Increased Production Goals in Morocco Opens Doors for U.S. Grain

Commodity purchases projected to increase as beef production rises.

Published on: May 27, 2009

The U.S. Grains Council sees a great opportunity for America's corn growers in Morocco. With the announcement of an incentive program to establish 20 to 30 large beef feedlots and ten modern meat processing facilities designed to increase domestic beef production by 80% by 2020. USGC believes additional commodity purchases will increase returns to $60.5 million each year by 2011.

 

The council jump-started beef production in Morocco five years ago with the introduction of a large livestock cooperative called COPAG. Two years later the Council introduced U.S. distiller's dried grains with solubles and corn gluten feed to the Moroccan marketplace. As a result, COPAG established a 10,000 head feedlot and another four feedlots and three large dairies have been built or are in the process of being built. With that the demand for corn and its co-products has spiked.

 

USGC Direcor of the Mediteranian and Africa Kurt Shultz says the Moroccan Feed Millers Association's adoption of the Council's plan to develop the ruminant feed market has increased corn consumption by 165,000 tons, or 6.5 million bushels, from 2003 to 2007. Projections call for 465,000 tons of corn, sorghum and co-product sales by 2011.