Overcoming Strategic Issues Faced by the Agribusiness Sector in Morocco - Research Proposal Example

Overcoming Strategic Issues faced by the Agribusiness Sector in Morocco By: This qualitative research aims to discuss ways of overcoming the strategic issues faced by the agribusiness sector in Morocco. As stated in numerous studies, the agribusiness sector plays a significant role in the economic and social life of Morocco. However, due to loopholes in agribusiness strategies, many Moroccans have not enjoyed the benefits of this sector. The weak strategies in Morocco have resulted in significant challenges with drought and soil degradation, and causing division in agriculture. This research proposal will be divided into three parts. The first part will be introduction; the second part will be a literature review, and finally methodology. 1. Introduction Studies indicate that agriculture plays a major role in the economic and social life of the people of Morocco. According to a survey done by Lazare (2004), approximately 8.7 million hectors of Moroccan land is useful agricultural surface. Slightly 1.25 million hectors of land is irrigated land (Lazare, 2004). The Moroccan agricultural sector employs 40% of the whole population, thereby contributing to 20% of the country’s GDP (Lazare, 2004). Morocco has four main agro-ecological zones according to a study by Ettamymy (2010). These are the high plateau mainly found in the Middle Atlas region, High Atlas, the southern oasis the Rif, Anti-Atlas, and the coastal plains which include Chaouia, Doukkala, Abda, Chiadma, Gharb, Moulouiya, and the plateaus of the west and the west and of Saisse (Ettamymy, 2010). The people of these mentioned areas mainly deal in large-scale cultivation, sheep, and cattle production. Morocco agricultural sector usually serves external markets with barley, wheat, citrus, wine, vegetables, and cattle. The country mainly exports fresh citrus, tomatoes, potatoes, and canned fruits and vegetables (Ettamymy, 2010). The government of Morocco focused on designing the land structure that is mainly characterized by small farms. This explains why many land pieces in Morocco do not exceed five hectors. In addition, many land pieces are private properties. Nevertheless, there are also collective properties, but in a small percentage (Jansen, 2004). As noted in Kuzman (2015), 2005 saw Morocco experienced drought. Things changed in 2006, and there was adequate rainfall and the country experienced bumper harvest. This resulted in 30% increase in the GDP of agriculture sector in the country (Kuzman, 2015). From then, the government has been focusing on improving the level of agribusiness, but according to experts, their attempts have been futile. The attempts have been futile because there are strategic issues that face the agribusiness sector of Morocco. For instance, government policies and strategies have brought complexity to the status of lands in this country (Ettamymy, 2010). In Morocco, a land is either a collective property (belonging to ethnic communities), Melk (private property), Guich lands ( lands belonging to the state distributed in return for military services), Habous lands (land granted by a person to a religious organization, and state lands (Ettamymy, 2010). This makes it hard to own a land in Morocco. Additionally, these strategies have made land come in short supply, resulting in insufficient production materials and techniques, and provide inadequate irrigation technique. This paper discusses the ways of overcoming these strategies issues facing the agribusiness sector in Morocco (Lazare, 2004). 1.2 Problem Statement Many people have called for a new plan in Morocco’s agribusiness sector. However, there are few studies and reports that have recommended on the ways of coming up with this new plan. After France had left Morocco, the people of this country believed the agricultural economy will boost their livelihood. Due to poor strategies in place, the country has not fully realized the benefits of agribusiness. This paper will look into the loopholes that are in these strategies, and provide reliable recommendations. More specifically, the following are research questions need to be addressed: What are the strategies that have failed the agribusiness sector in Morocco? How can the government or kingdom assist in training the people on enterprise management, and strategic management? How can business persons and farmers in Morocco make high-quality strategic decisions? 1.3 Objective The long term aim of this paper is to find solutions to the strategic issues in the agri-business sector of Morocco. Particularly, the research has the following sub-problems: Ensure the agri-business strategies used in Morocco lead to the transformation of the sector. To develop ways of designing strategies that can elevate Morocco from a technological lag in agribusiness and distorted images in terms of agribusiness profit, market, and management. To outline a conceptual framework for agribusiness strategic management. This study will be valuable to the agribusiness sector stakeholders in Morocco as well as the government and kingdom in developing better and efficient strategies for the industry. 2. Preliminary Literature Review As stated in a study by Chataway (2010), ‘strategy is the ability of a company to find a position in the market, which best suits the company’s resources (2010, p. 15).’ Many companies nowadays are designing strategies that have a flexible approach in the face of the ever-changing technology and commercial environments (Chataway, 2010). In Morocco, the kingdom’s agricultural strategy aims at acquiring a competitive advantage that could help steer economic growth. Because of the ever-changing environment of agribusiness, the government and kingdom require prompt adaptation strategies that suit rapid and frequent changes that are experienced, especially in the area of technology (Hansra, 2013). However, the strategies formulated have loopholes and has made this country’s stakeholders not compete internationally. Experts lay the blame on weak government policies that often fail (Jansen, 2004). 2.1 Agri-business in Morocco The agribusiness sector in Morocco is growing at a slow pace. As noted in a study by Jansen (2006), Morocco’s agribusiness sector has potential to grow, especially in the dairy, poultry, and sugar industries (Jansen, 2006). The author of this study is optimistic that the sector will grow because of the strong policies and strategies put by the government. The study noted the example of Green Morocco Plan, an initiative by the government to woo foreign investors and an effort to reduce the sector’s weather-related production risks (Jansen, 2006). Studies note that Morocco is a geographically diverse country (Coudel, 2013; Jansen, 2004; Lazare, 2004). It encompasses the Atlas and Rif mountains (Coudel, 2013), the Sahara desert (Jansen, 2006), and the coasts: Atlantic and Mediterranean. Since independence, the state has been relying on agribusiness. The sector is the backbone of the country’s economy. However, the government and other leaders of the country such as agricultural officers have failed to deliver good strategies that could steer the sector further (Hansra, 2013). Their weak strategies have seen the country experiencing food insecurity, especially in times of drought. Additionally, the way the government has structured its land is poor since they have emphasized on small farms (Sater, 2009). This has led to two distinctly different models, as noted in a study by Sater (2009), due to the striking dichotomy between small and large farms. These differences have hindered the sector’s development, and in the end, it has negatively affected the economy. 2.2 Loopholes in strategies The government and kingdom of Morocco wanted to ensure food security by dividing the agriculture sector into two parts which are; modern industrial sector and smallholdings (Kuzman, 2015). The modern industrial sector would produce food for export whereas the smallholdings would produce food for local markets and farmers’ subsistence (Kuzman, 2015). The above-stated government policy caused divisions in the country’s agricultural sector. The modern industrial sector owned large farms that were fertile, whereas the smallholdings owned small farms that were not that fertile (Ettamymy, 2010). In addition, the modern industrial sector earned nine times more than the small farms. The farmers in smallholdings are often subjected to poverty, lack basic infrastructure, and access inadequate technical and marketing support (Ettamymy, 2010). As stated in a study by Kosgey (2010), the division made life hard for farmers in small holdings because they could not register their lands, they cannot benefit from government programs, and generally investors and foreign buyers preferred products of larger farms (Kosgey, 2010). Many Moroccans own small farms. Because of inadequate incentives by the government, big market players oppress them. This has driven the economy of Morocco down because only a few citizens benefit from agribusiness (Fleet, 2013). A study by Jansen (2006) noted that if the Moroccan government could stop this division, there would be significant economic growth. The study recommends the government to remove barriers and create incentives for small-scale farmers to access agribusiness opportunities. Additionally, the author suggests the Moroccan government to invest public resources more strategically in the country to trigger small-scale farmers’ economic growth (Jansen, 2006). The major problem facing the agribusiness sector in Morocco is drought (Ettamymy, 2010). According to the weatherman, Morocco experiences drought every three years over the past decade (Ettamymy, 2010). The weatherman has also predicted that the country will experience a rise of about three degrees by 2020, and a decline in rainfall by 10% (Ettamymy, 2010). Despite drought being a familiar thing in Morocco, the government has not come up with effective strategies that could mitigate climate change. Recently, the government attempted to use seawater for agricultural purposes. This demonstrates how the Moroccan government is less equipped to mitigate climate change (Ettamymy, 2010). The state is also faced with the challenge of desertification (Lazare, 2004). The Sahara is ever increasing, and as noted in a study by Lazare (2004), this is due to desertification. The study warns that, this increase in desertification is likely to decrease standards of living, particularly for the poor (Lazare, 2004). Despite the negatives brought by desertification, the forests in Morocco are experiencing industrial logging, expansion of agriculture in forests, an increase of collection of firewoods, and extension of grazing land in forests. This puts pressure on forests in Morocco, and this may fuel further desertification (Lazare, 2004). The Moroccan government has Acts that protect the forests. However, due to corruption, state officers do not fully implement these Acts. Additionally, a study by Fleet (2013) notes that these laws are not so strict. This allows the Moroccans to extract more from forests that support the agribusiness sector of the country (Ettamymy, 2010). Statistics indicate that, Morocco losses approximately, 30000 Hectors of forests per year (Ettamymy, 2010). This means that Morocco should be prepared for prolonged droughts and increasing soil erosion that are large-scale problems and hinders development of agri-business sector (Jansen, 2006). A study by Chataway (2010) recommends the Moroccan government to tackle desertification by increasing irrigation infrastructure. Additionally, Paloni (2012) suggests the government to encourage the growth of drought resistant crops by farmers. 3. Methodology 3.1 Research Methodology This will be a qualitative research. As noted in a study by Chakrabarti (2009), this type of research methodology is where the researcher explores and understands the meaning behind problems. I will collect data from the participants’ setting, and I will make interpretations of the meaning of the data collected. This main research question is to discuss the ways of overcoming strategic issues faced by the agribusiness sector in Morocco. The characteristics of this research are: It seeks to answer various questions. It uses a predefined class of procedures to answer the question Collects data. Produces findings that are unique. Provides findings that can be used beyond the scope of this study. The main tenet for using qualitative research is that it is very useful in obtaining particular data about the values, opinions, behaviors, and social contexts of respondents of this study. I will build complex, holistic picture, analyze words and conducts the study in a natural setting. By using qualitative research design, I will be able to explore the research question in its naturalistic setting. 3.2 Research design A study by Kuada (2012) notes that a research design is a plan to conduct a research and involves the selection of a qualitative, quantitative or mixed method study, along with a selection of the specific issues within these three choices, named strategies of enquiry (Kuada, 2012, p. 36). For this qualitative study in nature, the researcher will focus on in-depth interviews, a non-experimental design to provide a theoretical description of the ways of overcoming the strategic issues faced by the agribusiness sector in Morocco. In-depth interviews are the best for collecting respondents’ personal histories, perspectives, and experiences on the research question. 3.3 Population and sample I will distribute in-depth interviews to 100 farmers in Morocco who will help in providing textual descriptions of how they experience the research question. Non-probability sampling will be used to select the 100 farmers in Morocco. Non-probability sampling provides researchers with strong theoretical reasons for their choice of units to be included in the sample. 3.4 Data analysis The data collected from in-depth interviews will be analyzed using thematic analysis. This will require the researcher to review in depth the data, make summaries, and sort the summaries into categories. Themes will be developed from the data collected. Thematic analysis is preferred because as noted in a study by Chakrabarti (2009), it is flexible and what the researcher will do with the themes once uncovered differs based on the intentions of the research. 3.5 Validity and reliability External Validity The researcher will conduct in-depth interviews in farmlands and homes of the respondents. Additionally, the sample for this research will be selected during farming hours. Internal validity Close-ended interviews will be used. This is to ensure uniformity of data. Reliability The researcher will have an entirely transparent and systematic approach to data collection from in-depth interviews, and will maintain an audit trail of data by documenting precisely the processing of data. 3.6 Research Ethics The researcher will have respect for persons by ensuring the autonomy of research participants. He will also ensure beneficence by minimizing the risks associated with research, such as psychological and social risks. The researcher will provide justice by ensuring fair distribution of the risks and benefits resulting from the research (Chakrabarti, 2009). References Chakrabarti, A. (2009). DRM, a Design Research Methodology. Springer Science & Business Media. Chataway, J. (2010). Novartis: New Agribusiness Strategy. The Journal of Agribiotechnology Management and Economics, 1 (3), 22-25. Ciju, R. J. (2012). E-Business Models and Web Strategies for Agribusiness. CreateSpace Independent Publishing Platform. Coudel, E. (2013). Renewing Innovation Systems in Agriculture and Food: How to Go Towards More Sustainability? Springer. Ettamymy, Z. (2010). Agriculture in Morocco: time for a new plan. Morocco NewsBoard. Fleet, D. V. (2013). Agribusiness: Principles of Management. Cengage Learning, Hansra, B. S. (2013). Agribusiness and Extension Management. Concept Publishing Company. Jansen, K. (2006). Agribusiness and Society: Corporate Responses to Environmentalism, Market Opportunities, and Public Regulation. Zed Books. Kees Jansen. (2004). Agribusiness and Society: Corporate Responses to Environmentalism, Market Opportunities, and Public Regulation. Zed Books. Kosgey, S. (2010). National Agribusiness Strategy. Making Kenyas agribusiness sector a competitive driver of growth. Kothari, C. R. (2004). Research Methodology: Methods and Techniques. New Age International. Kuada, J. (2012). Research Methodology: A Project Guide for University Students. Samfundslitteratur. Kuzman, B. (2015). 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