SPICES AND AROMATIC PLANTS

Contrary to public perception, Morocco imports a major portion of its domestic consumption of spices and other aromatic plants. The main spices consumed are paprika (or 'niora'), black and white pepper and cumin. And yet, Morocco has the potential of being a major producer and exporter of a classic high-value, low-bulk product! Morocco's varied soils and climate are ideal for a variety of spices and aromatic plants. Morocco exports paprika, cumin, coriander, mint, saffron and other herbs; all high-value crops. Prospects for demand growth for quality spices and essential oils in food consumption and industrial processing are good as the demand is income elastic.As in many of the subsectors discussed, the spice subsector is dualistic. For example, a large number of small farms and artisans supply two-thirds of local consumption of paprika; the remaining third being supplied by modern producing and processing companies. The smallholder/artisan subsector uses traditional technologies, produces low and variable quality product, 3nd sells to souks in bulk with very little packaging. There is virtually no quality control in souks: spices are exposed to contamination by insects and other creatures. Ninety percent of all spices consumed are sold in souks. By contrast, the modern subsector produces quality products, which are well packaged in sealed containers, and destined primarily for exports. Oleoresin, a high-quality food coloring extract from paprika, is being expoited to the Europe and the USA. A major problem these modern companies face however, is unreliable procurement from smallholders who do not honor contracts.Unlike most of the other subsectors discussed, the spices subsector has no gov-ernment interventiors, in terms of price setting or quality control. The only price intervention is through imports which pay high duties and modern companies which must remit a VAT of 16 percent. The impetus for improving quality in domestic markets will come from higher-income customers of supermar-kets and specialty stores. Responding to higher quality standards would require a closer integration between agricultural production, processing and marketing.

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SPICES AND AROMATIC PLANTSA. Modern Uses of Spices and Aromatic Plants: Main FeaturesProducts and Trade : Spices, while as old as history, are these days conveniently packaged are a far cry from the bulk spices sold in the market-place twenty to thirty years ago. More than one hundred different spices, herbs and seasonings (mixtures of spices and herbs) are available on the world market, compared with no more than a few dozen in the last century. In North American or west European supermarkets, all the spices that one would require are available, packed in glass jars, tins or plastic bags. Spices and markets can be divided into several distinct categories:(a) seasonings In home cooking. In every home, cook-books and other recipes, taken from magazines and televised cooking shows, generally require the use of spices. As the cost of seasonings in a prepared meal represents only a small proportion of the total price of a meal, consumers feel they should use good quality seasoning in their cooking;(b) seasonings in restaurants meals. Over the past years, people have changed their culinary habits and are eating more meals in restaurants. Surveys have shown that the greatest concern is to avoid the monotony of similar recipes and presentations. The simplest solution is to modify the seasoning to give new taste to ordinary dishes. Numerous large restaurant chains in North America and Europe, promote special seasonings that characterize their food: McDonald hamburgers taste the same all over the world thanks to the seasonings; Pizza Hut uses the same seasonings in all their outlets; Taco Bell (Mexican food) uses the same hot and spicy sauces in New York and Miami. These major multinational chains use the best quality spices they can find, to ensure the same quality food in all their restaurants. Studies show that most of newly created food products are made of a edible substrate with no or a very weak taste (pasta, potato, yoghurt, etc) with a spicy or flavored sauce or topping;(c) seasonings in ready-to-eat meals and convenience foods. Numerous developed countries, women are increasingly working outside their homes, and the time devoted to the preparation of meals has been considerably reduced. Supermarkets therefore offer a wide variety of prepared meals, fresh (vacuum-packed) or frozen. These meals are prepared industrially, and the quality and quantity of seasoning is a primary factor in their preparation; and(d) essential oils and oleoresins. Spice oleoresins cover two types of material: natural and prepared. The former are exudations from trees, while the latter are the flavor principles extracted from the original material by using a solvent. Natural oleoresins find uses in perfumes and cosmetik.. Prepared oleoresins find uses in the food processing sector. Pepper and paprika oleoresins are the ones mainly used in terms of volume. Seasonings used in food processing plants are now mostly essential oils extracted from spices and herbs. Essential oils are found in the substance of the plant. Volatile, or essential oil exists inter-cellularly, in liquid form. These oils are extracted by steam distillation from parts of a plant, such as the bud, petals,leaves (bay), fruits (pepper), seeds, bark, roots,etc. Oleoresins are concentrated resinous substances obtained by solvent extraction, not by direct distillation. They are used in food processing,and in the industrial preparation of food,for both their color and flavor. While some major spice producing and exporting countries already have facilities for extracting oleoresins from spices, others are exploring the possibilities of establishing them.The setting up of extraction facilities in spice producing countries appears justifled since oleoresins, when exported in concentrated form,have deflnite advantages over the whole spice in terms of freight costs.There is also an attractive value-added element in such processing, although a number of considerations need to be taken into account before a developing country can set up extraction facilities.The manufacture of oleoresins requires capital inputs involving sophisticated technical know-how and equipments,mostly imported,and the importation of solvents,which are often not available locally. Oleoresin from paprika, a product exported from Morocco, is now used in the coloring (red) of food products throughout the world and gain considerable interest for food processors since artificial coloring is increasingly being banned in most importing countries.This product therefore has potential.

In 1975, world imports amounted to an estimated 200,000 T of spices, valued at around $275 million. The average annual volume imported for the period 1971-1975 was some 216,000 T, with an estimated value of $270 million. Since 1975, despite annual fluctuations, the rate of increase has not varied for the whole market (around 3 percent per year). In 1987, the whole market was estimated to 333,000 T of spices for a value of US$ 1,059 million.

Table: IMPORTS OF SPICES BYMAJOR IMPORTING COUNTRIES (1987) Country Volume(ton)Value(US$ Million)

USA EC(12) of which: Gernany (Fed.Rep)Japan Canada Australia100,000 137,000 46,000 35,000 11,700 4,000351442141783611

Total333,7001,059

However, demand for these products has varied from country to country and from spice to spice. North America and Western Europe are the two most important regions in terms of import demand for most spices (Table 1). The European Economic Community, the Nordic countries, Switzerland and Austria imported around 137,000 tons of spices, valued at $442 million in 1987. Germany is the the largest single market in Europe (and the second largest market in the world after the United States),accounting for a third of the total imports of spices into Western European countries. Next in importance are the United Kingdom and France. Although the Netherlands is a relatively small mar-ket, both Amsterdam and Rotterdan are important trading centres for spices and sizeable quantities are trans-shipped through these cities to other European destinations.The United States is the world's most important individual market for spices. Import of spices (excluding aromatic herbs, mustard and sesame seeds) into the USA averaged 100,000 T a year (valued at $US 351 million) during the period 1983-1987.Imports of traditional spices appear to be growing only slowly while those of spice herbs have increased rapidly in recent years. The Canadian market for spices is relatively small.

Eastern Europe is a significant outlet for pepper, particularly supplies imported from India under bilateral trading arrangements, and for pimento ('allspice') from Jamaica. Countries in the Middle East are important markets for cardamom, accounting for over 80 percent of the total world consumption of this spice. In the Asian and Pacific region, the major consumer of imported spices is Japan, followed at some distance by Australia and New Zealand. Although large quantities of spices are still traded through Singapore and Hong Kong, domestic consumption in these trading centres is very small. Unlike the other developing countries in the Asian region, Indonesia is a substantial importer of spices, being the world's leading user of cloves, although a very large share of its use goes to the cigarette industry. Spices are traded in a variety of forms. More than 90 percent is traded in whole form,i.e., ungrounded.Pepper is almost invariably the principal spice traded, in both terms of volume and value. Next in importance is the capsicum group, consisting of paprika, chillies, and cayenne pepper.Nutmeg,mace and cinnamon also feature prominently in the industrialized countries. Ginger, turmeric and spice seeds (coriander, juniper, anise, caraway and cumin) are also items of significant volume. As opposed to vanilla, saffron and cardamom, which are high value items, spice seeds remain low value items.(a) Pepper: India, Malaysia, Indonesia and Brazil are the major exporters of pepper. Annual demand is evaluated at 80,000 T, and these four countries account for about 70 percent of the world production. Demand for this product is expected to increase from 1 to 3 per cent per year. World demand for oleoresins from pepper, is estimated at 120 tons per year;(b) Cardamom. India is the largest and principal world producer of cardamom. Annual international demand is evaluated to 3,500 T. Saudi Arabia, Kuwait, Bahrain and countries from the Middle East are major importers of cardamom;(c) Cloves. Annual world production is estimated to 35,000 T. Indonesia is the largest producer with an average of 20,000 T, followed by Tanzania and Madagascar.Hong-Kong and Singapore play an important role in trading this spice. Cloves are also distilled to obtain clove bud oil, which is used by the perfumery, pharmaceutical and flavoring industries;(d) The Capsicum Group (including paprika). It is very difficult to obtain true statistics on paprika because of generic denominations such as 'Capsicum". The major producers of paprika are Spain Oargest producer), Hungary, Bulgaria, Mexico, Morocco (paprika is the only spice produced in Morocco that is reported in annual volume of world production: approximatively 36,000 T), United States (mainly in California). Major Spanish processing companies invest in Morocco to control raw materials: most of the export volume of paprika from Morocco is shipped to Spain. It is estimated that 60 percent of the bulk imports of paprika is consumed in the food processing sector(coloring and flavouring agent). Most of the importing countries are supplied by Spain which, as a matter of fact, controls the paprika market;(e) Cinnamon. World supplies come from Sri Lanka (largest producer and exporter),followed by Madagascar and India. International demand is evaluated at 15,000 T and the United States is the largest importer of cinnamon with an average of 6,000 T per year;(f) Nutmneg. This product is mainly supplied by Indonesia and Grenada, which together account for over 80 percent of world exports of this spice, followed by Sri Lanka,Trinidad, China and India which are both producers and exporters. The annual international demand is estimated at 8,500 T, and EC countries together import about half the world volume traded.Germany, Netherlands and United Kingdom are the larger importing countries in the EC;(g) Saffron. Trade in this product mainly originates from Spain (90 percent of the world production) but its production has been declining for several yers. EC countries are the major importers of saffron, with about 25 tons a year; and (h) Coriander. Morocco is a major source of coriander in the international trade, but China has become an exporter for a wide range of spice seeds which are traded through Singapore and Hong Kong. The bulk of imports is destined for use in the food processing industries to flavor meat and bakery products. Coriander as well as cumin are well linked to the growing market for curry powder and spice blends. It is expected that this sector will continue to expand.Table 2: DESTINATION OF SPICES INDEVELOPED COUNTRIES(percent)CountryIndustrial sectorRetail sectorInstitutional sector(Restaurant, hospitals,schools,etc)

GermanyUnited KingdomFranceNetherlandsSpainUSACanadaJapanKuwait6550506050355575--255035404345301510010a15a7201510a

a. included under retail sector Source: ITC Geneva

b. Finally,trade in products like cumin and mint is not very well known nor researched.As far as we know, cumin is produced in Iran, Turkey, Morocco, China. Mint comes from the United States, England, France, Russia, Argentina, and Morocco.

Market Characteristics In the industrialized markets, spices are absorbed by the industrial sector, mainly in food processing, and by the retail sector (Table 2). In the developing countries, spices are consumed by households and are marketed through the retail sector. The meat industry is often the largest user of a wide range of spices. However, fish, vegetable, bakery goods, prepared and convenience foods use a lot of spices. Non-food industry, such as the pharmaceutical and cosmetics, are not major users. They do not significantly affect the overall demand with the exception for very high quality products, mostly traded in very small quantities. On the other hand, the institutional sector, such as restaurants, hospitals, schools and catering establishments, plays a significant role in traded spices. It should finally be noted that quality factors, such as cleanliness and absence of pesticides like DDT, are likely to soon become of great importance in trade regulations (see below export market characteristics).B. PRODUCTION AND MARKETING OF SPICES AND AROMATIC PLANTSProduction : This chapter is directed at spices, herbs and aromatic plants used in food. Since the food ingredients subsector is very large, it is analyzed through a series of cases in this chapter. The study has concentrated on two major spices (paprika and saffron), produced and exported by Morocco, although this country could produce and export many other spices and herbs. Paprika and saffron would be the two products to concentrate on and develop for local, but mostly foz export markets, although coriander is also presently exported. The other spices produced are, for the time being, for the local market only. Spice oleoresin, coloring agents and aromas are growing sub-markets in the spice market. Moroccan producers seeking to penetrate this market in the major consuming countries should take into account the high level of competition from well established foreign producers of flavorings. When Western countries think about Morocco in terms of spices and other aromatic plants, the first image that comes to mind is that of an abundance of products of that nature, because many of the tourist and descriptive brochures on Morocco depict an array of spices in baskets or in bags in the market places and souks. The reality is somewhat different. While Morocco consumes about 16,000 T of different spice seeds and other aromatic plants for an estimated value of 300 million dirhams per year, most of it is imported. Although the main spices produced in Morocco are paprika (niora'),cumin, coriander and saffron, with some other herbs also grown for the local market, farmers produce for the local markets, while large companies are mainly interested in export markets. Paprika ('niora'), pepper (black and white), and cumin represent 80% of this total consumption. The consumption of black and white pepper amounts to some 4,500 T per year, and 98 percent of it is sold in bulk. The rest is packed in small bags for sale in supermarkets. Black and white pepper is used in the preparation of most of the food consumed in the country. Brazil is the main supplier of pepper to Morocco approximately 70 to 80 percent. The potential for spices on domestic and export markets is good, but Morocco must greatly improve its methods of production, processing, packaging and marketing the products. Moroccan growers and processors should concentrate on quality products that can be grown in rather large quantities, and aim of becoming one of the world leading producers of such products. Morocco's climate is ideal for the cultivation of various spices and herbs: cool in the winter, mild on the Atlantic shores, and hot in the desert areas. The most well-known spices and herbs grown in Morocco for local use and for export are: LOCAL USE EXPORT Paprika Paprika Cumin Cumin Coriander Coriander Rosemary Mint Saffron Saffron Chillies (Red Hot) Others herbs Mint Parsley Thyme

Table 3: DESTINATIONS OF SOME MOROCCAN EXPORTS OF SPICES (1987)spicesImporting countryVolumes(tons)Volume(U S Dollar)

CountriesJapan USA Singpore Canada Switzerland SwedenAustraliaU.KNetherlands Germany (Rep. Fed)France Belgium224566927624130431381,6809675482852451,358,620356,000177,500165,15024.66541,000814,000869,650652.5C0309,445137,435135,200

ThymeSpainFranceBelgium331785627,365107,08858.890

Paprika France 1.065 1.371,713

Saffron France 1 367,000

TOTAL --- 8,678 6,973,421

The production systems of these spices and herbs, in Morocco, are rather complex, and range from artisanal cultures on small farms, to large crop areas owned and operated by major companies. The crop produced on small fanns is directed to the local market, or is exported through traders to European markets, in all varieties of packaging. Table 3 shows 1987 statistics on volumes exported by Morocco. Table 4 shows statistics (for 1986 to 1988) that the mission received on the production of spices in Morocco, but they do not appearfully accurate. For instance, the Tadla region does not report any production of paprika ('niora'). However it is well-known that it is the main producing region of paprika. (Table 5). These numbers must, therefore, be interpreted cautiously since a rather large volume of spice is traded outside the legal channels to avoid exchange regulations and duties.

Sources: office des changes au Maroc

The production of spices is, for two thirds, handled by small informal producers and one third by the organized and industrial producers. This is particularly true of paprika which is the leading product in the consumption of spices in Morocco: 6,000 T approximately. Two thirds are produced by small farmers without any quality control; the other third is supplied by reliable companies with good quality control at all levels, from the farm to the finished product which is ready for sale on the market. These producing companies remit to the state a VAT (value-added tax) of 16 percent - i.e., about 2.5DH/kilo for products priced at about 15 DH/kg, (average price over the past five years). The production of these enterprises has therefore become an important source of revenue for the State. Spice processing companies try to secure their procurement of their raw material by con-tracting with private producers, but many (if not most) of these small producers reportedly do not respect their contracts and sell most of their crop on the non official export market if they can get a few dirhams more. This situation has persisted for many years without any effective intervention from the Moroccan authorities. Saffron is the rarest and most expensive spice in the world. It is a native of the Medi-terranean area, especially Spain, and is produced from the dried stigmas of a plant of the crocus family.Each Crocus sativus plant has only three stigmas, which are delicate orange-yellow filaments, which mustbe picked by hand. It takes 115,000 stigmas to make a kilo of saffron. Fortunately, only a little saffron is used to give taste and color to a dish. Morocco produces saffron in the Taliouine region and also in the region of Ouarzazate. The consumption of saffron in Morocco is very limited because of its high price, and it is only used during the holidays and for Ramadan.Marketing Channels Production of spices in Morocco come from different sources and are at the origin of distinct marketing channels. Figure 1 shows three different channels for spice productions: (a) 'artisans' are responsible for 40 percent of the spices produced in Morocco; (b) private producers suppIy 30 percent; and (c) large producing companies for the remaining 30percent.

Table 4: SPICE CROPS (REPORTED) FOR 1986, (quintals) 1987 AND 1988 Coriander Cumin Saffron Paprika

198619871988198619871988198619871988198619871988

Gharb2,819.53,7203,811. 8103.5140106.5

Taffelalet1818.218.6Aaa

Ouarzazat.335.6.7.5.9

Haouz187.5150225

Loukkos1618.636

Kenitra9501,3601,057.5

Safi50120,6

Essaouira1.21.81.9

Marrakech88.221

Chefchaouan250210676

Total4,045.55,308.65,581.3265181.2392.7.7.5.9

a: loss than 100 kg Source: MARA The so-called 'artisans' in the spice business are small farmers that produce all kinds of products like vegetables, wheat, etc. They usually also raise a few goats and cows. The 'private producer' is a farmer that will produce spices on 80 percent land. The rest would usually be vegetables. The only way that processing companies can ensure adequate ingredients for their requirements is through their own involvement in the production and control of the crop from seed to final conditioned product. One company owner indicated that if indeed all the contracts were respected by the farmers, he would even have a problem of over-supply.Processing There are about a dozen of well-organized companies, and half of them have been successful in exporting products to such demanding markets as the United States, Japan and Western Europe. One of these enterprises is Lukus, founded in 1925, in Larache, by a Spanish family which still controls the company. The enterprise is specialized in the processing of tomatoes, strawberries, garlic and onions and spices which are one of their main areas of activity. Their most important spice product is paprika that is processed in many forms: whole dried, crushed, powdered. The enterprise also processes extracts of oleoresins from the paprika.

Under the name 'Lukor', Lukus has entered into a joint venture with McCormick, a leading American multinational. Lukor produces and exports to McCormick (in the United States and in Europe) dehydrated parsley, sage, thyme, oregano, coriander, onions and garlic (these items are no sold on the domestic market but 100 percent exported). One of its main products is oleoresin from paprika. Lukor runs two production units which are highly efficient in producing the oleoresin from paprika to be exported to Europe and the United States. Centre General des Epices (CEGEDEP) is another reliable firm specialized in the processing of spices from local sources. In 1991, CEGEDEP alone occupied 10 percent of the Unite States paprika market. This market share could well reach 25 percent by displacing Spanish produce who buy their raw ingredients from Morocco. CEGEDEP satisfies the phyto-sanitary standards laid dow by the American Spice Trade Association (ASTA). To meet the still increasing market demand, CEGEDEP would have to invest in a new cleaning equipment. CEGEDEP also imports other spices sold but not produced in Morocco. Pepper is the main spice imported and processed.

The main concern of Table 5: PRODUCTION OF PAPRIKA BY REGION Superficie(hectares)Production(tones)

Berkane LoukkosGharb Tadla Doukkala Haouz Fes EssaouiraOujda1.7043555646.788613642940202164.0891.2781.38527.1527152041.28720057

Total10.25236.048

companies processing spices for exportand for local markets, therefore, issecurity of supply of basic ingredientsgrown in Morocco in terms both ofquantity and quality.To obtainsufficient raw material for theirprocessing and market requirements,companies like Lukus must also import spices. The need to import comes mostly from the extensive trading of locally-produced spices on the informal import-export market (to escape government EACCE quality controls), which prevent companies like Lukus from: (a) obtaining reliable supplies from the domestic market in terms of Source: MARAquantities; and (b) providing support to increase quality of locally produced spices while remaining competitive on the export side. As a result, the company currently imports 70 percent of the paprika needed for processing and, consequently, pays significant import duties including a 16 percent VAT, although a large informal export market also exists in Morocco.Domestic Trade The domestic spice market of Morocco is predominantly bulk sales of mostly unconditioned products (90 percent), sold on street markets and souks. These spices come from different sources and are presented in a variety of packages. The main concern with this approach to the marketing of spices is that there is virtually no quality control at any stage of the production, processing and marketing stages. The seeds are not always of good quality, the fertilizers used are not controlled, and the cropping and drying of spices are not done under supervision for quality control specialists. As a result, one finds on the market products containing a large percentage of filling, like flour, salt, etc.,to give some weight to the product. Some traders go as far as using artificial coloring to enhance the red color of paprika, lost during the drying and other processing steps of the product. Adequate hygiene of the "stores", in the markets and souks, does not exist, and most products are left in the open air. They easily become contaminated by various insects and creatures, and also lose their taste and color together with the evaporation of essentila oils. Approximately only 10 percent of the spices sold in Morocco are treated properly. They are mostly sold in sealed containers to the consumers in specialty stores and supermarkets. These stores however have great difficulty to compete on the local market, because small producers are well established and sell low quality spices at very low prices. Today, the domestic market accepts this low quality product, but it is reported that it will not accept it in the very near future because of the evolution of Moroccan food consumption towards higher quality and cleaner products. Most of the production of specialized small producers (95 percent) is therefore exported (through processors), and the rest is used by reliable processors of meat and other food products. This situation is changing very quickly: the younger generation is conscious of the problem, and consumers are increasingly demanding quality improvements.Exports Because of strict quality controls in the United States, Japan and Europe, the export of spices and herbs from Morocco has been limited to established firms with a good reputation for quality products (e.g., Lukor and CEGEDEP): i.e., firms that deliver timely quality products packed in well-identified containers. There is potential for more producers, processors and traders to supply such products to the world market. The major spices and herbs produced in Morocco could be exported in original form, or ground, or concentrated as essential oils and oleoresins. At the moment, many small producerr still sell their products with no respect of terms contracted with the trader, and in the end srauggle the product to foreign markets. As an example, saffron is produced mainly by small farmers who sell it to informal export market dealers (avoiding duties and exchange regulations). The product is then shipped to Spain to be processed into 'Spanish' saffron. Morocco can produce high-quality saffron and, if the market were structured, it could market saffron throughout the world.C. OPPORTUNITIES FOR THE SUBSECTOR Morocco could be a leading exporter to the Western world of paprika (niora), coriander, cumin and saffron. To do so, producers would need to have access to conditioning and processing plants. Consumer insistence in terms of quality of the final products imply a rather close integration of agricultural production to processing and marketing activities. Agricultural Production of Spices and Aromatic plants

As previously stated, climatic and soil conditions in Morocco are very favorable for the growing of various spices, herbs and other aromatic plants, but the current production system is, with the exception of a few integrated enterprises, far from adequate. The existing system, where most spices are grown by small farmers who produce a variety of spices on limited acreage, with no control of quality at any level, needs to be greatly improved to take full advantage of the potential of Morocco in this field. At the production level, proper selection of crops should be ensured and farms should regroup to achieve a critical mass of quality production at the lowest possible cost, to ensure adequate margins. Associations of farmers, small cooperatives could be instrumental in concentrating these efforts and in developing the necessary processing and marketing capability. This might be achieved within a joint-venture approach with the existing exporters and selected importers from Asia, North America and Europe.Processing for Local Markets Food distribution in Morocco is in a state of transition. A few years ago, the only way to buy groceries was to go to the market, the 'souk', or to a small grocery store located in the area where people were doing their shopping for other goods. Recently, several supermarkets have appeared in Moroccan cities. A wholesale distribution center, supplying small stores, has also opened in Rabat. Companies involved in the production, distribution and marketing of spices all agree that the spice market in Morocco is ready for a change from bulk to packaged goods. Newly created stores, although still targeting a small segment of the population with higher incomes, offer a complete line of grocery products packed in all sizes of convenient containers. These items are produced under improved quality controls, since large segments of the domestic market, with better educated consumers, are becoming increasingly conscious that food ingredients should be of high quality. Most spices are, however, still sold in bulk in these supermarkets. A few varieties of spices only are offered in cellophane bags in these stores. While most spices are still sold in bulk, it is only a question of time before the market will turn to packaged spices. The retail spice market will then be controlled by the manufacturers that will (a) be able to guarantee a sufficient level of quality, and (b) produce spices packed in convenient packages in the near future. If the Moroccan industry is not ready then to produce this, then exporters from North America or Europe could take over the market. The Lukus company, through its joint-venture with McCormick, will undoubtedly benefit from its partner's technology and marketing expertise, to come out with a line of spices of highest quality, sterilized and packed in bags or jars for the local market. Joint ventures based on the supply of technology by foreign companies are a good support to the local spice industry. There is potential for other entrepreneurs to process local spices, as well as for imports on the local market. The major issues to address remain the ability of Moroccan producers, processors and distributors to secure reliable sources of quality spices, and to improve the packaging and marketing to make the consumer aware of the need to buy spices in a packaged form that will guarantee him a high quality product. The existing drying process for spices and herbs is, with the exception of a few leading enterprises, very primitive: spices are simply laid on the ground and left to dry in the sun. Basic hygiene standards are surely not respected, with the result that the product is contaminated before it reaches the processing plant or the local market. The Institut Agronomique et Vterinaire Hassan 2 in Rabat has tested a new dryer for fruits and spices at the Centre de Mise en Valeur Agricole in the Haouz province. The new method uses solar energy at every stage of the process, and the product is passed through a covered tunnel with air circulation. The device is not costly, and could be installed on the premises for use by a group of farmers to dry their crop. It is highly efficient and hygienic, and could improve the quality of products intended for processing, for local markets or even for export.Processing for Export Markets Fundamental changes have occurred in the spice trade, in both exporting and importing countries. In exporting countries, the 1970s were the decade which witnessed the development of marketing boards to promote the marketing of commodities such as spices. These entities, which were mostly governmental agencies, have emerged as instruments of heavy-handed trade promotion: matching production to demand, improved quality control, price stabilization and better coordination of marketing activities. To name a few; the Cardamom Board (India), the Zanzibar State Trading Corporation (Tanzania), the Pepper Marketing Board (Malaysia), etc. The 1980s were, however, a troubled decade for marketing boards. This was mainly due to a reorientation in economic thinking and policies, generally under structural adjustment programs. In fact the 1990s showed that private sector orientation is the best means for trading spices as well as other agricultural products. Private associations, grouping producers in a private sector framework, appear more effective and profitable, and these associations, in direct contact with both producers and foreign clients act as the marketing body of the producers on foreign markets. In importing countries, most of the marketing of spices was undertaken by individual importers. Spices were bought from dealers, either directly or through brokers and commission agents. However, direct contacts between importers and users and suppliers in producing countries have become more prevalent. Major companies invested in producing countries. American (e.g., McCormick), or European (e.g., SANOPI) companies brought know-how (quality control, sizing, grading) within a joint-venture arrangement in the production area. Another structural change has been the tendency among the bigger food-chains, to do their own importing, grading and packing, activities that were previously contracted out through agents. Large distribution companies have learned over the last twenty years to buy directly from abroad their supply in textiles, home appliances, toys, etc. They now expand this expertise to their food department, to avoid intermediaries like commission agents or brokers. Promotional efforts, on the producers' side, are still very limited. Private professional associations could participate in fairs, trade missions and cooperate with foreign associations such as the American Spice Trade Association (ASTA, Washington), or the Syndicat des triturateurs, conditionneurs de poivre, epices, aromates et vanille (Paris). A private professional association integrating Moroccan producers, processors, wholesalers and exporters could: (a) provide market information to their members; (b) facilitate contacts with local exporters; (c) coordinate, together with government, regulations on labels (agreed-upon description of content and origin) and support improvements in quality management; (d) be the counterpart in discussions with government or foreign institutions; and (e) send samples and documentation to importers; etc. With regard to non-tariff barriers, export of spices must satisfy the health regulations an established quality standards in the importing countries. The United States for instance are very stric on import regulations. All incoming shipments of spices must be analyzed by independent laboratorie recognized as competent by the Food and Drug Administration (FDA). Tests determine levels oextraeous matter. American importers buy the shipment after agreement by FDA. If problems occur the shipment is seized at ports of entry and the exporter must support all resulting costs. To comply wit FDA regulations, ASTA has established specific standards that are clearly defined. In Canada, howeve no specific regulations exist. Canada inspects agricultural shipments and controls phyto-sanitary level British Standards Specifications exist for ginger, cardamom, pimento, pepper. Germany has stric phyto-sanitary regulations. Within the EC, efforts have been made to harmonize the different standard European directives exist, but they are recommendations for European countries and they are not nation law. International standards exist for black pepper, cardamom, ginger, chillies, and substantial progress has been made towards setting standards for curry powder, paprika, cinnamon, cloves, turmeric and som spice seeds.Potentials for Paprika ('niora') The paprika produced for export in Morocco is of good quality in taste and in color. Processing firms usually integrate their own farms to ensure quality and quantity of product needed for transformation. The production on these farms covers approximately 30 percent of their needs, and 30 percent are supplied by farmers under contracts. In some regions, the growing of paprika has reached industrial levels. Farmers grow paprika on contract with a few exporting companies, but they only deliver about 50 percent of the contracted quantities. The major processing plants are in Larache, Casablanca, Meknes, Berrechid, Sidi Kacem and Sidi Slimane. These plants also process other products for the local markets, and for export. Oleoresin is extracted from paprika in a few plants in Morocco.This extraction is very delicate and must conform to very strict quality standards if the production is for export to the United States and Europe. To ensure adequate basic ingredients for their needs, the processing firms ideally must integrate their own farms because, as indicated earlier, the farmers often do not respect their contracts. The major export markets are Europe, the United States and Japan. These countries absorb 50 percent of all exports of paprika (niora): approximately 2,500 T on a total of 5,000 T. There is great export potential for paprika, and the oleoresins from paprika, if supply contracts are respected at the farm level, and quality is controlled.Potentials for Saffron As opposed to paprika, most of the production of saffron is grown by small farmers and sold for export to the informal export market in Spain. Saffron sold to Spanish traders and processors is intended to be mixed with Spanish saffron and sold on the world market as 'Spanish' saffron, reputed as the best. Spanish saffron is sold for approximately 50 percent more than the Moroccan one because of its reputation throughout the world. The soil and climatic conditions are as good as Spain for the culture of saffron in some specific areas like Ouarzazate. Total official production is estimated to be one ton, for an average value of 1,250 dirham/kg. Most of it is officially exported to France, Italy and countries of the Gulf. Moroccan saffron could compete with Spanish products on world markets: it could be produced at a lower cost, and its quality can be as good as the Spanish. Saffron is a very special spice and every operation from the planting of the bulbs, the harvesting of the flowers, the collection of the stigmas, the drying and even the packaging is made by hand and requires a lot of labor. The only equipment needed to be in commercial operation is a dryer and packaging material including labels. No foreign technology would be needed to produce and pack saffron. The Office Rtgionale de Mise en VateurAgricole of Ouarzazate, is producing saffron commercially, but has encountered difficulties selling the product: one reason is that it sells the product in bulk, without adding value to the finished product. Moroccan saffron could be sold throughout the world if a little marketing were done to promote it, and if the product were put in small attractive packages to upgrade the product, and add value to it. Witha good marketing plan, it could become a good source of revenue for Moroccan farmers, and for the processing companies established for the purpose.Potentials for Coriander and Cumin Coriander and cumin are not produced commercially in the sense that it is mostly produced for the use by the farmer. These spices are low priced on the market and farmers prefer other crops like paprika, sugar-beets, onions, etc. that secure them larger returns. The local price at which farmers could produce coriander and cumin would be in line with the production of these spices in Iran, Yugoslavia, Russia, India and the United States. The development of small units is being made by the Office Regional de la Mise en Valeur Agricole - Region de Haouz, at a very low cost. If production of these spices were structured properly, Morocco would quickly become self-sufficient and could enter export markets.Slide1: industry infoSlide 2: statisticsSlide 3: swot table4 strategy5 products and services features