The Africa Report
By Estelle Maussion
The Moroccan fertiliser group, headed by Mostafa Terrab, is facing allegations of unfair competition by US-based producer Mosaic in an unprecedented dispute over the strategic North American market.
The United States, a country where the CEO of phosphate fertiliser giant OCP, Mostafa Terrab, once lived and studied, has been making the executive’s life difficult.
Since July 2020, the Moroccan group’s exports to the vital North American market have been at a standstill. OCP is one of the world’s top five producers alongside US-based Mosaic, Russia’s PhosAgro and two Chinese players, GPCG and YTH.
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OCP made the move after its US competitor Mosaic filed a petition with the US Department of Commerce and the US International Trade Commission requesting an investigation into unfair competitive practices. Mosaic, alleging that OCP receives subsidies, is demanding countervailing duties be imposed on Moroccan phosphate fertilisers.
Taken by surprise
The dispute – a first in OCP’s 100 years of operation and a rarity in the phosphate market – demonstrates the stiff competition in the sector. Influenced by US political considerations, the final outcome of this economic wrangling is expected in March 2021.
On the face of it, the case has gotten off to a bad start for OCP – which reported revenue of €4.9bn ($6bn) in 2019 – as the investigation took the company and much of the industry by surprise.
After opening at the end of June 2020 and being publicly disclosed by Mosaic – which reported revenue of $8.9bn in 2019 – and widely picked up by the media, the probe put the Moroccan group, along with Russia’s PhosAgro and EuroChem, also targeted, on the defensive.
