Moroccan poultry farmers warn of bankruptcy as chicken prices collapse

Morocco’s poultry producers are warning of a deepening crisis in the broiler chicken sector as farmgate prices have fallen to less than 7 dirhams ($0.70) per kilogram, well below production costs estimated at between 15 and 17 dirhams per kilogram.

The National Association of Chicken Breeders said the situation is inflicting heavy losses on farmers and pushing many producers toward bankruptcy. In a statement, the association blamed regulators for failing to adequately organize the market and address persistent distortions and speculative practices.

The group called for urgent government intervention to halt mounting losses, launch a transparent investigation into the poultry marketing chain and strengthen oversight mechanisms to combat market manipulation and anti-competitive practices. It also warned that the crisis could threaten the sustainability of domestic production and undermine Morocco’s food security.

Ali Chtour, president of the Moroccan Association for the Defense of Consumer Rights and a member of the Moroccan Federation of Consumer Rights, said the decline in demand is partly seasonal. He noted that chicken consumption traditionally falls after Eid al-Adha, when many households still have supplies of sacrificial meat and seek to reduce daily expenses.

“The main victims of this temporary slowdown are poultry farmers, who must continue producing and marketing large volumes regardless of seasonal demand fluctuations,” Chtour said in a statement to Hespress AR.

He added that producers are facing soaring operating costs, including imported feed, veterinary products and other production inputs, placing significant financial pressure on the sector.

Chtour urged the government to provide support measures to prevent the collapse of poultry farming operations, warning that a large-scale exit of producers from the market could eventually trigger sharp price increases for consumers.

Said Jnah, secretary-general of the National Association of Broiler Chicken Breeders, said the sector suffers from structural weaknesses, including the presence of an extensive informal market and multiple intermediaries who dominate both the day-old chick market and the distribution of finished poultry products.

According to Jnah, producers were led to believe before Eid al-Adha that there would be a shortage of chicks, driving chick prices up to 10 dirhams each while chicken selling prices remained around 9 dirhams per kilogram. He accused some market actors of manipulating supply data and concealing the true scale of production, contributing to heavy losses for farmers.

Many producers chose to hold onto their stock in anticipation of higher prices during the holiday period, resulting in a significant buildup of supply. Jnah said national demand typically ranges between 8 million and 9 million birds, while current production has reached between 14 million and 15 million birds.

The resulting oversupply has coincided with a sharp rise in production costs. Jnah estimated total production costs at between 15 and 17 dirhams per kilogram, compared with wholesale prices of about 9.5 dirhams per kilogram in Casablanca and purchase prices by distributors as low as 7 dirhams per kilogram.

“The sector is no longer facing ordinary losses of one or two dirhams per kilogram,” Jnah said to Hespress AR. “Farmers are losing between 6 and 7 dirhams per kilogram, which makes bankruptcy inevitable for many operators.”

He added that numerous producers are already facing legal action linked to unpaid debts and promissory notes, raising concerns about broader social and economic consequences if the crisis persists.

The association has renewed its call for authorities to investigate alleged irregularities in the marketing system and to take immediate measures against speculation and monopolistic practices that it says are disrupting the normal functioning of the poultry market.