Casablanca – Morocco’s dairy industry recorded a strong recovery in 2025, enabling the country to meet nearly all of its domestic milk needs and reinforcing one of the most important pillars of national food security. According to industry data, national milk production reached approximately 2.25 billion liters during the year, covering around 96% of local demand and bringing the country close to full self-sufficiency in milk and dairy products.

The improvement marks a significant turnaround after several difficult years characterized by prolonged drought, rising feed costs, and financial pressure on livestock farmers. It also underscores the strategic importance of the dairy sector, which supports rural livelihoods, generates substantial economic activity, and plays a central role in Morocco’s efforts to strengthen food sovereignty.

Production and revenue increase

Milk production in 2025 rose by 18% compared with 2024, reflecting a notable recovery across the supply chain. Annual sector revenue reached approximately $1.44 billion.

The dairy industry remains one of the country’s largest agricultural employers. It supports around 450,000 permanent jobs and generates approximately 49 million seasonal workdays every year. These jobs span farming, milk collection, transportation, industrial processing, and distribution.

The scale of this employment highlights the sector’s importance not only to agriculture, but also to the broader rural economy and social stability in many regions of the country.

Government and industry support boost recovery

The rebound has been driven by a combination of government support measures and initiatives introduced by industry organizations.

One of the most significant steps was the increase in milk purchase prices paid to producers. By improving farm incomes, this measure helped restore confidence among dairy farmers and encouraged them to maintain and expand production after years of declining profitability.

Professional associations also introduced technical assistance and support programs aimed at improving herd management, strengthening milk collection systems, and helping farmers adapt to difficult climatic conditions.

Together, these measures contributed to stabilizing the industry and restoring production growth.

Drought and rising feed costs remain major challenges

Despite the positive performance, the sector continues to face substantial challenges.

Morocco has endured seven consecutive years of drought, which reduced grazing resources and increased dependence on purchased feed. Since 2020, livestock feed prices have risen by approximately 80%, and feed now represents between 60% and 70% of total milk production costs.

This sharp increase continues to put pressure on producer margins, particularly among small-scale farmers with limited financial capacity.

Climate conditions remain one of the main risks facing the sector, as reduced rainfall directly affects herd productivity and the overall cost structure of dairy farming.

Small-scale producers dominate the industry

Morocco’s dairy sector is largely composed of small family farms.

About 90% of dairy farmers own 10 cows or fewer, limiting economies of scale and keeping average productivity at around 4,000 liters per cow per year.

By comparison, modern dairy farms can produce between 8,000 and 10,000 liters per cow annually, highlighting a significant productivity gap.

Closing this gap through improved genetics, better feeding practices, and investment in technology is considered essential for strengthening the sector’s long-term competitiveness.

Milk consumption remains below recommended levels

Domestic demand continues to be a structural constraint.

Average milk consumption in Morocco is estimated at 75 liters per person per year, below the 90-liter minimum recommended by the Food and Agriculture Organization of the United Nations.

In several European countries, annual milk consumption exceeds 400 liters per person, suggesting there is significant room for growth in the Moroccan market.

Higher consumption could support greater investment and help absorb additional local production.

Informal market and seasonal imbalances

The informal market remains another challenge.

Unregulated sales are estimated to account for between 20% and 30% of the milk traded nationally. This reduces market transparency, complicates quality control, and creates competitive pressure for organized operators.

The industry also faces seasonal imbalances. Milk production peaks during winter and spring, while commercial demand tends to be stronger during summer and autumn.

Managing these fluctuations remains an important issue for processors and producers.

Strategic role in food security

The dairy sector is coordinated by Maroc Lait, which brings together approximately 260,000 livestock farmers represented by FEMAPROL and 12 industrial companies affiliated with FMIL. Together, these organizations account for more than 85% of the national dairy industry.

With 96% self-sufficiency, revenue of $1.44 billion, and extensive employment across rural areas, the dairy industry remains a strategic component of Morocco’s agricultural and food system. Sustaining this progress will depend on improving productivity, reducing production costs, expanding domestic consumption, and integrating a larger share of milk sales into formal market channels.