Morocco Enjoys Record Revenues Thanks To Fertilizer Supply Shock

Morocco, the North African phosphate superpower, has seen boom times as a result of the global fertilizer supply shock that was made worse by Russia’s invasion of Ukraine, and the country has gained a new diplomatic capital.

Analysts allege that Rabat is making use of its negotiating position, particularly in the long-running conflict over the disputed Western Sahara, a former Spanish colony that is also claimed by insurgents with support from Algeria.

Morocco is expected to post record earnings for a second year in a row as farmers around the world compete for phosphate, which has become scarce due to sanctions on the world’s largest producer Russia and a Chinese export ban.

Despite the long-term harm they cause to soil and groundwater, artificial fertilizers are essential for industrial agriculture and the world’s grain supplies. Phosphate is a fundamental component of these fertilizers.

Because it is essential for ensuring the security of the world’s food supply, it is a strategic mineral for the future, according to agricultural policy specialist Abderrahim Handouf.

“Fertilizers are the most efficient approach to boost farm yield as populations grow.”

Morocco reportedly owns 31% of the world’s phosphate trade, according to the country’s state-owned phosphates company, OCP.

The OCP, which has a nationwide monopoly in the industry, expects to earn more over 131 billion dirhams ($12.4 billion) in revenue this year, an increase of 56% from 2021, which was already a banner year.

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