The Cherifien Office of Phosphates (OCP), a major actor in the agricultural industry and a steadfast supporter of the International Agricultural Exhibition in Morocco (SIAM), has made a public announcement about its dedication to advancing sustainable agriculture in Africa and around the world.

OCP stated in a press release: “As part of our steadfast commitment to Africa, we have earmarked four million tonnes of fertilizer to the continent in 2023, which is more than a quarter of our anticipated global production. This will help to fill up to 80% of Africa’s fertilizer gap.

OCP has always placed a high priority on tailoring its offerings to support regional economies and agriculture. The company has positioned farmers at the center of its strategy, providing products and services that are increasingly personalized to their requirements and adjusted to changes in territories and markets in response to the concerns of food security and climate change.

Scientific research and innovation are crucial components of OCP’s vision, particularly in meeting the challenges and needs of Africa. The company is developing technological, financial, social, sustainable, and customized solutions, combined with local action, to make a real impact on the agricultural ecosystem.

OCP has a long-standing partnership with the agricultural industry, especially with SIAM, which enables the firm to play a key role in promoting agriculture as a force for growth in Morocco and Africa as a whole. Growth, employment, and geographic areas are all affected long-term by this.

OCP launched a subsidiary, OCP Africa, in February 2016, placing Africa at the center of its strategy. In order to address the issue of organized, effective, and sustainable agriculture, OCP Africa is committed to the growth of the company’s operations on the continent.

OCP Africa is focusing on every aspect of the agricultural value chain in order to achieve this, including securing the production of competitive fertilizers close to important agricultural basins, enhancing its logistical capabilities, and helping to create new local distribution networks to serve the entire agricultural sector. OCP Africa provides farmers with comprehensive solutions, including funding and training, in addition to simply distributing fertilizers.

Read Also: OCP Group to build four solar power plants with IFC funding

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Morocco has agreed to deliver 1.7 million metric tons of phosphate fertilizers to New Delhi over the following 12 months.

According to a press release from the OCP group on Sunday, “the signing of these memorandums is a commitment for a strategic partnership aimed at strengthening food security and working for innovative and sustainable agriculture.”

In the presence of Mansukh Mandavia, the Indian Minister of Health, Chemical Products and Fertilizers, and Rajesh Vaishnau, the Indian Ambassador to Morocco, the agreements were signed on Saturday by representatives of the Moroccan group, led by Mostafa Terrab, chairman and chief executive officer of the Moroccan state-owned phosphate-mining company.

“New Chapter to Further Strengthen India-Morocco Ties in Fertlizers sector! Indian Fertilizer companies and OCP, Morocco inked MoUs to ensure seamless supply of P&K fertilizers. This will immensely benefit farming community in India & contribute towards ensuring food security,” said Mandavia on his twitter page.

A New Chapter to Further Strengthen India-Morocco Ties in Fertlizers sector!

Indian Fertilizer companies and OCP, Morocco inked MoUs to ensure seamless supply of P&K fertilizers.

This will immensely benefit farming community in India & contribute towards ensuring food security. pic.twitter.com/xQvYjEZbcK

— Dr Mansukh Mandaviya (@mansukhmandviya) January 21, 2023

The Moroccan officials, led by the Minister of Health and Social Protection, Khaled Ait Taleb, had a meeting with the Indian Minister. He also went to the OCP group’s Jorf Lasfar industrial complex.

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Africa has the potential to become the world’s farm, and eradicate the rising threat of food security, OCP’s CEO Mostapha Terrab has said.

With the world’s population growing, ensuring global food security is no longer an option. “It’s a global imperative,” Terrab explained in a blog post published on the World Economic Forum’s website on the eve of this year’s Davos forum.

While Africa has the potential to feed the world, Terrab argues that it is currently facing severe food security issues.

“As a Moroccan company, we know this challenge is especially acute on our home continent,” said the OCP CEO. “By 2050 Africa’s population is expected to nearly double.”

Terrab argued that, in light of the food security threat posed by population growth, “accelerating the transition to sustainable, smarter farming” is now “more urgent” than ever.

While increasing agricultural yield may appear to be a simple task, Terrab points out that the climate threat must also be considered. “It is not an option to ensure food security for all while also protecting the planet for future generations. It is a global necessity.”

Africa can be the world’s farm 

Africa is currently home to 60% of the world’s remaining arable land, the OCP CEO points out in the blog. The substantial volume of fertile soils “represent humanity’s best hope for future food security.”

However, a number of obstacles stand in the way of Africa reaching its full potential. According to the OCP CEO, African farmers use only 20 kilograms of fertilizer per hectare, which is significantly less than the global average.

“It is estimated that local farmers will need to increase their fertilizer application by around tenfold to maximize yields per acre,” he said. “Doing this in a sustainable way – without longer-term environmental damage – will be crucial. Not just for the continent, but for the entire world.”

Terrab’s blog urged all stakeholders to take “corrective actions” to alleviate the price shock in the food commodities market and protect the world’s population from the looming threat of dwindling food resources.

“Any long-term solution to global food security and sustainable agriculture begins with the soil. Soil health is not only about preserving life beneath our feet. It makes all life above ground possible, from plants to people,” Terrab said, highlighting the need to support farmers.

Betting on customized fertilizers

He also emphasized the importance of soil health and the use of customized fertilizers to ensure “sustainable high yields,” arguing that this strategy is critical to reducing agriculture’s carbon footprint.

“Healthier soil and increased biodiversity actively suck harmful carbon from the atmosphere, while maximizing yields per acre reduces global pressure to convert forests and grasslands to agriculture,” he added.

Terrab went on to say that tailor-made fertilizers that cater to the varying needs of different soils are “entirely possible” in Africa. Farmers on the continents are already reaping the benefits of advanced fertilizer technology, he said.

“Mobile laboratories are already crossing Africa collecting soil samples covering millions of hectares,” he said.

“With this data, farmers can map which parcels of land require what type of nourishment and when. More efficient application of the right fertilizer – only what the specific soil and crop needs and will use — reduces waste and run-off into ground and surface water.”

Aside from lowering production costs while increasing yields, tailor-made fertilizers have a significant socioeconomic impact by increasing farmer incomes and potentially lifting entire families out of poverty.

Terrab concluded his blog post by emphasizing the importance of accelerating the farming revolution through collaborative effort.

“There is much work left to do,” he stressed. “But having a goal is not just noble – it is necessary.”

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The rating agency Moody’s has assigned an inaugural rating of Baa3 (Investment Grade) with a stable outlook to OCP Group. This distinction of the Moroccan group is explained by many factors including its profitability, its leadership position, its investment program, the prospects of phosphate demand.

OCP Group has just obtained this rating from Moody’s thanks to a unique recipe that places it above its competitors. As the world leader in the phosphate fertilizer market thanks to its access to about 70% of the world’s phosphate reserves, the Group capitalizes on its low production cost (which translates into higher margins than its competitors), while pursuing prudent financial policies.

In its rating, Moody’s took into account OCP’s excellent liquidity which allows the group to support its expansion plan. OCP’s financial policy is explained by a net debt to EBITDA ratio maintained below 2.5x on average throughout the cycle.

Additionally, OCP will continue to pay dividends to the government while pursuing an ambitious capital expenditure program from 2022 to 2024, which should result in a negative free cash flow during this time.

While mentioning the group’s commitment to meeting its targets and putting the necessary safeguards in place in the event of an unanticipated market downturn, Moody’s emphasizes the flexible and modular nature of the capex programme, which would mitigate negative pressures on cash flow and credit ratios. This would maintain credit ratios at adequate levels.

As projected by Moody’s, the outlook will be stable for the company, which is expected to maintain adequate credit and liquidity measures throughout the year and cycle, even in a lower fertiliser price environment.

OCP’s financial indicators show continued strengthening for 2022 and a slight decline in 2023 and 2024 back to a (likely) decline in phosphate fertiliser prices and margins, according to Moody’s global market forecast, which took into account in its rating the cyclical nature of fertiliser sales and raw material prices that expose the company to earnings volatility.

The inaugural Investment Grade rating is therefore based on 4 levers favourable to OCP, namely its position as the world’s largest phosphate fertilizer producer, its low production cost, moderate financial leverage supported by prudent financial policies and finally a growing trend in phosphate demand worldwide.

The company’s low production cost compared to its competitors allows it to be more resilient to different seasonal patterns, periods of declining global fertilizer demand or rising raw material prices, which is a key factor in Moody’s rating.

Finally, the outlook for global demand for phosphate fertilisers, while it may fluctuate, will see upward trends in the coming years due to population growth and the reduction of agricultural land, which will require higher yields.

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Due to a severe food crisis and rising worries about the security of fertilizer supplies, India is planning new agreements with Morocco to assure a long-term supply of phosphates.

Mansukh Mandaviya, the Indian Minister of Chemicals and Fertilizers, is scheduled to go to Morocco on January 13 and 14 to sign the aforementioned agreements.

Indian media reports that India would soon sign deals with Morocco to ensure long-term supply of rock phosphate, a crucial raw material for the synthesis of fertilizers diammonium phosphate (DAP) and potassium nitrate (NPK), in response to rising global concerns about food security.

Indian businesses will have the chance to use the visit to investigate the feasibility of establishing specific facilities for the manufacture of DAP and NPK.

The Minister stated that his visit was “to sign a memorandum of understanding” and noted that Morocco “had vast quantities of phosphates, which is an essential factor for fertilizer manufacture.”

India is interested in the Kingdom’s offer since it is now looking to create trade and business ties with nations that are mineral-rich through multi-year import and investment agreements that would diversify sources of supply and safeguard farmers against shortages.

Following the conflict in Ukraine, diphenyl ammonium phosphate imports from China were suspended, which raised the price of raw materials.

The minister said, “Actors in the joint venture—both public and private—will take care of the extraction, manufacture, and supply of fertilizers to India. A deal with Egypt, according to the official, is also in the works.

According to information from the Indian Ministry of Chemicals and Fertilizers, the country needs around 43.5 million tons of fertilizer overall.

India is entirely reliant on potash imports from Mauritius, which have recently ranged between 2.4 million tons and 4.7 million tons.

Since India’s fertilizer demands were roughly 43.5 million tons, over 60% of the ammonium phosphate requirements are met through imports.

Due to the rising need for fertilizers across the world, Morocco has recently seen huge financial gains from exporting phosphate.

One of the biggest phosphate producers in the world, Morocco’s Cheriffian Office of Phosphates (OCP) has around 70% of the world’s stocks of this essential mineral for food security.

The state-owned company shipped more than 500,000 tons of phosphates to African nations in 2022 alone, some of which were gifts and others of which were provided at discounts.

OCP Laos has effectively increased its stock reserves for African nations while increasing its production capacity from 3.4 million tons to 12 million.

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The group’s ambitious new investment program, which was unveiled by Mostafa Terrab in King Mohammed VI’s presence on Saturday, seeks to be 100% green by 2027 and carbon neutral by 2040. The firm will invest in renewable energy sources and launch a number of initiatives for the manufacture of green ammonia.

The OCP Group plans to make substantial investments over the next three years. The giant of the phosphate industry will thus mobilize 55.43 billion DH in 2023, 52.8 billion in 2024 and 37.9 in 2025.

By 2027, OCP will double its production capacity in these well-established markets as well as welcome two new inputs, one of which is green ammonia

The largest ammonia importer in the world, OCP, plans to construct a massive factory in the Moroccan Sahara .The Group intends to begin producing 1 million tons of green ammonia by 2027 and hopes to produce 3.2 million tons by 2032 using renewable energy.

Three different types of fertilizers will be produced through the same initiative, which will be developed specifically in the Moroccan Sahara provinces mostly on Tarfaya-Boucraa-Laayoune region.

As well as a 60 Mm3 saltwater desalination plant, a 1.2 GW solar farm, a 2.6 GW wind farm, a hydrogen electrolyzer plant, and other facilities. OCP intends intends to build more infrastructure in Laayoun.

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The Cherifian Phosphates Office (OCP) has entered a new era with the presentation of the new Green Investment Program (2023-2027) and the signing of the Memorandum of Understanding between the Government and the Office regarding this program.

We are not dealing with a short-term work program, but rather with an integrated strategic program that supplements the work completed in the previous phase. Based on royal directives issued in 2012, the program allowed the group to establish a strong position in the fertilizer market, where fertilizer production capacities tripled, transforming the group into one of the world’s largest producers and exporters of phosphate fertilizers.

The group relied on Polytechnic University Mohammed VI’s (UM6P) research and development capacity to capitalize on the opportunities presented by new industrial and digital technologies, as well as to develop expertise in innovative techniques of sensible fertilization capable of meeting the challenges of sustainable agriculture and food security.

Following the success of the previous program, the new program is based on increasing fertilizer production capacities, with a commitment to carbon neutrality by 2040, relying on the unique potential of renewable energy and the Kingdom’s achievements in this field, thanks to the wise leadership and vision of His Majesty the King, May God Assist Him.

The group hopes to provide green energy to all of its industrial facilities by 2027 by investing in solar and wind.

This carbon-free capacity will allow the supply of new sea water desalination facilities to meet the needs of the Community, as well as the supply of drinking and irrigation water to the areas surrounding the Cherifian Phosphates Office sites.

In the long run, these investments will allow the Group, which is the world’s leading ammonia importer, to reduce its reliance on these imports by investing in the renewable energy chain, green hydrogen-ammoniac, which will permit it to enter the green fertilizer market with a vigor and composting solution tailored to the unique needs of different types of soil and agriculture.

This ambition will be reinforced through programs to support SMEs, as well as active enterprises in the energy and agriculture sectors, which will contribute to the emergence of an innovative national ecosystem, the creation of new jobs, and the professional integration of young people.

This new program, which aims to establish the OCP Group’s global position, involved a total investment of 130 billion dirhams over the period 2023-2027 and aims to achieve up to 70% local integration, as well as support 600 Moroccan industrial enterprises and create 25,000 direct and indirect jobs.

The Cherifian Phosphates Office (OCP) has evolved into a national institution with international influence and power, concerned with global food security rather than just the African continent. Morocco succeeded in renting a real phosphate industry thanks to the Foundation’s investment effort in the coming years, and most countries around the world are waiting for Moroccan fertilizers and phosphate derivatives to develop their agriculture, “It is simply a question of food security”.

Despite its international success and development, this institution has maintained its “Moroccan” spirit in achieving African solidarity, as demonstrated by the millions of tons of fertilizer distributed to African countries as direct assistance to help meet the food shortage challenge faced by a number of countries.

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On Saturday, December 3, 2022, King Mohammed VI presided over the unveiling of the OCP Group’s new green investment program (2023-2027) and the signing of a memorandum of agreement between the government and the OCP Group on this program at the Royal Palace in Rabat.

Here is the press release from the Royal Cabinet:

« His Majesty King Mohammed VI, may God assist Him, presided, this Saturday, December 3, 2022 at the Royal Palace in Rabat, the ceremony of presentation of the new green investment program of the OCP Group (2023-2027) and the signing of the memorandum of understanding between the government and the OCP Group relating to this program.

This ceremony is in line with the proactive approach adopted by His Majesty the King over the past few years to promote the transition to green energy and a low-carbon economy. It comes as a follow-up to the working meeting chaired by the Sovereign on November 22, devoted to the development of renewable energies and new prospects in this field.

At the beginning of the ceremony, the Chairman and CEO of OCP Group, Mr. Mostafa Terrab, presented to His Majesty the King the results of the Group’s first investment program, which was the subject of High Royal Directions in 2012, and which has enabled OCP to anchor itself firmly in the fertilizer market. By tripling its fertilizer production capacity, OCP Group is now positioned as one of the world’s leading producers and exporters of phosphate fertilizers.

The group relied on the research and development capabilities of the Mohammed VI Polytechnic University (UM6P) in order to capture the opportunities offered by new industrial and digital technologies, and to develop an expertise on innovative technologies of reasoned fertilization able to meet the challenges of sustainable agriculture and food security.

Afterwards, Mr. Terrab presented to the Sovereign, the new green investment program of OCP Group. This program focuses on increasing fertilizer production capacity while committing to achieve carbon neutrality before 2040, by leveraging on the unique deposit of renewable energies as well as on the advances of the Kingdom in this field under the leadership of His Majesty King Mohammed VI, may God assist him.

By investing in solar and wind power, the group plans to supply all its industrial facilities with green energy by 2027. This decarbonated energy will supply the new seawater desalination capacities in order to meet the group’s needs as well as the drinking water supply and irrigation of the areas bordering the OCP sites.

This investment will enable the group, the world’s largest importer of ammonia, to eventually free itself from these imports by also investing in the renewable energy – green hydrogen – green ammonia sector, allowing it to enter the market of green fertilizers and fertilization solutions adapted to the specific needs of different soils and crops.

This ambition will be supported by support programs for industrial SMEs, as well as those in the energy and agriculture sectors, promoting the emergence of an innovative national ecosystem and the creation of new job opportunities and professional integration for young people.

The new program, which will consolidate the global position of OCP, provides for a total investment of about 130 billion dirhams over the period 2023-2027, the achievement of a local integration rate of 70%, the support of 600 Moroccan industrial companies and the creation of 25,000 direct and indirect jobs.

To this end, His Majesty the King presided over the signing of a memorandum of understanding relating to this investment program, between the Government and the OCP Group, represented respectively by the Ministers of Interior, Economy and Finance, Equipment and Water, Energy Transition and Sustainable Development, Investment, Convergence and Evaluation of Public Policies on the one hand, and by the Chairman and Managing Director of OCP on the other hand.

The ceremony was attended by the Head of Government, the Advisors of His Majesty the King and members of the government ».

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OCP Group, a Moroccan state-owned phosphate company, announced on Monday that it had acquired a 50% stake in GlobalFeed S.L. from Fertinagro Biotech S.L., a major Spanish fertilizer producer.

“This acquisition confirms OCP’s goal of diversifying its phosphate solutions and becoming a leading player in the animal nutrition sector, addressing growing demand and expanding its offerings to specialty sustainable and customized products,” said Marouane Ameziane, OCP Group’s Managing Director for Specialty Products & Solutions.

According to Javier Martin, CEO of GlobalFeed, “this even closer alliance with OCP will accelerate our industrial capabilities and market growth, offering sustainable and advanced phosphates to the world’s most demanding nutritionists.”

GlobalFeed is an animal nutrition company that manufactures and distributes a wide range of products, including phosphate-based commodities and high-value solutions for a variety of species.

The company owns flexible production units in Huelva, Spain, with a capacity of 200,000 tons of phosphate-based products and 30,000 tons of iron sulphate, and it has a large global sales footprint.

The animal feed market has been strong in recent years as livestock production has increased around the world to meet the growing population’s demand for adequate meat and protein products, particularly in emerging markets.

This transaction will help OCP’s strategy to grow in the animal nutrition segment by expanding its geographical presence and offering a diverse, customized, and innovative product portfolio.

The OCP is the world’s first manufacturer of phosphate-based products and a global leader in plant nutrition. It offers a diverse range of customized products that help improve soil, increase agricultural yields, feed animals, and nourish the planet in a sustainable and cost-effective manner.

The OCP group generated $9.4 billion in revenue in 2021. It has a presence on all five continents and collaborates with over 350 customers worldwide.

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The OCP group wrote to the ethics committee of the France Télévisions media group, after misleading data was presented during a documentary entitled “Vert de rage…Engrais maudits” on one of its channels, claiming that the office was responsible for the fertilizer contamination.

In a statement on its official website, the group stated that the documentary contains a lot of bias, fallacies, and scientific lies about phosphate fertilizers because scientific studies do not show a link between phosphate fertilizers and food exposure to cadmium, which was the documentary’s main topic, and proves that the main exposure factors Not related to fertilizer.

The OCP organization chastised the journalist for ignoring scientific information that contradicted his thesis and stated that it complies with the most stringent international laws in this area. He was eager to share additional information.

The organization also stated that it “places a high value on sustainable growth and works relentlessly to reduce its activity’s ecological imprint, as indicated by its environmental performance and ongoing commitment to local communities.” For the sake of comparison, the ecological footprint.

The documentary’s content, which was finished by French investigative journalist Martin Bodou, stirred debate about Moroccan fertilizers, which he dubbed “cursed” since they contain the dangerous “cadmium.”

The controversy over the investigation’s findings, which all fell under the category of “accusation” against Morocco, coincided with statements accusing the French production company of “exploitation, distortion, and lack of professional ethics,” according to Moroccan journalist Salah Eddine Kharouai, who contributed to the documentary’s completion and facilitated the world premiere.

“I was abused by Martin Bodou, who carried out a number of manipulations, taking advantage of my commitment for the sake of my city of Safi, as well as my financial circumstances,” the French journalist said in an explanatory statement, adding that the work around the city of Safi carries a lot of misinformation and that he did not realize the hidden agenda of those behind it. A Moroccan journalist expresses his dissatisfaction with the way his participation in this project has been distorted.

Kharouai said his participation in the documentary was motivated by his interest as a journalist in environmental protection issues and his desire to advance his career, but he discovered after Promo aired the work on a French channel that the matter is linked to a hidden agenda aimed at harming Morocco’s interests by attacking the OCP group, one of the country’s main economic players.

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