Casablanca – Sheep meat prices in Morocco continue to remain high despite the government’s decision to reopen the market to sheep imports from Spain and other European countries. Retail prices are currently estimated at between $15.46 and $18.56 per kilogram, with no significant decline yet reaching consumers.

The persistence of elevated prices has raised questions about the effectiveness of the import measures and whether additional supplies from abroad can generate meaningful competition in Morocco’s red-meat market. Sector professionals say the impact has so far been limited because imported livestock remains relatively expensive and the quantities entering the country are small.

Limited imports restrict the impact on prices

The main constraint appears to be the low volume of sheep entering Morocco. According to recent estimates from sector professionals, imports currently amount to around five trucks per week, with each truck carrying between 400 and 500 sheep. This represents approximately 2,000 to 2,500 animals per week.

The current pace is substantially below previous levels, when imports reportedly reached around four trucks per day. The difference means that imported sheep currently represent only a limited addition to the overall supply available to the Moroccan market.

For imports to exert stronger downward pressure on prices, traders would need to bring in larger quantities while maintaining a significant price advantage over domestic livestock.

That advantage has so far been difficult to achieve.

Imported sheep from Spain are reportedly reaching the Moroccan market at prices very close to those of livestock available locally. In some cases, the difference is only $0.10 to $0.21 per kilogram.

Such a narrow difference provides little incentive for importers to expand their operations, particularly because importing livestock involves transportation, logistics, taxation and commercial risks.

Imported livestock remains relatively expensive

According to professional estimates, sheep imported from Spain currently cost around $6.39 to $6.49 per kilogram at an early stage of the supply chain.

At major slaughterhouses in Morocco, prices can reach around $13.40 per kilogram. Retail prices then rise further, reaching between $15.46 and $18.56 per kilogram in some markets.

The figures illustrate the difference between prices at earlier stages of the supply chain and the amount ultimately paid by consumers.

Sector representatives argue that Spanish suppliers need to reduce their prices if imported livestock is to become sufficiently competitive to influence the Moroccan market.

Rather than calling for the removal of Morocco’s value-added tax, some professionals have argued that greater pressure should be placed on suppliers to offer lower prices at the source. From their perspective, cheaper imported livestock would provide traders with a stronger commercial incentive to increase shipments.

Government measures have yet to produce a major price decline

The Moroccan government moved to facilitate imports as part of broader efforts to increase meat supplies and ease pressure on consumers.

At the end of July, the government approved a measure suspending import duties on live sheep as well as on meat from cattle, sheep, goats and camels. The objective was to make foreign supplies more competitive and increase the amount of meat available on the domestic market.

However, high livestock prices in Spain and other European markets have limited the effectiveness of the measure so far. Importers still face the cost of purchasing animals abroad, transporting them to Morocco and covering other expenses associated with the operation.

As a result, simply removing import duties has not been enough to create a large price gap between imported and domestic livestock.

The experience demonstrates that lower import barriers do not automatically translate into lower retail prices. For consumers to benefit, imports must enter the market in sufficient quantities and at prices low enough to generate meaningful competition.

Domestic supply remains an important part of the problem

The situation also reflects broader difficulties within Morocco’s red-meat market.

Domestic livestock availability has faced pressure, while producers have had to contend with elevated production costs, particularly expenses associated with animal feed and livestock management.

When domestic supply is limited, additional imports can help fill part of the gap. But if imported livestock is itself expensive, the additional supply may prevent prices from rising further without necessarily pushing them downward.

This appears to be the role played by current imports. Sector professionals say that the limited quantities entering Morocco are contributing to relative market stability, but they have not yet become large enough or cheap enough to trigger a substantial reduction in retail prices.

Distribution costs add to the final price

Another issue concerns the gap between the cost of livestock or meat at earlier stages of the supply chain and the final retail price.

With meat reportedly reaching major slaughterhouses at around $13.40 per kilogram, compared with retail prices of up to $18.56, the difference raises questions about transportation, slaughtering, distribution, wholesale and retail costs.

Greater transparency throughout the supply chain could help clarify how prices develop between producers, importers, slaughterhouses, wholesalers and retailers.

Closer monitoring of the market could also help determine whether reductions in import costs are being passed on to consumers or absorbed elsewhere in the distribution chain.

The issue is particularly important when government measures are designed to reduce the cost of imported products. The ultimate objective is to increase supply and improve affordability, rather than simply facilitate additional trade.

Spain could determine the next phase

Developments in the Spanish livestock market will remain important for Morocco in the coming months.

sector professionals expect sheep prices in Spain to decline, which could make imports more attractive to Moroccan traders. If Spanish suppliers lower their prices, the difference between imported and domestic livestock could become large enough to encourage greater purchasing activity.

Higher import volumes could then increase competition and potentially place downward pressure on Moroccan prices.

However, if Spanish livestock prices remain high, importers are likely to continue operating cautiously. A price difference of only a few cents per kilogram is insufficient to compensate for the logistical costs and risks associated with importing livestock.

The current situation therefore depends on both price and volume. Morocco may have reopened the door to imports, but the measure will have a stronger effect only if foreign livestock becomes sufficiently competitive and shipments increase significantly.

A longer-term solution requires stronger domestic production

Imports can provide short-term support, but they are unlikely to resolve Morocco’s red-meat price pressures on their own.

A more sustainable improvement would require rebuilding domestic livestock supplies, supporting farmers and reducing the cost of animal feed and other production inputs.

Greater domestic production could reduce the market’s vulnerability to international livestock prices and limit dependence on imports during periods of shortage.

At the same time, competitive imports can continue to play a role by providing an additional source of supply when domestic availability is insufficient.

The combination of stronger domestic production, competitive imports and better oversight of distribution could provide a more balanced market over time.

For Moroccan consumers, however, the immediate situation remains difficult. Sheep meat continues to cost more than $15 per kilogram in retail markets, with prices in some locations approaching $19 per kilogram.

The government’s decision to facilitate imports has increased access to foreign supplies, but current shipment volumes and import costs have so far prevented the measure from producing a significant decline in retail prices.

The coming months will therefore be important. A fall in Spanish sheep prices, combined with higher import volumes, could create stronger competition and eventually reduce prices. Until that happens, the Moroccan sheep meat market is likely to remain under pressure, with consumers continuing to face elevated prices despite the reopening of imports.