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Morocco's phosphates and by-products sales fell 59.5% in the first two months of the year 2009, standing at MAD 2 billion, 12.2% of overall exports, relative to 20.5% a year earlier.



Figures recently published by the country's foreign exchange office revealed that phosphates exports dropped to MAD 707.9 million, registering a decline of 58.5%.

For their part, phosphoric acid exports also fell 37% to MAD 938.5 billion, whereas its price almost doubled (MAD 10,605).

Despite this fall in exports, “we should appreciate the performance of the OCP in 2009, compared to that of 2007 and 2006, or even the previous years,” said Mostafa Terrab, the CEO of the Office Cherifien des Phosphates (OCP), in an interview with the Moroccan daily L'Economiste, published on Monday.

According to the foreign exchange office, this meagre performance is a result of the rising prices of phosphates and its derivatives in the international markets. The average price of an exported ton increased from MAD 866 in 2008 to MAD 1,582 in 2009.

To deal with this situation, the OCP has decided to significantly cut the production of fertilisers and phosphoric acid, but maintained its phosphates extraction operations in order to constitute a stock that will serve when demand revives.

“We have also benefited from this situation to do some maintenance work,” underlined Terrab, who added that his group had already expected this decline in demand.

In the year 2008, which was an exceptional year for the OCP, sales of Phosphates and derivatives reached some MAD 51.4 billion, representing about 33.4% of Morocco's overall goods exports. Compared to 2007, the exports of these strategic products more than doubled, going up from MAD 22.3 billion.

The OCP, which has obtained ISO 9001-2008 version, has recently drawn up a new strategy that envisages the launching of a number of development projects.

These projects include building a pipeline to transport finished phosphate products, renewing the fleet of boats that transport phosphates and its derivative towards exterior markets, opening new mines and entering into ventures with international investors from Brazil, European Union, India, Libya and Pakistan..

Morocco is one of the world's largest phosphates producers with estimated reserves of 37 billion cubic meters.

Morocco's exports fall 59.5%