The Hidden Issues Behind Soaring Chicken Prices in Algeria

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Algeria, like many countries, is facing rising prices for chicken, a widely consumed staple. During the current year, chicken prices have seen significant fluctuation, causing concern among consumers and authorities.

A Worrying Price Fluctuation

In recent weeks, chicken prices in Algeria have reached worrying levels, exceeding the 600 DA per kilo mark. This price increase has raised concerns among consumers and led the Minister of Agriculture to call an emergency meeting with stakeholders in the poultry industry.

According to Ali Benchaïba, president of the FNA, this price increase mainly results from a “regulation problem”. To fully understand the situation, it is necessary to go back in time.

The Origins of the Price Soar

The surge in chicken prices in Algeria is partly attributable to the suspension of imports of broiler breeder chicks from Spain, the main supplier, the previous year. This suspension led to supply difficulties from new suppliers, thus disrupting local production.

In Algeria, the demand for broiler breeder chicks is estimated at around six million. However, only a third of this demand is produced locally, with the two main domestic producers supplying around 25-30% of demand, with the remainder dependent on imports.

The broiler breeder production cycle, from the birth of the chick to the production of the broiler for consumption, takes up to a year. The disruption to the supply of breeding chicks the previous year has had a significant impact on current availability.

The Challenges of the Poultry Industry

Another major challenge facing the poultry industry in Algeria is the identification of breeders. According to Ali Benchaïba, around 80% of breeders are not identified. The FNA is currently working in collaboration with the Ministry of Agriculture to regularize the situation by encouraging breeders to declare their activities and simplifying the conditions for obtaining approvals.

The president of the FNA also calls on the authorities to put in place incentive measures to encourage investors to engage in the production of broiler breeding chicks in Algeria. These measures could include tax exemptions similar to those applied in other agricultural sectors.

Outlook for Chicken Prices

Despite the current rise in chicken prices, Ali Benchaïba foresees a gradual decline towards the end of the year. Currently, public and private agencies import hatching eggs for broiler production over a period of 65 days. Although these imports have started, they are not yet sufficient to meet national demand. However, prices should drop to below 500 DA.

The surge in chicken prices in Algeria is the result of several factors, including disruptions in the supply of broiler breeder chicks and challenges in identifying breeders. Despite the challenges, Algeria has the potential to produce enough breeding chicks to meet national demand, provided appropriate measures are taken to support the poultry industry. The situation is evolving rapidly, and it is essential to closely monitor future developments in the Algerian chicken market.