Morocco’s poultry industry is selling at a loss. Farm-gate chicken prices currently range between 7 and 8 dirhams per kilogram, while production costs exceed 13 dirhams. Eggs are trading between 35 and 50 centimes depending on size, despite a production cost of around 90 centimes.
According to producers, the sharp gap reflects the combined impact of three factors: a structural surplus in supply, the seasonal collapse in demand following Eid al-Adha, and operating costs that remain elevated despite lower global feed prices.
The crisis did not emerge overnight. It is the result of years of expansion driven by efforts to compensate for declining red meat availability in the domestic market. Producers invested, expanded farms and increased production cycles. Supply rose, but demand failed to keep pace.
“The sector now places 12.5 million chicks every week, compared with 10 million last year, an increase of 20%,” said Moustapha Mountassir, president of the National Association of Poultry Meat Producers.
Turkey production has followed the same trend, rising from 1.2 million birds per month in 2024 to 1.8 million today, a 50% increase. Overall output is expanding by 16% to 20% annually, without regulatory mechanisms to curb excesses.
Predictable demand shock
The Moroccan poultry market is highly sensitive to household spending patterns around Eid al-Adha.
“Families prioritize the purchase of sheep and reduce everyday food spending in the weeks preceding the holiday. This decline in demand is predictable and recurrent, yet the sector has failed to develop tools to mitigate its impact,” Mountassir said.
Khalid Zaim, president of the National Egg Producers Association, said the combination of weaker demand and abundant supply pushed prices well below profitability levels.
“The phenomenon is not new, but its scale this year reflects the size of available supply, which leaves little room to absorb even a minor demand shock,” he said.
Oversized birds and logistical bottlenecks
This year’s Eid also created logistical disruptions. Industrial slaughterhouses closed for a week, preventing birds from being processed when they reached their optimal commercial weight.
As a result, chickens continued growing on farms.
“Birds weighing more than four kilograms are now difficult to market, whereas the standard commercial weight is around 2.5 kilograms,” Mountassir explained.
The consequence is a decline in the number of saleable units per ton of production, without any compensation from higher prices.
The problem has been compounded by the fact that many households continue to consume stocks of lamb and beef acquired during Eid, delaying a return to poultry purchases.
“If two weeks of sales are lost, around 25 million chickens would remain stranded on farms,” Mountassir warned.
The market lacks sufficient cold storage capacity to absorb such surpluses. Industrial slaughterhouses account for only 15% of national production, leaving most of the sector dependent on traditional or semi-industrial circuits with limited storage capabilities.
Turkey consumption has already begun recovering, rising from 200 tons per day immediately after slaughterhouses reopened to 520 tons this week, above the usual 450-500 tons. Demand for broiler chickens is also improving, but accumulated surpluses continue to weigh on prices.
Feed costs remain high
The crisis has been aggravated by the lack of transmission of lower international prices for feed ingredients.
Corn and soybean prices have fallen significantly on global markets, yet poultry feed prices in Morocco remain elevated, producers say.
Transport costs also vary according to a farm’s proximity to feed plants.
“Farms located far from industrial hubs face higher costs, which widens the gap with a uniform selling price across the market,” Mountassir said.
A producer whose costs amount to 13 dirhams per kilogram is currently selling at 7 or 8 dirhams. For those with costs closer to 15 dirhams, losses exceed 7 dirhams per kilogram.
The situation has hit smaller producers particularly hard. Unlike large integrated companies that control part of their supply chains, smaller farms depend entirely on market prices and possess little bargaining power.
Debt levels are rising and some producers are already facing legal action. In several regions, farm closures are no longer hypothetical but a reality.
Tayyibat diet not to blame
Some observers have linked the crisis to the growing popularity of the Tayyibat diet, which discourages the consumption of certain poultry products. Industry representatives reject that explanation.
“Eggs continue to sell normally. There are no unsold stocks and no destruction of products. If the Tayyibat diet had a depressing effect on demand, we would see inventories piling up. That is not happening,” said Zaim.
Mountassir reached the same conclusion for poultry meat.
“The crisis stems from structural and cyclical factors. Excess production, seasonal demand shocks and rigid operating costs are responsible, not changing consumer preferences,” he said.
According to him, blaming the Tayyibat diet would distract attention from the sector’s real priorities.
“Supply regulation, expanding storage capacity, improving the transmission of feed prices and better anticipating seasonal demand cycles remain the key issues that need to be addressed,” he said.
