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Feasibility study: pure argan oil

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par Bouchaib jarir
Cambridge college - Master degree 2016
  

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Cooperatives: A Development Strategy

Dossa (2011), in his articleCooperatives:  A Development Strategy?  An Analysis of Argan Oil Cooperatives in Southwest Morocco. He illustrates the importance of the cooperative as an organizational form, which enable individuals to collectively compete in a market through joint-ownership agreements and democratic decision-making. Dossa's work reveals that through donor funding and the development of associations to commercialize cooperatives products, the cooperative model in Morocco has been largely successful.

After giving a brief description about the cooperative and its history in Morocco, the author talks about the life cycle of the cooperatives. He said «the life cycle of cooperatives has significantly improved through two interventions, donor funding and the development of associations.» (Dossa, 2011, pg. 4) The author also has analyzed the economic performance of the cooperatives, he affirmed that «the economic performance of a cooperative strictly depends on the mechanization of its production process. Furthermore, the improved quality and greater shelf-life that mechanized oil presses provide in conjunction with strict industrial policies that enforce quality testing of exported Argan oil have nearly eliminated hand-pressed oil from the market.» (Dossa, 2011, pg.3)

Dossa also, did an analysis for the cooperatives, and its economic and social roles. He considers that the cooperatives have contributed significantly to local economic development. In addition, he said «employing women has also improved the social status of women and strengthened social capital. The author argues that the success of Argan oil cooperatives can indeed be attributed to their abandonment of basic cooperative principles. Moreover, each of the four tenets (democratic decision making-equitable profit distribution- open membership- member education on cooperatives) that Argan oil cooperatives violate would have hindered the growth of the cooperative movement and therefore the development that followed.» (Dossa, 2011, pg. 9)

        In the same context, Omari and Elkandoussi, in their article titled the Marketing of women's Argan Cooperatives. Challenges and Opportunities, agree with Dossa, that the cooperatives playing an important role in the development of the region which produce Argan oil. According to Omari and Elkandoussi «the Argan cooperatives have achieved positive results on social, economic, and environmental levels in the region, particularly for women of rural origin.» (2013, pg. 112). Furthermore, Omari and Elkandoussi confirm that having a strong and effective marketing strategy is the key which allows to the cooperatives achieve the planned objectives. They said «Since the role of the cooperative is not only to satisfy its members but also to contribute to the economic, social, environmental and political development of the community, the cooperative must adopt a coherent marketing mix that integrates economic, social and environmental dimension.» (pg. 113).

In addition, the authors confess that there are many difficulties faced by these cooperatives, weak marketing strategies, and the insufficient of the invested capital, high cost of the raw materials, and the lack and the absence of the human capital able to achieve the cooperative's mission in the international market. The authors suggest some marketing actions to overcome these obstacles, such as providing training in management and marketing for the members.

         Both, Dossa and Omari, Elkandoussi agree that Argan oil production cooperatives are the motor of the development in South of Morocco. Moreover, these cooperatives contribute in the improvement of the conditions of life for their members by creating more employment opportunities especially for women, expand the awareness and fighting the illiteracy among its member. However, these cooperatives facing multiples of obstacles which Moroccan Authorities with the collaboration with other nonprofit organizations, trying to defeat it by putting in place many policies in order to encourage these cooperatives.

            If these two studies, showed that Argan oil production has largely benefited the local communities, economically as well as socially. However, the aggressive harvest of Argan tree, could threat the endemic Argan forest.

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