The production of argan oil in Morocco has grown from a local activity to a major global industry. While still important in Moroccan cooking and medicine, argan oil is now also used in expensive cosmetics around the world. Most of the oil is made by women in rural areas near Essaouira. They grind the argan kernels by hand. It takes nearly two days to produce one kilogram of oil, which sells locally for around $3. However, the demand for argan oil is increasing, and this has caused environmental problems. The argan forests, which once covered over 14,000 square kilometers, have lost 40 percent of their area. Experts say that climate change, overharvesting, and changing land use are the main reasons. These problems are harming biodiversity and the lives of people in rural communities.

To address this, the Moroccan government started a conservation project in 2018. It includes planting argan trees with capers to save water and improve soil quality. But drought has slowed the growth of the new trees. At the same time, many cooperatives must sell oil at low prices to intermediaries. These middlemen sell it at higher prices to international companies. As a result, producers earn less. Some cooperatives have tried using storage centers to negotiate better prices, but success is limited. A new support plan is set for 2026.