Morocco: leading role in animal nutrition

The OCP Group, one of the world's leading fertiliser producers, hopes to become a leading player in animal feed with the acquisition of 50% of GlobalFeed

PHOTO/PIXABAY  -   Fertilisers and the agriculture sector

The animal nutrition market has experienced sustained development worldwide. Last week, the leader in the phosphate product sector for animal and plant feed (OCP) signed a so-called definitive agreement to acquire half of GlobalFeed from Fertinagro Biotech SL, one of Spain's leading fertiliser producers. The agreement will establish an entity in the form of an economic partnership with a capital of $25 million. Morocco has thus taken a giant step towards establishing itself as a major exporter of animal feed. The company's plan foresees that its turnover of 4.4 million euros will reach almost 100 million euros by 2029, which would represent an annual growth of 47%.

The company noted that "the animal nutrition market has witnessed tremendous development internationally in recent years thanks to increased production". It explained that "there is a need to address the food choices of the population, which is increasingly shifting towards meat and higher protein products, especially in emerging countries". It emphasised that the deal will help to take a step forward in a strategy that aims to achieve growth in the feed phosphates market by expanding its presence and offering new and diverse products.

PIXABAY - OCP Group, one of the world's leading fertiliser producers, hopes to become a leading player in animal feed with the acquisition of 50% of GlobalFeed

The company has more than 200,000 tonnes of phosphate-based products and 30,000 tonnes of iron sulphate located in Huelva, Spain, with a broad international commercial presence. This acquisition confirms OCPs objective to diversify its phosphate solutions and become a leading player in the animal nutrition sector, addressing the growing demand and expanding its offerings to sustainable and customised speciality products, said Marouane Ameziane, managing director of Specialty Products and Solutions at OCP Group.

This partnership will seek to provide livestock breeders with access to cutting-edge technology and reliable phosphate feed alternatives. The Moroccan group stressed that competitiveness, flexibility and cost management have enabled it to achieve significant and unprecedented growth. Group CEO Mustafa al-Tarab revealed the corporation's plans to invest abroad, noting that it intends to build a branch in Brazil, which he said would be "something very valuable".

PIXABAY - Fertilisers and the agriculture sector

Javier Martin, CEO of GlobalFeed, said that this close collaboration with the office will accelerate "our industrial capabilities and the growth of our markets". The value of Sharif's investment expenditure amounted to $720 million at the end of the first half of this year, up from $360 million last year.

In the decree approving the contribution, the government said the project's objectives will help improve the government's position and keep pace with the development of the African market. The partnership follows the announcement of the installation of two large factories in Nigeria, Ethiopia and another in Brazil, after the Moroccan group decided to enter the world of agricultural investment, as part of the expansion of its absorption capacity and its environmental and social investments.

This step means that Sharif Office, the public economic institution most capable of bringing foreign currency into Morocco, has continued with its plan to spread its investments around the world by 2022, after announcing two major projects last year.