The crisis gripping Algeria’s poultry sector is intensifying, placing poultry farmers in an increasingly precarious financial situation. On Monday, January 27, the selling price of live chicken ranged from 225 DA to 240 DA per kilogram wholesale, resulting in a net loss of 45 DA to 65 DA per kilogram.
This alarming situation is the result of a combination of factors, primarily an oversupply and the market’s inability to absorb all the quantities produced. One of the main problems faced by producers is the market’s excess supply.
Naturally, during periods of high production, prices tend to fall; however, in the case of Algerian poultry farmers, this abundant supply meets a demand that cannot keep up. Consumers, seeing these price drops, become more selective and hesitate to buy as much as before. In this context, the competitiveness of poultry farmers is undermined, and profit margins erode.
Compounding this already difficult situation is the government’s recent decision to import 15,000 tonnes of frozen chicken, scheduled for the holy month of Ramadan. This move, although intended to stabilize the market and ensure supply, might further complicate matters for domestic producers. As poultry imports enter the market, further depressing live chicken prices, poultry farmers see their recovery prospects diminish.
Faced with such conditions, the threat of bankruptcy looms heavily over poultry farmers. They are pleading for government intervention, fearing that a lack of effective measures could lead to irreparable losses for many in the industry. There is a real risk that the current crisis could drive an increasing number of poultry farms towards permanent closure.
The poultry crisis requires immediate attention and concrete solutions to spur sector recovery. It is crucial that measures be implemented to regulate supply, support local producers, and restore fair prices to prevent the complete destabilization of this vital sector for the country’s economy and its population’s food security.