1. U.S. Grains Council’s
Moroccan Feedlot Project
2 0 0 3 - 2 0 0 8
Ruminant Sector (2003)
• 2.6 million dairy & beef cattle.
• Less than 10% of commercial
feed utilized by ruminant
sector.
Compound Feed Sector (2003)
• 23 commercial feed mills with
3.5 MMT capacity. Only 45%
of capacity utilized.
• 1.5 MMT/year, primarily for
the poultry sector.
• Ruminant feed production only
150 TMT/year
U S G R A I N S C O U N C I L
K E Y E V E N T S :
2003:
Council signs MOU with COPAG
2003-2005:
Council provides engineering
support to COPAG and feedlot
management training
2005:
COPAG feedlot inaugurated and
Council provides start up support
Council begins hosting outside
delegations to COPAG feedlot
Morocco begins importing US
DDGS
2006:
COPAG imports 40 T bushels of
US sorghum
AFAC agrees to 5 year strategic
plan to promote ruminant feeds.
AFAC members contribute
$100,000 annually to ruminant
promotion program
Construction begins on 3 dairies
in Northern Morocco based on the
COPAG model
2007:
COPAG imports 1,440 US dairy
cattle ($3.7 million)
Construction begins on 10,000
head beef feedlot
AFAC members produce 450
TMT of ruminant feeds
2008:
COPAG imports 2,000 US dairy
cattle ($7 million)
AFAC members produce 700
TMT of ruminant feeds.
Construction begins on two 2,000
head beef feedlots in northern
Morocco
US DDGS imports reach 85 TMT/
year
Government of Morocco an-
nounces major new ruminant
development strategy
In 2003, the Moroccan beef and dairy sectors were characterized as extremely
fragmented, disorganized and stagnant. For example, annual beef production
levels were 174 TMT of beef, while per capita meat consumption had de-
clined from 7 kg in 1980 to 4.4 kg in 2003. In order to maintain these low
levels of beef consumption levels in the face of rising population levels, na-
tional beef production would need to triple by 2020. However, the Moroccan
government had no strategy to address this issue.
Likewise, the dairy sector was composed of 1.3 million dairy cattle, produc-
ing 950 million liters of milk per year. In 2003, per capita consumption was
43 kg per person, compared to 100 kg in Tunisia and 200 kg in Spain. The
high production costs and high consumer prices made milk a luxury item
rather than a basic part of the consumer’s diet.
Twenty-three registered commercial feed mills in Morocco were producing
1.5 MMT of compound feeds per year, of which only 150 TMT were for the
ruminant sector. COPAG, a dairy cooperative in southern Morocco, was the
only feed mill producing significant quantities (50 TMT/year) of ruminant
feeds. In essence, the commercial feed sector did not see any economic po-
tential in the ruminant sector; only 45 TMT of corn was utilized by this sector
in 2003.
In 2003, the US Grains Council signed a Memorandum of Understanding
with the Moroccan Dairy Cooperative, COPAG, to provide technical assis-
tance and support in the development of a 10,000 head feedlot. This would
be the first feedlot of its kind in Morocco. The Council anticipated that the
model feedlot would highlight the profitability of the “US style” open feedlot
production model and of the ruminant sector as a whole.
COPAG is a dairy and citrus co-operative composed of over 14,000 dairy
producing members. Herd size among these members average 5-10 head.
The feedlot provides an outlet for members to send their calves to be grown
out in a specialized and an improved production environment. This environ-
ment translates into faster growth rates, less disease problems, reduced mor-
tality and more productive heifers, which will ultimately produce more milk
than “farmer raised” heifers and bulls. The feedlot raises the Holstein heifer
and bull calves from approximately 1 week of age up until 16 months for the
bulls and 22 months for the heifers. At this time the animals return to the
farmer-owner who begin milking the heifers and sell the bulls for meat in the
local market.
Ruminant Sector Overview
US Grains Council’s Feedlot Model
US Ambassador Riley at
Grand Opening of feedlot
COPAG grow-out pens
COPAG signs MOU with
the US Grains Council

2. U.S. Grains Council’s
Moroccan Feedlot Project
2 0 0 3 - 2 0 0 8
Groups Hosted at COPAG
Feedlot Project:
• Moroccan Feed Millers
Association (AFAC)
• Leaders of 20 Moroccan Beef
Producer Associations
• 40 Feed millers from
Morocco, Algeria, Tunisia
and Libya
• 26 Tunisian dairy producers
• Three FFA teams from the
US
• Algerian Minister of Agricul-
ture
Partial list of US companies
benefiting from Council’s rumi-
nant program:
• ABS Genetics
• Pioneer Hybrid Seeds
• R&R Machine
• Boumatic Milking
Equipment
• T.K. Exports, Inc.
• Behlen Bins
• Worldwide Sires
• Meyer Cattle Marketing
• Ag Engineering Inc.
• Cargill
• ADM
• Bunge
• COPAG corn utilization increased from 600 T bushels in 2003 to 2.3M
bushels in 2008, plus 1 TMT of US DDGS and 1.4 TMT of US CGF.
• In 2008, 4 feedlots and 3 large dairies have been built or are under con-
struction using the US model bringing total animal capacity of these
facilities to 28,000 head.
• COPAG imports 3,400 pregnant heifers from the US with an approxi-
mate FOB value of $10.7 million. These were the first imports of live
animals from the US and as a result, the market has been opened to fu-
ture US livestock exports.
• The Moroccan Feed Millers Association (AFAC) has adopted a 5-year
strategic plan to develop the ruminant feed market. Since then, com-
mercial ruminant feed production has increased from 150 TMT in 2003
to 700 TMT in 2007. This represents an increase in corn consumption
by the ruminant sector of 6.5 M bushels per year from 2003 to 2007 or
an additional $21.4 million per year in corn sales (FOB price of $3.30/
bushel). AFAC projects that ruminant feed production will exceed 1.7
MMT by 2011 or 18.3 M bushels of additional corn sales.
• The Moroccan government announced a major new development strat-
egy for the ruminant sector. The strategy proposes to double per capita
meat consumption by 2020. It proposes the creation of 20-30 feedlots
using the COPAG model, upgrading slaughterhouse facilities, improv-
ing health and sanitation standards and focuses on reducing the cost of
red meat to the Moroccan consumers. This study used and incorpo-
rated all of the findings of the Sparks Corp. study that the Council
sponsored in the late 1990’s.
Impacts of US Grains Council’s Feedlot Model
US Sorghum arriving at
COPAG feed mill
Program Investments:
USGC Feedlot Projects $1 Million
(total over 5 years)
COPAG Feedlot Investments $10 Million
AFAC Member Support $200,000
Total $11.2 Million
Return on Investment 2008:
US Cattle purchases $10.7 Million
Annual corn purchases $21.4 Million
Annual co-products purchases $20 Million
Total $52.1 Million
Projected ROI in 2011:
18.3 M bushels/year of additional corn, sor-
ghum and co-products @ $3.30/bushel fob.
$60.5 Million per year
Moroccan Feed Millers visit
COPAG to learn about the
untapped potential of the
ruminant feed sector.
A 2,000 head dairy was the
first commercial operation to
develop as a result of the
COPAG feedlot.
Mustapha El Youssoufi
Ruminant Consultant
Kurt Shultz
Regional Director