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Known for its flourishing avocado crops, Israel is planning to plant these trees in Morocco. In a first-of-its-kind move, Israeli real estate and food growing company Mehadrin, which for many years was known for citrus cultivation and avocado pears, has sealed an agreement in Morocco to expand its avocado growing business.
According to Israeli financial newspaper Globes, the Israeli firm has signed an agreement with a Moroccan company, with which it had already collaborated in the past. «The parties will lease at least 1,125 acres (455 hectares) in Morocco» to grow the avocado trees.
The two companies will also «jointly invest NIS 30 million (80 million Moroccan dirhams) over the first three years of activity», the same source added.
Export avocados grown in Morocco to Europe
To start their project, Mehadrin and its Moroccan partner are awaiting the regulatory approvals required to form a joint venture and lease the plantation from the Moroccan government. According to the same source, the Israeli firm will own 51% of said company, which is expected to have a maximum annual output of 10,000 tons of avocado.
Mehadrin and its Moroccan partner in Europe will sell the avocadoes grown in Morocco, while fruits deemed unsuitable for export will be sold in the Kingdom.
«Morocco is a country with good growing conditions, and with much lower costs than in Israel and it is a little closer to our main markets in Europe», Mehadrin CEO Shaul Shelach said.
Shelach expects the activity in Morocco could amount to a quarter of Mehadrin's avocado production. «The price of water is negligible in Morocco compared with Israel, and we have to compete with that. Water is our main expense, alongside manpower», Shelach added.
Avocado growing represent one of Mehadrin’s main sources of revenue. The activity accounted for 30% of its turnover last year, while citrus represented 50% their revenues. In Israel, Mehadrin's total area planted with avocado trees is around 758 hectares. Its Morocco project is its first attempt to grow avocado trees overseas.
«In order to grow, Mehadrin has to become a company that, while its main activity is still in Israel, creates additional sources of activity in other places», its CEO concluded.
This agreement with Mehadrin comes as Israel and Morocco signed four months ago an agreement to resume diplomatic ties and strengthen cooperation in several fields including the agricultural one.
In addition to reopening liaison offices in both Rabat and Tel Aviv, the two states agreed to launch direct flights and signed twinning agreements on student exchanges.
