Moroccan SPMS secures USD 15.6M to boost expansion plans

MOROCCO – Société de Production Maraîchère Samir (SPMS), a prominent agricultural company based in Agadir, Morocco, has secured USD 15.6 million in financing from Vantage Capital, a South African fund manager.

The agreement, announced on September 23, marks a key milestone for the Agadir-based company, which specializes in producing and marketing cherry tomatoes and red fruits, including raspberries, blueberries, and blackberries.

SPMS intends to use the funds to significantly expand its agricultural footprint. The company aims to triple its cultivated area from the current 101 hectares to 300 hectares, supporting its long-term development strategy.

“We are very pleased to have the support of Vantage Capital. This transaction marks an important milestone for our company and will allow us to implement our long-term strategic vision to expand our market presence,” said Samir Jbali, CEO of SPMS.

The company is a key player in Morocco’s thriving horticultural industry, which generates more than 33% of the country’s agricultural export revenues.

With this recent financing, SPMS is positioned to further enhance its production capabilities and strengthen its role in both local and international markets.

A crucial element of SPMS’s growth is its partnership with the American group Driscoll’s, a leading global producer of berries.

Driscoll’s local subsidiary launched a new packaging unit in Larache, Morocco, in May 2023, at a cost of USD 15 million.

This partnership aligns with SPMS’s expansion plans and highlights the importance of red fruit exports in Morocco’s agricultural sector.

Morocco has become a dominant exporter of red fruits, overtaking citrus and watermelon. According to data from the U.S. Department of Agriculture, Morocco’s export of blueberries, raspberries, and strawberries generated more than USD 725 million in 2021.

Morocco’s tomato exports continue to dominate the horticultural export sector. Tomatoes remain the country’s top horticultural export product, generating nearly USD 1 billion in revenue during the 2022/2023 season. SPMS’s cherry tomatoes are an essential part of this robust sector.

Morocco is currently the world’s third-largest tomato exporter, following Mexico and the Netherlands.

In the first quarter of 2024, Morocco exported 266,000 tonnes of greenhouse tomatoes, marking a 10% increase compared to the same period in 2023.

Despite facing challenges like drought and the spread of the tomato brown rugose fruit virus (ToBRFV), the sector has demonstrated resilience.

While exports continue to grow, tensions between Morocco and certain European Union countries have intensified in 2024.

France and Spain, Morocco’s first and third-largest tomato buyers, have raised concerns that could affect future trade agreements.

Nonetheless, Morocco’s horticultural industry remains strong, with the European Union and the United Kingdom continuing to absorb over 80% of Moroccan tomato shipments.