Morocco's Poultry Industry Under Pressure as Chicken Prices Fall Below Production Costs

Morocco's poultry industry is facing increasing financial pressure as chicken prices continue to sell below the cost of production. Industry representatives say farm-gate prices have dropped to less than seven Moroccan dirhams per kilogram, while production costs remain close to 17 dirhams per kilogram.

The decline has been linked to a sharp increase in supply. Producers say more than 15 million chicks are being raised each week, far above the country's estimated weekly demand of about nine million, resulting in an oversupply that has pushed prices down.

Poultry farmers say the situation has reduced profit margins at a time when feed, transport, energy and other operating costs remain high. Some breeders have reportedly cut production or left the business as financial losses continue to grow.

While consumers are benefiting from lower chicken prices, industry stakeholders warn that prolonged sales below production costs could force more producers out of the sector and threaten the long-term stability of Morocco's poultry industry.