Morocco Cancels Eid Al Adha Sacrifice Due to Drought Leading to $300 Million Loss to its Leather Industry

Morocco has officially canceled Eid Al Adha, the Islamic ritual sacrifice of cattle, due to the ongoing drought crisis and attendant challenges that have negatively impacted Morocco’s agriculture seasons and the country’s entire economy for the past six years. 

The announcement is expected to severely impact the country’s livestock industry, with estimated losses running as high as 20 billion dirhams. The suspension will affect various sectors, ranging from leather industries to tax revenue generated from livestock markets, as well as commerce, transport, and auxiliary activities such as butchery, and coal sales.

For the fourth time since Morocco’s independence, the country will not carry out the traditional Eid al-Adha sacrifice. However, the ripple effect of this decision could have adverse consequences for several sectors of the economy.

A recent study conducted by the Center for Economic and Social Forecasting reveals that the cancellation of the ritual sacrifice will lead to substantial economic losses across multiple sectors.

This includes leather industries, which benefit from the demand for sheep and goat skins, and the income generated by tax receipts from livestock markets.

The suspension is projected to result in a 20 billion dirham shortfall if 5 million Moroccan families had planned to carry out the ritual sacrifice. This would have involved the sale of millions of livestock, directly impacting farmers and related industries.

The leather industry, in particular, which processes between 4 to 5 million sheep skins each year, will suffer a direct hit. The value of these skins is estimated at 2 to 3 billion dirhams (~200 million to 300 million USD).

The suspension is expected to reduce productivity within this sector, potentially affecting around 50,000 workers.