Morocco’s OCP Group, the world’s largest phosphate fertilizer producer, reported first-half 2026 revenue of MAD 48.37 billion ($5.18 billion), down 7.3% from MAD 52.17 billion ($5.58 billion) a year earlier, as geopolitical tensions and disruptions to global raw-material supply chains weighed on market conditions.
Second-quarter revenue fell to MAD 28.28 billion ($3.03 billion), from MAD 30.57 billion ($3.27 billion) in the same period of 2025, the company said.
The decline comes despite OCP retaining significant flexibility across its integrated phosphate, fertilizer and industrial operations. The group said it adjusted production levels, product offerings and the sourcing of production inputs to respond to shifting global demand and raw-material availability while maintaining customer supplies.
OCP said the performance demonstrated the resilience of its integrated business model and the flexibility of its industrial operations.
The results underline the pressure facing global fertilizer markets as producers navigate volatile commodity prices, trade restrictions, geopolitical tensions and disruptions to international supply chains.
For Africa, where agriculture remains heavily exposed to fertilizer availability and pricing, developments at OCP carry significance well beyond Morocco. The continent remains a major importer of agricultural inputs even as it seeks to expand domestic food production and reduce dependence on global food markets.
OCP keeps investment engine running
Despite weaker revenue, OCP maintained an aggressive investment programme aimed at expanding production capacity and strengthening its industrial infrastructure.
Capital expenditure reached MAD 5.92 billion ($634 million) in the second quarter, down 36% from MAD 9.23 billion ($988 million) a year earlier.
For the first six months of 2026, however, capital expenditure increased 6% to MAD 16.07 billion ($1.72 billion), compared with MAD 15.16 billion ($1.62 billion) during the first half of 2025.
OCP attributed the increase primarily to payments concentrated in the first quarter for strategic industrial and water infrastructure projects, as well as renewable energy developments.
The group expects investment spending to slow during the remainder of 2026, in line with previously announced guidance.
The spending forms part of OCP’s broader effort to expand fertilizer production while investing in water security and renewable energy, increasingly important priorities for a major industrial company operating in a water-stressed country.
The group is also seeking to strengthen its position in major agricultural markets as global food security concerns continue to drive demand for fertilizers and crop nutrients.
US policy reopens key fertilizer market
OCP’s international strategy received a boost in June when the administration of U.S. President Donald Trump authorised the temporary suspension of certain duties on Moroccan phosphate fertilizers.
The measure, introduced following an emergency declaration concerning fertilizer supplies, suspends countervailing and anti-dumping duties for up to eight months, or until the emergency is terminated.
The White House said the policy response was intended to address insufficient domestic phosphate fertilizer production and disruptions affecting international agricultural supply chains.
The decision reopened an important route into the U.S. market for OCP after years of restricted access.
On Aug. 17, a vessel carrying approximately 54,000 metric tons of Moroccan Triple Super Phosphate fertilizer arrived at the Port of New Orleans, marking OCP’s first major return to the U.S. market after years of restricted access.
The development gives OCP renewed access to one of the world’s largest agricultural markets at a time when U.S. farmers are facing heightened concerns over fertilizer supply, affordability and the resilience of global agricultural input chains.
OCP eyes US manufacturing foothold
OCP is also seeking to move beyond exports and establish a permanent manufacturing presence in the United States.
The group’s North American subsidiary and U.S. farmer-owned cooperative CHS have proposed a joint venture to develop a phosphate fertilizer plant in Louisiana, with planned investment of up to $450 million.
If completed, the facility would become OCP’s first major U.S. manufacturing base, allowing the Moroccan group to produce closer to American agricultural customers while potentially reducing exposure to international shipping and trade disruptions.
The proposed investment also reflects a broader shift in global supply chains, with producers increasingly seeking to localise manufacturing closer to major end markets in response to geopolitical risks and trade policy uncertainty.
OCP deepens global partnerships
The Moroccan group is simultaneously expanding its international partnerships.
In July, OCP Nutricrops agreed with U.S.-based Koch Ag & Energy Solutions to establish a 50/50 joint venture at OCP’s Jorf Lasfar fertilizer complex in Morocco.
The facility has annual production capacity of up to 1.2 million metric tons of phosphate-based fertilizers, strengthening OCP’s ability to serve global agricultural markets through strategic partnerships.
The agreement adds another layer to OCP’s strategy of combining its access to Morocco’s vast phosphate reserves with international distribution, technology and market partnerships.
Morocco holds the world’s largest known phosphate reserves, giving OCP a structural advantage in a fertilizer industry where access to phosphate rock is strategically important.
Africa’s fertilizer security at stake
OCP’s financial performance comes against a wider push by African governments to increase fertilizer availability and agricultural productivity.
The African Development Bank has repeatedly identified fertilizer access, agricultural inputs and infrastructure as critical constraints on the continent’s efforts to increase food production.
Africa’s agricultural productivity remains below its potential, while population growth and urbanisation are increasing pressure on food systems. The continent is projected to account for a significant share of global population growth over the coming decades, making agricultural productivity and fertilizer access increasingly strategic economic issues.
OCP has positioned itself as a major player in that equation through investments in fertilizer production, African distribution networks, farmer support programmes and partnerships designed to improve access to crop nutrients.
The company’s strategy also aligns with Morocco’s wider efforts to build industrial capacity around its phosphate resources rather than exporting raw materials alone.
For OCP, however, the first-half numbers show that even a globally integrated fertilizer producer is not insulated from shifting trade rules, geopolitical tensions and volatile supply chains.
The combination of lower revenue, continued heavy investment and renewed access to the U.S. market leaves the company facing a pivotal period as it balances short-term market pressures against a longer-term expansion strategy.
Its proposed $450 million Louisiana project, expanded partnerships and renewed U.S. shipments could provide new growth avenues, while its continued investment in production, water infrastructure and renewable energy points to an increasingly integrated approach to competing in global fertilizer markets.
For Africa, the stakes extend beyond OCP’s balance sheet.
The ability of one of the continent’s most strategically important industrial companies to expand production and reach global agricultural markets could have implications for fertilizer supply, food security and the continent’s broader drive to build more resilient agricultural value chains.
