A report from the Moroccan Competition Council revealed that just 8 companies dominate around 75% of Morocco’s compound feed production market, with the two main players holding nearly 50% of it, despite 48 companies operating in the sector.
In its assessment of competition in the market, the Council pointed out that the industry is highly concentrated, with a few large companies dominating, even though there are many smaller players.
This concentration is the result of market restructuring, as several companies have shut down over the years, from the establishment of the first feed companies in the 1940s to the present day.
Meanwhile, the report noted that other companies have carried out economic concentration to benefit from significant economies of scale.
However, opportunities for diversification and innovation are shrinking due to the dominance of a few key players, which is having a negative impact on livestock farmers, who are the main consumers of compound feed.
It additionally mentioned that the concentration of the market in the hands of a few suppliers limits available options and leads to less competitive pricing.
The report also noted a significant rise in compound feed prices, including all fees, across all relevant companies, with an increase of about 45% from 2018 to 2023, attributing this rise to higher raw material costs and significant pressure on profit margins.
During the same period, the report also noted a significant increase in the cost of raw materials for compound feed production, with prices rising by more than 50% on average.
This increase was directly tied to global fluctuations in grain and oilseed prices, which were further intensified by climate disruptions and geopolitical tensions.
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