Casablanca – Morocco’s poultry sector is confronting one of its most difficult periods in recent years as broiler chicken producers grapple with a sharp collapse in farm-gate prices, rising production costs, and growing concerns over the long-term sustainability of the sector. While consumers have benefited from lower chicken prices in recent weeks, producer organizations warn that continued losses among farmers could eventually undermine production capacity and disrupt the market’s balance.

The latest warnings come as the price of live chicken at farms has fallen to less than $0.72 per kilogram, according to producer associations. At the same time, estimates of production costs vary between $1.13 and $1.75 per kilogram, depending on production conditions, feed expenses, and chick prices. This means that many farmers are currently selling their output at substantial losses, with some reporting deficits exceeding half of their production costs.

The situation has raised alarm among poultry producers, who argue that the current market environment is becoming increasingly unsustainable. Sector representatives say a growing number of farmers are experiencing severe financial strain after months of absorbing losses, while some smaller operators are reportedly considering leaving the sector altogether.

Oversupply weighs on the market

A key factor behind the current downturn is the imbalance between supply and demand. Poultry production has expanded significantly over recent months, while consumer demand has failed to keep pace.

Sector stakeholders indicate that national demand typically ranges between eight and nine million birds during a standard production cycle. However, recent production levels have been estimated at between 14 and 15 million birds, creating a substantial surplus that has exerted strong downward pressure on prices.

Several factors contributed to this increase in production. Earlier in the year, expectations of stronger demand encouraged many farmers to maintain or expand output. Some producers also delayed marketing their birds in anticipation of better prices during the Eid period. Instead, weaker-than-expected consumption and the availability of alternative meat sources after the holiday contributed to slower demand growth.

As a result, large quantities of poultry entered the market simultaneously, intensifying competition among producers and accelerating the decline in prices.

Production costs remain elevated

While selling prices have dropped sharply, production expenses have remained relatively high. Feed continues to represent the largest cost component for poultry farms, alongside veterinary treatments, energy, transportation, labor, and the purchase of day-old chicks.

Poultry sector representatives report that chick prices increased significantly in recent months, reaching approximately $1.03 per chick in some cases. Combined with elevated feed costs, this increase pushed total production expenses to levels that many producers consider unsustainable under current market conditions.

The mismatch between costs and revenues has placed considerable pressure on farm finances. Producers argue that selling below cost for prolonged periods erodes working capital, limits investment capacity, and makes it difficult to finance future production cycles.

Small and medium producers under strain

The impact of the crisis has been particularly severe for small and medium-sized farms, which generally have fewer financial reserves than larger operators.

Producer organizations say many farmers have accumulated debts linked to feed purchases, chick supplies, and other operating expenses. As losses continue to mount, concerns are growing about the possibility of farm closures and bankruptcies.

Stakeholders warn that the disappearance of smaller producers could lead to greater concentration within the sector and reduce overall production diversity. They also caution that large-scale exits from the market could create future supply shortages once current surpluses are absorbed.

Broader implications for food supply

The poultry sector occupies a central position within Morocco’s agricultural economy. National poultry meat production has reached approximately 650,000 tons annually, and the sector supports hundreds of thousands of direct and indirect jobs across farming, feed production, processing, transportation, and distribution.

Chicken remains one of the most widely consumed and affordable sources of animal protein in the country. For this reason, stakeholders argue that the challenges facing producers extend beyond the interests of individual farms and carry broader implications for food security and market stability.

While consumers currently benefit from retail prices ranging between $1.24 and $1.55 per kilogram, sector representatives caution that prolonged financial distress among producers could eventually reduce domestic output. A decline in production capacity could, in turn, lead to tighter supplies and higher prices in the future.

Calls for market reforms

Producer organizations have urged authorities to intervene through measures aimed at restoring balance within the sector. Their proposals include stronger monitoring of poultry marketing channels, investigations into alleged market distortions, improved transparency regarding production volumes, and stricter oversight of speculative practices.

They have also called for greater involvement of farmers in discussions concerning sector policies and market management. According to sector representatives, a more coordinated approach involving producers, regulators, and other stakeholders could help improve forecasting, align production with demand, and reduce market volatility.

Some voices within the poultry value chain are also advocating targeted support measures for farms facing severe financial difficulties, arguing that preserving production capacity is essential for maintaining long-term stability.

A critical period for the sector

The coming months are expected to be decisive for Morocco’s poultry sector. Producers are closely watching market developments in the hope that supply and demand conditions will gradually rebalance and support a recovery in prices.

However, sector representatives maintain that without structural improvements and more effective market coordination, recurring cycles of oversupply and financial losses could continue to affect producers. As Morocco seeks to strengthen agricultural resilience and food security, the challenges currently facing poultry farmers have become a key test of the sector’s ability to adapt to changing economic conditions while ensuring a stable supply of affordable protein for consumers.