The Moroccan Competition Council has identified significant irregularities in the poultry feed market, citing practices that impede fair competition and drive up costs, according to a recent report released by the council.
The findings reveal several “irregularities” within the sector, including pricing inconsistencies and structural weaknesses, which have affected farmers and the overall market.
The report highlighted a significant rise in poultry prices, driven by companies adjusting prices to offset increasing raw material costs, which has led to a market ripple effect. The investigation also found that many chick producers are reliant on feed suppliers linked to their parent holding companies, limiting customer choice and mainly serving livestock farmers instead of independent feed retailers.
Eight dominant companies control 75% of the poultry feed market, severely limiting competition from smaller businesses, according to the council.
The council highlighted the lack of organization within the sector, with most entities operating independently rather than in structured groups. This fragmentation has worsened inefficiencies within Morocco’s poultry and livestock industry.
From 2018 to 2024, feed companies adjusted prices without a clear pattern, but the council observed surprising synchronicity in these adjustments among leading companies, suggesting shared supply chain constraints and overlapping raw material sources. Despite varying implementation, pricing strategies across the market showed a noticeable convergence.
The research criticized the outdated equipment and lack of capital among farmers, which weakens their bargaining power in feed price negotiations, leading many to rely on lower-quality feed and reducing productivity.
Despite tariff agreements with the European Union, Morocco relies on importing raw feed ingredients and additives instead of finished mixed feed products, restricting external competition and market diversification.
The report urged policymakers to foster competition, enhance sector organization, and support small farmers financially. It argued these measures would address systemic challenges, creating a more equitable and resilient poultry feed market with fairer pricing and improved outcomes for all stakeholders.