Summary

Wheat products constitute a large portion of the average Moroccan’s daily diet and total spending. Each year, 280 kilos of wheat is consumed by an average Moroccan compared to the world’s average of 65 kilos per year. However, more frequent and severe droughts, as a result of climate change, are negatively impacting Morocco's wheat production and in turn making the country vitally dependent on wheat import.

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A. P. Moller Capital has a 49% shareholding in Mass Céréales al Maghreb (MCM) that is the concessionaire and operator of two cereal product handling terminals at the ports of Casablanca and Jorf Lasfar. By enabling more efficient and reliable cereal supply chains, Mass Céréales Al Maghreb has an important socioeconomic role to play strengthening food security in Morocco. In 2019-2022, the study results suggest that MCM potentially has saved the Moroccan government wheat subsidies of around USD 100 million that in turn could have reduced consumption spendings corresponding to around USD 159 million in company revenue, USD 87 million in GPD and around 7,700 FTE. 

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Publication

The results of the study were presented in A. P. Moller Capital's annual ESG report for 2022 and have further been used in the second round of pilot projects of the OECD Blue Dot Certification Programme aiming to foster the quality infrastructure investment vital to support sustainable growth and resilient economic recovery. 

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Project purpose and objectives

The purpose of the study is to assess how the MCM terminals contribute to the import wheat supply chain in Morocco considering wheat’s significant importance in the Moroccans diet and their economy. Through comparative supply chain costs analyses of domestic and international cereal product handling operator, the study examines MCM’s ability to keep the price of imported wheat as low as possible and securing a stable and sufficient flow of wheat satisfying the Moroccan demand with a minimum of price and supply fluctuations.

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