Although the issues of high production costs and falling profitability are facing poultry producers across the world, the situation has become particularly acute in Morocco.
“A real disaster” is how the national poultry association described the current situation, reports Morocco World News.
According to the organization’s president Said Jennah, overproduction led to a drop in chicken selling prices to no more than 11.50 dirham (MAD; US$1.13) per bird. With cost of production averaging MAD16, farmers are losing as much as MAD5.5 per kilo.
In order to protect poultry farmers from a further deterioration in the situation, the association is urging the government of Morocco to take further action. Among the measures called for is the establishment of a legal framework that allows poultry producers to determine selling prices.
Across the world, soaring prices of food, energy and other goods are widely leading to economic crisis.
In Morocco, consumers were complaining about the very high prices of livestock and poultry ahead to the Eid al-Adha celebration feasts, the source reports.
Already one month ago, Le Site Info was reporting that chicken prices were as high as MAD20 per kilo in Casablanca.
Poor harvests, rising feed costs
The feed cost situation is exacerbated by poor growing conditions for Moroccan wheat and barley crops earlier this year.
A first estimate from the agriculture ministry cited by the USDA Foreign Agricultural Service (FAS) puts the total harvest for these crops at 3.2 million metric tons (mmt) this year. Compared with 10.2mmt, this is 60% lower than the previous year.
In order to meet future grain demand, the Moroccan government has introduced measures to build up a wheat stock in the country. According to FAS, it is also supporting the marketing of home-grown wheat, and controlling price rises in imported bread wheat.
Overview of poultry meat sector in Morocco
National production of chicken meat has expanded steadily over recent years, according to the statistics arm of the United Nations’ Food and Agriculture Organization, FAOstat.
Its data point to growth of around 35% between 610,000 metric tons (mt) and 821,500mt in 2020 — the most recent year for which figures have been published. Over this period, the number of chickens produced per year has risen from 577 million to 630 million.
According to the WATTPoultry.com’s Top Poultry Companies survey, the largest poultry company in Morocco is Alf Sahel s.a.r.l. With annual production of 30 million birds, this company is produces the 12th highest output on the African continent.
Around one month ago, another Moroccan poultry company received significant investment for its future expansion, particularly into West Africa.
Mitsui Group of Japan has invested a further US$41 million in Zalar Holding, reported African Law & Business.
Headquartered in Fez, Zalar has operations over the whole poultry production chain.
As part of its investment strategy in poultry and feed production in Asia and Africa, Mitsui acquired its first JPY3 billion in shares of Zalar in 2018.
