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Domaines Agricole Benzit a model of U.S.-Moroccan cooperation

Many people told Mohammed Benzit, President of Domaines Agricole Benzit, that he was crazy to even think of trying to grow peaches in the arid climate of Morocco. Benzit, however, is not a man to let small minds slow him down. He had a dream, and taking their doubts as a personal challenge, he set out to prove all of the naysayers wrong.

Benzit’s love of all things American began when he traveled to the United States at the age of 26 to study agriculture at the University of California-Davis (UCD), considered to be the nation’s premier agricultural school, in the state’s fertile Central Valley. During his tenure at UCD he traveled the length and breadth of California’s prime agricultural zones, through the San Joaquin Valley, from Bakersfield through Sacramento to Stockton, and into the Imperial Valley east of San Diego, soaking up the latest scientific techniques in the agricultural field. Benzit was driven by his dream to bring this expertise home to Morocco.

Benzit’s ability to seize upon opportunities overlooked by others has made Domaines Agricoles Benzit, founded in 1985, an unprecedented success story. In the early 1980s, he realized that from the end of March until the middle of May, Europe was devoid of fresh peaches and nectarines. He soon worked out a plan fill this niche in the market.

While attending an agricultural conference at Clemson University during the mid-1980s, Benzit met Dr. Wayne Sherman, head of the Horticulture Science Department at the University of Florida at Gainesville. This would prove to be the most important professional relationship of Benzit’s life. Each of Domaines Agricoles Benzit’s fruit varieties is the product of Dr. Sherman’s research laboratory. Every year since that time, Benzit has traveled to Florida to review the latest research, and quite often, to sign contracts on additional varieties. Benzit held up the two decade partnership enjoyed between Domaines Agricoles Benzit and the University of Florida at Gainesville as a model of how an American institution can contribute to significant progress in a developing country at the most minimal of costs. It is a concept he would like to see repeated in Morocco.

Benzit planted the first peach, avocado and citrus trees in 1983. Harvesting of peaches began in 1987, followed by avocados and citrus in 1989. From its humble beginning, Domaines Agricole Benzit has become the single largest fruit exporter in Morocco.

Domaines Agricole Benzit currently exports 80% of its product, principally to the United Kingdom, Spain, Italy and France. The remaining 20% is sold to local distributors for domestic consumption. The company annually harvests 1,000 tons of citrus, 700 tons of peaches and nectarines, 700 tons of apples, and 200 tons of avocados.

The origin of most of the company’s output is a 600 acre plot near Taroudant, where all varieties save for nectarines are grown. The operation is located 70 miles northeast of the Atlantic coast resort town of Agadir. In addition, 80 acres of export-only nectarines are grown 10 miles to the east of Marrakech. Benzit plans to spend $1 million on an additional 100 acres, primarily in Taroudant, in the near future.

The Taroudant harvest begins around March 20 every year and lasts until the end of April, while the nectarines near Marrakech are harvested during a two week period from around April 20 until May 5. Utilizing an efficient logistics system, the fruit makes its way from Morocco to Spain in 36 hours, to Italy in 48 hours, and to the stores of central London in four days.

Domaines Agricole Benzit enjoys close to complete market dominance during this period of time. Benzit explained that while his produce shares some shelf space with a negligible amount of fruit from southern Spain after April 20, “I consider I have no competition.”

The completion of the Tangier deepwater port and free trade zone in 2008 will present new opportunities for Benzit. He expects that the completion of this project will streamline the paperwork involved in export operations, making the already short trip from tree to supermarket even shorter. Access to state of the art container services provided by the new port has the potential to significantly expand Benzit’s market potential, facilitating exports to lucrative yet distant markets such as Canada and the United States.

Benzit is very passionate about his country and its future, and about what Morocco needs to accomplish in order to bring its population out of the poverty and backwardness that plague the Kingdom. He stressed that the new government of Prime Minister Driss Jettou has a prime opportunity to institute the needed political, judicial, and economic reforms being pushed by His Majesty King Mohammed VI. Benzit emphasized that His Majesty is earnest in his desire to better the lot of his subjects and that he has the support of both the Moroccan business community and the public at large. One of the chief obstacles to getting things moving in the right direction is the Prime Minister’s tug of war with Morocco’s entrenched French-style, multi-layered civil service bureaucracy that adapts to change at a glacial pace, if at all.

Benzit is confident that the major catalyst for maneuvering Morocco into the 21st century is the successful completion of a Free Trade Agreement (FTA) with the United States. In his view, the FTA will force Morocco to enact long overdue business-friendly policies.

In addition, the FTA will make more U.S. companies aware of the lucrative business opportunities available in Morocco. He held up as an example Morocco’s trading relationship with the European Union under the Association Agreement signed on March 1, 2001. The agreement was more dreaded than anticipated by many Moroccan businessmen, according to Benzit. Many made the erroneous assumption that it would only benefit European companies planning to flood Morocco with their products. To the relief of the business community in Morocco, the Association Agreement actually provided the Kingdom with a huge market in Europe for its products. Benzit asserted the same would be true with the advent of a U.S.-Morocco Free Trade Agreement, opening up the vast American market to Moroccan goods.

He additionally underscored the need for the Moroccan government to be more proactive in its encouragement of small and medium- size businesses. Many Moroccan banks exist in a climate that has traditionally refused to lend money to budding entrepreneurs. When money is lent, it is often at high interest rates. Because of these conditions, the growth of small businesses in Morocco has been significantly hindered.

In addition, installation of even the most basic business services is problematic. Benzit explained that while his company, which is a primary provider of employment to the village of Taroudant, has extremely unreliable telephone service, the residents of the nearby town have no such problems. Benzit was adamant that this type of bureaucratic neglect is a matter of the highest importance to Domaines Agricole Benzit, which deals with international clients on a daily basis and is highly reliant upon real-time information that can determine whether significant sums of money are made or lost. Services in large cities such as Rabat and Casablanca are in fact as good as any in Europe or the United States, according to Benzit. Making the decision to live or work outside of cities and towns in Morocco effectively means condemning yourself to living one hundred years in the past. This is a major problem that must be addressed in order for the Kingdom to make meaningful progress towards development.

He emphasized that while there are many things that need to be done to make Morocco competitive in international business, there are existing strengths as well. This includes the prevalence of a strong work ethic, and the willingness by many to adapt to Western ways of doing business. Benzit stressed that even when the inevitable problems occur, Moroccans do their best to solve them. In addition, although the educational system still needs a great deal of modernization and improvement, it does provide a good, basic education to its children, with English increasingly taught and to children in earlier grade levels.

He noted the virtues of the American educational system over that of the French, by providing the example of his children. His son is a senior in the College of Engineering at the University of Florida at Gainesville, while his daughter is studying in France. Benzit explained that his son’s American education, where individual initiative is highly encouraged, will enable him to be an effective problem-solver when he returns to Morocco. In the long run, said Benzit, this will allow him to outmaneuver those colleagues of his who studied under the French system, which frowns upon critical thought and independent initiative, and instead emphasizes consensus at all costs.

Mr. Benzit stressed that he owed his business success to the friendships he had made in the United States, and to American technology. His philosophy on the success of the developing world is that nations such as Morocco need to see America as an indispensable ally. Since America and the European Union are the world’s business leaders, as he put it, “Moroccans need to know that you either follow the lead of the West, or you simply get left behind.”

He went on to say that the best prescription to overcome the prejudice, mistrust and ignorance between the West and the Arab and wider Muslim world is to continue to foster the same sort of professional partnerships among American, European and Moroccan companies that have allowed Domaine Agricole Benzit to flourish. In short, Mr. Benzit would like to hold up his company’s success and the invaluable assistance he has received from his American colleagues as a model for further Moroccan-American business cooperation and partnership. “Moroccans need to know that Americans are good people and Americans need to know that Moroccans are good people,” said Benzit.

Benzit’s love for the United States and all that it has done for the Moroccan people was obvious when he recounted that his 91 year old father, who has never been to the United States, told him during the 1991 Persian Gulf War that the Arab world could not afford to let America lose, as the whole region would lose as well. This is the spirit that drives Mr. Benzit in his relationship with Americans. He feels very strongly that the Moroccan-American relationship has lasted as long as it has because it is based upon mutual respect and a shared set of values, underscoring a shared vision of what the future could be.

 

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