Morocco poultry sector crisis deepens as oversupply pressures prices

Thursday 11 June 2026 - 15:29

By: Dakir Madiha

Morocco poultry sector crisis deepens as oversupply pressures prices

The poultry industry in Morocco is facing a prolonged crisis marked by a widening gap between production costs and market prices. Chicken and eggs, staple foods in the national diet, remain widely available to consumers, but producers are absorbing heavy financial losses as selling prices fall well below production costs.

Live chicken prices at farm level have dropped to around 8 dirhams per kilogram, while production costs are estimated at nearly 15 dirhams. This imbalance has created severe pressure on poultry farmers, many of whom are operating at a loss. Industry representatives warn that the situation is no longer linked to short-term fluctuations but reflects a structural market distortion.

The main driver of the crisis is oversupply. Significant investment in poultry farming and egg production over recent years has sharply increased national output. However, domestic consumption has not grown at the same pace. This mismatch has led to persistent surpluses that weigh heavily on prices and destabilize farm revenues.

Egg production has been particularly affected. The rapid expansion of laying hen farms has flooded the market, while limited storage capacity and weak processing infrastructure have prevented absorption of excess supply. With few export channels and underdeveloped transformation industries, producers are left with few options to stabilize income.

The sector’s structure further amplifies the crisis. Poultry farming remains highly fragmented, with thousands of independent producers making uncoordinated production decisions. At the same time, a long chain of intermediaries influences final pricing, often reducing the share captured by farmers and disconnecting retail prices from farm-level realities.

Industry stakeholders argue that the regulatory framework does not sufficiently address the biological and economic constraints of poultry production. They call for stronger market monitoring tools, including a national observatory to track production costs and supply trends, as well as the development of production contracts to better align supply with demand.

Without structural reforms, the risk is a prolonged period of low profitability that could discourage investment and weaken production capacity over time. Despite current difficulties, the sector remains central to national food security and is expected to recover if market organization and value chains improve.