Moroccan chicken prices fall amid overproduction concerns

Poultry prices in Morocco have plummeted to historic lows in recent weeks, driven by a surplus in production and a subsequent drop in farm-gate selling prices. This situation has cast a spotlight on the future of the poultry market, with questions arising about whether prices will continue to fall or if the market will gradually rebalance.

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The decline in poultry and table egg prices currently experienced is due to a temporary situation characterized by an excess of supply over demand; this has led to a drop in selling prices at the production level.

Industry professionals largely agree that the price decline stems from an oversupply relative to demand. Ahmed Addoudi, the managing director of the interprofessional federation for the poultry sector, described the situation as a "temporary circumstance" characterized by excess supply. He noted that increased production capacity in recent months, coupled with a temporary slowdown in demand, contributed to the imbalance. The Eid al-Adha holiday, when consumer demand typically shifts towards purchasing sheep, also played a role in this temporary market disruption.

Addoudi emphasized that current production-level prices are significantly low, placing considerable pressure on the income of breeders and producers. However, he characterized the situation as transient, asserting that it does not undermine the fundamental strengths of the Moroccan poultry sector. He highlighted the sector's substantial production capabilities, structured investments, and recognized expertise, all of which ensure a consistent supply of poultry meat and eggs for the national market, crucial components of food security.

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The current situation highlights the need to accelerate efforts to structure the marketing, valorization, distribution, and processing links within the production chain.

Abdelkarim Qaddouri, a local representative for the poultry branch of the National Union of Traders and Professionals in Khouribga, offered a different perspective, suggesting the current trend might persist. He pointed to the large number of chicks currently available on farms, which exacerbates the oversupply. Despite current losses, some large-scale breeders are reportedly reducing production and chick numbers to mitigate financial damage. Qaddouri also dismissed rumors of widespread poultry diseases, stating they lack factual basis given the existing monitoring systems.

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This situation comes despite the losses currently being incurred by large breeders, which is leading some of them to reduce production and the number of chicks to limit these losses.