2006.Espaaenelcomercio
internationalglobaldelosproductosdelapesca.

2012

MoroccanFisheryProductsExportsontheWorldMarket

47

Annexes
Appendix 1: The methodology for decomposing in terms of structure and performance
To identify the origin of the growth gap of fisheries total exports from one period to another, these
differences are decomposed into the structure and the performance of the product. To do this, we proceeded
first to the decomposition of these exports into the main exported products namely:
Canned Sardine,
Semi cured mackerel,
Frozen,
Meal and fish oil,
Fresh or live,
Others.
We define the year-on-year growth rate of exports of fisheries in value between the timing t and t-1, Xt,
as follows:
Xt = t 1, j xt , j , where t 1, j is the weight of product j in overall exports at the timing t-1 and xt , j the growth
j

rate of exports of product j between the timing t and t-1 (yoy in value).
We then try to identify where does the difference in growth of total exports from one period to another
originate in the following way:
Xt - Xt-1 =

t 1, j t , j

t 2 , j t 1, j

This variance can be written as:

X t X t 1

Total variance

( xt 1, j + xt , j )
2

( t 1, j t 2, j )

Sectoral structure effect

( t 1, j + t 2, j )
2

( xt , j xt 1, j )

Sectoral performance effect

This decomposition designates two terms: The product structure effect and the performance effect.