May 26, 2009

 

Moroccan gov't to set up beef facilities, feedlots to increase production

 
 

The Moroccan government has announced an incentive programme to establish 20 to 30 large beef feedlots and ten modern meat processing facilities in an effort to increase domestic beef production.

 

In support of the government's objectives, the US Grains Council (USGC) sponsored two US meat processing plant design consultants to travel to Morocco for consultations last week.

 

As the government guides the industry toward more efficient production, the goal is to increase production by 80 percent by 2020 and increase annual per capita consumption from the current 11 pounds per person by increasing the availability of a more affordable red meat supply.

 

USGC has been active in introducing new methodologies to the Moroccan livestock industry over the years, jump-starting beef production five years ago by introducing COPAG, a major livestock cooperative, to US feedlot systems.

 

Just two years later the USGC introduced US distiller's dried grains with solubles (DDGS) and corn gluten feed to the Moroccan marketplace.

 

From these efforts, COPAG established a 10,000 head feedlot and the country has seen four additional feedlots and three large dairies built, or in the process of being built, using the US feedlot model.

 

With the recent addition of facilities totaling 28,000 head capacity, demand for corn and its co-products has spiked. COPAG's corn utilisation increased from 15,000 tonnes to 60,000 tonnes in 2008.

 

According to USGC director in the Mediterranean and Africa Kurt Shultz, the Moroccan Feed Millers Association adopted the council's plan to develop the ruminant feed market, which increased corn consumption by 165,000 tonnes from 2003 to 2007.

 

Shultz said projections are calling for 465,000 tonnes of corn, sorghum and co-product sales by 2011.

 

He said the increase in corn sales is about US$21.4 million and US$20 million for DDGS, about US$41.4 million back to US corn growers, in addition to the council’s programme that brings in US$10.7 million through US live cattle sales.

 

He added that with additional commodity purchases, returns are expected to increase to US$60.5 million by 2011.

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