Morocco sees sharp decline in poultry prices amid easing cost of living crisis

MOROCCO – In a welcome relief to Moroccan consumers, poultry prices have sharply declined, signalling the easing of the country’s cost-of-living crisis. 

According to local reports, the price of a kilogram of chicken has stabilised at around 19 dirhams (US$1.93) in markets across Morocco, starkly contrasting to the unprecedented highs seen earlier this year.

Wholesale market prices have also fallen, with reports indicating that they dropped to 16 dirhams per kilogram by the end of September. 

This reduction is attributed to a fall in demand and the restoration of balance in the poultry market, which had experienced significant disruptions in recent months.

Earlier this year, consumers were hit hard as poultry prices skyrocketed to an eye-watering 30 dirhams (US$3.06) per kilogram in August. 

The surge was driven by an increased demand, exacerbated by the soaring cost of red meat and the return of the Moroccan diaspora during the summer holidays.

However, with demand stabilising and market conditions improving, the poultry sector is again finding its footing. However, only some are optimistic about the future. 

Ali Shtour, President of the Moroccan Association for Consumer Rights Defense, has raised concerns about potential price manipulation by speculators. 

He urged the government to maintain strict oversight to ensure a fair balance between supply and demand in the poultry market.

Morocco’s poultry sector has grown significantly over the past four decades, with production skyrocketing from just 55,000 tons in 1981 to an impressive 625,000 tons by 2021. 

The country’s poultry population stood at around 217 million in 2021, cementing chickens as the country’s most common livestock. 

However, despite the sector’s growth, backyard poultry farming remains common in rural areas, though it contributes only marginally to national output.

Yet, the sector’s journey has not been without setbacks. In 2022, an overproduction crisis sent poultry prices plummeting to as low as 11.50 dirhams (US$1.13) per bird, well below the production cost of 16 dirhams (US$1.63) per kilogram. 

This price collapse led to significant financial losses for farmers, underscoring the industry’s volatility.

The recent price drops reflect a fragile balance in Morocco’s poultry market. While consumers benefit from more affordable prices, producers remain wary of the potential for market instability. 

The sector was already strained by the impact of the Covid-19 pandemic, which caused significant financial disruptions. 

A study by researchers Zineb Zaime and Lhoucine Ouahi from Cadi Ayyad University revealed that despite its surface resilience, the Moroccan poultry sector was deeply affected by the pandemic.

Their study highlights that the poultry sector, which includes feed mill manufacturers, hatcheries, industrial poultry slaughterers, and egg and poultry meat producers, suffered considerable financial and economic stress during the pandemic.

Interviews with industry professionals revealed that the crisis exposed deficiencies in the sector’s economic model, which needs to shift toward demand-based production informed by market studies rather than relying on random production patterns.

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